JAKARTA: The Association of Southeast Asian Nations (ASEAN) must move quickly to develop new growth areas particularly in the digital and green economies, Singapore Prime Minister Lee Hsien Loong said on Tuesday (Sep 5).
“Economic integration must remain at the core of our agenda,” Mr Lee told ASEAN leaders in his intervention at the ASEAN Summit plenary session in Jakarta, adding that officials have worked hard on the ASEAN Community Vision 2045.
It is a type of blueprint that aims to fit the aspirations of the bloc’s citizens and Mr Lee stressed that a well-functioning ASEAN strengthens its relevance and competitiveness in a post-pandemic world.
This comes amid rising economic fragmentation in the world, as global superpowers scale back trade and investment in the name of national security. For instance, the US has banned chip exports to China, concerned that they could be used in advanced military technology.
Economic fragmentation could also slow global economic growth and make it harder to tackle urgent challenges, like the existential threat of climate change.
Against this backdrop, Mr Lee urged ASEAN to make progress on upgrading its ASEAN Trade in Goods Agreement – a free trade agreement that helps achieve free flow of goods, lower business costs and larger economies of scale within the bloc.
“And it needs to be extended to cover emerging issues like digital, the environment, and trade in crisis situations,” he said.
Another important step, Mr Lee said, is the launch of the ASEAN Digital Economy Framework Agreement (DEFA), which covers areas like e-commerce, cybersecurity and digital payments.
Earlier in September, ASEAN economic ministers agreed on guidelines to negotiate and conclude DEFA by 2025. DEFA is expected to improve interoperability and add up to US$2 trillion to the regional digital economy by 2030.
“And we must work towards a DEFA that is forward-looking and drives inclusive growth. That creates opportunities by improving digital connectivity, skills and literacy in the region, and tangibly benefits our businesses and our people,” Mr Lee said.
Earlier this year, Singapore signed a memorandum of understanding with Malaysia that enables both countries to cooperate on issues such as personal data protection and cybersecurity.
The framework of cooperation in the digital economy space also covers areas such as trade facilitation, cross-border data flows and electronic payments.
Before that, Singapore had signed the Digital Economy Partnership Agreement with Chile, New Zealand and Canada.
GREEN ECONOMY
Moving on to the green economy, Mr Lee said the transition to green energy is critical for ASEAN member states’ sustainable development and continued prosperity.
This includes an ASEAN power grid, which represents a common ASEAN policy on power connection and trade and harmonises standards for cross-border export of energy.
Mr Lee pointed to how the Lao PDR-Thailand-Malaysia-Singapore Power Integration Project has acted as a “pathfinder”.
The project allowed multilateral cross-border power trade of up to 100 megawatts from Laos to Singapore – via Thailand and Malaysia – using existing connections for a two-year period.
In September, ASEAN energy ministers said the project could help realise an ASEAN power grid by strengthening grid resilience as well as promoting multilateral electricity trading and renewable energy integration in the region.
Mr Lee further added that he welcomes a feasibility study of the Brunei-Indonesia-Malaysia-Philippines Power Integration Project, which he said can “further expand multilateral power trading in the region”.
“Beyond the ASEAN power grid, we should collaborate in other areas to enable our green transition, such as carbon trading and capacity building, and work with external partners who have greater expertise in such areas,” Mr Lee said.
Mr Lee also touched on the importance of addressing emerging challenges like cybersecurity and food security, and ensuring ASEAN’s institutions and processes are fit for purpose.
Mr Lee noted that the bloc has made “good progress” on strengthening ASEAN’s decision-making process that is applied in emergency situations and enhanced the role of the Committee of Permanent Representatives.
“Now, we must also strengthen the ASEAN Secretariat and optimise the role of the ASEAN Secretary-General, so that it can more effectively support ASEAN’s priorities,” said Mr Lee.
He added: “Ultimately, a more integrated and well-functioning ASEAN strengthens our centrality, and enhances our relevance and competitiveness in a post-pandemic world.”
Source: CNA
