According to the Asian Development Bank’s Lao PDR Country Partnership Strategy 2024–2029, Lao PDR is set on transforming itself into the “battery of Asia” while redefining its landlocked status as “land-linked” through strategic connectivity investments with neighboring economies. Capital-intensive investments in hydropower, mining, and transport have spurred robust growth averaging 8% annually through 2016—yet this rapid expansion has also driven rising public debt and increased vulnerability to economic and climate shocks.
According to the World Bank’s Iran Overview, the country ranks second globally for natural gas reserves and fourth for proven crude oil reserves, yet its government remains vulnerable to external shocks such as sanctions and commodity price volatility. Iran is classified as an upper‐middle–income country with a population of approximately 88 million, and its executive authority is shared between the President and the Supreme Leader.
According to a World Bank press release dated 22 January 2025, Sri Lanka is making strides toward economic recovery and long-term growth through strategic reforms and targeted investments. The government has prioritized poverty reduction, digital development, and sustainability, with a strong commitment to fostering rural development and expanding renewable energy initiatives.
According to the U.S. Department of State’s 2024 Investment Climate Statements, Vietnam has seen notable economic growth, with GDP projected to expand by 7.4% in 2024. However, public debt is rising, with estimates suggesting it could reach 40% of GDP, placing pressure on fiscal management. The government’s commitment to public investment and infrastructure development remains crucial, especially considering the ongoing need for transportation and urban infrastructure modernization. Furthermore, as Vietnam grapples with rising inflation and a fluctuating currency, there is an increasing emphasis on enhancing transparency and accountability in public administration. Efforts to strengthen local governance and improve public service delivery are vital for addressing citizens’ needs, particularly in rural areas.
With World Bank’s July 2024 Economic Monitor estimating public debt to rise to 64.6% of GDP by F.Y. 2025, and fiscal deficit to increase to 3.6% of GDP as budget execution normalizes, Thailand’s government is facing mounting fiscal challenges. A balanced approach to fiscal sustainability and short-term stimulus measures is necessary to address the issues, including the need for increased social spending and human capital investment due to an aging population. Despite a goods trade surplus, the financial account has registered a deficit amid exchange rate depreciation and net outflows. To unlock the growth potential of the country’s secondary cities and achieve a balanced national economic development, targeted reforms in local governance and revenue generation mechanisms are critical.
Recent fiscal data and reports from the State Bank of Pakistan underscore the challenges facing the country’s public sector enterprises (PSEs), which are grappling with a mounting debt of PKR 1.7 trillion. Despite international funding, including a substantial loan from the Asian Development Bank (ADB) through the Public Sector Enterprises Reform Programme (PSERP), meaningful reforms have proven elusive. Political sensitivities surrounding the privatization of major PSEs, such as Pakistan International Airlines (PIA) and Pakistan Steel, continue to hinder progress. With increased subsidies and credit guarantees, the government faces ongoing governance and accountability challenges. The urgent need for structural reforms is critical not only for fiscal stability but also for the sustainable development of Pakistan’s economy.
Widespread unrest, economic challenges, and law and order issues have strained Bangladesh’s institutions following the resignation of long-time Prime Minister Sheikh Hasina in early August, international management consultancy firm Lightcastle reports. The interim government, led by Nobel Laureate Dr. Yunus, has committed to stabilizing Bangladesh through institutional reforms, re-establishing a democratic election process, and tackling corruption. Key leadership changes at institutions such as the Bangladesh Bank and the Bangladesh Securities and Exchange Commission (BSEC) signal a new phase of governance aimed at restoring public trust and driving economic recovery. Despite these obstacles, the younger generation is increasingly pushing for a more democratic and transparent future, fostering renewed hope for sustainable development in Bangladesh.
According to the World Bank, Fiji’s public sector is significantly strengthening its fiscal and disaster resilience. Key reforms include increasing government revenue for investments in critical public services such as health and education. The new National Disaster Risk Management Bill also emphasizes improving disaster risk planning at divisional levels. Furthermore, initiatives to reduce bureaucratic hurdles, such as easing business certificate renewals for low-risk ventures, are designed to attract more private sector investments, particularly in renewable energy, ensuring Fiji’s path towards a more resilient and sustainable economy.
Based on insights from the OECD World Observatory on Subnational Government Finance and Investment, Mongolia’s public sector has seen significant reforms. Recent initiatives, such as the Governance and Decentralization Programme and the Local Development Fund, have empowered subnational governments to deepen fiscal decentralization and strengthen citizen participation. Moreover, Mongolia’s pioneering use of deliberative polling in public decision-making is truly impressive, underscoring its commitment to participatory governance and shaping the nation’s administrative and fiscal landscape.
Based on the 2024 Investment Climate Statement from the U.S. Department of State, Türkiye’s public sector remained crucial, contributing to key areas such as renewable energy promotion and infrastructure development. The government’s Medium-Term Program (2024-2026) focuses on stabilizing the economy and attracting foreign direct investment (FDI), aligning with initiatives to enhance public-sector productivity and foster a more transparent, efficient investment environment.
Based on the International Labor Organization’s report, India’s public sector contributes 14% to its GDP and is actively implementing programs to upskill and reskill its employees to meet future demands. These initiatives align with the Digital India vision, aiming to enhance efficiency and service delivery through AI-powered automation.
The DAP, serving as the focal organization for the APO’s Center of Excellence on Public-Sector Productivity, recently hosted a Needs Assessment Workshop with its member economies. Focusing on the public sector of Indonesia, Nadiah Suhaima Ghina from the Ministry of State Secretariat and Rizki Sari Eka Putri from the Ministry of Home Affairs shared key insights through this factsheet.
Based on the Bertelsmann Transformation Index Country Report 2024, the public sector of Taiwan exhibited a high degree of stability and functionality, characterized by robust democratic institutions. Taiwan’s government demonstrated resilience and effectiveness in managing various challenges, including the COVID-19 pandemic and tensions in the Taiwan Strait.
Also one of the organization’s founding members in 1961, South Korea surpassed the OECD average in satisfaction with public services. Approximately 74% and 75% express satisfaction with the healthcare system and administrative services, respectively, exceeding the corresponding averages of 68% and 63% based on the OECD 2023 Country Notes.
One of the eight founding members of the organization in 1961, Japan stands out in citizen trust and satisfaction with its public services. Over three quarters (76%) express satisfaction with its healthcare system, and 67% of its citizens trust its judicial system, outperforming the OECD average of 68% and 56%, respectively, based on the 2023 OECD Country Notes.
As we continue to curate and transform datasets from reputable sources to bring insights into the public-sector profile of APO member economies, our focus now turns to examining the public sector of Malaysia. Admitted to the organization in 1983, Malaysia aims to meet the growing public expectations by adapting to population dynamics and technology trends. Based on the Ministry of Economy’s Eleventh Malaysia Plan, the government focuses on a citizen-centric approach to enhance public sector productivity through a whole-of-government strategy, emphasizing competent talent, effective project delivery, and efficient services, thus facilitating the country’s transition to an advanced economy and inclusive nation.
The DAP, as the APO's COE-PSP, curates and transforms datasets from various sources to bring dynamic insights into the public-sector profile of APO member economies. In this edition, we look into the profile of Singapore's public sector. Admitted to the organization in 1969, Singapore boasts a public sector committed to excellence, efficiency, and inclusivity. The government's strategic planning and continuous efforts to enhance services contribute to the country's reputation as a well-governed city-state.