McKinsey&CompanyMCKINSEY GLOBAL INSTITUTETHE POWER OF PARITY:ADVANCING WOMEN'SEQUALITY IN ASIA PACIFICAPRIL 2018MCKINSEY GLOBAL INSTITUTESince its founding in 1990,the McKinsey Global Institute(MGl)has soughtto develop a deeper understanding of the evolving global economy.As thebusiness and economics research arm of McKinsey Company,MGl aimsto provide leaders in the commercial,public,and social sectors with the factsand insights on which to base management and policy decisions.MGI research combines the disciplines of economics and management,employing the analytical tools of economics with the insights of businessleaders.Our"micro-to-macro"methodology examines microeconomicindustry trends to better understand the broad macroeconomic forcesaffecting business strategy and public policy.MGI's in-depth reports havecovered more than 20 countries and 30 industries.Current research focuseson six themes:productivity and growth,natural resources,labour markets,the evolution of global financial markets,the economic impact of technologyand innovation,and urbanisation.Recent reports have assessed thedigital economy,the impact of Al and automation on employment,incomeinequality,the productivity puzzle,the economic benefits of tackling genderinequality,a new era of global competition,Chinese innovation,and digital andfinancial globalisation.MGI is led by three McKinsey Company senior partners:Jacques Bughin,Jonathan Woetzel,and James Manyika,who also serves as the chairmanof MGl.Michael Chui,Susan Lund,Anu Madgavkar,Jan Mischke,SreeRamaswamy,and Jaana Remes are MGI partners,and Mekala Krishnan andJeongmin Seong are MGI senior fellows.Project teams are led by the MGI partners and a group of senior fellows,andinclude consultants from McKinsey offices around the world.These teamsdraw on McKinsey's global network of partners and industry and managementexperts.Advice and input to MGl research are provided by the MGI Council.members of which are also involved in MGI's research.MGI Council membersare drawn from around the world and from various sectors and includeAndres Cadena,Sandrine Devillard,Richard Dobbs,Tarek Elmasry,KatyGeorge,Rajat Gupta,Eric Hazan,Eric Labaye,Acha Leke,Scott Nyquist,Gary Pinkus,Sven Smit,Oliver Tonby,and Eckart Windhagen.In addition,leading economists,including Nobel laureates,act as research advisers toThe partners of McKinsey fund MGI's research;it is not commissioned by anybusiness,government,or other institution.For further information about MGland to download reports,please visit www.mckinsey.com/mgiCopyright McKinsey Company 2018THE POWER OF PARITY:ADVANCING WOMEN'SEQUALITY IN ASIA PACIFICJonathan Woetzel ShanghaiAnu Madgavkar MumbaiKevin Sneader Hong KongOliver Tonby SingaporeDiaan-Yi Lin SingaporeJohn Lydon SydneySha Sha Hong KongMekala Krishnan BostonKweilin Ellingrud MinneapolisMichael Gubieski MelbournePREFACEAdvancing women's equality in work and societyand Rakesh Mohan,senior fellow at the Jackson Instituterepresents one of the most sizable economicfor Global Affairs at Yale University and distinguishedopportunities for the world.McKinsey Company hasfellow at Brookings India.We are also grateful to thebeen researching,publishing,and helping shape actionadvisers who have worked with us regularly on ouron gender diversity for more than a decade,and the"power of parity"series,namely Jeni Klugman,fellow.McKinsey Global Institute(MGl)has contributed to thisKennedy School of Government's Women in Public Policyimportant issue with its research series on the "powerProgram,Harvard University,and managing director,of parity".Georgetown Institute for Women Peace and Security:and Henriette Kolb,head of the Gender Secretariat,In September 2015,MGI published a global report,Thepower of parity:How advancing women's equality canadd $12 trillion to global growth.Since then,we haveThis report would not have been possible without theissued reports on the power of parity in Canada,India,theexpert input,advice,and help of numerous leadingUnited Kingdom,the United States,and Western Europe,voices on these issues.We would like to thank Georgetteas well as research on what it will take to deliver