Tajwar Arnab, August 17, 2023

My name is Tajwar Arnab and I am currently pursuing a Masters of Public Policy and Global Affairs at the University of British Columbia, specializing in Global Development and Technology Policy. I believe that the MPPGA program alongside with the internship at GreenTech Asia will allow me to further my career goals by equipping me with the necessary tools to address policy-related complexities. I aim to work in the technology policy sphere as it allows me to combine my passion for technology with my commitment to promoting positive societal impact through informed policy decisions.

For the last two months I have had the valuable opportunity to work with GTAsia as a research consultant. As a part of my internship, I am currently focused on producing a 40-page market research report covering various economic sectors in the ASEAN region. The report focuses on specific market opportunities such as Agri-Food, Indigenous-led Exports, Value-Added Exports, Tourism, and Rare Earth Element Mining.

The purpose of my internship at GTAsia was twofold: to gain practical, hands-on experience in my chosen field and to expand my knowledge and skills in the world of technology and business. As a student intern, I was eager to apply the theoretical concepts I had learned in the classroom to real-world scenarios. GTAsia provided the perfect platform for me to bridge the gap between theory and practice, allowing me to grow both personally and professionally. In addition, I was able to learn firsthand about a consulting firm’s internal workings and develop my skills in writing market research reports.

During my time at GTAsia, I had the chance to delve into the fascinating market opportunities that Southeast Asia offers to international companies. One notable project I had the privilege to be involved in was the production of a comprehensive market research report focusing on economic sectors in the region.

Southeast Asia is emerging as a prime prospect with a wealth of opportunities for international companies to expand their footprint. With its rapidly developing economies, population, environmental awareness, and growth initiatives, the region offers a favorable environment for companies and investors to enter the market.

Southeast Asia has one of the fastest growing economies in the world. According to the World Economic Forum, the region is expected to be the fourth largest economy in the next decade with a robust growing middle class and a consumer market worth US$4 trillion.

Canadian companies in certain sectors are well positioned to capitalize on the potential of this vibrant market. Companies have the chance to prosper in Southeast Asia due to their dynamic economies, welcoming business environment, and commitment to growth by the government.

There are several opportunities for Canadian companies to enter the Southeast Asian markets. Some examples of these opportunities (which I build on in the full report) are as follows:

Agri-Food: The Agri-Food sector is booming with opportunities due to increased demand for meat consumption in the region. Along with a growth in the demand for beef, there is a corresponding rise in the need for animal feed due to the expansion of the agricultural infrastructure in the area.

Traditional and Cultural Indigenous Goods: Potential demand for ocean products, Indigenous art, and Indigenous tourism.

Infrastructure: ASEAN countries are undertaking large-scale development projects and are committed to moving towards a green infrastructure. This presents a wealth of value-added export opportunities for Canadian exporters.

Tourism: Tourism is another industry where there are many opportunities for Canadian businesses to enter. Following COVID-19, ASEAN countries are committed to revitalizing their tourism sectors and moving towards smart tourism and ecotourism.

Critical Minerals: Finally, with the push for a greener future and greener technologies, rare earth elements are becoming valuable commodities. Vietnam is looking to expand its REE mining operations, providing opportunities for Canadian mining companies/consulting companies to export their services.

One of the most significant challenges I encountered during my research was the question of: How could I best define ASEAN? ASEAN or Southeast Asia cannot be perceived as a homogeneous region with similar cultures, religions, values, and beliefs. The region is rich in its diversity; each country/region has its own history, culture and traditions. For example, Malaysia is a country with a majority Muslim population, while Thailand is a country with a majority Buddhist population.

Companies looking to expand their presence in the region should explore the market opportunities available. However, before pursuing overseas trade, they must consider developing a strategic export plan that incorporates certain variables such as financing, timelines, marketing plans, logistics and, most importantly, local ASEAN partners.

The report provides companies interested in expanding their operations in Southeast Asia with a quick snapshot of current and emerging opportunities in the region. It also provides information on the barriers, challenges and key stakeholders associated with specific sectors of the economy.

A schedule of trade exhibitions and conferences will also be provided for companies to attend in order to meet local Southeast Asian suppliers. Once published, I hope my report can help inform the decisions of GTAsia’s stakeholders and partners.

