Blog | 03 Dec 2024
Using economics to improve business dialogue with governments in Asia
James Lambert
Director of Economic Consulting, Asia
In Oxford Economics’ Singapore office, overlooking the historic Singapore river, we count as our neighbours the Asian headquarters of most the world’s major multinational companies. Each of them is facing different challenges in the region, working across diverse industries and dealing with many different cultures.
Especially for Western Multi-Nationals, the external dialogue these businesses maintain with government stakeholders is critical—and through our economic consulting work, we help improve the effectiveness of that dialogue.
Here are three key insights into how ‘The Power of Economics’ can support business dialogue with government counterparts.
1. Economics is one of the main drivers of policy issues
Economic factors often shape the major policy issues that international businesses encounter. For example, new trade measures driven by geopolitical tensions, or regulatory change fast-tracked into law in response to domestic economic conditions, can create challenges for international companies.
The power of economics: A comprehensive understanding of these economic underpinnings allows businesses to anticipate shifts in the policy landscape and prepare their strategy accordingly. It also means companies can position themselves as informed stakeholders in policy decisions as they evolve.
2. Economics can be an accelerant or an obstacle
Economic issues can either propel or hinder policy decisions. For example, when a government decides to implement new data protection laws, this decision may stem from an economic imperative to support digital trade, while simultaneously addressing national security concerns. Businesses must recognise these dynamics to effectively advocate for their interests.
The power of economics: By framing discussions around common economic goals, such as growth and innovation, international businesses can more effectively foster collaboration with policymakers.
3. Policy decisions almost always have economic repercussions
Finally, of course, every policy decision carries economic repercussions that can significantly affect business operations. Policies aimed at environmental sustainability, for instance, may alter cost structures and strategic risk assessments for businesses. Thus, understanding the economic implications of these policies is vital for establishing a meaningful dialogue with government officials.
The power of economics: By presenting objective, evidence-based analysis of the impact of proposed regulations on economic performance and competitiveness, our clients can ensure that policy decisions are taken with the relevant business impacts in mind.
At Oxford Economics, our wide-ranging expertise and experience in applied economics gives us a uniquely valuable perspective on the above dimensions. We’re increasingly seeing from clients in international businesses in Asia the positive impact reliable economic analysis can have on the their dialogue with government counterparts.
If you are interested in speaking to our specialist team of economists to improve the quality of your company’s engagement with government counterparts, feel free to drop us a line.
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