ASEAN must figure in new deals

ASEAN must figure in new deals

The Nation, Asia News Network, Bangkok

It is unfortunate that the controversy surrounding the
development of the northern city of Chiang Mai as a regional
aviation hub has clouded other important aspects of the upcoming
informal summit between Thai Prime Minister Thaksin Shinawatra
and his Singapore counterpart Goh Chok Tong. In a regional
context, the meeting in Phuket on Saturday is hot on the heels of
the recent informal meeting between some members of the Thai and
Malaysian cabinets in Had Yai. Both Thaksin and Malaysian Prime
Minister Mahathir Mohamad worked on a number of key issues, such
as terrorism and labor cooperation.

Goh and his economic ministers will in Phuket to follow up on
proposed bilateral cooperation agreements between the island
republic and Thailand in such economic sectors as agriculture and
food, electronic parts for automobiles, tourism and financial
services.

Both sides hope for a win-win outcome to exploit economies of
scale and complementarity in these areas.

But both leaders must not forget to look beyond, particularly
in the context of Asean and the Asean Free Trade Area (AFTA),
which came into effect on January 1.

It will not be enough for just the two countries to benefit
from their series of bilateral cooperation agreements. Asean must
soon be a part of this bilateral economic offensive so as to
attract more outside investment.

Singapore is in the hot seat since it not only needs to
strengthen its outside ties as its domestic economy undergoes
internal restructuring, but has also just assumed the post of
secretary-general of the Asean secretariat.

Meanwhile, the Thai side must not forget that it is in dire
need of more foreign investment to keep healthy economic growth
on track. Along with the greater vision of building an Asia
community under the Asia Cooperation Dialogue, it is in its
practical interest to make Asean stronger, more active and
attractive to investment.

So it would be a mistake to bill this meeting as purely a
bilateral affair. Anything the two countries can do to further
pull Asean along will be much welcomed.

Thailand, in particular, can help to bridge any differences
which Singapore may have with Malaysia.

Unfortunately, the Thai government's handling of the plan to
make Chiang Mai into a regional aviation hub has clouded issues
of greater importance.

It may have jumped the gun a bit in its belief that the
development of Chiang Mai could take off at this meeting. As
suggested by all parties, more time is needed to study the plan
rigorously. Even the Singapore envoy to Bangkok is taking a
cautious view. The somewhat hurried efforts of Government House,
in fact, may have hurt rather than fostered Thai-Singapore
relations.

Rome was not created overnight, nor will Chiang Mai suddenly
become a regional hub for airliners - with or without the help of
Singapore. It would be more fruitful to try to make the various
areas of cooperation work and look at the hub development from
all aspects to make sure it is sustainable and the investment
truly worthwhile.

Nonetheless, the informal summit between Thailand and
Singapore will make headway if the further development of Asean
is not forgotten or demoted to secondary-priority status.

The peoples of Asean are watching.