44th SESSION of the APO GOVERNING BODY MEETING
18-20 June 2002, Kuala Lumpur, Malaysia
Statement of the Secretary-General
by Takashi Tajima
Secretary-General, Asian Productivity Organization
Mr. Manu Leopairote, APO Chairman and APO Director
for Thailand,
Tan Sri Azman Hashim, APO Director for Malaysia and
Chairman, NPC Malaysia,
Mr. Mah Lok Abdullah, Director General, NPC Malaysia,
Distinguished Delegates, Advisers, Observers and Guests,
Ladies and Gentlemen,
It is my great pleasure to welcome all of you to
the 44th Session of the APO Governing Body. First
of all, on behalf of the APO, I would like to express
my sincere appreciation to the Government of Malaysia
for hosting this important meeting. We were honored
to have the Honorable Minister Dato' Sri Rafidah Aziz
to grace the inaugural session with her presence,
and would like to thank Tan Sri Azman Hashim, APO
Director for Malaysia, for his firm support and warm
words of welcome. I would also like to express our
heartfelt gratitude to the able staff of the NPC Malaysia
for the excellent arrangements made for the meeting
and warm hospitality extended to all delegates, advisers,
observers, and staff members of the APO Secretariat.
Countries in the Asia and Pacific region are facing
formidable challenges as they navigate sudden and
unpredictable economic and social transformations.
While the Asian financial crisis of 1997 was brought
under control, a series of setbacks arising from the
September 11th attacks in the USA and the global economic
slowdown caused the region to plunge into another
round of economic turmoil. While the Asian region
in general is now showing promising economic recovery,
APO member countries should carefully design and implement
economic policies and strategies in an uncertain economic
environment. The productivity movement should add
new dimensions as a result of globalization coupled
with the IT revolution and rapid technological innovations,
as well as growing concerns over environmental protection
and social fairness. As the apex body of the productivity
movement in the region, the APO is expected to retain
its forward-looking identity based on the spirit of
mutual cooperation, shared vision, and sense of mission,
so that the combined efforts of member countries can
be of real value in responding to today's rapidly
changing society.
The 2001 Annual Report, which was circulated for
your kind approval, provides a comprehensive account
of APO activities carried out last year. I would like
to highlight today the major achievements and efforts
made after the last Governing Body Meeting in Bangkok,
Thailand, and share some pertinent concerns and thoughts
on the APO's policy, strategy, and direction in response
to the evolving needs of its member countries.
Program Highlights
The needs of member countries are changing, as are
their priorities. At the previous Governing Body Meeting,
knowledge management (KM) was designated as a new
thrust area of APO activity. The other thrust areas
are the strengthening of small and medium enterprises
(SMEs), green productivity (GP), integrated community
development (ICD), and the development of NPOs (DON).
At the recent APO Workshop Meeting of the Heads of
NPOs (WSM) held in Chiangmai, Thailand, the Secretariat
submitted a proposal to convert the conventional APO
five-year plan into a two-year plan to design action
programs from a shorter-term perspective. That proposal
was unanimously endorsed by the WSM. The newly structured
plan will allow the APO greater flexibility and adaptability
in coping with the rapid pace of socio-economic progress
worldwide. Ladies and gentlemen, let me now update
you on the achievements of 2001.
The year 2001 brought the APO to an important milestone.
We celebrated the 40th Anniversary of the founding
of the APO with a series of special events which included
the APO Foundation Commemorative Ceremony held in
Tokyo in May and the International Productivity Conference
(IPC) held in Singapore in October. These events offered
timely opportunities, not only to formulate a new
vision that will be pursued in the coming decades
but also to set forth a new direction and framework
for the productivity movement in the years ahead.
They also allowed us to express appreciation to all
stakeholders of the movement, including member governments
and NPOs, for their staunch support for APO activities
over the past four decades.
The IPC culminated in a new productivity declaration,
and it is hoped that it will be embraced wholeheartedly
by all of the APO family. I am convinced that "The
APO should take the lead in responding swiftly to
change and yet to maintain a balance among economic
development, the environment, and social fairness,"
as stated in the declaration. In this new decade,
when change is rapid and speed is crucial, the productivity
movement has numerous roles to play. I have enumerated
on several occasions the three components of our vision
on which the APO should focus its attention and resources.
