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10 Action Points Recommendations to the ASEAN LEADERS
on the occasion of the ASEAN Leaders Retreat
by the
ASEAN Business Advisory Council,Bangkok Thailand, June 22, 2019
Arin JiraASEAN-BAC Chair 2008-
2009, 2019Chairman, Map Ta PhutIndustrial Gases Co., Ltd.
A. INTRODUCTION – Call to Action to ASEAN Leaders
The Common-Thread underpinning our package of recommendations is a Call to Action to ASEAN Leaders interms of:
1. Stronger collective leadership in re-energizing AMSs to enforce and operationalize approved agreementstowards structural reforms;
2. Aligning national agendas with the regional AEC agenda to speed up ratification of pending deliverableagreements (i.e. liberalization of foreign investments in key sectors like telecommunications, publicutilities, etc.) consistent with AEC 2025 Strategic Action Plan;
3. Strengthening AEC decision-making structure by providing needed technical and material resources toachieve mandates especially in addressing NTMs and NTBs as ATIGA crosses its 10th year anniversary;
4. Encouraging Concerned Ministries to be more open to experiment and pilot recommendations fromprivate sector following the “sandbox” approach employed to FINTECH development;
5. Support institutionalization of engagement of private business sector by other key Ministries in Finance,Transport, ICT, Health, Tourism and Agriculture following the model adopted by Trade Ministers.
B. RECOMMENDATIONS
1. On the Digital Economy
Following the endorsement of the AEC Council Ministersof the ASEAN Digital Integration Framework, whichidentifies the economic benefits of, and currentchallenges to, digital integration for ASEAN and forindividual AMSs, with focus on MSMEs, we stronglyendorse ASEAN’s support to adopt, co-promote andengage private sector initiatives through ThaiChairmanship’s Legacy Project named AHEAD 4.0 orASEAN Human Empowerment And Development towards4.0.
Specifically, AHEAD should be given opportunity to actively participate in consultative working groupscovering the development of the ASEAN Framework on Digital Data Governance and 3rd yearimplementation of the ASEAN ICT Masterplan 2020. AHEAD will serve as the institutional driver to pushthe package of policy recommendations and programs impacting infrastructure, e-commerce, cybersecurity, data flows, labor, capacity building for Vocational Technical Training, academic and curricularprograms, industry HR requirements and other relevant issues.
Arin JiraASEAN-BAC Chair 2008-
2009, 2019Chairman, Map Ta Phut
Industrial Gases Co., Ltd.
B. RECOMMENDATIONS
2. On MSME Empowerment
We are happy to report of the close collaboration betweenASEAN BAC and the ASEAN Coordinating Committee on MSMEs(ACCMSME-public sector) and the ASEAN MSME Advisory Board(AMAB – private sector). In partnership with ACCMSME wecontinue to push the roll out of AMEN (ASEAN Mentorship andEntrepreneurship Network) in each AMSs and access to fundingagencies in support of the AMEN road map. We further endorseincreased support for ACCMSME by their principal Ministries toallow them to participate in public-private working groups inundertaking programs and projects consistent with the SAPSMEDor Strategic Action Plan for SME Development.
Siti Rozaimeriyanti DSLJ HJ Abd Rahman
Director cum Principal Architect of Eco
BumiArkitek
B. RECOMMENDATIONS
3. On Trade Facilitation specifically on NTMs and NTBs
On the occasion of ATIGA’s crossing over its 10th year anniversary, we arevery concerned that no significant strides have been achieved in addressingthe NTMs and NTBs which continue to stymie intra ASEAN trade. As such,the following have arisen:
a. Share of Intra-ASEAN trade to total is still below 2014 level. Target ofdoubling by 2025 remains a big challenge;
b. Hitting the 10% reduction in cost of trade as a target set by ASEAN by2020 is at risk without major impact on customs processes and othertrade facilitation reforms
Hence, we strongly recommend:
a. Following the launch of the ASEAN NTM Guidelines, we urge its immediate enforcement with thedesignation of National Focal Points on full time basis and constitution of National Trade FacilitationCommittees. A clear, time-bound, doable and transparent action plan is in order. We also propose anannual review of the Guidelines with regard to its effectiveness.
b. On the Coordinating Committee on ATIGA (CCA), we propose that the National Focal Points as mentioned initem c above, constitute themselves as a Technical Working Group reporting to CCA.
c. On the recently launched EU-funded E-READI Report that identifies numerous NTBs on three (3) sectorsnamely, Healthcare, Agri-food and Automotive, we strongly endorse transmission of these reports forimmediate study and processing by concerned consultative working groups and ensure active private sectorparticipation.
