GUANGZHOU, China, Oct. 30, 2023 /PRNewswire/ -- The private sector should play bigger role in Asia's economy to maintain its growth momentum, panelists urged during the IFF 2023 Annual Meeting discussion on Sunday.

Experts also called for structural reform to tackle long-term growth challenges faced by Asian countries.

The private sector is very important and has been the growth engine, said Takehiko Nakao, former President of Asia Development Bank and Chair of Mizuho Research & Technologies.

Suh Young Kyung, Member of Monetary Policy Board, Bank of Korea, thinks governments should let private sector play dominant role in the economy as Asia faces a rapid aging population.

"The private sector should have a bigger share of the cake. We should provide equal opportunities for the private sector," said Suh.

Despite the rising trend of fragmentation, Asia continues to embrace and benefit from globalization as most Asian economies are import-driven.

Wang Tao, Chief China Economist of UBS Investment Bank thinks that the so-called deglobalisation is in fact decoupling and derisking from China. Asian countries that have benefited from decoupling are still very much proponents of globalisation.

Moreover, Asian countries should still push for effective reform and have open markets, said Zhuang Juzhong, IFF Academic Member.

Digitalization is increasingly driving Asian growth, according to Zhang Tao, Chief Representative for Asia and the Pacific, Bank for International Settlement. "Asia now accounts for nearly 60% of the world's online retail sales."

Fiscal policies have driven Asia's economic growth over the past few decades. Experts agreed that fiscal policy was still important at the moment. But fiscal policies have to combine with structural reforms.

Nakao thinks fiscal policies should lean towards making a more equitable society.

Zhuang argued that fiscal policy is important to support employment and structural reform will be crucial in boosting consumption.

Wang of UBS argued that compared with other regions, Asian countries use more fiscal polices. She thinks governments should know when to let the markets play bigger roles.

"Governments should... let the private sector flourish," said Wang.