Minister Lim Hng Kiang at the 3rd ASEAN Competition Conference

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SPEECH BY MR LIM HNG KIANG MINISTER FOR TRADE AND INDUSTRY,

AT THE 3RD ASEAN COMPETITION CONFERENCE ON 4 JULY 2013, 9.05AM

Distinguished Guests,

Ladies and Gentlemen,

1.              A very good morning to all. It gives me great pleasure to address you today at the 3rd ASEAN Competition Conference.

ASEAN Economic Integration and Competition Policy and Law

2.              The theme of this conference is “Moving Towards Regional Integration of Competition Policy and Law”. The focus of the conference is timely, in view of ASEAN’s vision of establishing the ASEAN Economic Community with a single market and production base by 2015. The single market would open up tremendous opportunities for businesses and citizens of ASEAN member states, allowing goods to flow freely and seamlessly within a market that has a population of over 600 million people.

3.              Competition policy and law will become increasingly important in underpinning economic growth and integration in ASEAN. A strong competition regime enhances efficient market conduct and promotes overall productivity and competitiveness of markets in the region. To create a competitive economic region in line with the goals of the AEC Blueprint, ASEAN member states agreed to achieve several key initiatives by 2015.

4.              Firstly, ASEAN member states committed to introduce and implement competition policy and law by 2015. We are halfway to meeting this goal with five ASEAN countries having introduced national competition law.

5.              Secondly, ASEAN agreed to establish a network of authorities to discuss and coordinate competition policies in the region. This has been achieved through the formation of the ASEAN Experts Group on Competition (AEGC) in 2007.

6.              Thirdly, ASEAN has actively encouraged capacity building programmes and activities for ASEAN member states in developing their national competition policy. In this regard, I am glad to note that numerous capacity building workshops and activities have been held since the AEGC’s formation.  The AEGC convenes twice a year and has an active work programme with separate working groups overseeing the implementation of cooperation activities and projects on competition matters.

7.              For example, since its inception in 2007, the AEGC, in conjunction with its external partners, has organised more than 20 regional capacity building workshops as well as specialised training for case handlers of competition-related agencies in ASEAN. AEGC has also organised study visits to well-established overseas competition authorities, and regional competition policy dialogues and conferences.  The conference today is being organised by AEGC as one of its key initiatives for 2013.

8.              Fourthly, ASEAN has developed a set of regional guidelines on competition policy based on international best practices and experiences of ASEAN member states, with a view to creating a fair competition environment in ASEAN. These regional guidelines will serve as a guide for ASEAN member states which do not have competition policy in their efforts to develop their respective national competition regimes. They also serve to assist member states in building their capabilities and bringing their competition regimes in line with international best practices. A handbook on competition policy and law for businesses in ASEAN has also been developed to increase the awareness and facilitate compliance by businesses operating in the region.

Benefits of Regional Competition Policy and Law for ASEAN

9.              Competition policy and law has been a key tenet of Singapore’s economic policy since 2004. Competition spurs businesses to be more efficient, innovative and responsive to consumer needs. Being exposed to competitive forces not only improves the competitiveness of businesses in their respective localities but also provides the impetus for companies to grow and take on global competitors on the international front.

10.         In addition, an enlightened competition regime helps to attract foreign investments into a country. With a strong and credible competition regime in place, foreign investors have greater confidence that they will be competing on a level-playing field.

11.         The growth of competition law worldwide over the last decade has been significant. In 1980, fewer than 40 countries had competition laws, most of them being developed countries. Today, over 100 countries have enacted competition laws. We are observing a similar trend in ASEAN, where none of the ASEAN countries had implemented a national competition law prior to 1995. To date, 5 out of 10 ASEAN countries, including Singapore, have competition laws in place, with the remaining countries making good progress in establishing their national competition laws by 2015.

12.         The effectiveness of a country’s competition regime hinges on several core principles which I believe are fundamental towards establishing a successful competition regime. A competition regime should first aim at putting in place a robust and relevant body of laws and regulations aligned with international best practices. Enforcement and advocacy should go hand-in-hand to ensure a proactive and business-friendly approach in implementing competition policy and law. For decisions and recommendations to be fair, decisions of a competition agency must also be subject to reasonable appeal procedures to provide parties adequate recourse.

13.         While it is crucial for ASEAN countries to put in place respective national competition regimes, a systematic set of competition rules at the regional level is equally important to oversee increasingly complex and cross-border business activities, and provide effective protection against possible restrictive anti-competitive business practices of transnational business entities. Inconsistent competition rules among countries may also increase uncertainties and impose additional transaction and compliance costs for international businesses. In addition, varying levels of enforcement would create an unlevel playing field within ASEAN. To foster stronger economic integration, ASEAN member states will need to harmonise or at least rationalise the competition laws of each member state as far as possible. This will not only enhance intra-ASEAN trade and investment, but also improve ASEAN’s competitiveness in the global market.

14.         In the path towards integration, ASEAN can draw upon the experiences of other regional blocs in developing effective competition policy at the regional level. For instance, the European Competition Network (ECN) plays an instrumental role in ensuring effective and coherent application of European competition law in the EU, which helps to increase the EU’s competitiveness and contribute to ensuring a level playing field in the common market.  The ECN serves as a useful mechanism to foster policy convergence and co-ordinate enforcement actions among competition authorities in Europe. ECN’s experience, as well as those of ASEAN’s dialogue partners, are useful references in aligning competition policy and law within ASEAN.

Possible Approach to Foster Greater Regional Integration of Competition Policy and Law

15.         As a step towards greater competition policy and law alignment within ASEAN, we can adopt a “network model”, incorporating agreements of mutual assistance, enforcement cooperation, information-sharing, capacity-building and networking among the competition agencies. For instance, ASEAN member states can explore developing and implementing cooperation arrangements to establish procedures for these activities. To this end, the ASEAN Experts Group on Competition (AEGC), with the support of the ASEAN Secretariat, should continue to play a central role in forging regional ties, facilitating exchanges and enhancing the institutional capacities of ASEAN competition agencies.

16.         Engagement with ASEAN’s dialogue partners should also continue as cooperation with our partners has proven particularly helpful in advancing the development of competition policy and law. For instance, as part of the ASEAN-Australia-New Zealand Free Trade Area Agreement (AANZFTA Agreement), a work programme has been established. One of its initiatives is to set up a Competition Committee between ASEAN, Australia, and New Zealand, to look into cooperation projects to address competition-related needs of the parties. I understand that various competition experts from all over the world have been invited to today’s conference as part of this programme to share their insights and experiences with the ASEAN community. Their presence will undoubtedly contribute to the richness of the discussions.

Conclusion

17.         Over the next two days, participants at this Conference will take stock of what has been done to prepare for the lead-up to 2015, as well as discuss key directions to enhance ASEAN’s collaboration and integration in competition policy and law that will take us beyond 2015.

18.         On this note, I wish you a meaningful discussion and exchange over the next two days. Thank you.