Services sector vital to APEC economies amid global slowdown — NEDA

The services sector is important in supporting member economies of the Asia-Pacific Economic Cooperation (APEC) amid a slower global growth and weaker business investment, according to Philippines' chief economic planner.

 

"The services sector is a major contributor to output and productivity growth,” National Economic and Development Authority Director General Arsenio Balisacan told delegates to the APEC Regional Conference of Services Coalitions on Monday.

 

The sector that generates value added to other industries like manufacturing accounts for 66 percent of the combined gross domestic product of the group, said Anthony Nightingale, Hong Kong representative to the APEC Businesses Advisory Council (ABAC). 

 

Services also contributes a significant share of employment opportunities, Balisacan said. In the Philippines, for instance, the sector supposedly employs around 21 million or 54 percent of the workforce. 

 

“Uncompetitive services lead to uncompetitive manufacturing of products… All of us here today recognise the importance of opening up the services sector,” Nightingale told the conference delegates. 

 

Singapore Business Confederation Chief Executive Ho Meng Kit cited the facilitation of cross-labor participation and the collaboration of government agencies among issues confronting the services sector. 

 

APEC will discuss issues relating to services during the Structural Reform Ministerial Meeting (SRMM) on Monday. The discussion will take off from a paper prepared by the Philippines, Australia and Peru.

 

The group will also launch the Coalition of Services Organization to represent stakeholders and promote a broader understanding of opportunities and measures to realise gains from the sector.

 

“The services sector faces unique and significant barriers that, in many cases, are regulatory in nature. If a regulation is too restrictive and prescriptive, then it will hinder innovation,” said Balisacan, chairman of this year’s SRMM. —ALG, GMA News