KEYNOTE ADDRESS BY MINISTER OF STATE FOR TRADE AND INDUSTRY, MR LEE YI SHYAN, AT THE 5TH ASEAN LEADERSHIP FORUM, 18 JUNE 2008 AT 0935 HRS, SHANGRI-LA HOTEL, SINGAPORE
H.E. Dr Surin Pitsuwan, Secretary-General, The ASEAN Secretariat
Dato Dr Michael Yeoh, CEO/Director ASLI
Ambassador Kesavapany, Director, ISEAS
Distinguished guests,
Ladies and gentlemen,
Good morning. I would like to thank ISEAS and ASLI for inviting me to be at this prestigious forum to deliberate key leadership challenges facing ASEAN countries and their stakeholders. Let me also warmly welcome participants from member ASEAN countries and overseas.
ASEAN was formed 41 years ago, with two key aims. The first is to accelerate economic growth, social progress and cultural development in the region. The second is to promote regional peace and stability through abiding respect for justice and the rule of law among countries in the region, as well as adherence to the United Nations Charter.
On its 30th anniversary, ASEAN’s leaders agreed on the shared vision of ASEAN as a grouping of Southeast Asian nations, outward looking, living in peace, stability and prosperity, bonded together in partnership in dynamic development and in a community of caring societies. This forms the basis for ASEAN Vision 2020, which in turn serves as the foundation for the ASEAN Community, built upon the three key pillars of the ASEAN Security Community, the ASEAN Economic Community, and the ASEAN Socio-Cultural Community.
The Importance of ASEAN Integration
Ten years on, as we approach ASEAN Vision 2020, the need to accelerate the collective vision and goals of ASEAN has become even more pressing. Global issues such as spiraling oil prices, increased global food prices and export control, global warming and worsening pollution are but some of the long term trends that we have to deal with. In addition, we continue to face ongoing security threats in the form of terrorism and pandemic flu. The environment we operate in has far many unknown parameters, as some may argue. They subject our social institutions and stability to severe stresses.
Ten years on, as we approach ASEAN Vision 2020, the need to accelerate the collective vision and goals of ASEAN has become even more pressing. Global issues such as spiraling oil prices, increased global food prices and export control, global warming and worsening pollution are but some of the long term trends that we have to deal with. In addition, we continue to face ongoing security threats in the form of terrorism and pandemic flu. The environment we operate in has far many unknown parameters, as some may argue. They subject our social institutions and stability to severe stresses.
If we are not prepared, we risk our countries becoming disoriented from the resulting shocks.
It is against such an uncertain backdrop that ASEAN must continue to work as a cohesive body and integrate quickly, so as to provide member countries with the ability to respond to external challenges with greater resilience and unity. With the framework of the ASEAN Community in place, we are better placed to coordinate regional efforts and keep a close watch over our own backyard, so that all 10 Member States would be able to benefit substantively. How can we do this?
ASEAN CHARTER
First, on the ASEAN Charter. It was signed in Singapore last November, together with the Blueprint for the ASEAN Economic Community. The signing of these documents demonstrated our commitment to ASEAN integration, and for enhanced linkages in the economic, political and social arenas.
The signing of the ASEAN Charter was a historic milestone for ASEAN, representing our common vision and commitment to the development of an ASEAN Community as a rule-based and institutionalized organization. To hasten ASEAN integration, implementation of the ASEAN Charter will be key. Singapore, as ASEAN Chair for this year, hopes that all ASEAN countries will undertake all measures necessary to ensure expeditious ratification and implementation of the Charter.
ASEAN Economic Integration
Second, let me turn to the economic front. ASEAN, with a total population of 560 million, an area of 4.5 million square kilometers, a combined gross domestic product of almost US$ 1,100 billion, and a total trade of about US$1,400 billion as of 2006, has immense potential as a key market, producer and investor both regionally and globally. Economic integration will thus allow ASEAN to realize its potential of becoming a single market and production base, with free flows of goods, services and investment.