Building a Strategic Plan Towards Meaningful and Profitable Business in the World’s Most Dynamic Region

Source: Twitter, @MelanieJoly. Canadian Foreign Affairs Minister Melanie Joly with ASEAN Secretary General Dr. Kao Kim Hourn during an ASEAN Summit in Jakarta on July 14, 2023. Joly has emphasized the Canadian federal government’s plan to increase engagement across the Indo-Pacific region for the next decade.

Relationship Economies

‘Relationship economies’ refers to the economic systems where social connections, trust and personal relationships play a significant role in facilitating transactions and economic activities.

Relationships can provide flexibility and adaptability in economic transactions, as these often involve negotiation, trust-building, and personalized agreements. This can be especially valuable in complex or uncertain environments where formal structures may be slow to respond.

In some cases, personal relationships can also reduce transaction costs, where trust and familiarity can facilitate exchanges without the need for extensive contracts, legal frameworks, or intermediaries. Personal recommendations and referrals can also help individuals and businesses make informed decisions, potentially reducing information asymmetry and enhancing efficiency.

Challenges with relationship economies can emerge when scaling up and accommodating larger volumes of transactions. Personal connections and networks may have limited reach and capacity. Reliance on personal relationships can also introduce biases, in particular favoritism and nepotism, or where personal connections may not always prioritize merit or optimize resource allocation. Finally, informal economies may lack formal mechanisms for dispute resolution, consumer protection, or regulatory oversight. This can increase the risk of fraud, exploitation, and unfair practices, undermining trust, and long-term stability.

Success in a relationship economy requires access to informal networks that is usually acquired through a patient and mindful commitment to creating a local presence and reputation.

Relationships in ASEAN

Most of us are familiar with the Chinese term of ‘guanxi’, referring to a mutually beneficial relationships which can involve moral obligations and exchanging favours.  Similar to ‘yongo’ in South Korea, ‘tsuganari’ in Japan, or ‘wasta’ in Arab countries, these cultural dynamics can influence success or failure in market entry. All of these can be present, indeed crucial in the multicultural landscape found in the Association of Southeast Asian Nations (ASEAN).

Each Southeast Asian nation has particularities which need to be considered. ‘Parantara’ in Indonesia, for example, refers to the role of a third-party agent often used as a backchannel connection between parties. [1]

There are also unique considerations for selective industries. For example, Cruz, Labonne and Querubin (2019) highlight the significant role of social network structures in the provision of public goods (i.e., schools, health centres, and infrastructure such as water systems) in the Philippines. Their study of 15,000 villages finds the scale of the importance at the local level, particularly where mayors and their networks have a dominant role in the allocation of resources (funding from the central government). [2]

So, whether it be for market entry or investment attraction, companies wishing to do business in Southeast Asia must have a strategic plan on how to develop and manage relationships in the region.  

Determining whether a new market for products or services in Southeast Asia is relationship-based can be challenging to the newcomer, where professional consulting services can provide targeted, qualitative advice through interviews, surveys, and the heuristics of case studies. It is also helpful to map relationships between individuals or organizations using the emerging tools of social network analysis. GTAsia offers tailored services with a particular focus on the ‘last mile’ in market entry in Asian economies. Our client market reports will include a competitive analysis, with an assessment of products and services, market conditions, key success factors, competition, regulatory, pricing, distribution, and requirements for local presence and after-market support. This can include a detailed network analysis identifying key players and their interrelationships. Finally, we can provide client support through initial introductions, scheduling, and local logistics.

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[1] Gray, Nathan. (2012). Parantara: The Javanese Way of Managing Business Relationships in Indonesia. Retrieved from https://www.unisa.edu.au/siteassets/episerver-6-files/global/business/centres/cags/docs/seminars/gray-paper-6-march.pdf

[2] Cruz, Labonne and Querubin. (2020). Social Network Structures and the Politics of Public Goods Provision: Evidence from the Philippines. American Political Science Review, Vol.114, Issue 2, May 2020, pp. 486-501. Retrieved from https://doi.org/10.1017/S0003055419000789

June

We are thrilled to announce that Greentech Asia has been honored with a the Silver Award for Tourism Innovation from the China Outbound Tourism Research Institute (COTRI) recognizing our work in sustainability and meaningful tourism. The award was presented at the Guangzhou International Travel Fair (GITF).

