News Room - Business/Economics

Posted on 26 Aug 2008

ASEAN Economic Ministers meet to track progress of integration efforts

Economic Ministers of the Association of Southeast Asian Nations (ASEAN) are meeting in Singapore to track efforts to integrate the grouping's Economic Community by 2015, which will facilitate movement of goods, services and people.

Speaking at the opening ceremony, Singapore Prime Minister Lee Hsien Loong said that while ASEAN continues to integrate and liberalise its economies, the ministers should also continue to push for multilateral trade liberalisation and guard against backsliding and resorting to protectionist pressures.

Mr Lee said: "Completing the roadmap to become an ASEAN Economic Community will require commitment and tough political decisions.

"Our respective governments face pressing domestic economic and political pressures from time-to-time, but we must muster political will to implement the roadmap which we have agreed upon."

To help the 10-member bloc meet that target, an ASEAN Economic Community Scorecard has been developed, and it will keep the leaders informed of what has been done.

"To be a credible organisation, we must match words with actions," said Mr Lee. "The Scorecard will thus be a useful tool. It will enable us to monitor our implementation efforts, engage users through a feedback mechanism, and address issues that may cause delays."

Successful integration will also enable ASEAN to remain viable as China and India surge ahead.

Total Foreign Direct Investment (FDI) inflows to ASEAN exceeded US$60 billion in 2007. But China received US$83 billion worth of FDI during the same period.

PM Lee said ASEAN would stand a better chance at attracting investments collectively instead of as individual economies because as a 10-member bloc, it represents a market of 550 million people with a gross regional product and total trade of over US$1 trillion.

He said ASEAN must remain committed to improving its business environment, including keeping tariffs low and simplifying customs procedures, which will translate to savings for small- and medium-sized companies.

Investors from ASEAN and those based in the region can also expect to benefit from a new investment agreement.

Also on the meeting's agenda was an arrangement to exchange best practices in the accountancy services, dental and medical sectors.

Externally, ASEAN will continue to negotiate free trade agreements with its dialogue partners such as Australia, New Zealand, China, India and Korea.