WEBVTT 1 00:00:00.041 --> 00:00:04.212 I'm Manveen Rana here at Davos and I'm joined by Neeraj from BCG. 2 00:00:04.212 --> 00:00:05.338 Thank you for joining us. 3 00:00:06.214 --> 00:00:07.632 You've been talking to a lot of people here. 4 00:00:07.632 --> 00:00:10.969 Just give us a sense of what are the challenges you're hearing 5 00:00:10.969 --> 00:00:14.139 that are really facing leaders in the Asia Pacific region at 6 00:00:14.139 --> 00:00:14.723 the moment. 7 00:00:15.181 --> 00:00:17.267 I think there are three things I pick up. 8 00:00:17.267 --> 00:00:20.937 One is geopolitics, it's ever changing : 9 00:00:20.937 --> 00:00:23.565 war, elections, etc. etc. 10 00:00:23.648 --> 00:00:25.108 So that's on people's mind. 11 00:00:25.108 --> 00:00:26.109 GenAI 12 00:00:26.109 --> 00:00:27.193 How real is it? 13 00:00:27.193 --> 00:00:29.946 What do I do with this new thing? And climate. 14 00:00:30.030 --> 00:00:31.448 Is this really time for action? 15 00:00:31.448 --> 00:00:32.699 These are the three things that pick up. 16 00:00:32.699 --> 00:00:36.369 And for the Asia Pacific, is it war that's worrying them more? 17 00:00:36.619 --> 00:00:39.372 Or is it climate? 18 00:00:39.372 --> 00:00:41.124 I mean, what's the biggest worry? 19 00:00:41.541 --> 00:00:42.500 Is it elections? 20 00:00:42.584 --> 00:00:44.085 No, I think it's not worry. 21 00:00:44.127 --> 00:00:46.546 It's just that there's volatility. 22 00:00:46.546 --> 00:00:48.840 I wouldn't say people are worried, but people are dealing with a 23 00:00:48.840 --> 00:00:49.758 lot of volatility. 24 00:00:49.758 --> 00:00:53.261 And I think CEOs want to get to terms with it, because big 25 00:00:53.261 --> 00:00:57.307 decisions are pending and it could mean different things for their companies. 26 00:00:57.515 --> 00:00:59.851 And what are the opportunities that people see? 27 00:01:00.560 --> 00:01:03.229 So each of them also has opportunity, like when there is 28 00:01:03.229 --> 00:01:06.524 volatility, I mean the companies which are doing well, outperform 29 00:01:06.524 --> 00:01:07.067 the others. 30 00:01:07.108 --> 00:01:08.234 So that's an opportunity. 31 00:01:08.234 --> 00:01:11.029 So there's more difference between big performing, high 32 00:01:11.029 --> 00:01:14.115 performing companies and less performing companies in the time 33 00:01:14.115 --> 00:01:14.866 of volatility. 34 00:01:14.866 --> 00:01:17.660 So people want to lean in, in that period. 35 00:01:17.994 --> 00:01:21.289 Climate by itself is a big opportunity for Asia Pacific. 36 00:01:21.289 --> 00:01:24.209 Our maths says it's the most impacted continent on the 37 00:01:24.209 --> 00:01:27.253 climate side, but also which has the most opportunity. 38 00:01:27.796 --> 00:01:31.716 So the amount of GDP globally, we say 18% of GDP can get 39 00:01:31.716 --> 00:01:34.719 impacted by rising temperatures. 40 00:01:34.928 --> 00:01:37.263 In Asia the number is 25% of the GDP. 41 00:01:37.764 --> 00:01:40.975 But lo and behold, of the ten trillion dollar opportunity to 42 00:01:40.975 --> 00:01:43.937 create new businesses in climate, about 40% plus of them 43 00:01:43.937 --> 00:01:44.938 are in Asia. 44 00:01:44.938 --> 00:01:47.357 So I look at the glass half full, not the glass half empty. 45 00:01:47.774 --> 00:01:50.902 So what is the advice you're giving people? Leaders in in the 46 00:01:50.902 --> 00:01:51.945 Asia Pacific region? 47 00:01:52.278 --> 00:01:55.949 I think this is a time when Asia increasingly is more and 48 00:01:55.949 --> 00:01:58.451 more a blueprint for the world at large. 49 00:01:58.785 --> 00:02:02.122 I think many of the Asian leaders are coming of an era of 50 00:02:02.122 --> 00:02:03.164 confidence now. 51 00:02:03.164 --> 00:02:04.249 They bring confidence into this. 52 00:02:04.249 --> 00:02:06.709 They're no longer small companies, many of them have 53 00:02:06.709 --> 00:02:07.710 been quite innovative. 54 00:02:07.919 --> 00:02:10.755 So I think they're coming in, not as the young kids on the block, 55 00:02:10.755 --> 00:02:12.382 but many of them have quite arrived. 56 00:02:12.382 --> 00:02:15.927 So I think the advice is to say, look, this is a period to lean 57 00:02:15.927 --> 00:02:18.012 On GenAI particularly, for example. 58 00:02:18.012 --> 00:02:19.514 I think I would tell the Asian 59 00:02:19.514 --> 00:02:21.766 leaders: you want to be at the forefront of it. 60 00:02:21.766 --> 00:02:24.936 This is a big revolution and you don't want to be a laggard in 61 00:02:24.936 --> 00:02:25.687 embracing this. 62 00:02:25.854 --> 00:02:29.858 So that's clear. On geopolitics the advice is: have scenario 63 00:02:29.858 --> 00:02:31.484 planning on your agenda. 64 00:02:31.484 --> 00:02:33.945 If you're the CEO, you need to be ready for scenario planning. 65 00:02:33.945 --> 00:02:38.324 And on climate, depending on the sector you're in, depending on 66 00:02:38.324 --> 00:02:40.910 where you are in the value chain, this has to be a part of 67 00:02:40.910 --> 00:02:42.162 your strategy as well. 68 00:02:42.162 --> 00:02:42.829 This is coming. 69 00:02:42.829 --> 00:02:43.746 This is important. 70 00:02:44.414 --> 00:02:47.375 Well, thanks very much for sharing those insights with us, 71 00:02:47.375 --> 00:02:49.794 Neeraj, it's been a pleasure to talk. Likewise, Manveen. 72 00:02:49.794 --> 00:02:50.420 Pleasure.