>> bob morts, global german and chief executive officer of pwc. >> good morning everyone. thank you to be the early birds. sitting here, fighting all the possibilities so that we guarantee a great conversation and my name is kim way, the moderator for this panel. the gobel economy and state of

the world. i am a moderator coming from [indiscernible] so, this is a big one. the global economy and the state of the world. we could spend 10 days here, but i'm so glad i'm joined by a very capable international business leader, bob moriz, global chairman of pwc. i know bob for a long time, but i think every conversation we had over the years, there is always fresh input given the circumstances. so, bob, i don't want to do too much introduction. everybody has a perspective what the world is like and state of the economy but i want to jump to you about the global supply chain. i know that is on the mind of every business person in this world. what do you think might be some

of the latest science that could help us to analyze better about the real state of the global economy? >> thank you. pleasure to be with everybody today. as pwc, we have been a partner 14 years. the reason is the importance of the country's in the global economy that represented in this room and to your point, let's go back a year. the countsry here, the economy was thought of positive globally and very positive locally. the ceo community had confidence what is going on and here we are a year later and you have a concern about the slowing of the global economy, but yet the representatives and ceo here in these countries are still very positive about the economy and opportunities in their region. that is important. having said that, they can't have a sense of complacency and

let's talk about supply chain in that regard. what happened over the last few years is organizations have worried about the concentration risk in supply chains, the resiliency of supply chains and aspects like that. many governments are try toog insure more on-shoring as well from a policy perspective about the ceo community continued to focus on four major themes. are the economics right? do i have the resiliency and agility of that supply chain from? can i actually greener and cleaner? and likewise, can i get the data to make faster better decisions? that's really important because historically the supply chains and decisions where to go focus oen a couple key ing thes. it was the skills in the country.

is there availability of resources in the country? what does infrastructure look like and they look at the risk factors. is there certainty, regularty risk and ease of doing business? the two new things right now are the green element of that supply chain and the data. that's where digitalization technology and ai will be really important for management teams to think about how can we create opportunities for people to use our supply chains either corporate or the countries that are providing them and that is the upset going forward. >> i'm glad you mapped out important factors. we like to dig into a bit later. about resilience, we have seen political environment changes over the years. now some miner signs things might be getting a bit smoother, for example with [indiscernible] taking place on

the siteline of the events we are seeing here today. what do you think the business leaders would like to say to the political leaders that are coming here during the apec week? what is likely to be the common ground between the business community and the political leaders? >> so, let me take this from three angles. first, as it relates to particularly the big elephant in the room, the china u.s. relationship. we are looking for a de-escalation and more bringing the temperature down in terms of a little more normalcy. can can't be total normal but more normally then the tejz world filled year we had. second is the signs that there is a willingness and wanting to actually continue the trade and let's be fair here for a second. the amount of trade between the two countries and the importance of the two countries of the world, very very important. >> yes, indeed. >> last but not least is make

sure the tech [indiscernible] those that should be talking to one another regularly about policy changes and trade agreements and other aspects are able to talk more freely to enable the infrastructure and trade and direct investment to move forward and that's the importance of today. the second point though is, let's not limit this to just the u.s. and china. the reason this particular group of people gather is that, which is how to get more policies and procedures in place more certainty in place to move forward? you heard from the secretary a moment ago talking about her responsibilities. we'll hear from the prime minter of mulasia. they want less risk and more certainty. last but not least the third element, how you indicate the sign of the direction of

travel, because when you make decisions on supply chain you think about the conditions that exist today, but the conditions that exist over the next, 3, 5 years so look frg the stability. not obviously interesced in today's policy and procedures but the plans going forward and that is the dialogue we hope to hear today from policy makers and politicians. >> you hit a important power word, dialogue. used to be the case we say that all the time. every minute all most and it is not the luxury and now it becomes quite a luxury. that is also what i want to ask with you, bob. what does it take to have real dialogue? >> i want to hit this from two perspectives. to have meaningful engaging dialogue requires a element of openness and discussion around the challenges and

opportunities from both sides. or multiple sides, depending who is in the room. second, is understand the rational and reason why, not just the what, but the why behind it. people can understand where each other of the parties are coming from. that is important to start the discussion. the realty is, you want to enable trust and trust means you have to deliver on what you committed to deliver previously, and that is equally as important. it is one thing to have dialogue and discussion, but another to execute and deliver against that dialogue to enable future trust so the foundation is stronger moving forward. as we sit here today, the one thing i would say is discussion isn't good enough t. is execution of getting things that is equal important to enable the trust to continue to sustain itself. >> people say, are you guys having on the stage communication one on one?

