Singapore, 16-18 November 2007
Speech by
H.E. Ong Keng Yong
Secretary General of ASEAN
I am pleased to deliver a message to the business community here at the Opening of the 2007 ASEAN Business and Investment Summit (ABIS)
The ABIS, which is organised by the ASEAN Business Advisory Council (ASEAN BAC) every year since 2003, is meant to complement the meetings of government during the ASEAN Summit. Today, it serves as a valuable platform for dialogue between government and business in the region. I therefore would like to congratulate the ASEAN BAC for their continued exemplary work.
At the 13th ASEAN Summit here in Singapore, two key documents are on the agenda of the ASEAN Leaders and are expected to be signed. The first is the ASEAN Charter and the second is the ASEAN Economic Community Blueprint.
The ASEAN Charter seeks to strengthen ASEAN’s institutions and responses to policies for community building. The ASEAN Leaders recognise that ASEAN must be able to competently manage regional integration, globalization, economic growth and new technologies.
The AEC Blueprint, on the other hand, is a clear indication of ASEAN’s commitment to the realisation of the ASEAN Economic Community by 2015. It maps out the policies that would be put in place and their systematic rolling in in order to achieve this end goal. It is the concrete display of political will for “One ASEAN”.
Whilst both developments really seek to add substance to the work that has been done in the last forty years, it is widely established that community building could only be effectively realised with the strong commitment and close cooperation of its constituents.
Therefore, the private sector, as the main stakeholders of economic integration, have a clear and vital role to play.
Allow me to share a couple of points on areas where the private sector could make significant contributions.
The first area is in fostering and facilitating win-win partnerships for ASEAN Member Countries. As you may all know, whilst integration reduces transaction costs for the region, thereby creating more economy of scale and in turn, giving a bigger economic space for our businesses to do more trade and grow, it also heightens competition among the companies, farms and factories. As such, the private sector should have the zeal to help smaller business entities within their immediate circle. Integration requires more than just business matching and networking activities but concerted efforts by “businesses in the region” for the region. The SMEs need guidance and support not from governments alone but also from their bigger commercial corporations.
The second area is modernisation. As ASEAN forges ahead with its integration, we must also ensure that we are not left behind by developments in technology. I deem that the private sector should take the lead in innovation and the modernisation of commerce. Advances in technology and in innovation have greatly changed the way that business is conducted. The use of computers and other high-tech appliances have given specific advantages to those who employed the technology quickly.
As we have seen in ASEAN today, production and services are no longer sited in one factory or location but are outsourced and spread out in comparatively-lower cost areas, and increasingly manufacturing is now undertaken through production networks. Information technology, on the other hand, has increased the speed of innovation. We must learn how to manage these changes and use our advantage as a diverse and resource-rich region.
The third area is in advocating and establishing a credible legal regime. As we integrate, we continually work on harmonising our rules and procedures. This harmonisation would only be legitimised by a regional legal regime that protects intellectural property rights and governs e-Commerce. The rule of law cannot be minimised or left unattended by the business sector.
The private sector should be champions of this initiative. In particular, they should have the legal mindset to protect their rights or even pursue these rights through arbitration or dispute settlement. Through this, ASEAN would not only be able to arrive at the appropriate legal regime but also to effectively carry out implementation.
I would like to reiterate that our Leaders have already accelerated ASEAN integration to 2015 from 2020. At this Summit, we take a step further by establishing the necessary framework that will ensure the realisation of this goal.
We have already taken the first step. I would, therefore, like to enjoin the private sector to seize this opportunity and take the lead, work closely with ASEAN’s governments in fostering win-win partnerships, modernisation and in advocating for a credible legal regime.
Clearly, the task before us is not easy.
But as our theme for the 40th Anniversary of ASEAN has aptly put it, we must all work in concert in order to build “one ASEAN at the heart of dynamic Asia”. For by doing so, not only are we able to build a strong and cohesive community but importantly, one that recognises cultural diversity and social harmony, capturing the hearts and minds of its peoples.
Thank you for your kind attention.
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