PwC makes recommendations for the future of ASEAN

Source: PwC Growth Markets Centre The Future of ASEAN - Time to Act web page. ASEAN's timeline since inception, by GDP, from the World Economic Outlook database, IMF, October 2017. 2018 figures are available.

PwC’s Growth Markets Centre has launched its 2018 annual report, The Future of ASEAN – Time to Act, during the official opening of PwC Singapore’s new office premises at Marina One on May 11.

The Future of ASEAN – Time to Act provides a view of the policies that the Association of Southeast Asian Nations (ASEAN) governments ought to consider to ensure the region continues to attract investment and strategies for future growth across seven sectors – automotive, financial services, consumer goods, medical devices, refined fuels, telecommunications and transportation.

2017 marked the 50th anniversary of ASEAN, comprising Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam. ASEAN has not only doubled its membership since inception, but has also successfully weathered both the Asian financial crisis of 1997 and the global economic crisis of 2008–2009 to become the sixth-largest economy globally. 

However, a number of challenges, including a slowdown in short-term economic growth, weak workforce productivity, an ageing population, an over dependence on external trade and major voids in infrastructure and national institutions raise questions about the sustainability of ASEAN’s growth story.

The Future of ASEAN – Time to Act presents a view as to how ASEAN needs to progress from an era of passive growth, and take more proactive measures to continue to attract investments, develop institutions, and evolve its people and technological capabilities. The private sector will also have a major role to play in strengthening the region’s growth prospects over the coming years, but this will require companies not only to provide new products and services, to meet varying consumer preferences, but also to work more closely with governments to develop the right conditions for businesses to prosper.

Going forward, PwC sees growth opportunities for the private sector across a number of industries in ASEAN. However, given the dynamics and challenges of ASEAN, companies will need to adopt innovative strategies to succeed, the consultancy said. Common themes in the strategies include:

Localisation

Transition to more localised sourcing, productions and sales through the development of regional hubs to serve ASEAN consumers. (e.g. automotive and medical devices). 

Digitalisation

Adoption of digital capabilities to improve the production and transportation of goods and services, as well as the communication with consumers and businesses (e.g. financial services, consumer goods and telecommunications).

Partnerships and alliances

Development of partnerships and alliances, particularly cross sector and with industry disruptors (e.g. fintech), as companies try to stay relevant and competitive whilst meeting consumers expectations in a profitable manner (e.g. refined fuels and transportation).

David Wijeratne, Partner and PwC’s Growth Markets Centre Leader says, “ASEAN can be proud of what it has achieved in the past 50 years, but the time of passive growth is over. Global growth needs ASEAN to fulfil its potential and grab hold of its future, now is the time to act.”

PwC’s Growth Markets Centre is a global team which supports companies navigating the ever changing complexities of entering and expanding into and from developing markets. 

Explore:

Download the Future of ASEAN – Time to Act report

PwC's new office in Singapore is on levels nine to 13 at Marina One.

Seven guidelines for a healthy gut

The US-based non-profit Physicians Committee has released several guidelines for maintaining a healthy microbiota, following the No Guts, No Glory: the Microbiome in Diabetes continuing medical education presentation at the International Conference on Nutrition in Medicine (ICNM). 

The seven guidelines are:

Build meals around plant-based foods: vegetables, fruits, whole grains, and legumes
This plant-based foundation supports symbiosis, or microbial harmony, in our gut. A thriving microbiota helps maximise absorption of nutrients and vitamins, while regulating immune function, inflammation, hormones, mood, and behaviour.

Aim to consume at least 50 to 55g of fibre each day
Historic populations consumed nearly three to four times as much fibre as we do today. Increasing dietary fiber intake by at least 14g a day decreases net energy intake by 10%.

Consume at least 5 to 8g of plant-based prebiotics each day
Good sources include Jerusalem artichokes, chicory root, raw dandelion greens, leeks, onions, garlic asparagus, whole wheat, beans, bananas, oats, and soybeans.

Add fermented foods, or probiotics, to the diet
Dietary sources include kimchi, sauerkraut, miso, tempeh, soy sauce, water kefir, and kombucha.

Avoid red meat, high-fat dairy products, fried foods, food additives, and advanced glycation end products (AGEs). AGEs include proteins and fats exposed to high heat and sugar molecules, like sausages and candy bars.

Limit fat intake, especially if there is a risk for type 2 diabetes
Instead, opt for healthful sources, including an ounce of nuts or seeds or a small amount of avocado.

Use antibiotics only when necessary and avoid using for viral illnesses
Overexposure to antibiotics destroys good gut bacteria, along with the bad.

