EU to cement ties with ASEAN region

EU to cement ties with ASEAN region

KUALA LUMPUR (AFP): The European Union (EU) is developing its commercial ties with the Association of Southeast Asian Nations (ASEAN) to end a long history of lost opportunities in the booming region, officials said yesterday.

"We need ASEAN business as much as the rest of the world, maybe more," Gwyn Morgan, head of EU ambassadors for Southeast Asia, said as he announced the union's plans to set up a commercial office in each of the group's member countries.

ASEAN groups Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand.

Morgan, addressing a news conference on the EU's priorities during France's presidency of the union between January and June, said a commercial representative will be posted later this year to each of the six ASEAN states.

"The representatives will work on improving bilateral trade. We're looking forward to developing ties in the banking and environment sectors, among others," said Morgan.

Officials said although European banks had penetrated ASEAN markets and enjoyed successful partnerships, there were still differences in the European and Asian financial systems, which hampered cooperation.

"This is basically a fault of the EU, but we've realized now how important ASEAN is for banking. There is real partnerships to be built in this part of the world," said the Bangkok-based Morgan.

He said the EU was identifying "reconcilable differences" in the financial systems of the two regions and hoped to have a dialogue soon with the ASEAN banking sector to standardize the systems.

British Chancellor of the Exchequer Kenneth Clarke said in Kuala Lumpur last week that Malaysia's banking, insurance and stock exchange rules still restricted foreign investments and hoped they would be loosened.

Morgan said the EU was also looking for "sizable projects" to promote environmental care in ASEAN.

The Commission of the European Communities signed a pact with Malaysia on Thursday to fund a sustainable forest management project estimated at nine million ringgit (US$3.6 million).

"We're also planning to extend more cooperation to Southeast Asia in highly catalystic R and D (research and development)," Morgan said.

Thierry Reynard, France's ambassador to Malaysia, said all EU programs during the French presidency will be coordinated with Germany, which headed the union in the previous six months, and Spain, which takes over the leadership from July.