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.