The microbiota, composed of 1,000 different species, weighs between 1.8 and 2.7kg and helps maintain internal homeostasis. What we eat feeds beneficial bacteria that respond to changes in just 24 hours. This influences both immune function and our risk for chronic disease.

“The microbiome is a complex field, but we can manipulate our dietary choices to create colonies where beneficial bacteria flourish,” says Meghan Jardine, Associate Director of diabetes nutrition education for the Physicians Committee for Responsible Medicine. “Whether you want to treat diabetes, reduce the risk of a heart attack, or bolster athletic performance, you can start by building meals around colourful, plant-based foods.”


Interested?

Download Seven Dietary Guidelines for a Healthy Microbiota

Hashtag: #ICNM16

PwC Singapore offers recommendations to enhance local economy

PwC Singapore has shared recommendations for the upcoming Singapore Budget 2016 with the Ministry of Finance and Monetary Authority of Singapore.

Source: PwC Singapore.

Chris Woo, Tax Leader, PwC Singapore, said: “In order to sustain Singapore’s future growth and success, it is vital we maintain a leading, vibrant economy amidst greater competition with our regional counterparts. Singapore needs to sharpen its competitive edge by providing a level of certainty to foreign investors and Singapore based multinationals. This must be done while creating more value in Singapore by encouraging entrepreneurship and innovation.

“The government has been actively encouraging entrepreneurship in Singapore, but there is still room to do more. Incentives could be broadened and focused on rewarding growth. Share options and stock award schemes can promote greater owner-entrepreneurial spirit.”

PwC suggests a more liberal tax treatment of expenses for new ventures to spur innovation to encourage businesses to develop innovative capabilities in this rapidly evolving economy. "When introducing this, anti-abuse measures must continue to be taken into consideration,” Woo said.

Another recommendation is enhancement of the Productivity and Innovation Credit (PIC) scheme. "Many small and medium sized enterprises (SMEs) are just starting on their productivity journey. If the PIC grants or incentives are awarded based on productivity gains, this will encourage SMEs to strive to achieve greater productivity,” Woo explained.

A more liberal approach to the administration of research and development (R&D) tax claims is proposed. "One practical way is to streamline the claims, and one which gives taxpayer’s upfront certainty, is to have a pre-approval process with the relevant agencies. An alternative dispute resolution forum could involve evaluation by an independent panel of experts who will rule on the technical merits of the claim,” Woo elaborated.

“The IP hub master plan is a step in the right direction. When sourcing for financing, IP-backed loan programmes need to revisited to allow SMEs to use IP as collateral, leading to more accessible financing,” Woo added.

“Last but not least the safe harbour rule for gains from disposals of equity instruments is expiring in 2017. Making the safe harbour rule a permanent feature of the tax system will provide investors with certainty that their capital gains will not be taxed and help companies plan for the long-term.”

LinkedIn offers advice on minimising talent mismatch

A global study by PwC commissioned by LinkedIn, the world’s largest professional network on the Internet, has included recommendations for professionals, employers, educators and government on poor talent adaptability – the inability for people to retrain for new skills or switch industries.

The study, Adapt to Survive, analyses interactions from LinkedIn’s network of 277 million professionals and information on 2,600 employers from PwC’s Saratoga database, a resource for people and performance metrics, to establish how 11 markets align talent with opportunity.

According to LinkedIn, professionals, employers, educators and governments can position themselves to minimise the possibility of talent mismatches. 
 
Professionals

The rise of social media and an increasingly connected global workforce means it’s never been easier for people to identify new opportunities, plan to develop the skills, and create a network that will allow them to transition into new roles. This could be as simple as staying up-to-speed with companies that might be hiring in your area, or identifying emerging sectors around the world that could present an opportunity for a dramatic career change.

Employers

Talent is the number one factor in competitive success for business, and businesses need to move faster to adapt to new market forces. An existing mismatch of talent in the wrong roles creates a window of opportunity for employers able to identify and attract the right talent to their organisation. 

Social media has made it possible to identify all the relevant candidates – both active and passive – many of whom may not be doing the jobs they want. Employers should use talent analytics to identify the hard and soft skills that are central to the business strategy today and in the future, allowing them to hire strategically.

Educators

Education never stops, and educators should be looking at what skills are in growing demand and which jobs are emerging in the global workforce. They should then adapt curricula so students are equipped with relevant skills when they leave formal education.

Governments

Governments should play an active role in shaping a national mindset that values, nurtures and rewards adaptability. They need to use the levers at their disposal such as employment and immigration laws, as well as proactively shaping education and training systems.