"THINK ASEAN", SAYS MUSTAPA TO ASEAN COMPANIES

KUALA LUMPUR, Aug 24 (Bernama) -- Minister of International Trade and
Industry Mustapa Mohamed has called on the Asean governments to encourage
companies in the region to "think Asean", form joint ventures and increase
intra-Asean investment.

It is also important for Asean to attract quality investments which will
spin off linkages, as well as value-added investments that impact positively on
SMEs, he said at the Asean Investment Area Council Meeting in Da Nang, Vietnam.

Intra-Asean investments declined by 59.1 per cent from US$10.5 billion in
2008 to US$4.4 billion in 2009. The major Asean investors were Singapore (US$2.5
billion), Malaysia (US$1.3 billion) and Indonesia (0.92 billion).

Mustapa proposed that the grouping intensify its efforts at promoting Asean
as a region, complementing their individual promotional initiatives.

"This is important if Asean is to meet its goal of becoming a single
production base by 2015," he said in a statement released here, Tuesday.

He said the Asean Investment Area (AIA) was an avenue for resolution of
problems and challenges faced by companies as they invest in Asean.

"Asean member states need to complement regional efforts with
individual efforts to enhance the investment environment through progressive
liberalisation, improving government delivery system, reducing cost of doing
business, and ensuring transparency and predictability of policies," he said.

Meanwhile, the Asean Free Trade Area (AEM-AFTA) Council Meeting welcomed
the entry into force of the Asean Trade in Goods Agreement (ATIGA) which is an
improvement over the current Asean Free Trade Area-Common Effective Preferential
Tariff (AFTA-CEPT) Scheme.

The ATIGA consolidates all Asean's existing initiatives, obligations and
commitments on intra-Asean trade in goods, including both tariff and non-tariff
elements, into one single comprehensive document.

While noting the significance of the implementation of ATIGA, Mustapa
highlighted that real benefits from the arrangement can only be realised if
member states avoid Non-Tariff Measures (NTM).

"Given that NTMs are detrimental to intra-Asean trade, Asean should have a
mechanism in place to monitor these NTMs. There must be continuous engagement
among member states to understand the reasons for the introduction of such
measures and work towards removing them," he said.

During the public-private sector policy dialogue, he called for a detailed
analysis of the issues and challenges in enhancing connectivity in Asean
specifically in facilitating the seamless flow of goods across the region.

In calling for this study, he stressed that Asean Connectivity is an
important aspect of Asean's economic integration.

"Undertaking Best Practices in the Field of Logistics is a useful starting
point. The study should also include the readiness of respective governments in
implementing cross-border logistic flows," he added.

The private sector members comprising the groups representing air
transport, maritime and multi-modal transport infrastructure presented
recommendations to Asean Economic Ministers for the implementation of the Asean
Roadmap for Logistics Services Integration.
-- BERNAMA


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