How Putrajaya Vision 2040 Can Help the Asia-Pacific Region
In November 2020, the Asia-Pacific Economic Cooperation (APEC), an inter-governmental forum for 21 member economies to promote free trade and greater prosperity, adopted the Putrajaya Vision 2040.
The APEC Putrajaya Vision 2040 is a 20-year growth vision aiming to build an open, dynamic, resilient, and peaceful region by 2040, using the following drivers: trade and investment, innovation and digitalization, and sustainable, inclusive growth. So how exactly will this vision help the countries that make up the Asia-Pacific region?
Create a Single Market with a Seamless Supply Chain
The APEC member countries account for nearly 60% of global GDP. Thus, the world’s top economies like China, Canada, India, Japan, and the US signing the Putrajaya Vision to achieve the Bogor Goals via the Free Trade Area of the Asia-Pacific (FTAAP) agenda signals a huge win for the Asia-Pacific region. It will help access a fastidious supply chain, enormous labor pool, multiplayer investors, and a large market for products and services.
Revamp the Multilateral Trading System
The Putrajaya Vision will also help strengthen the existing Regional Comprehensive Economic Partnership (RCEP), Regional Trade Agreements (RTAs), and Free Trade Agreements (FTAs). This is a smart economic decision that will repair trade relations in the region, which have been soured by the US-China trade war.
Serve as a Post-COVID-19 Recovery Solution
Multilateral agreements using the RTAs and FTAs to further trade, investment, and sustainable, inclusive growth will help the Asia-Pacific region’s post-COVID-19 economic recovery as well. The pledge by APEC leaders to not backtrack nor pursue protectionism measures comes in good faith and as a noble gesture, making it highly beneficial to the economies of India, Fiji, Maldives, and other developing Asian countries.
Unfettered Access to Finance and Investors
In the Asia-Pacific region, SMEs account for 98% of all enterprises and employ 50% of the workforce, contributing 17% to the national GDP in low-income countries and about 40 to 50% in higher-income countries. However, their roles have been significantly hampered due to a lack of access to finance.
Fortunately, the Putrajaya Vision would resolve financing issues as APEC countries will be more open to investments while fostering the diversification of infrastructure finance, boosting trade and investment in the Asia-Pacific region.
Enhance Digital Innovation
If the Putrajaya Vision successfully fosters a digital and all-inclusive agenda as it plans on doing, it means developing Asian countries will have access to digital technology that will enhance machine learning, artificial intelligence, robotics, and other technological and digital innovations.
This will thus improve several industries and sectors of the economy, as well as the future of living and working within the Asia-Pacific region.
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