First, our movement should put more emphasis on the
strengthening of creative and innovative minds to
remain competitive in global markets. Second, it should
establish a symbiosis between economic development
and environmental protection. And third, it should
contribute to promoting social fairness to narrow
the gap between rich and poor and between haves and
have-nots. These three dimensions of the productivity
movement provide a framework in which the APO should
design action plans to achieve a better quality of
life for all people, thereby establishing a prosperous,
secure society.
The revitalization of SMEs to increase their viability
in the new economy remains a critical area of concern
for the APO. It has thus embarked upon a series of
SME-related projects supported by a special grant
from the Government of Japan. The projects included
the Forum on Venture Business in Japan, the International
Forum on SMEs in India, the Study Meeting on Assisting
SMEs to Grow and Globalize in Singapore, and the Symposium
on Supply Chain Management for SMEs in the ROC. A
theme that these projects shared was how SMEs have
effectively formed strategic alliances and synergistic
networks through the pooling of resources and competencies
to gain competitiveness and achieve higher growth
in both local and global markets.
The South-South Cooperation (SSC) Program has been
instrumental in strengthening small supporting industries
in member countries under a special grant from the
Government of Japan. From its inception in 1995 to
2001, a total of 42 SSC projects were implemented
and attended by 755 participants from member countries.
The coverage of SSC projects has expanded each year
from basic issues like quality, cost, and delivery
to total quality management, vendor management, and
entrepreneurship development.
In the past, many member countries achieved economic
development due largely to capital and labor inputs
as major factors in productivity increases. As the
world is transformed into a knowledge-based economy,
it has become more important to shift the emphasis
to such invisible and soft aspects of productivity
as management renovation and improvement, which do
not appear on the balance sheet. One of the key factors
for future growth of organizations will be KM. The
Top Management Forum, which was held in Kyoto, Japan,
in March 2002, discussed how business corporations
and NPOs should strengthen competitiveness and improve
productivity through the introduction and application
of KM. A number of thought-provoking presentations
was made by Japanese speakers including Professor
Ikujiro Nonaka, the original proponent of KM. Many
interesting findings and conclusions were derived
from the forum, but I wish to highlight only one.
The success of KM lies in the functional combination
of people, place, and IT. IT per se will not automatically
lead to knowledge sharing and value creation among
workers because it often lacks synthesis with people.
As a result of the increasing effects of global environmental
problems on trade, socio-economic, and political issues,
the paradigm of productivity and competitiveness has
changed significantly. Environmental issues are now
intrinsically linked with competitiveness. The APO
GP Program has attempted to address global environmental
issues from the perspective of productivity improvement,
thus leading to better overall competitiveness of
business corporations. The GP demonstration program
has effectively proved this point. The recently concluded
GP demonstration project in an edible oil mill in
Indore, central India, has illustrated that productivity
and environmental improvements can be profitably harmonized
through GP. The company has successfully reduced coal
consumption by the boiler and reduced oil as well
as hexane losses, leading to improved profitability
and better environmental performance. More than 10
similar companies are expected to join the GP Program
in its second phase. To enhance the capacity of member
countries in GP activities, a five-week GP trainers'
workshop was conducted in Malaysia. As the next step,
training institutions will be encouraged to integrate
the GP concept and principles in their educational
curricula. The GP workshop in the Islamic Republic
of Iran in September 2002 will discuss this issue.
In the past two years, the APO has successfully implemented
GP-ICD demonstration projects in nine communities
in Vietnam. Based on that successful experience, the
Vietnamese government in collaboration with the APO
has now launched a program to expand the projects
to 72 villages in different provinces. I am happy
to add that the government plans to adopt the GP-ICD
approach at the national level to cover all communities
in Vietnam. I hope that this will also inspire other
member countries to follow suit in implementing GP-ICD
demonstration projects in the near future.
An external evaluation of the ICD Program was conducted
in 2001. The results revealed that the program was
greatly appreciated by previous participants and that
the economic benefits of the program outweighed the
expenses incurred. Consequently, the ICD Program will
maintain its focus on capacity building of communities
and related agencies. The application of productivity
and management concepts to community development will
be strengthened further by more active involvement
of NPOs.
