Asean countries should work towards
standardising supply chains to help boost trade flow, speakers at the World
Economic Forum on East Asia said yesterday.
Lars
Amstrup, president of Chep Asia, said supply-chain costs in the Asean region
are higher than in the developed world.
The
European Union's harmonised rules mean that packaging materials, for instance,
are standardised for the entire bloc.
"When
you have an inefficient supply chain, you get products that are constantly
shifted and you have a lot of manual handling, waste and damage. For instance,
crops can sit for three days waiting for transfer during Chinese New
Year," Mr Amstrup said.
Peter
Ter Kulve, an executive vice-president of Unilever overseeing Southeast Asia
and Australasia, said there have been no resources put behind standardisation.
In Europe, 500 people work on this, compared with just one in Singapore, he
said.
"Ports
in Asean are hopeless, especially in Indonesia where it could take three to
four weeks to get containers," Mr Kulve said.
Thierry
Geiger, associate director of the WEF's Centre for Global Competitiveness and
Performance, said infrastructure, graft and red tape are the main obstacles to
trade growth in Asean.
"The
most problematic matters for doing business are political stability and
corruption, and in some areas, bureaucracy," he said.
In
Thailand it takes 32 days to start a business, putting the country 103rd out of
a league of 142 countries.
"Tackling
corruption could be done by simplifying procedures, so that there is less room
for corruption. Everything should be one-stop for things such as certification
and import services," Mr Geiger said.
Vijay
Poonoosamy, a vice-president for Ethihad Airways, said aviation is a key
catalyst to economic growth and a "strategic enabler" for trade.
A
region's competitiveness is linked to connectivity, and airlines provides the
easiest link between countries.
"The
key challenge today is for the government to do what it takes to enhance
competitiveness by facilitating travel and tourism, which includes promoting
cost-effective infrastructure on both the ground and in the air," Mr
Poonoosamy said, adding that each cargo shipment today involves some 30
documents to complete.
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