We have had our early successes. We were one of the first off the block with the signing of the ASEAN Free Trade Area (AFTA) in 1992.Since then, AFTA has successfully eliminated almost 100 per cent of tariffs for trade among the ASEAN 6.Trade amongst the 10 member states today stands at almost US$190 billion, doubling the intra-regional trade value of US$93 billion in 2000.ASEAN is the top import origin for member states, bringing them a consistent 20 to 25 per cent supply of raw materials and consumer goods, compared to the next top import origin, Japan, at 12 per cent. ASEAN is also the top export destination, with a quarter of exports being intra-region, while the US takes 2nd place with 12 to 14 per cent of ASEAN exports. In the next step to further economic integration, ASEAN has to eliminate non-tariff barriers and develop trade facilitation measures to achieve friction-less trade.
On services, liberalization measures taken based on the ASEAN Framework Agreement on Services (AFAS) signed in December 1995, member countries have resulted in a threefold growth of ASEAN service exports from US$54.8 billion in 1998 to US$150.3 billion in 2006. On investments, ASEAN continues to undertake initiatives for the promotion, liberalization and protection of investments in the region in the ongoing work on the ASEAN Comprehensive Investment Agreement.
Each of these initiatives in goods, services and investment will empower ASEAN to compete more effectively with other fast-growing regions of the world. Recognizing the need to adapt and respond quickly to the changing global environment in order to remain competitive, ASEAN has accelerated the target for achievement of an ASEAN Economic Community from 2020 to 2015.
Growing ASEAN’s External Linkages
The third area to strengthen ASEAN is in the international arena, to ensure ASEAN’s integration into the global economy. We have embarked on concluding free trade agreements with our key trading partners such as China, Japan and Korea. Negotiations with other key Dialogue Partners such as Australia, New Zealand, India and the EU are ongoing. These efforts are instrumental in assuring ASEAN’s pro-active role in the global trade system. Through them, ASEAN can remain viable and relevant.
ASEAN ECONOMIC COMMUNITY
But whilst ASEAN governments can put in place our visions, we cannot achieve the outcome alone. ASEAN governments work closely with private sector and create the necessary enabling conditions for industries to flourish. ASEAN governments are deeply aware of this, and actively seek to establish firm cooperative relationships with the private sector.
If we consider the many challenges facing us, such as high energy prices, green house gas emissions, inflation and sub-prime crisis, there are many areas where governments, the private sector and think tanks like ISEAS and ASLI need to come together to discuss and devise workable solutions for mutual benefits.
In ASEAN, fortunately a number of forums to facilitate public-private sector consultations exist. One example is the establishment of the Coordinating Committee on the ASEAN Economic Community (ECOM), which is an annual forum organized and hosted by the ASEAN Secretariat, to facilitate the exchange of views between industry stakeholders and senior government officials on the progress of the ASEAN Economic Community. With the academia, we also have several forums for communication, including the recently established ASEAN Studies Centre and the Economic Research Institute for ASEAN and East Asia (ERIA).
The importance of cooperation between stakeholders in Government, business and academia cannot be under-stated. Your participation in these processes therefore serves as invaluable input, allowing policy formulation to be carried out with an understanding of the needs of the industry and aspiration of the people of ASEAN.
Moving Ahead
In summary, let me say that effective and timely ASEAN integration is even more imperative now than ever. We need a strong and institutionalized organization in ASEAN to cope with the many challenges that will come our way. The ASEAN Economic Community is the building block. We must strive for an expeditious ratification of the ASEAN Charter. We also need to ensure disciplined implementation of the targets set out in the AEC Blueprint. Our collective journey forward is not a straightforward one, but with commitment we can make the journey well worth the effort.
Thank you.
It is against such an uncertain backdrop that ASEAN must continue to work as a cohesive body and integrate quickly, so as to provide member countries with the ability to respond to external challenges with greater resilience and unity. With the framework of the ASEAN Community in place, we are better placed to coordinate regional efforts and keep a close watch over our own backyard, so that all 10 Member States would be able to benefit substantively. How can we do this?
ASEAN CHARTER
First, on the ASEAN Charter. It was signed in Singapore last November, together with the Blueprint for the ASEAN Economic Community. The signing of these documents demonstrated our commitment to ASEAN integration, and for enhanced linkages in the economic, political and social arenas.
The signing of the ASEAN Charter was a historic milestone for ASEAN, representing our common vision and commitment to the development of an ASEAN Community as a rule-based and institutionalized organization. To hasten ASEAN integration, implementation of the ASEAN Charter will be key. Singapore, as ASEAN Chair for this year, hopes that all ASEAN countries will undertake all measures necessary to ensure expeditious ratification and implementation of the Charter.