The advent of the knowledge-based economy implies
that NPOs need to transform themselves into knowledge-driven
organizations to meet new economic imperatives. In
response to that need, the APO has strengthened its
activities under the DON Program, with particular
emphasis on the formation of strategic alliances between
NPOs. In this regard, the APO Best Practice Network
set up among member countries last year was a timely
initiative. This network is expected to generate knowledge
on global best practices that will allow NPOs to help
their client organizations to achieve best-practice
performance. It will also help NPOs to position themselves
as leaders in knowledge transfer. The Forum on Development
of NPOs, an annual event, created yet another opportunity
for member countries to exchange ideas on how the
APO network and resources can be shared among them.
Participating NPOs compared strategic roadmaps for
the productivity movement, taking country-specific
needs and operational constraints into consideration.
I participated in the Bangkok Forum held in December
2001 and found the deliberations substantive.
In response to the recommendations of Agriculture
Strategic Planning Committee organized at the 2001
WSM, the APO has undertaken various activities for
rural and agricultural development. Priority was given
to growing competition resulting from globalization
and trade liberalization, food security, gender issues,
resource management, prospective technologies, sustainable
agriculture, and environmental protection. Two surveys
are in progress to identify and enhance awareness
of key issues: one on the impact of trade liberalization
on farmers and the rural poor; and the other on agricultural
productivity indices.
I am very pleased to report that the first edition
of Asia-Pacific Productivity Data and Analysis was
published in 2001 and was well received by member
countries and others. This publication is unique for
two reasons. First, we collected data on both factors
that increase productivity and achievements due to
higher productivity. Second, it features analyses
of past trends and future directions of productivity
in each member country, which can be referred to when
formulating policies and strategies at the national
and corporate levels. We are grateful to all member
countries, APO Directors, and NPO Heads, among others,
who offered constructive comments and suggestions
to improve this publication. They have been taken
into account in preparing the second edition, which
will be published by December 2002.
To serve the needs and requirements of member countries
better and more quickly, operational systems within
the Secretariat have been improved. Four committees
were set up last year in relation to project planning
and coordination, work improvement, public relations,
and IT utilization. Ideas, proposals, and recommendations
discussed in the committees resulted in a number of
innovative measures. They included, for example, the
streamlining of projects in terms of priority and
linkages, revision of project coding, standardization
of internal project evaluation, constant updating
of the APO homepage, and development of CD-ROMs for
documentation. Aside from the internal measures taken,
the Secretariat has also started to hold regular,
informal consultative meetings with the Government
of Japan as I believe it is of vital importance to
maintain closer relationships with the Government
of Japan to secure its support.
The Secretariat has installed a local area network
(LAN) and the extranet called the APO-Net, which have
already been linked to NPOs. Both the LAN and APO-Net
will become significant tools for closer coordination
between the Secretariat and member countries, thereby
ensuring speedy and effective information dissemination
on APO programs and all other activities. They will
create synergistic effects and allow knowledge sharing
among NPOs to enhance productivity and competitiveness.
The IT renovation has also contributed to significant
savings in telephone and postal charges. The APO will
explore other opportunities for cyberspace connectivity
and multi-media applications.
While changes brought about by IT have been revolutionary
in business and daily life, a digital divide has been
created among and within countries. The APO Secretariat
undertook a fact-finding survey on the digital divide
in selected member countries. One of the recommendations
derived from this survey was to enhance the IT capacities
of NPOs in general and those for distance learning
in member countries in particular. We have initiated
discussions with the Japan International Cooperation
Agency (JICA) to devise joint programs on IT development.
The proposed joint endeavor will attempt to create
synergistic effects to promote e-learning and e-education
in productivity-related areas.
SMEs will remain an integral part and serve as the
growth engine of national economies. While globalization
and IT are opening up new frontiers for SMEs, the
new environment means that they must face such hard
realities as intense competition, industrial hollowing-out,
human resources for innovative R&D, and marketability.
Since the revitalization of SMEs through higher productivity
and competitiveness is a primary area of interest
for the APO, we will ensure that projects undertaken
will be of practical value to member countries. More
specifically, projects planned for coming years will
address relevant issues in the new knowledge era focusing
on venture businesses, technological innovation, management
improvement, and networking.