actually, sometimes this become a luxury these days. having said that, how are we going to set all these conversations with the backdrop of asian pacific? there are so many different ideas related to this region so how do we look at the state of the ecaenomy of the region as to what group should we have? what would be the nature of the different groupings? what are likely to be the chemistry among all of them? if there is any. bob, as a business leader. >> as a business leader i say for pwc and all our clients, we see a lot of upside in the region. you see that upside driven by three primary rationals. one is the domestic economy are continuing to grow. [indiscernible] think about the

rise of the consumer and the consumer what they need in terms of goods and services. the second thing is that, those particular countries and the companies within them are now more alternative sources for supply chain and creation of goods and services and important to the world wide economy and that's equally important. last but not least, it is not only the issue of the economy, but the contributions that come from this part of the world as well to future endeavors. technology digitalization ai is a good example of that, where the skillset s today are fantastic in the region to be leveraged and turned into a big opportunity, so it is not all the economics, it is also the policy setting, the standard setting and other aspects that are really important and we hope that the countries in this room in this cooperative are more so at the table, at the global table to make sure their points of view are brought and advances invasion happening here are brought to the rest of

the world. >> we see the governance of technology including digital technology, such as ai lack behind the real development of technology, so much so we have seen this transfer all most past the four decades. since the very beginning of the computer and stuff like that. anyway, are we seeing with the recent discussion both at the un and earlier taking place in the uk bringing all the players together around the table, real consensus about the discussion? on ai. >> you do not have consensus on ai. this is a very early stage right now in terms what is happening. aa has been in existence a long time. we are talking about degenerative ai and what is happening of autonomous ai where thinks are done in such a way where it is replacing humanity and within that it has the ability to bring the

language it is so interictive that had has ease of use. you have three things fundamental of the standard setting of ai. how comfortable and trusting of the of what has been done. what is responsible coding to make sure we flush out that and have a buyer be ware concept if i use it i understand what the coding leads toward of the outcome. the second piece is data. the ai only works if it has access stoodata. the question is what access is providing to ai to give the outcome and that is equal important understanding that. if i limit the ai to have the data in a particular country, that may give me the basis for country. last but not least is make sure

the ai that is created is governed appropriately supervised appropriately and in fact delivering what is intended. those three things are being discussed in various forms. what do not have is the ult to converge what responsibility ai looks like. there are a number frameworks put out, but what the world needs to do and why the region can be so influential is be at the table to converge lective thinking in country, across sector and government and business working more so togethers. >> we have seen asian pacific region dynamic bringing consenss for the trade mechanisms given the backdrop of a ever evolving world has been functioning well in the region. would that be a wonderful precedent of people coming to consensus on all the technology related governments as well,

particularly regarding generative ai as you said? >> absolutely. >> where are we now the state of the world? >> we are at the early stage, but i think there is a opportunity for discussions today and what comes out of the meetings to continue to be a roll model for the world and the world to jump in but to have in a open way, because there is different points of view. back to your point around discussion, it is discussion, agreement and ult mltly framing up in the right way to apply at the local level. i do think there is a big opportunity. organizations are seeing it today in invasion happening in this part of the world and think they will want this going forward because aioneed you need the trust in the ai as that is important to them to deal with effectiveness and efficiency as we go through economy and margin improvement. at the same time ai is dealing with that and discorrupting strategy and business

propositions of corporate and that matter countries as well. >> the wonderful thing is, how latest ai technology and governance work with sustainability which is one of the core issues we have seen focused on during this year's apec ceo summit. what do you see likely to be the synergy here? >> there is first question which is definition of sustainability. >> right. >> if we think about climate there is a huge opportunity for how ai can help with that. let polk get granular for a second. if i think about the efficient of a building, there is not enough humans and not enough computing power right now to actually indicate how that can be most effective and efficient of energy use and ai is powerful enough today and efficient enough today to do better then human decisions can be. there is a tremendous

opportunity as a result to think how we can drive for more naeshancy using ai as we think about energy use of buildings like this, for example. having said that, you got another element of sustainability and that is implications to humanity and labor. as ai comes forward, there is many different dooms day discussions around how many jobs will be taken away and yes, if we don't actually think about how we enable the ai to be more effective and efficient while at the same time redeploy the talent in new and different areas we will have a mismatch which create more social unrest which is something we cannot afford to have. when we talk about here is a timing gap. humanity has proven any time there a large scale transformation impactful on labor we have historically been good, some time thereafter figure what to do with excess labor capacity and put in new different ways. there is a need to deal with

