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Aligning APEC's Investment Agenda with Global Goals for Long-Term Prosperity By Faizal Mohm Yusof, Convenor, APEC Investment Experts Group The IEG’s first meeting in Gyeongju, Korea sets the stage for a crucial dialogue on fostering sustainable and inclusive investment across the region. With global economic uncertainty and evolving investment landscapes, APEC economies are focusing on strategies that ensure resilience, connectivity, and long-term prosperity. Economic and investment outlook for 2025 As the Investment Experts Group (IEG) continues its work this year, it is imperative to reflect on the economic and investment landscape of the past year to guide our deliberations and strategies. In 2024, the global economy maintained a 2.8 percent growth rate, consistent with the previous year. While this reflects resilience, it remains below the pre-pandemic average of 3.2 percent, indicating persistent constraints such as weak investment, sluggish productivity, and elevated debt level, as highlighted in the United Nations' World Economic Situation and Prospects 2025. The APEC region continued to demonstrate robust economic activity, with real GDP growth of 4.0 percent in 2024, surpassing the global average. This was largely driven by developing and emerging economies, some of which experienced growth rates exceeding 5 percent. According to the Asia-Pacific Trade and Investment Trends 2024/2025 on Trade in Goods and Commercial Services report by the United Nations Economic and Social Commission for Asia and the Pacific (UNCTAD), the key contributors to this growth include rising intra-regional trade, investment in digital economies, and infrastructure development. However, in terms of investment, challenges remain. The World Investment Report 2024 by UNCTAD revealed that global FDI declined by 2 percent, reaching $1.3 trillion in 2023, due to economic slowdowns and rising geopolitical tensions. While Greenfield FDI inflows in the APEC region fell by 14 percent in 2024, with Southeast Asia experiencing a steeper decline of 33 percent, it is important to note that 2023 was a record year for FDI inflows. The 2024 figures still demonstrate the region's inherent economic strength and attractiveness to investors. Meanwhile, the Chief Economists Outlook: September 2024 by the World Economic Forum highlighted signs of global economic stabilization amid political volatility and rising debt concerns. For APEC economies, this means reassessing trade priorities and investment strategies to foster resilience and sustainable growth in an evolving global landscape. Approach to resilient investment At the 2024 APEC Economic Leaders’ Week, APEC Leaders and Ministers adopted the Ichma Statement, which reaffirms commitments to advancing the Free Trade Area of the Asia-Pacific (FTAAP) Agenda. The statement calls for strengthening cross-fora collaboration, and IEG has a role in supporting this through investment facilitation, regulatory coherence, and sustainable investment frameworks. In today’s evolving economic landscape, it is vital that we leverage our collective expertise to navigate challenges and capitalize on new investment opportunities. As policymakers, our responsibility is to drive inclusive and sustainable growth, ensuring that APEC economies remain resilient and adaptable to global shifts. Through collaboration, knowledge-sharing, and innovative solutions, we can build an environment that fosters long-term prosperity across the region. Promoting inclusive and sustainable investment As we transition from APEC 2024 under Peru’s leadership to APEC 2025 under Korea’s stewardship, it is crucial to align last year’s key ministerial decisions with this year’s priorities. Korea’s APEC 2025 theme, “Building a Sustainable Tomorrow,” is structured around three key priorities: Connect, Innovate, and Prosper. Connect, strengthening trade and investment connectivity through transparent, predictable, and stable investment policies. Innovate, harnessing AI and digital transformation to modernize investment facilitation. Prosper, promoting inclusive and sustainable investments to enhance long-term economic resilience. In line with these priorities, the IEG will focus on several key initiatives in 2025. Firstly, on investment facilitation and connectivity, the Investment Facilitation Action Plan Upgrade led by Japan will continue to enhance transparency, efficiency, and inclusivity in investment policies across APEC economies. Secondly, on digital transformation and sustainable finance, the APEC Finance Ministers’ Meeting in 2024 has emphasized the need for sustainable finance and digital investment tools. Korea’s “AI Year” initiative further highlights the role of technology in investment facilitation. IEG can support this by promoting ESG-aligned investments, fintech adoption, and digital investment platforms to improve regulatory transparency and investment efficiency. Lastly, on sustainable and inclusive investment, the ministers also reaffirmed the importance of inclusive and responsible investment policies, ensuring that economic prosperity benefits all, including MSMEs and underrepresented groups. The IEG can contribute by advancing the Inclusive and Responsible Business and Investment (IRBI) Initiative, ensuring that investment policies prioritize inclusivity, sustainability, and long-term economic stability. Future directions As we advance APEC’s agenda in 2025, we must remain steadfast in our commitment to economic and technical cooperation, ensuring that investment policies remain inclusive, interconnected, and aligned with environmental sustainability. Key initiatives such as the Investor-State Dispute Settlement Reform, the Investment Facilitation for Development Agreement by the World Trade Organization, and the IRBI will shape the future investment landscape within APEC. Trade and investment are the cornerstones of economic progress. Convening under the IEG, it is crucial that we align our efforts with APEC’s long-term strategies, including the Aotearoa Plan of Action, the Bangkok Goals, the Putrajaya Vision 2040, and the Ichma Statement. Through strategic cooperation, we can ensure that investment remains a driver of regional growth, stability, and shared prosperity. Moving forward, IEG must continue to enhance investment facilitation and foster regional collaboration to align with APEC’s broader economic goals. I encourage all IEG members to actively participate, share insights, and collaborate to drive regional growth and impactful outcomes. This forum is an opportunity to strengthen cooperation, build trust, and advance APEC’s investment agenda through sustainable growth, innovation, and regional integration. *** Faizal Mohd Yusof is the convenor of the APEC Investment Experts Group. News Releases • Features • Publications • Events • Photos • Videos
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