ASEAN told to restore investor confidence
ASEAN told to restore investor confidence
Dow Jones, Bandar Seri Begawan
The Association of South East Asian Nations, or ASEAN, must
restore investor confidence and reduce the cost of doing business
in the region, the group's economic ministers heard Thursday.
Brunei Sultan Hassanal Bolkiah also told the ASEAN Economic
Ministers meeting that the group must press ahead with forging
wider links with its East Asian and Asia Pacific trading
partners.
"Though economies in the region are already recovering from
the aftershocks of the Asian financial crisis and the Sept. 11
terrorist attacks, we still face challenges in becoming a key
global player," he said at the opening ceremony of the meeting.
"Among others, foreign direct investments have dwindled
significantly from the pre-crisis levels and even though the
ASEAN free trade area has been realized for six ASEAN countries,
growth in intra-ASEAN trade has yet to increase significantly.
"Consequently, investor confidence has to be restored, and the
cost of doing business in ASEAN has to be minimized."
ASEAN comprises Indonesia, Cambodia, Thailand, Malaysia, Laos,
Vietnam, Brunei, the Philippines, Singapore and Myanmar.
The block has seen its share of regional investment fall in
recent years as investors are drawn to the massive local market
and cheap labor costs offered by China.
The discussions of the economic ministers meeting Thursday
include a proposed free trade agreement with China and progress
toward cutting tariffs in the region.
Later in the week, the group will hear a report on a possible
broader economic partnership with Japan that could include a free
trade area.
The group is also expected to sign a closer economic
partnership accord with Australia and New Zealand.
The sultan said ASEAN has progressed in the right direction by
means such as undertaking to reduce non-tariff barriers, bringing
in harmonized or mutually recognized standards and professional
qualifications, and simplifying customs procedures, but he is
convinced that "we still need to do even more."
"I look forward to seeing specific measures being drawn up
with clear timeliness that focus on bridging the development gap,
enhancing further economic cooperation and achieving deeper
integration," he said.
He said that ASEAN is on the threshold of a new era in
economic cooperation, and political will is needed as the group
strives to consolidate its position as a region of dynamic
economic growth.
"Without it, we risk falling behind other regions in economic
progress," he said.
"It is therefore critical for ASEAN to unite with a renewed
sense of purpose by intensifying our momentum towards a freer
flow of trade and investment in the region and enhancing our
competitiveness in attracting foreign direct investment."
This week's meetings are an "enormous opportunity" for ASEAN
to show that it can move rapidly to secure higher living
standards for its people, he said.
"ASEAN possesses immense potential in our abundant natural
resources and productive, skilled peoples," he said.
"I hope that you will be able to step up cooperative efforts
to unleash this potential."
He urged the ministers to come up with specific measures with
defined timeframes to bridge the gap between ASEAN's less
developed nations and their richer counterparts.