Asean Committed to Greater Economic Integration
Kuala Lumpur. Integration, inclusivity and reform are the key themes of the 25th meeting of the World Economic Forum on the Association of Southeast Asian Nations in Kuala Lumpur.
More than 500 participants, including 40 government ministers, three heads of state and two deputy heads of state and 400 chief executives are gathered for the two-day meeting, which began on Wednesday (01/06).
In opening the conference, Malaysian Prime Minister Najib Razak noted that the global focus was now squarely on Asean as the regional grouping moved towards greater economic integration.
Collectively the 10 members of Asean have a gross domestic product of $2.3 trillion, making them the seventh-largest economy in the world. With a population of 600 million, Asean is also the world's fourth-largest consumer market.
"We know what we are and we know where we want to go, but do we have the determination to reform our economies to claim the prize?" Razak said. "The great opportunity and promise will not miraculously appear without continued efforts to reform, liberalize and integrate our economies."
He added that as a result, greater efforts needed to be undertaken by all member countries in lowering trade barriers and fostering more openness.
Razak cited the example of how Asean member states have reduced tariffs on imports to near zero but non-tariff barriers have tripled. "The AEC [Asean Economic Community] will never reach true fruition if we do not eradicate these barriers," Razak said. "In short, what is required is nothing short of a complete transformation of Asean."
Speaking on the same panel as the Malaysian prime minister, Indonesian Vice President Jusuf Kalla said Asean was moving from cooperation to integration but that the process would require time and effort.
Kalla added that for fuller integration, Asean member states will need to discuss standardization of regulations as well as fostering greater connectivity.
"In Indonesia, our philosophy is equity and equality and we are working very hard to create more inclusive growth," he said.
To this end, the government of President Joko "Jokowi" Widodo is focusing on infrastructure development, improving the agriculture sector and boosting manufacturing.
The vice president added however, that Asean needs to juggle between cooperation and competitiveness as a number of countries in the regional bloc are competing for the same investments.
"We should not allow investors to push our labor costs down and force members to compete against each other," he noted. As a possible solution, Kalla floated the idea of having coordinated minimum wages across the region.
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