that ination invasion as much as ai of supply and talent. when we think sustainability we should think climate because we are not doing enough and far behind as evidenced in the discussions coming up, but let's not forget implications to labor, workforce and humanity overall as wem. >> here is similar logic with the question of ai and governance of ai. we see geo politic changes so much over the past few years and that people wonder whether we should wait for decisions coming from the big powers and then--or we should have parallel passages with different players playing their role and bring consensus. this means a lot of different chemistries. you need time to sort it out, but still which to you as a business leader would likely to work the best? >> the realty is, we are not in

a world where we can afford to wait for the powers to be to make a decision and rely on government alone or anybody else to make that decision. invasion at the local levels cascadeed off and scale off is the way to make progress and what we see today is business community more so the concepts within the business community actually driving the invasion. the employment of capital in the ai space or deployment of finance in the climate space and we can no longer afford to wait for government policy tew gree. that takes way too long so it has to be the culmination of business working together in the ecosystems to drive the change. to your point, the realty is, when business does this, it is not just what they do with themselves for themselves, it is what they do with themselves andwritten the ecosystem they operate and climate is a great example. any individual company can make decisions but it isn't enough.

what they need to do is deal can scope 3 and elements of the supply chain and they have to work together. it is a lot of little things that get scaled up to drive the change needed to be much more sustainable and achieve the goals looking to achieve. we can't afford to wait for a grand decision or big bang theory that come through to save us. >> small, but beautiful. having said this, business communities have their own very specific interests and core issues to work with. for example, for financial benefit, that is always one of the goals of any business. how to make sure things like green washing, pr, mainly related to the so called discussions on ai governance, and also how would business work with political leaders with rules that prevent free trade and prevent the flow of

data and consensus of data among business and between business and society? it is over-loaded question. >> let's take 2 examples. as you think of climate and green washing and elements of that you need a set of standards what should be reported and trust within that and accountability. to give people a sense-if you look at the european companies today, the top 50 there are rules and regulations what to support and system hasn't changed. the incentive for management changes have come to life. what is interesting and if you look at last year's discussion, only one of 50 ceo had compensation impacted because they did not meet green objectives. one . it tells we are not putting enough emphasis on that or the setting of it goal was way too

low. >> what do you think? >> i think it is a combination of the two that gets you there. the realty is, you have to change the entirety of the system. what is the strategy at a senior level? how do you incentivize the right behavior and how to survive and thrive? all most 60 percent of the ceo in this part of the pworld believe the businesses are not sustainable if they don't radically change in the next 10 years. they have to move with speed. they have to be agile to dial with policy decisions changing radically and uncertain and it will be the benefit of those leadership teams that actually are most agile and take advantage of opportunities and mitigate the downsize risk. better data, quicker decision and less bureaucracy. that is important for corporate as much as government.

>> always a pleasure. >> thank you so much. >> appreciate it. >> please rise and welcome to the stage his excellencyacy primary of malasia. >> thank you everyone. thank you mr. prime minister.

what a pleasure to see you again. >> thank you. >> this morning you were working with colleagues to be here. there is a lot of things coming up every day we need to work so we will be both at the focus of our attention on the most important issues, and be able to look for solutions. mr. prime minister, therefore i want to ask you, what is your view of the state of the world ? it is big question. coming from political leaders mr. prime minister. what does this region mean, asian pacific of bringing the best to the states of the world from your perspective? >> thank you. always start with easy question, not difficult within. [laughter] thank you for the opportunity. the assembly and the important players and roles.

you start with this question about the [indiscernible] political leadsers and you want to [indiscernible] democracy and promote development, then the rule of the private sector, industry becomes more [indiscernible] more relevant, more critical now then ever before. apec is one of the more significant and has to play dynamic role. there have been negative perceptions but i still believe apec is like the rock of gubraulter, it has to succeed and this is one that we have the [indiscernible] engage effectively. i'm pleased last night when president biden make reference looking forward to this engagement with president. very important to take a

different view. [indiscernible] business leaders must view this like the [indiscernible] many political leaders, therefore to my mind, we in the asian pacific look forward to this engagement because it is immense benefit to the region and to the world. >> as we speak, the meeting i guess is taking place right now somewhere near san francisco, so what do you hope exact hope i just put it this way, this meeting bring to the discussions we are having right now? >> we talk about inclusivity, we talk about globalization. we accept that the global situation geo politics changed and we do acknowledge that.

