Embajador Magazine
The Seventh Largest Economy in the World
The Powerful Association of Southeast Asian Nations
ASEAN celebrated its 50th anniversary fostering regional peace, progress and prosperity.
The Ambassador of Malaysia, Chuah Teong Ban, leads that Association of Southeast Asian Nations (ASEAN). He has vast experience: he was Deputy Director General of the ASEAN Secretariat in the Foreign Ministry of his country and Ambassador of Malaysia to Ukraine, France, Zimbabwe and South Korea. He has been posted in Lima since February 2016.
- How ASEAN celebrated its 50 anniversary?
The ASEAN 50th Anniversary is celebrated in the month of August this year by the ASEAN Community throughout the world, where there are ASEAN embassies.
In the ASEAN region, it was officially celebrated in the Philippines, being the Chair of ASEAN for 2017. This 50th Anniversary celebration took stock of the many successes achieved in building an ASEAN Community that was able to maintain peace, security, stability, enhanced regional resilience, create a single market and production base which is stable, prosperous, high competitive and economically integrated with global trading system.
IN PERU
- How was it celebrated in Peru?
In Peru, the ASEAN Golden Jubilee was celebrated at Inca Garcilaso Cultural Centre on 11 August 2017, which was initiated by the Ministry of External Relations of Peru (MER) with cooperation of the ASEAN Committee in Lima (ACL). ACL comprises Malaysia, Indonesia and Thailand. This is the first time MER Peru is hosting an ASEAN event which reflects Peru’s growing interest towards ASEAN. We would continue to engage constructively with Peru. In his opening remarks, Vice Minister of MER Peru Mr. Nestor Popolizio Bardales acknowledged the growing importance of ASEAN and announced the intention of Peru to accede to the Treaty of Amity and Cooperation and also to accredit a Permanent Representative of Peru to the ASEAN Secretariat.
- How was its creation and success possible among countries that are so different?
Yes, ASEAN is indeed a community of diversity in terms of ethnicities, languages, religions, legal systems, political systems, cultures, heritages, cuisines, festivals and many others. The 1967 ASEAN Declaration that created ASEAN spelt out the aspirations of promoting regional cooperation and contribute towards peace, progress and prosperity in the region. The aims, principles and purposes of the ASEAN Declaration was codified and enshrined in ASEAN Charter which was adopted in 2007 which guided ASEAN through five decades of peace and stability, economic integration, socio cultural cooperation, political cooperation and enhanced people-to-people exchanges.
- Which principles were considered?
Among the principles for intra-ASEAN relationship are: to respect the independence and sovereignty of each country, non-interference of each other’s internal affairs, collective decision making by consensus and settlement of dispute through consultation. ASEAN has renounced any form of aggression, threat or use of force when all ASEAN Member States signed the Treaty of Amity and Cooperation of the Southeast Asia.
COMMERCIAL VALUE
- What does ASEAN mean for its country members in terms of its integration as a bloc and of trade?
ASEAN Member States benefitted from the frameworks of the ASEAN economic integration process to form ASEAN Economic Community (AEC). AEC with a market size of over 628 million people and USD2.27 trillion worth of trade volume is the third largest economy in Asia and the seventh largest in the world. The GDP per Capita is at USD 3,867 in 2016.
The AEC is a single-market and production base that facilitate free movement of goods, services, investment, skilled labor, business persons, professionals and freer flow of capital. These economic integration process makes AEC an attractive destination for investors to base their factories in ASEAN. Total Foreign Direct Investment (FDI) recorded USD 120 billion, out of which 18.5% was intra-ASEAN investment.
- How the economic situation of the member States have improved?
Various mechanisms were developed and implemented under the AEC to improve economic prosperity of its member states such as to promote intra trade transactions, cut down bureaucracy to improve the ease of doing business, mutual recognition of the professional qualifications and enhance the economic connectivity in ASEAN. ASEAN Free Trade Agreement (AFTA) which was signed in 1992 has significantly simplified custom clearance and reduced tariff of over 99 percent of products. The intra-ASEAN trade amounted to USD 547 billion, which is almost 24% of total ASEAN trade.
- And what about regional and international security?
ASEAN was able to maintain regional peace, security and stability for the past 50 years, which indirectly has improved the standard of living of its people. The stability of the region has gained investors’ confidence to contribute towards development and create employment. The increase of tourist arrivals to ASEAN totalled 108 million in 2016 has also brought dynamism to the hospitality industries in ASEAN.
ASEAN will continue to enhance regional mechanisms for cooperation on natural disaster management as well as threat of terrorism. ASEAN Member States exchanged information and intelligence among themselves and also internationally with major powers in order to combat terrorism, cross border crimes and illicit activities like human trafficking and drug smuggling. ASEAN will also continue to work with other international organisations and community to ensure the stability and security of its region is maintained and preserved.
- What does ASEAN mean for the world economy?
ASEAN economic size being the third largest economy in Asia and the seventh largest in the world plays an important role as a major global player in promoting free market. It has entered into Free Trade Agreements with many major international economies such as Australia, China, India, Japan, Republic of Korea, and New Zealand. ASEAN region is also a source of raw commodities besides a huge market for goods and services.
ASEAN Member States are well integrated competitively to the international economic system and global value chain. It has forged cooperation and link with APEC, TPP, FEALAC and other regional trade blocs.
MARKET INTEGRATION
- What is the status of the discussions between Peru and the Pacific Alliance and ASEAN?
ASEAN and Pacific Alliance share the same vision of regional prosperity based on free market principles and trade integration to consolidate the relationships. ASEAN and Pacific Alliance have been in engagement for the past several years at various levels. The latest contact was the ASEAN-Pacific Alliance Ministerial Meeting which is held in New York at the side lines of the United Nations General Assembly (UNGA) this September.
At the 3rd ASEAN-Pacific Alliance Ministerial Meeting held in New York last September, the ASEAN and Pacific Alliance Memorandum of Understanding (MOU) on the Framework for Cooperation was adopted. This MOU focused on 4 areas of cooperation which are Economic Cooperation, Education and People – to – People Contacts, Science, Technology and Innovation and Sustainable Development.
- And what role did Peru play?
In Peru, ASEAN Community in Lima (ACL) also took the initiative to engage with the Pacific Alliance since 2015 when Peru was Chair. We have had several informal discussions on how to strengthen the relationship. Earlier this year, ACL had another discussion at the luncheon hosted by ACL to explore activities to further consolidate ASEAN and Pacific Alliance in the coming years.