Apec business leaders have urged companies to strengthen resilience as geopolitical conflicts, supply-chain disruptions and climate risks create growing uncertainty across the Asia-Pacific economy.
In an interview with the Bangkok Post during the third meeting of the Apec Business Advisory Council (ABAC 3) in Bangkok, Eduardo Pedrosa, executive director of the Asia-Pacific Economic Cooperation (Apec) Secretariat, outlined measures including technology adoption and preparations for future disruptions.
While trade remained a central concern, discussions also covered artificial intelligence, the digital economy and the potential impact of quantum computing.
Mr Pedrosa said businesses were already examining how the technology could reshape the regional economy, with quantum computing likely to be commercially relevant around 2029 and representing a major leap in computing power.
Cybersecurity was also a major concern as new technologies become increasingly integrated into the economy.
"Businesses are the ones actively looking at this next wave of technology," he said, highlighting ABAC's role in bringing private-sector perspectives into Apec policymaking.
However, Mr Pedrosa said technology was only one part of the resilience challenge.
The Covid-19 pandemic had exposed weaknesses in global supply chains, while conflicts in the Middle East had pushed up oil and gas prices and disrupted the movement of essential goods.
Thailand could face particular risks from disruption to fertiliser supplies, he said.
Although the country remains a major food exporter, its fertiliser imports from the Middle East could be affected by the conflict, with Thailand struggling to bring fertiliser-carrying vessels through the Strait of Hormuz.
Businesses needed to diversify suppliers and avoid excessive dependence on a single source or region. Governments could also strengthen resilience by making it easier for companies to establish operations and find alternative suppliers.
Mr Pedrosa said Apec was promoting measures such as simplified licensing and permitting procedures, with trade facilitation among the easiest areas for practical progress.
"Currently, the easiest area to work on is trade facilitation. We are pushing for paperless, electronic customs documentation to replace the hundreds of time-consuming manual documents businesses currently have to complete," he said.
"If there are too many steps, an investor might choose to go elsewhere," he added, stressing the need to facilitate both international and domestic business.
Mr Pedrosa said Thailand's traditional position as a middle power and consensus builder could help advance regional cooperation.
Climate and natural disasters add another layer of risk. The Asia-Pacific region has experienced extreme heat, flooding in Thailand and cyclones in the Philippines, while changing weather patterns could affect agricultural production and farming communities.
"The key word is resilience," Mr Pedrosa said. "To be resilient is to be prepared for anything, including natural disasters." Adaptation and resilient infrastructure were necessary alongside long-term efforts to mitigate climate change.
Thailand's earlier Apec chairmanship also produced the Bangkok Goals on Bio-Circular-Green (BCG) Economy, which provide a framework for advancing sustainability and inclusion.
Mr Pedrosa said the BCG approach was important as consumers and major retailers paid greater attention to sustainable production and supply chains.
It could also help businesses respond to energy and fertiliser shortages by encouraging alternative energy sources and more sustainable agricultural practices.
While consumers were concerned about energy costs and daily expenses, he said these issues were closely linked to resilience. Businesses dependent on imported oil needed to consider renewable energy, while farmers facing higher fertiliser costs needed to explore more sustainable solutions.
Apec will hold a meeting on food security on Aug 24 and 25 in Hangzhou, China, where members are expected to discuss agricultural technology sharing and challenges facing the sector.