china has a role and has to be engaged effectively and there must be great effort to insure that it is part of the global community, and well based competition, but this engagement for example between president biden is different. to me, it is critical because it should give a clear message that we are here to be able to work together and trust each other to resolve tedious problems, climate issue, ukraine or gaza. to too many contentious issues in the world and you must try to engage accepting the fact that you may not achieve all the desired results. this engagement is important to try and establish areas and

work together. countries like malasia cannot be forced to see the world and big powers in the whole world mindset. united states, traditionally has done immense task in the early phase of development. the total example, the total investments and trade with malasia is lead by the united states. things are changing. there is increasing investment to china, so why put us in the fix and zero sum game for the benefit of countries? emerging economics and also for the west and the east. i believe that the solution is

of course greater collaboration, and this said must end because the world and post normal times is more [indiscernible] more complex and full of [indiscernible] it requires leaders with vision, with commitment, with shared ideals to resolve it effectively. [applause] >> do you think your idea is representative of colleagues? >> well, we have consensus, even more contentious issues like [indiscernible] there are differences, but we all share the view that it must not be unjust, it must not discriminate, it must not continue with atrocities against your own people, so there is a point of consensus.

similarly, china, there are different level of emphasis, but generally we want to preserve the region, the most vibrant economic region as independent. i use the term, fiercely independent to express our views, to share our concerns, but to accept the thought, realty. united states and the west remain a very important ally to us and china is very important trusted neighbor that would have in our attempt to prepare the economy and insure a peaceful vibrant region economically. >> let's talk about the economy, mr. prime minister. you and your scalleges have worked on thatd in your country but looking at the region we see important mechanisms working extremely well in the

asian pacific region. [indiscernible] is one of those and also we see rcep as well. how do you see these trade mechanisms are helping us and moving forward? we know difficulties, but still how can we maintain a certain level of stability and predictability? earlier you heard mr. moriz coming from the business perspective asking for that as business leader. mr. prime minister. >> i don't think we have a choice. [indiscernible] 9, 10 percent gross and even budget surplus in the 90's, because it was a trading nation, and through [indiscernible] the fda we have, the more beneficial for the countries.

we should utilize. i believe countries must be able to engage more and accept the fact that an arrangement is more beneficial and that means countries cannot be marginalized or discriminated for reasons for other reasons, [indiscernible] whatever, that is my position and i think most countries share this view. >> let's talk about some of the synergy among economy in the asian pacific region. we see there is a debate about the so called global north and global south, but actually, between the north and south and among the south itself there is tremendous synergy going on. i could put on the example between mulasa malasa and

china but that is one example. how do you see the synergy taking place, despite the fact we have issues politically for the world? >> [indiscernible] i always stress on the new realty, that the old mindset of the cold war must end. it does not mean it ended. look at the [indiscernible] what is our concern? [indiscernible] committed to pay hundreds of billion and not forthcoming. so many positions of economics and i think to me it is unhealthy we. need to therefore have a mechanism that we will not have this sort of division. now, that's why i say-i still maintain the only way forward

is to see us as one community. climate change is not puculiar to the west or east. we all suffer. [indiscernible] this issue should not be allowed to further divide. [indiscernible] we must have a common vision, including the private sector. i don't believe that--i see the new dynamics and analysis on csr and inclusivity and [indiscernible] better wagers for workers, on issues of climate. these are universal concerns. what we lack in politics, in business in my humble view is lack of humanity, lack of compassion. we compartmentalize people.

we [indiscernible] and i think this has to change. i'm appealing to you to help us in this cause, with this cause. [indiscernible] you can't depend on to the political leaders, because they have been entrusted and to some extent exceeded, but also failed. the private sector should pay a more dominant and assertive role along with society to make sure whether you call democracy or participatory democracy or people engagement works. i state my case. >> how would you be of support for that? we see countries different one from another where you encourage business communities to engage more. the business communities also have their core issues to work out. for example, how to make the

business healthy. the political leaders have to be accountable and also has to be supported. providing the platform for everybody, including many business leaders here. >> business leaders too. i have been quite unpopular in some remarks when we had this-to deal with this scandal. i said, it would not have happened without the complicity or [indiscernible] goldman sachs. i think we must have humility to accept things have to change and to acknowledge that we had limitations and on humility, my standard code is from ts elliot. the only wisdom we can hope to acquire is the wisdom of

