McKinsey recently hosted its annual Asian Leaders’ dinner during the World Economic Forum meeting in Davos, gathering over 70 top executives from the region. The discussions delved into critical themes shaping Asia’s future, including geopolitical resilience, trade corridors, AI and gen AI, energy transitions, and demographic challenges. Clay Chandler, executive editor, Asia, at Fortune, moderated the conversations, providing valuable insights into the strategic landscape of the region.

During a post-Davos interview, McKinsey senior partners Gautam Kumra and Joe Ngai shared key insights and takeaways from the discussions at the dinner. Here are some of the highlights:

Gautam Kumra highlighted Asia’s increasing role in global trade, with more than half of the world’s economic growth driven by the region. He emphasized the growing trade corridors within Asia and the region’s interconnectedness through data, intellectual property services, and the movement of people. As trade in intellectual property services and people movements continues to outpace trade in goods, Asian countries are becoming more connected with each other and the rest of the world.

Gautam Kumra and Joe Ngai discussed the emergence of new trade corridors, such as India-Japan and India-Middle East, presenting opportunities for collaboration and investment. They highlighted the potential for ASEAN-Gulf States collaboration and the flow of investments between the regions.

Joe Ngai provided insights into the Chinese economy, noting the importance of boosting domestic demand amid global economic uncertainties. Gautam Kumra discussed India’s structural strengths, including rising consumption, technological advancements, a young working population, and a focus on sustainability and energy transition.

The conversation also touched on the significance of AI and gen AI in shaping business strategies. DeepSeek’s breakthrough in creating a competitive language model at a lower cost highlighted the democratization of AI technologies. The partners emphasized the need for companies to harness gen AI’s productivity and value for money to drive innovation and customer experience.

As global markets face uncertainty and volatility, business leaders in Asia must focus on agility, resilience, and strategic planning. Gautam Kumra advised leaders to consider both defensive and offensive strategies, preparing for scenarios like inflation and geopolitical shifts. Joe Ngai emphasized the importance of adaptability and proactive engagement in the rapidly changing business landscape.

Q: How can businesses in Asia navigate geopolitical and economic challenges?

A: Business leaders should prioritize agility, strategic planning, and scenario analysis to prepare for uncertainties like inflation, trade disruptions, and geopolitical shifts. Building resilience, exploring new trade corridors, and leveraging technology can help companies thrive in turbulent times.

Q: What opportunities does AI offer for Asian businesses?

A: AI and gen AI technologies present opportunities for innovation, efficiency, and enhanced customer experiences. Companies that embrace these technologies and adapt their strategies to leverage AI capabilities can gain a competitive edge in the market.

In conclusion, McKinsey’s Asian Leaders’ dinner provided valuable insights into the strategic landscape of Asia, highlighting the region’s growing importance in global trade, the impact of AI technologies, and the need for businesses to adapt to market uncertainties. By focusing on agility, resilience, and innovation, Asian companies can navigate challenges and seize opportunities in the evolving business environment.