by H.E. Ong Keng Yong
Secretary-General of ASEAN
at the
2nd ASEAN Conference on Competition Policy & Law
Bali, Indonesia, 14-16 June 2006
Dr. Syamsul Maarif, Chairman, Commission for the Supervision of Business Corporation (KPPU), Indonesia
Professor (Dr) Bagir Manan, Chairman of the Supreme Court of Indonesia
Your Excellencies, Distinguished Guests, Ladies and Gentlemen,
1. First and foremost, as the co-host, I would like to extend my warmest welcome to all of you. I would like to thank the Commission for the Supervision of Business Competition (KPPU), for organising this important Conference. I would also like to express my gratitude to the co-sponsors of this Conference, namely: KPPU, the Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) GmbH, the Friedrich Naumann Stiftung (FNS), the Ministry of Economic Development of New Zealand (MED) and the US Federal Trade Commission (USFTC).
2. In 2003, ASEAN held its first collaborated conference on competition law and policy. Subsequently, the ASEAN Consultative Forum for Competition (ACFC) was formed, and its first annual meeting was held as a back-to-back arrangement to the main conference in Bangkok, last year. I note that the 2nd ACFC Annual Meeting will be held on 16 June.
3. In the context of ASEAN, these are indeed positive developments. The main Conference has provided us the opportunity to exchange viewpoints, concepts and institutional norms for competition law and policy, amongst ASEAN and non-ASEAN nations as well as international organizations.. Similarly, the ACFC provides an avenue for ASEAN Member Countries’ competition agencies or relevant bodies to chart and facilitate specific regional work to enhance competition law and policy.
4. I am glad to see that ASEAN Member Countries are making steady progress towards the implementation of competition law and policy. As of to-date, Indonesia, Singapore, Thailand and Viet Nam have enacted specific competition law; currently, Malaysia and the Philippines are considering the enactment of a competition law. Since the 1990s, the development of competition law and policy has been a global phenomenon, despite having its own set of challenges.
5. Evidently, strict implementation of competition law and policy may result in some degree of socio-economic displacement. However, research studies suggest that through proper co-coordinated staggered reforms and social safety nets any momentary setbacks are indeed surmountable. Ultimately, a level playing field without any form of restrictive business practices in an economy would bring about more affordable goods and services for the community – which are crucial in the eradication of poverty.
6. Today, ASEAN is at a turning point with regard to regional economic integration. The Bali Concord II (2003) envisions an ASEAN Economic Community (AEC) by 2020: “to create a stable, prosperous and highly competitive ASEAN economic region in which there is a free flow of goods, services, investment and freer flow of capital, equitable economic development and reduced poverty and socio-economic disparities”. Hence, ASEAN’s focus now is not only liberalization of economic sectors like trade, services and investment, but also, includes integration of the ASEAN economies. Furthermore, ASEAN is currently engaging a number of Dialogue Partners with a view to entering into comprehensive economic arrangements. Invariably, all these developments bring a greater impetus for competion law and policy.
7. The concepts of economic liberalization and integration are pragmatic. As alluded to earlier, they tend to bring about economic development as well as sustainability, if managed well. This is clearly evident in the developed economies. That said, to translate these concepts into credible actions, the framework for deregulation and privatization, amongst others, must be operationalized. The necessary competition law and policy as well as institutional oversight will ensure that restrictive business practices by both the public and private sectors are eradicated and deterred. In essence, economic liberalization, and viable competition law and policy work in tandem.
8. ASEAN economies are relatively diverse. The CLMV (Cambodia, Lao PDR, Myanmar and Vietnam) are less developed than Brunei Darussalam, Indonesia, Malaysia, the Philippines, Singapore and Thailand. Nevertheless, the CLMV countries have made steady progress in their economic reform and are opening up to the global trade and investment flows. Cambodia has recently joined the World Trade Organisation (WTO) and Viet Nam is in the final stages of being admitted into the WTO. As noted earlier, Viet Nam has promulgated its competition law. The CLMV countries are given preferential treatment in ASEAN economic arrangements as well as in the FTAs signed between ASEAN and its major trade partners. Therefore, the strict requirements of competition law and policy have to be moderated in considering their adoption across the board in ASEAN. As ASEAN is collectively doing, capacity building is strenuously undertaken in the CLMV countries and in other ASEAN Member Countries where necessary.
9. What would ASEAN Member Countries’ gain from putting in place a credible competition law and policy together with the underpinning institutional setup? Apart from deriving real economic benefits, these also help to create the perception, and more importantly, send the signal to the international community that the region is committed to economic integration and liberalization.
10. Understandably, the concept and functionality of competition law and policy are still relatively new to the region. This Conference provides the opportunity to exchange information and experiences on competition policy and practices and encourage deliberation amongst ASEAN Member Countries officials as well as officials from Australia, Germany, Japan, the Republic of Korea, New Zealand USA, as well as experts from international bodies like UNCTAD, OECD, EU, World Bank and ADB . Overall, this would be an enriching experience for all participants.
I wish this Conference and the 2nd ACFC Annual Meeting a great success.
Thank you.
