Bright Future Seen for Asean as WEF Wraps Up
https://kabar22.blogspot.com/2015/04/bright-future-seen-for-asean-as-wef.html
JAKARTA, BLOKBERITA --Chairpersons of the
24th World Economic Forum on East Asia closed the three-day event on
Tuesday with a fresh sense of optimism and trust in Indonesia and the
Association of Southeast Asian Nations, as Malaysia was named the next
host.
“President [Joko Widodo] spoke of the
optimism that he has, and this confirms the belief that through all the
major global challenges the world is facing today, Indonesia has a lot
to contribute,” said John Riady, executive director of the Lippo Group
and one of the five co-chairs of the WEF on East Asia, during the
closing session.
Joko spoke at the WEF on Monday, saying that
Indonesia was an “incredible” place to invest and was ready to change to
adapt to global development and to the challenges the nation faced.
“The decision of the forum to be hosted in
Indonesia speaks as much as confidence in Indonesia as it is about
confidence in the region,” John added.
Budi Gunadi Sadikin, chief executive of Bank
Mandiri and another forum co-chair, expressed the same sentiment —
highlighting the pool of opportunities available for the region’s
businesses and governments through the international forum.
“The World Economic Forum is a great platform
for marketing, so this was a great opportunity for Indonesia to
showcase itself,” Budi said. “From the feedback that I’ve received from
[the participants], they’re now a bit more positive on Indonesia.”
About 800 people participated in the forum,
which began on Sunday at the Shangri-La Hotel in Jakarta, engaging in
discussions on a range of topics under the theme “Anchoring Trust on
East Asia’s New Regionalism.”
Other co-chairs were Boston Consulting Group
chairman Hans-Paul Buerkner, International Organization for Migration
director general William Lacy Swing and SM Investments Corporation vice
chairwoman Teresita Sy-Coson.
Asean Economic Community
In the regional context, most participants
expressed their optimism for the Asean Economic Community — set to go
into full force at year-end — to contribute to the betterment of the
region.
Buerkner said that with the milestone
launching of the AEC, Southeast Asian nations had the opportunity to
take the region to the next level of development, though there remained
significant challenges ahead.
“There is an eagerness to make this work and
put all the elements in action to move forward, have a level playing
field, a much bigger market and grow the pie significantly in the next
few years,” he said.
For her part, Sy-Coson said the discussions
at the World Economic Forum on East Asia had highlighted the major
challenges ahead for Asean, in particular labor mobility.
“There is now an understanding of the importance of the freer movement of human capital,” she said.
Swing agreed: “It is quite clear that, with
the very exciting regional integration going on here, human mobility
will be increased and expedited as a result.
“We have to look at it as both a challenge and opportunity. Migration is not a problem to solve; it is a reality to be managed.”
Earlier, in a session on the global impact of
Asean, business and government leaders spoke of the opportunities and
challenges arising from Asean’s regional integration.
“If you think about the notion of a more
complete supply chain across the region, there are huge advantages,”
said H. Raymond Bingham, chairman of the board of Flextronics
International of the US.
“Many of the elements are already here in
Asean, but there are barriers — boundaries, regulations, the inability
to have a mobile workforce.”
“The practice of the AEC is there, but trade
in services is still limited,” acknowledged Bambang Brodjonegoro, the
Indonesian finance minister.
“The homework for all Asean leaders is to make sure that the Community becomes a reality.”
With Asean integration deepening, Myanmar
will have to address issues such as the lack of skills and the need to
improve education, said Serge Pun, chairman of the consultancy Serge Pun
& Associates.
“As the youngest member of Asean, we want to
have our cake and eat it,” he said. “We want all the benefits of
integration, but we are also worried about competing with mature
economies and companies.”
India sees significant opportunities for
driving its growth in engaging the Asean, said Adi B. Godrej, chairman
of India’s Godrej Industries.
“There are a lot of things that Asean
countries can do to leverage each other’s strengths to further rapid
growth,” he advised. “India could be a great partner to Asean.”
The AEC and regional integration of Asean are
“a work in progress, but we have done a lot,” Cesar V. Purisima, the
secretary of finance of the Philippines, told participants, noting that
electronics was a sector where significant integration across the 10
Southeast Asian economies had already been achieved.
“We have seen the value of one market. We are working through it systematically — in the Asean way,” he added.
“It is time to take action,” Murat Sonmez,
chief business officer and a member of the managing board of the World
Economic Forum, told participants in remarks at the end of the closing
session.
He outlined four issues that were the focus
of discussions at the World Economic Forum on East Asia, including
public-private cooperation on infrastructure development; financial
inclusion; the need to address non-communicable diseases; and food
security.
At the meeting, the WEF, in cooperation with
the Asean Secretariat, launched “Grow Asia,” a new program to strengthen
food security and sustainable agriculture in Asean, expected to reach
10 million farmers by 2020.
Building trust among all stakeholders and in
institutions will be crucial if Asean is to succeed in reaping the full
benefits of regional integration, John said.
“People have lost trust in the ability of
markets and business to create wealth and to fairly allocate
opportunities,” he said. “So it is important for business to reflect on
its role and the role that it can play in society. But this is important
not only for business.”
“No matter who we are — whether in
government, education, media or NGO — this is an important time to
reflect on stewardship, how we can be better stewards of what we have
been given, and how we can rethink what we are doing and better
structure our institutions to reflect the realities of our world.”
Bank Mandiri’s Budi, added: “We can get things done faster if we have mutual trust that we have built in these meetings.”
Proposals
John said the WEF had recommended concrete actions for Asean.
“We’ve put in some concrete recommendations.
One is a common visa across Asean akin to the Schengen visa. That way,
foreigners don’t have to reapply for each country. This would increase
the number of visitors into the region,” he said.
Second, he said, is to strengthen the Asean Secretariat.
“Their annual budget is $14 million. That’s
small considering that their job is hard. We want to strengthen the
secretariat so that it can support policies and implement them well,” he
said, adding that stakeholders were still discussing the details of the
funding scheme.
“Of course, it must be funded by the Asean
member states. What we suggested next is that in every embassy, there
should be an Asean flag next to the country’s flags,” John said.
Mustapa Mohamed, Malaysia’s minister of
international trade and industry, and Philipp Roosler, a member of the
managing board of the World Economic Forum, announced that next year’s
meeting would be held in Malaysia.
[ JB / bbcom / aagh ]