SME financing, infrastructure investments top CAP priorities

CEBU, Philippines - The Asia-Pacific Economic Cooperation (APEC) Business Advisory Council (ABAC) has endorsed the Cebu Action Plan, telling finance ministers and private sector leaders to collaborate to achieve the goals of the 10-year development roadmap.

In a report endorsing the CAP, ABAC told APEC finance officials to closely focus on issues such as expanding small and medium enterprise (SME) and supply chain financing and infrastructure investment, improving resilience of enterprises and developing capital markets as priorities for the road map.

It has also recommended APEC finance ministers to address other key areas such as disaster risk financing, expansion of financial inclusion, development of pension and insurance sectors, promotion of private sector investment in infrastructure. 

"These are the critical steps that APEC must take to catalyze the inclusive and broad-based growth that will transform our region into a strong and resilient engine of the global economy," ABAC, APEC’s private sector advisory council, said in a statement. ABAC provides advice on the implementation of APEC's agenda and specific business sector priorities.

For SME financing, ABAC proposed the creation of credit information systems to allow small businessmen use their transaction records in getting loans and movable assets as collateral.

ABAC said the Asia-Pacific Financial Forum (APFF) should also be created to promote policies and regulations relating to trade and supply chain financing. It said global bank experts, industry groups and multilateral institutions have committed to share their knowledge with policy makers, SMEs, lenders and investors.

ABAC also highlights the private sector's vital role especially in developing the capital markets, which it deemed as crucial for infrastructure funding and stability of financial system.

ABAC also urged governments to use APFF as a platform to back the launch of the Asia Region Funds Passport, which will open the Philippines market, for instance, to investment products from across the region and allow the country's investment firms to sell products to the regional market. 

ABAC further proposed that CAP make concrete methods to expand the coverage of micro-insurance and disaster risk financing among member economies.

The CAP seeks to achieve four key objectives: financial integration, financial resiliency, fiscal transparency and policy reform and infrastructure development and financing. CAP is set to be launched and approved during the Finance Ministerial Meeting in Cebu on September 9-11. (FREEMAN)