How ABAC’s ‘Opportunity Mindset’ Fuels Public-Private Collaboration

Introduction by Dominic Ng, Chair of ABAC and CEO of East West Bank

THE APEC BUSINESS ADVISORY COUNCIL (ABAC) is the private-sector arm of the Asia-Pacific Economic Cooperation. Its mandate is to advise leaders and other APEC officials on business issues of interest.

Established by APEC in 1995, the Council provides recommendations to leaders through annual dialogue, counseling APEC officials on private-sector concerns and priorities.

As Chair in 2023, I have encouraged my colleagues to embrace our core theme: Equity, Sustainability, Opportunity. It guides all our projects to create a more interconnected, inclusive, and environmentally conscious world in hopes to bring about positive change.

On behalf of Equity, the Council recognizes the unique circumstances of different people across the APEC region, and aims to help them access the tools they need to strengthen their respective communities in an increasingly integrated world.

On behalf of Sustainability, the Council champions pro-growth economic policies, but only in balance with environmental considerations around climate change. As a business organization, ABAC works to highlight the private sector’s role in contributing to sustainability efforts throughout our region.

And, on behalf of Opportunity, the Council promotes reforms that reduce burdensome regulations within our region, making it easier to do business and increasing access to training, technology, and capital. ABAC nurtures an “opportunity mindset” when it comes to open markets, knowing that trade leads to growth and prosperity.

I am proud of ABAC’s accomplishments this year, driven by the unwavering commitment of my colleagues. We hope that the participants of this year’s CEO Summit may gain actionable inspiration from our efforts, as we continue to work toward a more equitable and sustainable world, filled with opportunity for all.

The following perspectives were shared by ABAC representatives from three economies: Gabby Costigan of Australia, Julia Torreblanca of Peru, and Wei Meng of Singapore. Their responses have been edited for length and clarity.

What does it mean to you to represent your economy as an ABAC member?

GABBY COSTIGAN: At the ABAC table, I can collaborate and build relationships with my peers from [economies] that Australia counts as neighbors and partners to help advance our economics and the greater good.

JULIA TORREBLANCA: I see it as an opportunity to contribute to shaping the economic agenda for our region, leveraging our unique strengths to benefit our economy and the broader APEC community.

WAI MENG: It’s about sharing our best practices in the economic, financial, and social spheres, on what has worked for us and how these could potentially benefit other APEC member economies.

Why is public-private collaboration for your industry and your economy important in today’s economic environment?

GABBY COSTIGAN: Simply put: the challenges we face in the world are too big for governments to solve alone. And the opportunities we have are too important to squander by working individually. I am proud to be a part of the defense industry, where public-private partnerships are the model. They’re not just desired, but required for nations to provide security to their people. Admittedly, we need to improve how we work together more effectively to meet quickly evolving and dangerous threats, but there’s a clear recognition all around that global security rests on our partnership.

JULIA TORREBLANCA: Public-private collaboration is vital for the mining industry and the Peruvian economy, especially given the sector’s significant role in our nation’s development. Our sector also plays a fundamental role in the energy transition towards low-carbon economic models, which are common regional goals. This collaboration also helps streamline regulations, promote responsible mining practices, and develop infrastructure, which is crucial for economic growth and job creation.

WAI MENG: Public-private collaborations have been crucial for Singapore to maintain its competitive edge in the global tech landscape. Partnerships between the Singaporean government and tech companies gave rise to innovative solutions across sectors such as e-commerce, ride-hailing, and fintech.

Collaboration has also developed talent pipelines to sustain a skilled workforce. With the advent of AI, it is paramount that the public-private sectors come together to unlock the promise of AI while developing coherent policies and practices to prevent abuse.

Issues like climate change, technological transformation, and economic inclusion require bold, collective responses. How can ABAC and the private sector in APEC economies advance solutions to these challenges?

GABBY COSTIGAN: I think it’s sometimes easier for a business to take a longer-term view of issues, and have big bold ideas that are less constrained by the daily politics of governing. It’s been my experience that we all work hard to complement the work of governments, and challenge them to reach further and be more creative in their responses to these big issues. APEC may not always be the central forum for discussing and solving global issues, but its 21 members include the largest most dynamic economies in the world and a number of smaller developing and emerging ones, which leads to unique solutions with broad value.

JULIA TORREBLANCA: ABAC Peru’s commitment is to advocate for the responsible production of critical minerals for energy transition and sustainable mining practices, invest significantly in clean energy solutions, and actively promote digitalization within public and private sectors. Furthermore, we recognize the importance of supporting policies that foster inclusive growth, including reskilling initiatives and initiatives aimed at enhancing women’s economic inclusion. These efforts are essential to ensure that the benefits stemming from economic growth are accessible to all strata of society.

WAI MENG: Collaboration between the private sector and governments must be fortified. By fostering closer ties, we can leverage the strengths and resources of both sectors to drive impactful solutions that neither the private sector nor an economy alone can address.

In an era where trust among stakeholders is often lacking, building trust is paramount. ABAC can champion initiatives that promote transparency, ethical practices, and responsible leadership, to enhance confidence within and across economies. Rapidly evolving challenges require policymakers to be more agile in their policymaking and regulatory responses. ABAC will continue to advocate for harmonized and forward-looking policies that can adapt to changing circumstances.

What issues or challenges would you like to see APEC take on in the next three years?

GABBY COSTIGAN: I’ve talked about some of them already: climate, cybersecurity, food security, and others. I also think APEC has an opportunity and responsibility to address gender inequality. I want to see the region prioritize addressing the barriers that still exist for women’s economic participation. APEC has elevated these issues since the first Women and the Economy Forum in San Francisco in 2011, and we are making progress. But we’re not anywhere near equality in our countries.

The World Economic Forum’s 2023 Global Gender Gap Report suggests that at our current rate of progress, it will take 169 years to close the gender gap for economic participation and opportunity. That’s not acceptable for my generation, and our daughters’, and their daughters’. It’s not just a matter of fairness; closing that gap could mean adding up to $28 trillion USD to global GDP or nearly $17 trillion USD in the Asia-Pacific. Bigger ambitions, concerted collaboration, and capacity building within APEC could make a significant contribution to this effort.

JULIA TORREBLANCA: Over the next three years, APEC should prioritize efforts to bolster regional economic integration, tackle pressing environmental challenges, and champion better education, innovation, and digitalization, all underpinned by an inclusive approach. These critical focal points align with the themes we will champion during Peru’s chairmanship of APEC and ABAC in 2024. I firmly believe that APEC provides an ideal platform to collectively address one of the most significant questions facing our society: How can we attain sustained economic growth while minimizing our carbon footprint and amplifying our positive influence on people’s lives?

WAI MENG: One critical issue I would like to see APEC address in the next three years is the establishment of greater digital trust. As the realms of the physical and digital converge, tremendous opportunities and challenges are emerging. Technologies such as blockchain, artificial intelligence, big data, and the internet of things have accelerated innovation across businesses. However, this push for digitalization has introduced new concerns, particularly related to privacy, security, and data control, as organizations handle increasing volumes of data.

These challenges are compounded by the proliferation of polarized viewpoints, the spread of misinformation, and the rise in cybercrimes. I believe it’s crucial for APEC to make digital trust the foundational element of its digital economy policy frameworks. This approach can counteract the declining confidence in digital interactions, expedite digital transformation, and help bridge the digital divide, ultimately fostering a more secure and prosperous digital future for the region.