humility, and humility is endless. let us accept the fact in order to insure that we resolve major outstanding issues of the world from ai that we heard just now, to climate change, to [indiscernible] we have to make the necessary adjustments, and accept the fact that either in democracy you talked about democratic accountability. it isn't just elections every 5 years, so accountability isn't only among political leaders, but business and civil society leaders. interesting enough, one of the traditions of the profit

mohammed which we learned from early age is that all of you are responsible and all of you without exception is accountable for your action and your deeds. of course the next question is, do people actually implement these principals? of course, no. i think can we--you are right in saying that we all should be accountable. for a government, what do we do? we have a framework. there is clarity in policies and acknowledge the fact the country cannot move forward without involvement of the private sector, without foreign investment, so all possible avenues including census must be brought to insure that it is better employment is addressed. with clarity in policies, including energy transition issue over digital

transformation has got to be clearly laid down and our task with the bureaucracy is to effectively implement this stow the private sector understand clearly what is to be expected for any of the countries. >> thank you. mr. prime minister, i really enjoyed the quotes you had from the saints and the poets. they are providing a lot of inspiration for us, but i have to be pragmatic in my question. we are seeing the coming year, 2024 with many elections going on in the world. these economies big, small, and yet there is always an issue of how political leaders will work on their domestic agenda, the state of the world. so, being a responsible player, from your perspective, representing the political leaders, what are some of the important steps you see that

are crucial these days for political leaders? >> of course, [indiscernible] the statesman, plans for the next generation. [indiscernible] for the next elections. >> we see more statesman or more politicians? >> i think it needs to combine both. you think of the next generation you would lose the elections. [laughter] if you only see the next elections you condemn the next election. i think it is important to make sure that both of these concerns are met. people do understand the vision, the policies and political decisions however popular cannot condemn the next generation. i am fortunate in this because we have secured comfortable majority in parliament and my election is another 4 years.

[indiscernible] make for malasia. >> i see you are talking from a very neutral perspective right now. mr. prime minister, now we are at a important cross-road. the economy whether big or small or middle size economies are all trying to strive with the circumstances they have to deal with. what do you think are some of the most important tools for political leaders like you to work with your business communities and also work on the economic partnerships with your friends and partners in the asian pacific region? >> from my limited experience, in the early period of the 90 as minister and now i think political [indiscernible] is very critical. but clarity of policy is what is required. consistent clear policy,

whether energy or [indiscernible] program or investments. then of course, effective implement vision. we all talk about ease of doing business. we all talk about one stop agency and it used [indiscernible] one stop agency does not mean it stops there. it means that you have to facilitate the process with clear procedures and policies and i think if that is done--i'm very fortunate, from china, united states, europe and the region we have established a record investments far exceed our projections. i'm talking about real huge and this signifies a confidence of the private sector to the way we set policies and we do business. my take based on our past experience is good governance.

we must be [indiscernible] policy and [indiscernible] against corruption and this way of doing business squandering public funds to enrich those in power and that is made very clear i think we are on the right track to propel economy and count wrae ry in next few years. very ambitious and think the last 6, 7 mujts we can achieve that. >> before we go, we only have 30 seconds to go, mr. prime minister. how political leaders like you and your colleagues, to make sure that you are not being hijacked by rhetoric and able to focus on the real issue and responsible for the next generation as you said from mr. churchill? >> it is not [indiscernible]

because finally you are judged by your action. people give allowance the first few months, but then they have to see whether you mean business. all political leaders, come up and obtain power by fighting corruption and abuse of power. the test is when you in the responsible position whether you can really deliver. the second of course, clear economic policies and you are right, because people become--that is why i started with deficit against political leaders, because the [indiscernible] is not met with concrete action, and thank you very much again. i need your support. malasia is the most stable and vibrant place to invest and i look forward meeting you

individually in malasia. thank you so much. >> thank you so much mr. prime minister. appreciate it.

may we take the roll. and wishing i hope everybody had a love low thanksgiving weekend. item 2 starting with president torres. >> present. >> commissioner lindo. >> present. >> commissioner [inaudible]. >> present. >> and commissioner [inaudible]. >> present. >> item 3 for acknowledgment of the ramaytush ohlone. [ramaytush ohlone acknowledgment]