Public Affairs: Nice-to-have or must-have in Asia Pacific?
Author: Christina Celestine
Read time: 6 minutes
Public affairs and public relations intersect. They both shape public opinions and influence behaviour. Even though they are related disciplines that work toward similar results, there are nuanced differences. Broadly, public affairs focuses on influencing policy, whereas public relations looks after a company’s reputation.
Still, most organizations combine these disciplines together under one function. This is especially true in Asia Pacific where the primary role of public affairs professionals has been adapting corporate narratives for the region’s diverse cultures and nationalities. That is now changing.
A shift in the approach to public affairs
Public affairs in the post-covid era has evolved out of necessity. The political landscape in Asia Pacific is dynamic: from Thailand’s military junta to a potential humanitarian crisis in Myanmar; Indonesia’s democratic transition to Japan’s economy rebound last year; South Korea’s shift to a high-income economy to Australia’s sixth Prime Minister in a decade. The map is messy to say the least. With rapid digitisation and increased access to information among the general public, more turbulence seems likely. All this makes it hard for a business to plan, unless it has good intel.
Many business leaders in Asia Pacific are either taking it upon themselves or hiring teams to actively monitor politics, build relationships with current and future elected officials, carefully track regulatory developments in the region, and take positions on relevant issues. The goal is to anticipate change and to make sure lawmakers understand how policies will impact the private sector. It’s also about looking for opportunities, such as to quickly introduce furlough schemes to safeguard local jobs.
If you are managing a business in Asia Pacific, here are some key considerations to help you thrive in the new approach to public affairs.
#1: Are you a foreign or homegrown organization?
By economic indicators, Asia Pacific offers the greatest growth outlook in the coming decade, with the Asian Development Bank expecting the region to contribute 60% of global growth by 2030. The region attracts significant foreign direct investment and is also fertile ground for start-ups. What does that mean when it comes to managing public affairs, and what differences and similarities are there be for foreign entities versus homegrown Asian companies?
According to a survey by Globalization Partners, 65% of CFOs identify Asia Pacific as their choice destination for international expansion. If you operate the regional outpost of a multinational corporation (with headquarters outside of Asia Pacific), your public affairs team can deliver value in several ways.
Singapore Parliament Building. Singapore is home to the largest number of headquarter jobs from global Fortune 500 companies compared with other key Asia hubs, according to separate 2018 studies by AON and KPMG.
First, public affairs can help you navigate foreign investment regulations. Foreign companies that are just setting up must adhere to customs permits for product imports and exports, and these often come with required declarations and a list of documentations. Trade compliance is a responsibility for all businesses. Having a public affairs team can help manage and review the necessary policies, while provide counsel on how to successfully navigate governments and regulators in an unfamiliar market.
Second, public affairs professionals can help manage relationships with officials. These officials are extremely important stakeholders. They can have a huge impact on a company’s market access, the ability to engage in M&As, access to strategic partnerships and its broader reputation.
Third, your public affairs team can be cultural liaisons. Multinationals often send a rotating cast of executives to Asia Pacific, many who have little to no experience doing business in the region. Your public affairs team can guide leaders beyond policy. They can secure government meetings that may be difficult for foreigners to schedule on their own, offer insight into local customs (preventing embarrassing gaffes or smoothing over misunderstandings), and serve as a reliable point of contact when leaders inevitably move on.
Finally, your public affairs team should be giving you regular briefs on the political and regulatory environment, especially on matters that affect current business or business development.
But what if you’re not a multinational, yet? More and more global brands emanate from Asia Pacific. Take Beijing for example – the Chinese capital is home to many high-tech enterprises and start-ups. You may have heard of the start-up ByteDance (the developers of TikTok), which launched in 2016. Today, TikTok has a billion monthly active users worldwide. If you’re growing a start-up, you may have some advantage in your home country but expanding into new territories is best done with a clear view of the political and regulatory landscapes.
Your public affairs team should go beyond briefing you on regional politics. They should help you identify potential allies or detractors. From building a new facility to launching a new product, your team must map all potentially interested stakeholders. As a baseline, you should know local, regional and national officials, their interests, and records. But you will also want to be aware of local competitors, interest groups, NGOs, coalitions, and trade associations. What are their policy agendas? Who calls the shots? What can seem like favourable territory now can easily shift. Better to be aware, make friends before you need them, and be ready to advocate for your business.
#2: How many countries are you operating in today?
