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ASEAN forms task force to drive forward IT industry

| Source: DJ

ASEAN forms task force to drive forward IT industry

MANILA (Dow Jones): Aiming to boost its information technology sector, the Association of Southeast Asian Nations said Sunday it had set up a task force to come up with a comprehensive plan to develop the industry.

The announcement followed a meeting between members of the private sector and ASEAN leaders at their summit Sunday.

"Technological convergence will not be as effective unless political leadership generates the right regulations and policies," said Roberto Romulo, member of an IT private sector grouped tasked with coming up with proposals to ASEAN.

He said the e-ASEAN task force would make proposals to heads of state and government that could ultimately lead to an Information Technology Agreement in ASEAN covering goods, services and IT professionals.

ASEAN foreign and economic ministers agreed to allocate US$100,000 to the task force, which will include public and private sector officials.

"We have to make sure that we are not at the wrong side of the digital divide," Romulo said.

Developing information technology emerged as a central focus of ASEAN meetings in Manila over the past week. ASEAN ministers argued the issue was particularly urgent given China's likely entry into the World Trade Organization, which is expected to spur Chinese electronics exports to the rest of Asia.

Private technology companies briefed ASEAN leaders on the benefits of developing links in the IT field among ASEAN countries, Romulo said.

Among e-ASEAN's long-term aims are developing information infrastructure, providing IT access even to marginal sectors of society, increasing computer literacy and reducing operating costs.

The task force said it recognized that such a plan is a "multi-year effort" and will require investment from member countries and from the private sector.

Industry executives said the onus was on ASEAN governments to knock down any barriers to trade and investment in the sector, or other obstacles to developing information technology.

"Laws and regulations are lagging behind technological change," said Manuel Pangilinan, president of Philippine Long Distance Telephone Co.

The task force said a survey showed ASEAN countries varied greatly in regulations and taxation covering information and digital technology issues. It noted that only three ASEAN countries "promote tax neutrality between on- and off-line transactions", and that only four of six ASEAN countries surveyed had taxation policies consistent with internationally accepted principles.

The group suggested ASEAN members individually come up with customized and "comprehensive" strategies before they can be merged into a regional framework.

The private sector group that reported to ASEAN leaders comprised Pangilinan and Romulo along with Antonio Romero, president for ASEAN and South Asia of IBM Corp., Abas Sheikh Mohamad, chief executive for Brunei's Syabas Technologies, Dinesh Senan, chief executive for Singapore Connect Pte., and Maris Samaram, head of Arthur Andersen Thailand.

ASEAN comprises Indonesia, Malaysia, the Philippines, Thailand, Singapore, Brunei, Myanmar, Cambodia, Laos and Vietnam.

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