Our research in sustainability and meaningful tourism has yielded invaluable insights and actionable solutions for our clients. Our suite of products improves the capacity of stakeholders including destinations, governments, businesses, and local communities to make change and promote meaningful tourism experiences at the ground level.

Greentech Asia is deeply honoured to have our work recognized by the China Outbound Tourism Research Institute (COTRI) led by Dr. Wolfgang Georg Arlt, the world’s leading independent research institute for analysis, training, research, quantitative data and consultancy relating to the Chinese outbound tourism market.

Our work emphasizes cultural competency and the role of dialogue and reciprocity between guest and host in Canada’s tourism industry. Through providing actionable steps for hosts to better engage international visitors, we continue to work to improve environmental sustainability, the economic and cultural impact on local communities, and the experience of guests.

To learn more about our advisory services and tailored packages for industry groups, businesses, and municipalities, contact info@greentechasia.com for a free consultation.

Washington DC, May 23, 2022. Prime Minister’s Official Residence. (https://www.kantei.go.jp/jp/101_kishida/actions/202205/23usa.html)

David Deen, June 2023

Trade ministers from 14 countries gathered in Detroit in May to discuss the Indo-Pacific Economic Framework (IPEF). U.S. President Joe Biden launched IPEF a year ago while in Japan, and several rounds of negotiations have since taken place. Sitting at the table were some of the largest and most dynamic countries in the world: Australia, Brunei Darussalam, Fiji India, Indonesia, Japan, Republic of Korea, Malaysia, New Zealand, Philippines, Singapore, Thailand, the United States, and Viet Nam. Together they represent 40% of global GDP.

Participating countries are motivated to avoid the disruptions experienced during the COVID-19 pandemic, diversify supply chains, and reduce dependency on China. For them, IPEF is an opportunity to reshape supply chains and integrate development and investment models. It is a strategic approach for greater efficiencies on knowledge and technology sharing, investment attraction, co-investment, and industrialization.

Clean energy and climate friendly technologies are a central pillar in the framework. To advance so-called ‘green trade’, IPEF goes beyond what is detailed in other regional trade agreements. This includes aligning a range of policies and standards, such as labour rights according to the ILO Declaration; promotion of inclusive growth, including Indigenous Peoples local communities and women; regulatory transparency; anti-corruption measures; tax incentives; and measures to protect confidential business information [1]. Moreover, IPEF negotiators are working to develop crisis management plans should another global crisis emerge. The pandemic exposed how delays and bottlenecks can cost lives and devastate livelihoods.

The war in Ukraine also reinforced the urgency for more resilient supply chains. In its May 2023 report Strengthening Regional Supply Chain Resiliency Through IPEF, The Asia Society Policy Institute suggests IPEF negotiators develop a “swap system” to share stockpiles during crises, similar to what Japan did to move its LNG supply towards Europe when there were shortages across the continent following sanctions on Russia [2]. The report notes China’s sudden restriction on exports of urea in 2021, a key ingredient in fertilizers and diesel exhaust fluid to limit GHG emissions. This proved devastating for many Indian farmers, and in Korea which relied on China for 95% of its urea. The government scrambled to find suppliers, eventually turning to Australia, Vietnam, Indonesia and Saudi Arabia.

A mechanism to ‘swap’ stockpiles could buffer against such shocks, but also reduce the likelihood countries would impose such restrictions. IPEF members can ‘swap’ stockpiles of oil and gas or, more importantly, critical mineral stockpiles when partners face shortages. Assuring a consistent supply of energy and minerals are an essential part for long-term planning and investment.

IPEF member countries would also benefit by more coordination on which minerals are considered ‘critical’ and in need of supporting policies and support. Many countries have created ‘critical mineral’ lists, and the next step would be building consensus as a region. Discussions on a regional interpretation are underway within the Association of Southeast Asian Nations (ASEAN), among which seven countries are participating in IPEF.

As a leader in mining, oil, carbon capture utilization and storage, as well as green technologies such as clean hydrogen, Canadian businesses can contribute to and benefit from enhanced trade flows among IPEF members. Ottawa has recognized this need and has formally requested entry in October. As of December, Canadian trade minister Mary Ng said all countries are backing Canada’s membership [3], although it isn’t clear when Canada will join.