Anangga W. RoosdionoASEAN-BAC Chair 2011
Senior Partner, Roosdiono & Partners
B. RECOMMENDATIONS
ASEAN BAC together with its partner champions who can help provide guidance, strongly recommendthe formation of National Digital Trade Platforms (NDTP) and Regional Digital Trade Connectivity (RDTC)working groups in this regard to initiate planning and development of standardized and harmonized oftrade rules, terminology, and an interoperability of national digital trade platforms, etc. Furthermore,we request support in the conduct of pilot studies / proof of concepts between Thailand and Singapore.
4. On Seamless Regional Digital Trade Connectivity
ASEAN BAC fully endorses digital trade connectivity which willtranslate to exponential growth in trade across ASEAN and othertrade partners and significant support to a financial Inclusion forSME Access to Finance. Under the ASEAN Caucus of APEC BAC,subject was presented by Thailand which generatedconsiderable positive support.
Dr. Doan Duy KhuongASEAN-BAC Chair 2010Vice President, Vietnam Chamber of Commerce
and Industry
B. RECOMMENDATIONS
To complement these initiatives, we are encouraged to report that the ASEAN BAC’s proposal to formand organize an ASEAN Financial Services Integration Experts Group to report directly to the ASEANSecretary General has been duly considered by the ASEAN Finance Ministers and Governors Meeting.We thank SG Jock Hoi for supporting this initiative. ASEAN BAC will put this Expert’s Group togetherand render a report to be included in our full-blown Report to Leaders by November.
Lastly, we are happy to report that under the Thai Chairmanship, ASEAN BAC was invited by theAFMGM last March. This was a breakthrough given our efforts for the past four years to be invited. Inthis regard, we look upon the ASEAN Leaders to help institutionalize this engagement for thesucceeding years.
a. complete the work on Avoidance of Double TaxationAgreements among AMSs,
b. promote tax dispute resolution mechanisms; andc. improve the withholding tax structure in AMSs;d. more sustainable and progressive debt management.
We note with interest the developments on the Eighth and NinthPackage of Financial Services Commitments. We also second theLeaders recognition of efforts to
5. On Financial Services Liberalization and Integration
Tan Sri Dato’ Dr. Mohd Munir Abdul Majid
ASEAN-BAC Chair 2015Chairman, Bank Muamalat
Malaysia Berhad
B. RECOMMENDATIONS
With government collaboration, ASEAN BAC will also help form networks consisting of private
business organizations and associations, multilateral institutions and relevant stakeholders to
promote and facilitate the knowledge and experience sharing on IB best practices through advocacy
and capacity building programs and projects.
6. On Inclusive Business
ASEAN BAC together with ACCMSME stronglyendorse the development of national inclusivebusiness policy agendas consistent with theStrategic Action Plan for MSMEs (SAPSMED).ASEAN BAC will provide support in helping buildcapacities of AMSs in putting together such IBpolicies and action plans.
Oudet SouvannavongASEAN-BAC Chair 2004, 2016
President, Lao National Chamber Of Commerce and
Industry (LNCCI)
B. RECOMMENDATIONS
ASEAN BAC through our SGConnect Legacy Project, endorses to participate and complement the
development of Smart City Action Plans by ASCN pilot cities, by way of sharing of best practice
and providing capacity building programs in the area of smart supply chain ecosystem.
Following the formal collaboration launched between SGConnect and the governments of
Philippines and Vietnam in exploring identification of areas where a smart supply chain hub can
evolve, we endorse the rest of ASEAN for support by way of identifying focal points to coordinate
the launching such collaborations.
ASEAN BAC fully supports the ASEAN Smart CitiesNetwork (ASCN)’s initiative and the adoption ofthe ASEAN Smart Cities Framework as a platformto synergise development efforts, share bestpractices and catalyse more opportunities forgrowth, innovation, capacity-building and inclusivesustainable urban development.
Dr. Robert YapASEAN-BAC Chair 2018
and 2007Executive Chairman, YCH
Group
7. On Smart Cities - SGConnect
B. RECOMMENDATIONS
ASEAN BAC therefore through our Legacy Projects AHEAD and AMEN, endorses participation in
concerned consultative working groups together with relevant stakeholders to help develop a more
coherent and doable public-private action plan to capacitate these sectors and take full advantage of
the opportunities that the new digital economy offers.
