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.