Among
major Asean member countries, internal dynamics are at play.
Malaysian leaders are busy on overseas trips
to lure foreign investors highlighting sustained investment in knowledge and
skills; Indonesians – brimmed with democratic and liberalization progress – are
putting domestic economy on a firm footing; the Philippines are starting to tie
in to the regional supply chain to boost employment and growth; and major Thai
corporations are advancing across the borders in greater force than ever
before.
Is Asean Economic Community (AEC) indeed poised to become a watershed in the
advancement of the 10-member regional bloc as it takes effect in 2015? Not
quite so, business leaders attending the CIMB Asean Conference 2011 here last
week, appeared to suggest. In fact, many
of them did not hide their frustrations on the lack of more dynamic
preparations and strategies which will sustain the regional integration over
time.
But optimism persisted at least from the
perspective of Indonesia, which has biggest population and economy among the 10-Asean member countries. Patrick
Walujo, CEO of Jakarta-based Northstar Pacific, said Indonesia's ongoing
vibrant democracy and economic liberalisation have together created a sense of
"revival and optimism" to propel revaluation of "what's in it
for Indonesia (with Asean and AEC)".
Such agenda was put on the backburner over the
years due to internal turmoils. Walujo said overseas firms are now coming to
Indonesia in big numbers attracted in part by its large domestic market. For
Indomesian companies, the issue is not just about Asean but a broader support
from them on further opening of the domestic market and liberalisation. It's
about how to make the stakeholders see the success through embracing opening
and integration, he added.
Chew Gek Khim, executive chairman of
Singapore-based Straits Trading Co, said despite being an opened economy, the
city state may be too "western centric" and therefore have found it
easier to do business with the West. "To push into Asean it's like
starting all over again....and learn how to do business." But she said the
crisis in the West today will make Singapore take a look at Asean.
Cezar Peralta Consing, partner at Rohatyn
Group from the Philippines, said AEC will create winners and losers, and as
with process of globalisation, how can losers compensate. He added that there
are just a handful of companies expanding in Asean and respective supports from
governments are needed.
The view was echoed by Nazir Razak, CIMB Group
Chief Executive, who was fearful that losers from AEC could detail further Asean
integration as they can "make more noises" and this is an agenda
which Asean must start preparing. The business sector has a vital role to play
as the success or failure of Asean integration will depend on them.
With this, Nazir has spearheaded the establishment
of the Asean Business Club which was officially inaugurated last week in Kuala
Lumpur. ABC will faciliate agenda and issues to present to Asean and member
governments and to help companies in Asean to go cross borders and network with
one another.
Nazir was wary of Asean bureaucracies and
quoted Asean Secretary-General Dr Surin Pisuwan as saying “that he (SG) is more
a ‘secretary’ than a general”. Nazir has also expressed a wish for Asean's next
chief to come from the private sector to help break the mindset and build AEC
into a strong force. He also would like to see each government form an Asean
ministry to make the commitment both "visible and real".
The CIMB chief laid out a vision of AEC
helping to build Asean as a global hub and promote Asean ownership of regional
companies. For example, he said CIMB has been working to get listing on both
Bangkok and Jakarta stock exchanges on top of the Kuala Lumpur listing. He
would also welcome Temasak, an souvereign investment arm of Singapore, to hold
shares in his bank although pricing remains an issue.
"We want to help create national interest
in Asean," he added, while saying that "we need to ask the hard
questions about AEC 2015 now. Without preparation, Asean integration will be
pushed back."
At the CIMB Asean Conference 2011, the message
from regional business leaders seem to be "AEC 2015 still lacks
credibility among businesses".
Business Desk
The Nation (Thailand)
Business & Investment Opportunities
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