Posted on 14 Jun 2013
Divergence among Asean countries is not a hindrance in realising regional economic integration. On the other hand, they can wonderfully complement each other to enhance the region's economy, the country's top corporate leaders said.
Maybank Investment Bank chief executive officer (CEO) Tengku Datuk Zafrul Tengku Aziz, speaking at a panel discussion entitled Aseanised Corporate Malaysia: Primed for AEC 2015 at Invest Malaysia 2013, said countries in Asean needed to look at their commonalities and work towards achieving a regional framework under the Asean Economic Community (AEC) that would be established by 2015.
The AEC promises an enlarged market beyond national boundaries for the 10 member countries, but achieving this is not without challenges.
SapuraKencana Petroleum Bhd president and CEO Tan Sri Shahril Shamsuddin said there was a need to address and manage imbalances among member countries. “There are countries that are rich with resources but lacking in skilled talent and vice-versa.”
Citing oil and gas as an example, he noted that while the commodity was plentiful in this region, its distribution was sporadic. To build successful industries across the region, there is a need for common policies that would bring about symbiotic development within it.
Citing the example of the stock exchanges' role in the regionalisation, Bursa Malaysia CEO Datuk Tajuddin Atan, meanwhile, said that the three largest exchanges in Asean had rolled out the Asean Trading Link, which connected the respective exchanges on a common link.
“Bursa Malaysia, the Singapore Stock Exchange and the Stock Exchange of Thailand have spearheaded this initiative as part of the Asean exchanges collaboration, which would bring together six other exchanges in the region.”
Tajuddin said that with the AEC around the corner, there was urgent need for more integration ad cooperation within and among the region's economies.
He added that Bursa, on its part, would continue to position itself as a facilitator to support Malaysian companies in their regionalisation drive.
He noted that Malaysian companies had successfully “Aseanised”, if not internationalised, with the 30-member FTSE Bursa Malaysia KLCI companies now generating 45% of their revenue from overseas. This is up 17% from 28% in 2009.
“The dividend yield of stocks on Bursa Malaysia were the highest in the region last year, while the index grew over the last five years by 8.9% compared with lower or even sub-zero dividend yields around the region. A yield of 3.3% or above is a good return, and that's why the net purchase on Bursa Malaysia for the last 18 months has always been from foreigners, especially in the last six months,” he said.
Johan Merican, Talent Corp Malaysia Bhd CEO, opined that the free movement of labour under the AEC presented both a threat and opportunity for Malaysian companies.