In the South-South Cooperation Program, the fundamentals
of productivity such as quality management and kaizen
will continue to be the focal point, but in the future,
knowledge management and partnership development in
key industrial sectors such as the apparel and automobile
industries will be added. To spread the benefits of
this program, it is now open not only to South Asian
countries but also to members in other countries.
Demonstration projects are to be launched shortly
to accelerate the dissemination of knowledge and transfer
of expertise in strengthening SMEs.
We have two important missions in carrying out programs
on KM. The first is to disseminate and share the KM
concept, approach, and methodology based upon the
experience accumulated among knowledge-creating companies
in member countries as well as in Europe and the USA.
Second, we will accelerate our efforts to strengthen
and upgrade the capabilities of NPOs as learning-
and knowledge-based organizations so that they can
become lead agencies in the creation of knowledge
workers and increase productivity in their respective
countries. This approach is more likely to build NPOs'
core competence in KM and encourage them to undertake
activities on their own initiative.
The APO's GP program was launched as an outcome of
the UN Conference on Environment and Development,
generally known as the Rio Earth Summit in 1992. Ten
years later, this year, the 2nd World Summit on Sustainable
Development (WSSD) will be held in Johannesburg during
August and September, to review the progress made
and to renew the commitment for sustainable development
by all the nations. The APO will participate in this
event in many ways. We are planning to publish a special
policy brief on this occasion, and this publication
will be distributed during the WSSD. In addition,
a number of side events are being planned jointly
with the Asian Development Bank, Vietnamese Government
through STAMEQ and VPC and the Regional Institute
for Environmental Technology based in Singapore and
the European Partners for Environment. It will be
an excellent opportunity to showcase the accomplishments
so far made by the GP program and also to learn about
the emerging issues and challenges to be addressed
in the future. I would appreciate your kind cooperation
and assistance to the APO Secretariat on this matter.
As a follow-up to that summit meeting, the APO will
organize the Second International Conference on Green
Productivity in Manila in December 2002, at which
future policies and strategies for the GP Program
will be explored. Just as the Manila Declaration issued
at the first conference in 1996 gave the overall framework
for the GP Program, I hope that the second conference
will shape the APO's response to global environmental
issues in the new century.
The ICD Program will be improved based on the external
evaluation, with particular reference to its approach
and methods of implementation. Various activities
for human resources development will be streamlined
and consolidated into an ICD training course to be
launched in 2004. The achievements of country-specific
programs such as demonstration projects will be documented
for wider dissemination. Furthermore, collaborative
networking with other developmental organizations,
NGOs, and civil society will be strengthened for more
effective and efficient program implementation.
In the years ahead, the APO will continue to mobilize
its resources to strengthen NPOs. In 2001, a DON program
to assist the Thailand Productivity Institute (FTPI)
in establishing the Centre of Excellence in Benchmarking
was successfully concluded with strong mentoring support
from the Standards, Productivity and Innovation Board
(SPRING Singapore; formerly the Productivity and Standards
Board [PSB]), and experts from other NPOs. Starting
this year, the NPC Malaysia has accepted the role
of mentor to the Fiji National Training Council (FNTC)
and to the National Iranian Productivity Organization
(NIPO) in the fields of productivity measurement and
productivity promotion, respectively. The provision
of assistance in various forms by advanced and other
willing NPOs is commendable and demonstrates the APO's
spirit of mutual cooperation in a tangible manner.
The continued support of all NPOs that have a wealth
of experience will make the DON program sustainable
and enable recipient NPOs to jump-start their journey
toward excellence.
While countries must initiate drastic reforms to
achieve sustainable economic growth and boldly face
new challenges, NPOs should also continuously transform
themselves not only to keep pace with the changes
but to stay ahead of them. The constant and interactive
process of change, adaptation, and innovation will
lead to sustainable social and economic progress.
SPRING Singapore is a role model for changing its
name from the PSB to reflect its new role in driving
innovation and productivity.
The current trend of globalization and trade liberalization
in the agriculture sector will gain momentum under
the WTO regime. Competition in international markets
is now a reality for all economic sectors in the region.
At the same time, there is growing concern over sustainable
growth, poverty reduction, and environmental protection,
all of which have a profound impact on social fairness.