ASEAN Economic Integration
Second, let me turn to the economic front. ASEAN, with a total population of 560 million, an area of 4.5 million square kilometers, a combined gross domestic product of almost US$ 1,100 billion, and a total trade of about US$1,400 billion as of 2006, has immense potential as a key market, producer and investor both regionally and globally. Economic integration will thus allow ASEAN to realize its potential of becoming a single market and production base, with free flows of goods, services and investment.
We have had our early successes. We were one of the first off the block with the signing of the ASEAN Free Trade Area (AFTA) in 1992.Since then, AFTA has successfully eliminated almost 100 per cent of tariffs for trade among the ASEAN 6.Trade amongst the 10 member states today stands at almost US$190 billion, doubling the intra-regional trade value of US$93 billion in 2000.ASEAN is the top import origin for member states, bringing them a consistent 20 to 25 per cent supply of raw materials and consumer goods, compared to the next top import origin, Japan, at 12 per cent. ASEAN is also the top export destination, with a quarter of exports being intra-region, while the US takes 2nd place with 12 to 14 per cent of ASEAN exports. In the next step to further economic integration, ASEAN has to eliminate non-tariff barriers and develop trade facilitation measures to achieve friction-less trade.
On services, liberalization measures taken based on the ASEAN Framework Agreement on Services (AFAS) signed in December 1995, member countries have resulted in a threefold growth of ASEAN service exports from US$54.8 billion in 1998 to US$150.3 billion in 2006. On investments, ASEAN continues to undertake initiatives for the promotion, liberalization and protection of investments in the region in the ongoing work on the ASEAN Comprehensive Investment Agreement.
Each of these initiatives in goods, services and investment will empower ASEAN to compete more effectively with other fast-growing regions of the world. Recognizing the need to adapt and respond quickly to the changing global environment in order to remain competitive, ASEAN has accelerated the target for achievement of an ASEAN Economic Community from 2020 to 2015.
Growing ASEAN’s External Linkages
The third area to strengthen ASEAN is in the international arena, to ensure ASEAN’s integration into the global economy. We have embarked on concluding free trade agreements with our key trading partners such as China, Japan and Korea. Negotiations with other key Dialogue Partners such as Australia, New Zealand, India and the EU are ongoing. These efforts are instrumental in assuring ASEAN’s pro-active role in the global trade system. Through them, ASEAN can remain viable and relevant.
ASEAN ECONOMIC COMMUNITY
But whilst ASEAN governments can put in place our visions, we cannot achieve the outcome alone. ASEAN governments work closely with private sector and create the necessary enabling conditions for industries to flourish. ASEAN governments are deeply aware of this, and actively seek to establish firm cooperative relationships with the private sector.
If we consider the many challenges facing us, such as high energy prices, green house gas emissions, inflation and sub-prime crisis, there are many areas where governments, the private sector and think tanks like ISEAS and ASLI need to come together to discuss and devise workable solutions for mutual benefits.
In ASEAN, fortunately a number of forums to facilitate public-private sector consultations exist. One example is the establishment of the Coordinating Committee on the ASEAN Economic Community (ECOM), which is an annual forum organized and hosted by the ASEAN Secretariat, to facilitate the exchange of views between industry stakeholders and senior government officials on the progress of the ASEAN Economic Community. With the academia, we also have several forums for communication, including the recently established ASEAN Studies Centre and the Economic Research Institute for ASEAN and East Asia (ERIA).
The importance of cooperation between stakeholders in Government, business and academia cannot be under-stated. Your participation in these processes therefore serves as invaluable input, allowing policy formulation to be carried out with an understanding of the needs of the industry and aspiration of the people of ASEAN.
Moving Ahead
In summary, let me say that effective and timely ASEAN integration is even more imperative now than ever. We need a strong and institutionalized organization in ASEAN to cope with the many challenges that will come our way. The ASEAN Economic Community is the building block. We must strive for an expeditious ratification of the ASEAN Charter. We also need to ensure disciplined implementation of the targets set out in the AEC Blueprint. Our collective journey forward is not a straightforward one, but with commitment we can make the journey well worth the effort.
Thank you.