ASEAN BAC considers these sectors as clear catalystsfor inclusive growth and sustainability. Embracing thedisruptions triggered by the advent of the digitaleconomy and innovation and harnessing theirpositive force towards empowering these sectorstranslates to economic prosperity for ASEAN.
8. On Agriculture, Tourism, Young Entrepreneurs and Women in Business
Jose Ma. A Concepcion IIIASEAN-BAC Chair 2017
Philippine Presidential Advisor for Entrepreneurship, Founder, Go Negosyo,
President and CEO, RFM Corporation
B. RECOMMENDATIONS
But more questions remain that ASEAN must address. What position and initiatives is ASEAN taking toensure that the multilateral trading order does not collapse? Have we initiated any discussions, in ourregion, with China and India, to get RCEP set up fast? How can the Comprehensive and ProgressiveAgreement for Trans-Pacific Partnership (CPTPP) be expanded to include China and other ASEANcountries who are not members? Shouldn’t we engage with China to ensure a more efficacious andtransparent Belt and Road Initiative (BRI) as stated by President Xi Jinping at BRI2 in April? Hence,ASEAN BAC strongly endorse the synergy and alignment between BRI and MPAC2025, as declared inthe ASEAN-China Strategic Partnership Vision 2030 in November last year, should be worked on.
On the unfolding Trade War between China and theUS, we fully support the Leaders Statementreaffirming their belief in regionalism andmultilateralism as key principles and frameworks ofcooperation, which promotes inclusiveness, rules-based nature and emphasis on mutual benefit andrespect.
9. Unfolding Trade War and Geo-Politics
Neak Oknha Kith MengASEAN-BAC Chair 2012
Chairman, Royal Group of Companies
President, Cambodia Chamber of Commerce
B. RECOMMENDATIONS
10. On CLMV Development
Thus far, the list of current projects is for CLMV government officials only. ASEAN-BAC signifiesits keen interest in:
ASEAN-BAC duly recognizes the importance ofthe Initiative ASEAN Integration (IAI) underWork Plan III stage implementation, whichundertakes capacity building programs targetedfor CLM/V countries to help them achieve AECcommitments.
U Zaw Min WinPresident, Republic of The
Union of Myanmar Federation of Chambers of
Commerce and industry
a. Establishing a CLMV sub working group under our AHEAD program with participationfrom IAI Work Plan proponents; and
b. Provide inputs in the assessment of the progress of IAI Work Plan III being undertaken bythe ASEAN Secretariat and ADB.
ASEAN-BAC Members
Oknha Van SouiengChairman, Garment
Manufacturers Association in
Cambodia (GMAC)
Haslina TaibCEO, Dynamik
Technologies Sdn Bhd
Oknha Sok PisethCEO, G Gear Co., Ltd
Vice-President, Cambodia Chamber of
Commerce
Musa AdninManaging Director,
Adinin Group
ASEAN-BAC Members
Soebronto LarasPresident Director, PT.
Indomobil Suzuki International
Thomas HartonoPresident Director, PT
Dwi Malito MuliaChairman, OMEGA
Group
ChantachoneVongsay
President, Lao Business AssociationVice-President, K&C
Group
Thanongsinh Kanlagna
CEO, DatacomPresident, Lao ICT
Commerce Association (LICA)
ASEAN-BAC Members
Moe KyawFounder and
Chairman, Myanmar Marketing Research and Development
Co., Ltd.
Raja SinghamFounder, BAC
Education Group
Thaung TinVice-President, Republic
of The Union of Myanmar Federation of Chambers of Commerce
and industry
ASEAN-BAC Members
Dato Seri’ Dr. Douglas Foo
President, Singapore Manufacturing
FederationChairman, Sakae
Holdings Ltd
George BarcelonChairman, Philippine
Chamber of Commerce & Industry
Rachel EngManaging Director,
Eng and Co. LLC
Michael TanPresident, LT Group
ASEAN-BAC Members
Kobsak DuangdeeSecretary General,
Thai Bankers’ Association
Phairush Burapachaisri
Chairman and CEO, Pin Siam Co., Ltd
Nguyen Thi NgaChairman, Southeast
Asia Joint Stock Commercial Bank
Pham Dinh DoanChairman, Phu Thai
Group
Thank You
ASEAN-BACThe ASEAN SecretariatJl Sisingamangaraja No 70AJakarta 12110, IndonesiaPhone: (62-21) 7220705Email: [email protected]