Negotiations are moving fast. It is realistic to expect a concrete framework in the coming months. If and when Canada does join IPEF, it will be another layer of opportunity to deepen public and private partnerships in the region, particularly to build low-carbon economies. Governments at all levels and businesses of all sizes should prepare to leverage agreements once they become operationalized.

Sources:

[1] Office of the US Trade Representative. (2023, May 27). IPEF Joint Statement for the Trade Pillar, Clean Economy Pillar, and Fair Economy Pillar. Retrieved from https://ustr.gov/about-us/policy-offices/press-office/press-releases/2023/may/ipef-joint-statement-trade-pillar-clean-economy-pillar-and-fair-economy-pillar

[2] Yeo, Han-Koo and Wendy Cutler. (2023, May). Strengthening Resiliency of Regional Supply Chains. Asia Society Policy Institute. Retrieved from https://asiasociety.org/policy-institute/strengthening-regional-supply-chain-resiliency-through-indo-pacific-economic-framework-ipef

YouTube discussion on it: https://www.youtube.com/watch?v=yQ7ZkinTeg4

[3] Nikkei Asia. (2022, December 6). Canada’s IPEF bid has support from all members: trade minister. Retrieved from https://asia.nikkei.com/Editor-s-Picks/Interview/Canada-s-IPEF-bid-has-support-from-all-members-trade-minister

Greentech Asia was thrilled to have been included in the Indigenous Partnerships Success Showcase (IPSS), held in the traditional territories of the Musqueam, Squamish and Tsleil-Waututh Nations. We had the privilege of participating in a transformative experience that celebrated successful collaborations between Indigenous communities and their partners. Some highlights below:

Partnership Examples: Many of the sessions celebrating and exploring successful Indigenous partnerships. These sessions provided invaluable insights into the ways that leading-edge relationships are fostering reconciliation on a national scale. We were grateful for the opportunity to choose from a wide range of sessions, each offering deep dives into specific case studies, best practices, and lessons learned.

Building Relationships: The importance of relationships was highlighted throughout the conference and IPSS also fostered an environment conducive to relationship-building. We were able to connect with Indigenous leaders and enjoy cultural showcases such as a fashion show.

A Commitment to Reconciliation: Beyond its immediate impact, the IPSS was a testament to the ongoing commitment towards reconciliation in Canada. We commonly heard the term ‘reconcilACTION’ throughout the event, reminding us that reconciliation is more than just words. By showcasing the positive outcomes of Indigenous partnerships, the conference provided a tangible demonstration of the power of collaboration, trust, and respect. The IPSS reinforced the notion that reconciliation is not just a theoretical concept but a living reality.

We were grateful to attend the Indigenous Partnerships Success Showcase, which reaffirmed the importance of collaborative efforts in achieving reconciliation. The conference not only celebrated successful partnerships but also provided practical guidance for creating and nurturing such alliances.

The insights gained, stories shared, and connections made during the IPSS provide invaluable support to our on-going work in the economic development of Indigenous communities and the bridging of Indigenous entrepreneurs with Asia. 

March 28, 2023

There is a steady stream of Canadian officials boarding flights bound for Japan to forge partnerships in the mining industry. Tokyo wants to diversify its supply chain of raw materials needed for low-carbon technologies, and Ottawa is keen to introduce Canadian suppliers.

Two major policies introduced in late 2022 are behind Ottawa’s push for more trade with Tokyo: the Indo-Pacific Strategy and the Critical Minerals Strategy. As the ink was drying on these announcements, Minister of Innovation, Science and Industry François-Philippe Champagne was touring Toyota Motor’s Motomachi plant with its CEO Toyota Tsusho. He also met with the Chairman of Mitsui, and the President and CEO of Panasonic Energy.

In December, International Trade Minister Mary Ng was meeting her Japanese colleagues and cleantech business leaders. She also opened a new trade office in Fukuoka, adding it to a list of Canadian trade offices which includes Tokyo, Osaka, Sapporo, and Nagoya.

Natural Resources Minister Jonathan Wilkinson is the latest to visit, leading a delegation of Canadian businesses in January. It included mining companies Nano One Materials, Giga Metals, Sherritt International, and E3 Lithium. 

