Asean needs to integrate digital and green economies; continue ban on Myanmar’s junta: PM Lee
Janice Lim
[JAKARTA] The foundational economic agreement among the Association of Southeast Asian Nations (Asean) needs to be updated to cover digital and green economic activities, as part of broader efforts by the regional bloc to establish a single market.
The digital and green economies are new growth areas, said Singapore Prime Minister Lee Hsien Loong on Tuesday (Sep 5) at the plenary session of the 43rd Asean Summit held in Jakarta, Indonesia, and he urged leaders to move quickly to develop them.
In a separate session on the same day, he also said that the regional bloc must push for the full implementation of the five-point consensus – Asean’s main guiding principle on resolving the Myanmar crisis – and continue to allow only non-political representatives from the country to attend Asean meetings.
“Otherwise our credibility will be undermined, and so will Asean centrality, and this would also affect our engagement with key partners, at a time precisely when we need to step up relations with them,” he added.
The ruling military junta have been banned from participating in formal Asean meetings ever since it staged a coup in February 2021, which led to its elected leader Aung San Suu Kyi’s ouster from power.
In addition to reaffirming the five-point consensus as the main resolution plan for the crisis, Asean leaders also decided on Tuesday to pass over Myanmar’s turn to take up the rotating chairmanship of the group in 2026. The Philippines will be replacing Myanmar.
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As with previous Asean Summits, the ongoing crisis in Myanmar took centre stage as Indonesian President Joko Widodo faces mounting pressure, as the current chair of the regional bloc, to find a resolution.
Officially opening the 43rd Asean Summit on Tuesday, Jokowi, as the Indonesian President is more popularly known, called for unity among Asean members as well as its external partners, as they “sail together towards the epicentre of growth”.
With the exception of Myanmar, representatives from all member states attended the opening ceremony, two high-level sessions and a forum focused on promoting cooperation in the Indo-Pacific region. Prospective member Timor-Leste’s prime minister, Xanana Gusmao, attended as an observer.
Economic integration
As Asean works towards a 2045 vision aimed at meeting the aspirations of its citizens, economic integration needs to remain at the core of its agenda, said PM Lee.
Besides upgrading the agreement governing the trade of goods between Asean member states to include the digital and green sectors, PM Lee said at the plenary session that the launch of negotiations on a framework for the grouping’s digital economy is another important step towards economic integration.
“We must work towards a Defa (Digital Economy Framework Agreement) 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 people,” he said.
Negotiations on the Defa were launched on Sunday by the bloc’s economic ministers, after a study identified nine core elements – including digital trade, cross-border e-commerce and digital payments – to be covered in the discussions.
According to the study by the Boston Consulting Group, a high-quality Defa is projected to double the region’s digital economy from US$1 trillion to US$2 trillion by 2030. Negotiations are targeted to conclude by 2025.
As for the green economy, PM Lee said that the energy transition to lower-carbon economic activities is critical to Asean’s sustainable development and continued prosperity.
He reiterated Singapore’s commitment to the construction of an Asean power grid and that the Republic had renewed the memorandum of understanding for the regional grid. Besides developing its infrastructure, harmonising standards for the cross-border export of energy is also key.
PM Lee also welcomed the feasibility study on cross-border power trade among Brunei, Indonesia, Malaysia and the Philippines, which was launched on Monday.
“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.”
The Myanmar crisis and Asean’s relevance
Advocating for the junta’s continued ban from Asean Summits and the implementation of the five-point consensus, PM Lee said that Asean needs to be united in purpose and in action when it comes to dealing with the Myanmar crisis.
The relevance of the grouping has been called into question by critics over its inability to forge a resolution, as the junta has shown no desire to implement the five-point consensus.
Some member states have shown their individual approaches to be different from Asean’s position, raising questions of internal divisions. For example, Thailand has hosted three informal talks with Myanmar military stakeholders.
PM Lee added that Singapore welcomes the draft review of the five-point consensus, which establishes an informal consultation mechanism comprising the previous, current and future Asean chairs to engage all Myanmar stakeholders.
Speaking at the same session, Widodo said that Asean needs more tactical and extraordinary efforts to implement the five-point consensus.
“Asean must continue to encourage the initiation of an inclusive national dialogue as the key for conflict resolution that is Myanmar-owned and Myanmar-led,” he said.
In addition to the Myanmar crisis, the regional grouping is also finding itself being pulled in different directions as tensions continue to mount between external powers such as the United States and China, both of which vie for influence over Asean.
Echoing the point by Widodo on the need for unity, PM Lee said that having a united front when dealing with difficult internal or external issues is important in maintaining Asean’s relevance and influence in the world stage. There is also the need for Asean leaders to “redouble efforts” at economic integration, so that external partners have stakes in the stability and prosperity of the region.
PM Lee also said that Asean leaders need to increase the bloc’s engagement with all external powers in an open and inclusive manner as well as in mutually beneficial ways.
“Geopolitical rivalry will play out in our region, as is happening elsewhere in the world; we may not wish it, but we have to accept it. The solution is not to remain passive and avoid taking positions on all issues. Otherwise, Asean will lose its relevance,” he said.
Widodo had said in his summit opening speech that Asean will not be a proxy for any power.
“Do not turn our Asean ship into an arena for rivalries that cause mutual destruction. Instead, transform this Asean ship as a space to nurture cooperation, to achieve prosperity, stability and peace, not only for region, but also for the world,” he said.
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