genderTan Adamopoulos,group head,communications,Asiaparity globally.In this report,MGI explores the challengePacific,Mastercard Worldwide:Willem Adema,seniorof gender inequality in Asia Pacific,one of the mosteconomist,Organisation for Economic Co-operationeconomically dynamic regions in the world,and an engineand Development;Vasuta Agarwal,vice presidentof global growthand general manager,India,InMobi;Alison Aggarwal,This research was led by Jonathan Woetzel,a director ofdirector,Women's Economic Security,Office for Women;MGI and senior partner of McKinsey,based in Shanghai;Amelia Agrawal,Asia partner and channel marketingAnu Madgavkar,an MGl partner based in Mumbai;director,Microsoft;Stevia Angesty,co-founder,Feel WellCeramics:Patricia Apps,professor of public economics.Kweilin Ellingrud,a partner based in Minneapolis:andMekala Krishnan,an MGl senior fellow based in Boston.University of Sydney Law School:Alice Au.boardalong with Kevin Sneader,chairman of McKinsey'smember,Spencer Stuart;Natalie Au,formerly of theCouncil on Foreign Relations:Marian Baird,professor ofoffices in the Asia Pacific region,and McKinsey seniorpartners John Lydon in Sydney,Sha Sha in Hong Kong,gender and employment relations,University of SydneyOliver Tonby in Singapore,and Diaan-Yi Lin in Singapore.Business School:Jennifer Baxter.senior researchfellow,Australian Institute of Family Studies:DaianaMichael Gubieski,a consultant in Melbourne,led theworking team,which comprised Alice Hudson,Nigel Lee,Beitler,philanthropies director for Greater Asia and theJames Oliver,Catherine Peralta,and Phillippa Radford.Pacific,Microsoft;Analisa Belares,CEO,Womensphere;We are grateful to a number of McKinsey colleaguesDeborah Brennan,professor,University of New Southwho were closely involved in this research and providedcommissioner(2007-15).Australian Human Rightsinvaluable insight into the seven countries highlighted inCommission.convenor and founder of Male Championsthe report.They are Rishi Arora,Anders Barlund,JulesCarrigan,Jenny Cermak,Kaushik Das,Namrata Dubashi,of Change,and special rapporteur.Working GroupEmma Dudley,Ellen Feehan,Vidhya Ganesan,Guillaumeon Discrimination Against Women,UN Human RightsCouncil;Doreen Buettner,programme specialist,UNde Gantes,Rajat Gupta,Shishir Gupta,Rachel Howard,Corinne Johnson,Peter Kenevan,Nick Leung,GuangWomen Indonesia:Avic Caparas,associate professor,University of Asia and the Pacific:Melinda Cilento,chiefLi,Suraj Moraje,Joe Ngai,Tracy Nowski,Vivek Pandit,Kristine Romano,Yukiko Sakai,Miki Sarumaru,Himanshuexecutive,Committee for Economic Development ofSatija,Jeongmin Seong,Tanya Sharma,Ben Vatterott,JinAustralia;Ryce Chanchai,programme specialist,UNWomen:Tania Coltman,deputy chief of staff to theWang,Kenji Watatani,Phillia Wibowo,Naomi Yamakawa,Minister for Women,Australia;Deepa Das,independentand Fadhilah Zamawi.programme development professional,UNICEF India:We are grateful to the academic advisers who helpedSharon G.Dayoan,vice chairman and head of audit,shape this research and provided challenge and insightsKPMG,Philippines,and founding member,Filipinaand guidance:Laura Tyson,professor of businessCEO Circle;Xiao-yuan Dong,professor,Universityadministration and economics and director of the Instituteof Winnipeg;Helen Duce,leader,Lean In Singapore;for Business and Social Impact,Haas Business andKathryn Fagg,board member,Reserve Bank of AustraliaPublic Policy Group,University of California at Berkeley;and president,Chief Executive Women;Annika Freyer.Virginia Tan,co-founder,She Loves Tech,Lean In ChinaCEO,Male Champions of Change;Debjani Ghosh,Jill Tang,co-founder,Ladies Who Tech;Julie Taylortrustee,NASSCOM Foundation,and honorary adviser,Broussard,country programme manager,UN Women;Federation of Indian Chambers of Commerce andUma Thana Balasingam,co-founder,Lean In Singapore;Industry Science and Technology/Innovation Committee;Fraser Thompson,director.,AlphaBeta Advisors:TsukikoJane Golley,associate professor,College of Asia andTsukahara,vice president.Catalyst Japan:Astrid S.the Pacific,Australian National University:Geeta RaoTuminez,regional director,corporate,external,andGupta,executive