Nano One Materials makes lithium-ion batteries, which are a key component for electric vehicles and bicycles, solar power systems, robotics, satellites, among others. The company is based in Burnaby, British Columbia and holds multiple Japanese patents related to high-performing cathode materials. Vancouver-based Giga Metals and Japan’s Mitsubishi Corporation have a partnership related to significant undeveloped sulphide nickel and cobalt resources in northern British Columbia. Also in the nickel and cobalt business is Toronto-based Sherritt International, which has a partnership with Sumitomo Corporation. Calgary-based E3 Lithium produces battery grade lithium needed in the auto industry, a key industry and employer in both Canada and Japan.

Representatives from Canada’s First Nations and Metis communities were also with Wilkinson in Japan. Those taking part included the First Nations Major Projects Coalition (FNMPC), British Columbia Assembly of First Nations (BCAFM), Nunatsiavut Group of Companies, and the Metis National Council (MNC). These groups are key drivers in export-led growth for their communities, and they have the legal right in Canada to approve or reject any mining project on their territory.

Canada’s federal government, however, has struggled to fix a flawed Indigenous consultation process and a notoriously slow mining permitting process.

In a 2021 Fraser Institute survey of Canadian mining companies, respondents described the rules on First Nations consultation as “vague”, some expressed uncertainty regarding land disputes and regulatory roadblocks at the municipal level, and others were dismayed about the establishment of protected areas without industry consultation.

The federal government:

– in 2019, replaced the Environmental Assessment Act with a new Impact Assessment Act
– in 2021, adopted the United Nations Declaration on the Rights of Indigenous Peoples, and
– in 2022, agreed to increase the percentage of protected land and water from roughly 13% in 2021 to 30% by 2030

These measures are important for Indigenous partnership, public engagement, sustainable development, and environmental stewardship. The regulatory changes, however, have not been matched with adequate support to improve capacity. Economic development units of First Nations and Metis communities are being flooded with applications and they don’t have the resources to keep up. 

 In its Critical Minerals Strategy, the government describes Canada’s regulatory assessments as “rigorous” in order to meet “high environmental and social standards”. It admits, however, that it can take between five and 25 years before a mine can become operational in Canada. According to the industry publication Mining.com, the average is roughly 13 years in British Columbia. 

Meanwhile in Japan, legislation has made critical minerals part of the country’s national security strategy. As of February 18, 2023, the government is required by law to ensure a steady supply of these raw materials. The government has allocated 1.08 trillion yen (CAD 10.8 billion) to support industry and diversify its supply chain. Japan’s Ministry of Economy, Trade and Industry has also listed 34 rare metals to be stocked into emergency reserves, with targets of storing either 30- or 60-days of supply of the standard domestic consumption.

Japan’s dependency on Chinese rare earth elements was exposed in 2010 after Beijing briefly implemented an export ban over disputed islands. Tensions in the Taiwan Strait are a constant reminder of the geopolitical risks overshadowing the Sino-Japanese trade relationship. The drive for diversifying away from Chinese suppliers was made stronger at the onset of the COVID-19 pandemic when Japan suffered shortages in antimicrobial agents.  

If Canadian mining companies are unable to scale up output to meet growing domestic and international demand, Japanese businesses and their government will seek more reliable suppliers. Australia and the United States have led their own trade missions to Japan, and Tokyo is pursuing partnerships among emerging economies in Africa and Southeast Asia. 

Japan holds the G7 Presidency for 2023 and there will be more high-level meetings in the coming months, including a leaders summit in Hiroshima in May. Canadians can expect their ministers to be touting their new policies for critical minerals, green technology and climate action. The difficult work, however, remains at home. 

David Deen, Greentech Asia Research Associate

December 14, 2022

The next decade will be a period of significant economic change across Northern British Columbia. A move toward environmental sustainability will disrupt the economies of countless communities currently dependent on local timber fibre extraction and processing as well as other resource-based industries. Successful adaptation will pivot on pursuing new opportunities, such as expanding of value-added forestry production (such as mass timber), building out regional supply-chain inputs, developing the agri-food industry, expanding the tourism sector, and developing other nascent industries where opportunities exist. It will also require committed investment in reconciliation and partnership with Indigenous communities, support for small and medium sized enterprises, and development that balances affordability with new commercial opportunity.

