Asean members’ complementarity creates opportunities for collaboration: DPM Gan
The Johor-Singapore SEZ deal is likely to be inked by November, says Johor’s top official
WHILE economies today have become more competitive, limiting the scope for collaboration, Asean remains a bright spot due to its members’ similarities and numerous areas of complementarity, Deputy Prime Minister Gan Kim Yong said on Thursday (Aug 29).
Gan, who is also Minister for Trade and Industry, said this at the Asean Conference, a day-long event hosted by the Singapore Business Federation (SBF) and held at the Sands Expo and Convention Centre. Over 500 government and business leaders were in attendance.
Citing an example, he said: “There are many regions in Asean that have green energy. There are many regions, like Singapore, that need green energy, and this complementarity creates opportunities for collaboration and integration.”
He pointed out that the growth area for Asean to focus on is to “continue strengthening intra-Asean collaboration and trade”, expand collaboration with trading partners outside Asean through the various “Asean plus one” agreements, and strengthen bilateral agreements within Asean, such as the partnership between Singapore and Johor.
At a separate dialogue at the conference, Johor’s chief minister Onn Hafiz Ghazi said that the deal for the widely anticipated Johor-Singapore Special Economic Zone (SEZ) “will be signed, hopefully, by November”.
Noting that officials were ironing out the details of the definitive agreement, he said: “All relevant parties and decision-makers are coming on board to make sure this happens.”
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It was previously reported that Malaysia’s plan to finalise the SEZ by September had been delayed until the end of the year.
DPM Gan added that the various collaborations “cannot be backward looking”, and should focus on two important areas: sustainability and the digital economy.
Themed “Reimagining Asean for a Sustainable Tomorrow”, this year’s conference featured discussions on emerging trends in the circular economy, and how businesses can leverage new resources to drive their next growth phase.
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A memorandum of understanding (MOU) was signed at the event between SBF, UOB, Rajah & Tann and RSM Singapore, the founding partners of the Asean Conference.
The MOU aims to support Singapore companies seeking to expand within Asean through collaborations in internationalisation activities such as business missions and knowledge sharing.
“I always remind our businessmen that Singapore will do well only if Asean does well,” said Gan, citing Singapore’s small size and dependence on trade as the reasons.
As the world’s fifth-largest economy, Asean today boasts a combined gross domestic product of US$3.6 trillion and a population of more than 650 million.
Gan added that by 2030, the region’s GDP is expected to hit US$4.5 trillion, making it the fourth-largest economy in the world.
SBF chairman Lim Ming Yan said: “As we approach the milestone of the Asean Economic Community (AEC) 2025, this conference underscores SBF’s and our partners’ pivotal role in steering crucial discussions on Asean’s economic future, providing a vital platform for strategic dialogue and collaboration among top decision-makers in Singapore and the region.”
The AEC 2025 is a blueprint for Asean member states to increase economic integration and cohesiveness across borders.
Gan, describing the building of the AEC as a “continuous journey”, said that no matter the vision and plan governments have post-AEC 2025, “it is important to bring the businesses along”.
He added that the Asean Business Advisory Council, set up in 2003, plays a critical role in representing the businesses’ interests and is a unique feature in the Asean economic framework.
Two other MOUs were signed at the event.
Singapore bank UOB and Invest Johor, the Malaysian state’s investment agency, expressed their intention to collaborate on promoting high-value, high-technology and high-impact investments from priority sectors in the upcoming Johor-Singapore SEZ.
Some of the highlighted sectors include electrical and electronics, advanced manufacturing and engineering, the digital economy, the green economy, life sciences, electric vehicles, aerospace and port and logistics.
UOB also signed an MOU with Lingang Group, a Chinese state-owned industrial park operator, to facilitate the group and its tenants in its expansion into South-east Asia.
Wee Ee Cheong, deputy chairman and chief executive officer of UOB, said: “Our strategic partnerships with regional government investment agencies and trade associations have successfully connected enterprises such as Lingang Group to cross-border investment opportunities.”
He added: “We remain committed to serving as an effective gateway to the region for companies expanding into the region.”
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