ASEAN liberalizes investment rules<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
Member states of the Association of Southeast Asian Nations
\n(ASEAN) decided to accelerate the liberalization of their
\ninvestment regimes by broadening the scope of economic activities
\nin which ASEAN investors would be given national treatment.<\/p>\n
Meeting in Jakarta last week, the ASEAN Coordinating Committee
\non Investment has agreed to phase out the "temporary exclusion
\nlist" of products in the manufacturing sectors in Brunei
\nDarussalam, Indonesia, Malaysia, Myanmar, the Philippines,
\nSingapore and Thailand.<\/p>\n
According to a media release issued on Friday by the ASEAN
\nsecretariat, the decision means that any ASEAN investor can now
\ninvest in the manufacturing sector of any ASEAN country and enjoy
\nnational investor treatment.<\/p>\n
Since the launch of the ASEAN Investment Area in 1998,
\nSoutheast Asian states have started opening up all industries for
\ninvestment and granted national treatment to ASEAN investors, but
\nwith some exceptions.<\/p>\n
The exceptions are supposed to be phased out by 2010 for ASEAN
\ninvestors.<\/p>\n
Meanwhile, the newer member of ASEAN, namely Cambodia, Laos
\nand Vietnam, have until Jan.1, 2010, to phase out their temporary
\nexclusion list for the manufacturing sector.<\/p>\n
The establishment of the ASEAN Investment Area is expected to
\nencourage investors to think increasingly in regional terms and
\nadopt a regional investment strategy and network operation.<\/p>\n
The scheme aims to promote a more efficient division of labor
\nand industrial activities across the region, creating
\nopportunities for greater industrial productivity and cost
\ncompetitiveness.<\/p>\n
The release said that ASEAN investors were defined as being
\nequal to national investors in terms of the equity requirements
\nof an ASEAN country in which the investment was made. Thus, an
\nASEAN firm with a majority interest could avail itself of
\nnational treatment and investment market access privileges.<\/p>\n
Newly opened areas for ASEAN investors<\/p>\n
Brunei: Manufacture of veneer sheets, plywood, laminaboard,
\nparticle board, other panels and boards, and builders' carpentry.<\/p>\n
Indonesia: Manufacture of pesticides.<\/p>\n
Myanmar: Manufacture of pulp of all kinds, production and
\nmarketing of basic construction materials, furniture, and parquet,
\nusing teak extracted and sold by the state-owned economic enterprise.<\/p>\n
Thailand: Production of flour from rice and field crops.<\/p>\n
Philippines: ASEAN equity will now be allowed in cooperatives.<\/p>\n
- More than 40 percent ASEAN equity could be allowed and export
\nrequirement would be relaxed for domestic market enterprise with
\npaid-in capital of less than the equivalent of US$200,000 and
\ndomestic market enterprises that involve advanced technology or
\nemploy at least 50 direct employees with minimum paid-in equity
\ncapital of less than $100,000.<\/p>\n
- Investment incentives could be availed for companies registered
\nunder the Omnibus Investment Code (E.O 226) with more than 40
\npercent ASEAN equity.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/asean-liberalizes-investment-rules-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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