There is an entrepreneurial mindset across Northern British Columbia that can continue to thrive with the right support. Individuals are resourceful, motivated, and attuned to the kind of holistic approach that creating new value requires. This is particularly important for building synergies across areas of economic development – for example, elevating a local delicacy into a culinary tourist destination and an export product while doing so in a sustainable manner that protects the local culture and environment.

In many cases, public and private resources are available in some capacity but are underutilized – this suggests more must be done to connect, organize and facilitate access for locals. Funding might be available, economic assessment may have been done, but still there are challenges on the last mile, such as raising awareness, making person-to-person connections, and solving nuances obstacles for local enterprise. British Columbia’s small towns are also highly specialized, and so diversified talent is often at a premium – a concentrated effort to assess human resources needs is required. As cost of living and remote work opportunities encourage more urbanites to move to smaller communities, this also means focused assessment of what kind of new talent may have recently arrived in town.

In addition to investing better locally, communities, businesses and policymakers have numerous geographic advantages to leverage. The Port of Prince Rupert is North America’s closest to Asia – 36 hours closer to Shanghai than Vancouver and nearly three days closer than Los Angeles. Edmonton is closer than Vancouver for any of the communities along Highway 16. These various economic corridors present opportunities at each node along the way, particularly so at a time when resiliency and value-added activity have become top policy priorities at all levels of government. Furthermore, where industries are not at scale for international export, scaling to sell strategically across British Columbia or into Alberta is a first step, and where a community may not produce products directly for export, it may still benefit from providing services or products to those that do.

At Greentech Asia we have been exploring these questions across a variety of sectors in a variety of communities throughout British Columbia. We see significant opportunity not tomorrow but today which can be directly acted upon. Where anxiety exists about the future of dominant industries such as forestry, it is also a time of opportunity to invest in what makes these communities unique, to build new and expand expanding relationships, all while creating new value in a variety of industries.

December 7, 2022

A longstanding destination for Asian tourists due to proximity, natural beauty, reputation, as well as cultural and family ties, opportunities abound in British Columbia tourism in 2023 and beyond. As British Columbia welcomes back tourists from many Asian countries, it is important to engage with evolving consumer preferences with regards to sustainability, experiences, and products – in particular, where they overlap with BC’s own environmental and socioeconomic goals.

The Asia-Pacific accounts or 60% of the global population and are increasingly interested in sustainable and experiential travel. Recent data suggests that Asian consumers have a notably higher preference for sustainable travel (20% higher than those from Americas and 15% higher than Europe). [1] In addition to seeking sustainable experiences, more are looking for ‘slow travel’ or experiences where they can immerse themselves in local culture. [2] A recent survey found that a stay at an Eco-luxury, local accommodation is at the top of the list for Asian travelers.[3]

With numerous direct flights to Asia and abundant opportunities for cultural and eco experiences, BC is uniquely positioned to capitalize on these evolving trends.  These could include nature-based retreats and/or First Nations experiences with opportunities for unique, cultural immersion and learning.  BC has abundant opportunity to provide experiences as interest from Asian tourists grow in areas such as  nature, cultures/history, spirituality, and unique experiences that can be shared with their social networks.

At Greentech Asia, we are engaging stakeholders across British Columbia and in Asian markets to find synergies for expanding tourism and improving its impact.

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[1] https://travindy.com/2022/09/asian-travelers-rising-preference-for-sustainability-presses-industry-players-to-meet-expectation/

[2] https://www.scmp.com/magazines/style/news-trends/article/3195924/slow-sustainable-and-immersive-travel-2023s-tourism

[3] https://travindy.com/2022/09/asian-travelers-rising-preference-for-sustainability-presses-industry-players-to-meet-expectation/

We are pleased to be announcing a new feature to our site – Greentech Asia Insights.

This section will provide regularly-scheduled blog posts, interviews, and other media providing reflections on the various topics we are working on. It will also provide us an opportunity to host works from advisors, student researchers and other individuals we have the pleasure of working alongside. By providing more content outside of proprietary reports, we hope to provide a meaningful contribution public policy discourse as well as a platform for a diverse array of commentators.

Our advisors have experience in a variety of public policy questions. As our global activity expands, we continue to dive into new subjects. The content living here will grow with us.

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