In coping with these trends, we recognize that social
and non-economic goals should be achieved through
food security, poverty alleviation, and a better environment.
Therefore programs addressing agricultural sustainability,
environmental protection, integrated rural development,
and rural employment creation will remain a major
focus of the Agriculture Program. The APO will also
address international competitiveness issues such
as agricultural diversification with higher value
addition, improvement of marketing and processing,
food standards and safety, and IT. Our efforts to
strengthen institutional linkages between NPOs and
relevant agricultural agencies will be stepped up,
and collaboration between agricultural and other programs
will be reinforced. Not only is the continuous cooperation
of NPOs needed to achieve these goals, but it is also
hoped that they will suggest how they can best be
achieved.
Our efforts to redress an unappropriated surplus
have had significant results. At the end of 2001,
the total unappropriated surplus was US$6.5 million.
If 2002 projects are to be implemented as originally
planned, the remaining unappropriated surplus is likely
to be around US$1 million at the end of 2002. Japan,
the largest donor to the APO, reduced its contribution
by eight percent for fiscal 2002. Obviously this is
due to the long-lasting economic recession of Japan
and economic reforms to overcome it. I hope this adverse
trend would not continue in the ensuing years so that
programs slated for 2003 and 2004 can be organized
as planned. The Secretariat has been rigorously reviewing
the process of budget preparation to make the best
possible use of funds in the implementation of 2003
and 2004 programs. I am fully committed to press ahead
with our efforts toward the saving of financial resources
during this difficult time. I hope that not only the
Japanese government but also other member governments
will appreciate our financial position and offer further
support for the benefit of all member countries and
the region as a whole.
The APO, with its diverse economic and social milieu
of 18 member countries, is already more than 40 years
old. Over the span of four decades, it has benefited
tremendously from mutual cooperation from within the
APO family and beyond. I would like to place on record
our gratitude for the kind support and cooperation
received from other international and regional organizations,
national and local governments, and NGOs in upgrading
the quality and content of APO activities. Let me
express my heartfelt appreciation to the International
Labour Organization (ILO), the United Nations Environment
Programme (UNEP), the Food and Agriculture Organization
(FAO), the ASEAN Foundation, the Colombo Plan Secretariat,
the Food and Fertilizer Technology Center for the
Asia and the Pacific Region, UBIFRANCE, the Canadian
International Development Agency (CIDA), the State
of Hawaii, the Carl Duisberg Gesellschaft (CDG), the
Maastricht School of Management, and the Regional
Institute of Environmental Technology (RIET), Singapore.
I look forward to expanding the scope of cooperation
and collaboration with those and other organizations
in achieving excellence in our programs.21. Ladies
and gentlemen, as I mentioned at the outset, APO member
countries face daunting tasks in coping with the dynamic
transformations in the socio-economic environment
which have a crucial bearing on our productivity movement.
We should, however, seize this opportunity to demonstrate
our ability to utilize available resources and ensure
that the APO will move on to even greater success
in the years ahead. For this purpose, I believe that
we should adopt a bifocal approach to program planning.
On the one hand, member countries need to adapt to
emerging economic realities at the global level, and
on the other, they should also remain focused on the
fundamentals of productivity. This approach is appropriate
for the operational mechanism of the APO whereby projects
in Category A are open to all member countries, those
in Category B are for selected member countries that
share a common interest in a specific topic, and those
in Category C are conducted in an individual country
with support from the APO. Although Category A projects
should remain substantial activities of the APO, I
think that it is necessary to give more emphasis to
Category B and C projects to strengthen productivity
strategies and programs at the country and subregional
levels. This will articulate the benefits of our activities
to member countries more directly. This program shift
can become effective only when mutual cooperation
among member countries which is the core value that
shapes our community, permeates our activities in
both letter and spirit. All Directors are kindly requested
to give continued guidance and support to APO activities
so that we can play a role in regaining the region's
position as the locomotive of the world economy.
I would like to conclude by expressing once again
my sincere appreciation to the Government of Malaysia
for hosting this meeting and the NPC Malaysia for
its warm hospitality. Last but not least, my gratitude
is due to the delegates, advisers, and observers for
attending this meeting. I wish you all very fruitful
discussions and an enjoyable stay in this beautiful
city.
Thank you.
