SINGAPORE—Businesses in Southeast Asia should support their government’s efforts to open up their markets so they can benefit more from the integration of Asean economies, Singapore Prime Minister Lee Hsien Loong said on Monday.
Speaking at a business summit ahead of the Asean meetings, Lee noted that Southeast Asian governments have taken steps toward deeper economic integration and openness, and initiatives that will promote trade and investment flows in the region, reduce trade barriers, and cut costs for businesses.
“Businesses have to do their part, too. Our companies hope to invest in each other’s countries and do business across all Asean markets. The more integrated and open our markets are, the more conducive our rules and business environments to foreign investment, the larger the pie will grow and the more will benefit,” he said.
On Monday Asean economic ministers signed the group’s first agreement on e-commerce, aimed at facilitating cross-border e-commerce transactions. Lee said businesses should be prepared to adapt once Asean markets become more open to foreign competition.
“[Businesses] may lobby governments to impose regulations or keep industries closed to protect themselves. But having benefit ted from Asean integration and open and connected economies, our businesses should be prepared to adapt and accept more competition in their home markets, in exchange for more access to markets in other Asean countries,” he said.
Lee said he and his fellow Asean leaders will discuss with the Asean Business Advisory Council how regional economic integration efforts can become effective and relevant to the needs of businesses.
With multilateralism currently under threat due to the trade war between the United States and China, Lee said fully realizing Asean’s great potential depends on countries involved will choose whether to become more integrated.
“The Asean Economic Community 2025 Blueprint will help guide Asean to deepen economic integration, open up new growth frontiers and create fresh business opportunities. We must play our respective parts as government and business leaders to pursue this vision,” he said.
The Asean Economic Community is already the sixth largest economy in the world and is projected to become the fourth largest by 2030 after the US, Europe and China, he noted.
Asean has also attracted $140 billion of foreign direct investments. By 2025, the Asean digital economy is also projected to grow to $200 billion, which is expected to result to more opportunities for micro, small and medium enterprises and more jobs for the young workforce.
Image credits: Feline Lim/Pool Photo via AP