There are 48 countries in APAC. Unlike the US or EU, there is almost no attempt to standardize policies across the region. Companies doing business in more than one country are governed by different regimes (e.g., democratic, authoritarian, and totalitarianism). What works in one country may be punishable by law in another. The potentially hundreds – if not thousands – of local, regional and national policies that are constantly evolving add a layer of complexity.
This is where data and today’s business buzzword can bring tremendous value. New digital tools make it easier to monitor and analyse what’s happening across various locations and governing bodies. Data visualization, qualitative analysis, and contextual analysis can all aid an organization’s ability to “see the forest through the trees” and spot challenges and opportunities ahead of competitors.
#3: Are you prepared to make ‘friends’ first?
In a region where policies and relationships can vary so greatly between countries, cultivating face-to-face relationships with regulators, executive and legislative bodies, business allies and local community leaders is imperative. Managing these relationships effectively can have a huge impact on your ability to do business. In the same way that diplomats represent their countries before governments, public affairs professionals represent the interest of your company before governments.
Be careful not to build transactional relationships. Sure, the goal may be to influence, but that starts with a light-touch introduction. You don’t go to your neighbour and ask to borrow eggs if you’ve never spoken before. Simply introducing yourself is the first step ─ long before you make an ask. You can also consider offering an exchange of value. For example, if you are a large employer, why not give your elected official a platform by inviting them to speak to employees? (Be mindful of local regulations). Or give them a useful talking point for their next public remark or media interview by sharing a great example of your company’s local innovations, sustainability achievements, or job growth. These can be considered wins for an elected official who values demonstrating that they’ve created a favourable business environment.
#4: Do you have a good story and storytellers?
Storytelling is essential in both public affairs and public relations. As you begin to develop relationships with the stakeholders who hold your company’s fate in their hands, do you have a compelling story and who exactly are the messengers?
Today, many companies are happy to crow about their purpose and highlight why they are good employers and corporate citizens. But, considering who is delivering the message is crucial. Is your CEO a willing spokesperson? Are they a capable communicator? Do they stay on message? Are they likeable?
CEO and co-founder of TurtleTree, Lin Fengru, tells a great story with a bold vision – to make high-quality milk using stem cell technology, paving the way for a sustainable future. Her story is compelling to say the least, and as a pioneer of change in billion-dollar dairy industry, she tells the company’s story in a heart-warming way without making science sound abstruse.
In addition to relying on your top executives, you can turn to internal and external subject matter experts. Third-party storytellers such as key opinion leaders or influencers can engage other organizations to tell your company’s story. How? Build relationships with the right coalitions or get your company name and examples of your good work into their public reports, white papers and social media posts. This option can often be neglected by business-to-business (B2B) communicators, but it’s something savvy public affairs professionals have mastered. For example, having your company’s initiative featured in a World Economic Forum report or a trade association social media post brings valuable buzz. Don’t think of influencers as teens on TikTok ─ think of the individual voices (or organizations) that have clout among your target audiences.
#5: Are your marketing and PR teams ready and willing for an integrated strategy?
An integrated marketing campaign combines multiple channels such as content, email, display advertising and social media to promote a consistent message to a specific audience. The main goal of most marketing campaigns is to convert the audience into customers. But what about other stakeholders that have an interest in the success (or failure) or your product?
Remember to consult your public affairs team at the beginning of the marketing plan well before campaigning starts. By including public affairs early, marketing can include outreach to government, regulators, trade associations, NGOs and any relevant parties. At the very least, it’s important to anticipate how your campaign may mobilize these groups for better or worse.
Public affairs: a must-have
Asia-Pacific is rapidly transforming; it’s a mix of developed, developing and underdeveloped countries with unparallel economic growth. The region continues to undergo significant changes, with free trade agreements on the horizon (not to mention the Trans-Pacific Partnership), the impact of the Ukraine-Russia conflict, the UN Sustainability Goals, climate pledges, and the list goes on.
Against this backdrop, business leaders must stay apprised of ongoing trends, issues, and developments, and today the role of public affairs has never become more crucial. Busy executives can’t track every development or personally manage every relationship, therefore businesses with a presence in Asia Pacific can reap significant results through an informed, insightful, influential public affairs function.
This article was written by Christina Celestine, a communications expert and friend of MacAllen Media & Public Affairs. Christina has 25 years of experience in communications and public affairs in Asia Pacific, where she has led regional teams on behalf of several multinational corporations including Phillips, Sanofi and DSM.
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