director,3D Program for Girls andlegal affairs,Microsoft Southeast Asia:Valentina Y.D.Women.UN Foundation:Sotera B.de Guzman,OIC-Utari,researcher.The SMERU Research Institute:Arianedivision chief,Philippine Statistics Authority:Jianbin Hao,Utomo,research fellow,Crawford School of Publicdirector,Entrepreneurship and Employment ResearchPolicy,Australian National University,and labour marketeconomist,Australia Indonesia Partnership for Economiclecturer,University of Sydney,and co-convenor,Work+Governance;Maria-Noel Vaeza,director,ProgramFamily Policy Roundtable;Shachi Irde,executive director,Division,UN Women;Emmeline L.Verzosa,executiveCatalyst India WRC:Kae Ishikawa,director,Japan Liaisondirector,Philippine Commission on Women:ClaireOffice,UN Women;Anna-Karin Jatfors,deputy regionalWang,founder,Medistar;Edith Yeung,partner,China,director.UN Women:Kate Jenkins,sex discrimination500 Startups;Naoko Yuki,partnerships consultant,UNcommissioner,Australian Human Rights Commission:Women,Japan Liaison Office;Doris Zhang,founder,Geetha Kannan,managing director,AnitaB.org InstituteTechX Queen:and Zhenzhen Zheng,professor,Institutefor Women and Technology,India;Shobana Kamineni,of Population and Labor Economics,Chinese Academy ofexecutive vice chairperson,Apollo Hospitals EnterpriseSocial Sciences.Ltd.,and president,Confederation of Indian Industry:We would like to thank MGI's operations team,whichAmitabh Kant,CEO,NITI Aayog;Ayano Kashima,provided crucial support for this research:senior editoradvocacy.outreach,and resource mobilisation team,UNJanet Bush;Cathy Gui and Rebeca Robboy in externalWomen,Japan:Miwa Kato,regional director Asia Pacific.communications and media relations:Julie Philpot,UN Women;Niny Khor,head,ADB-China Regionaleditorial production manager;Marisa Carder,graphicsKnowledge Sharing Initiative,Asian Developmentspecialist;Tim Beacom,research specialist;and DeadraBank:Zoe Kinias,associate professor and academicHenderson,manager of personnel and administration.director,Gender Initiative,INSEAD;Bingqin Li,associateWe are also grateful to Stephanie Gatto and Nicole Whiteprofessor,University of New South Wales;Tina Likki,of Sydney Design Studio,Australia,for their help withprincipal adviser,The Behavioural Insights Team;Jialeidesign and production.Lin,project officer.UN Women China:Susan Lloyd-Hurwitz,CEO and managing director,Mirvac Group;AmyThis report contributes to MGI's mission to help businessLuinstra,senior gender adviser,East Asia and Pacific.and policy leaders understand the forces transforming theInternational Finance Corporation;Pelle Lutken,policyglobal economy,identify strategic locations,and preparespecialist,UNDP:Sabine Machl,special representative,for the next wave of growth.As with all MGl research,thisUN Women;Charu Mathur,director,communications,work is independent and has not been commissionedoperations and marketing,AnitaB.org India;Kathy Matsui,or sponsored in any way by any business,government,chief Japan strategist,Goldman Sachs Japan;Kohor other institution.We welcome your comments on theMiyaoi,regional gender equality advisor for Asia and theresearch at MGl@mckinsey.com.Pacific,UNDP:Tri Mumpuni,executive director,IBEKA:Jacques BughinSia Nowrojee,program director,3D Program for Girls andDirector,McKinsey Global InstituteWomen,UN Foundation;Jennifer Pan,ChinaSense;LilySenior Partner,McKinsey CompanyPuspasari,programme specialist,UN Women Indonesia:BrusselsVeronica Quinn,adviser,The Behavioural Insights Team;Holly Ransom,CEO,Emergent;Amanda Robbins,deputyJames Manyikadirector,Australia Indonesia Partnership for EconomicChairman and Director,McKinsey Global InstituteSenior Partner,McKinsey CompanySchwartz.board member.Reserve Bank of Australia.andSan Franciscofounding chair,Women's Leadership Institute Australia;Jonathan WoetzelDiane Smith-Gander,immediate past president,ChiefDirector,McKinsey Global InstituteExecutive Women:Miranda Stewart.director.Tax andSenior Partner,McKinsey CompanyTransfer Policy Institute,Australian National University;ShanghaiDiana Contreras Suarez,research fellow,UniversityApril 2018of Melbourne:Pocket Sun,founder,SoGal Ventures;