Agribusiness plays vital role in ASEAN socio-economic development, says report

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KUALA LUMPUR (March 24): Competitiveness of agribusiness has really increased in ASEAN, according to the ASEAN-Japan Centre, which provides a solution by participating more in global value chains (GVCs) of agribusiness.

The Centre in its report, ‘Global Value Chains in ASEAN: Agribusiness’ stated that agribusiness played an important role in the socio-economic development of the Association of Southeast Asian Nations (ASEAN), accounting for 12% of GDP in ASEAN on average in 2018.

Agribusiness also provides jobs and livelihood to 100 million people, or one-sixth of the total population and their families in ASEAN. It is also a major source of trade revenue in many ASEAN countries, according to a statement.

ASEAN’s value-added exports in agribusiness amounted to US$102 billion in 2015. The share of foreign inputs used in ASEAN’s agribusiness exports, or the backward linkage to GVCs, was 20% of the total gross exports of ASEAN in 2015. (US$1 = RM4.43)

Participating in and moving up the agribusiness GVCs may provide ASEAN with opportunities to increase its productive capacities by using efficient foreign inputs and technologies obtained through foreign direct investment and non-equity modes of operation.

Japan has been a strong supporter of agribusiness in ASEAN. There is a joint effort by the Government of Japan and the private sector to develop agribusiness in ASEAN and integrate it into GVCs.

To effectively participate in agribusiness GVCs, the Centre has proposed a set of three groups of policy recommendations to increase productivity. More details at https://www.asean.or.jp/en/