Diversity among Asean members is a strength: Gan Kim Yong
Zhao Yifan
THE diversity among Asean’s member states poses both challenges and opportunities, said Trade and Industry Minister Gan Kim Yong at an event on Thursday (Aug 31).
While some may be at different stages of economic development, this diversity also means that “countries will be able to help one another and integrate with one another”, he said at a dialogue during the seventh edition of the Asean Conference held at the Raffles City Convention Centre.
Gan agreed with what UOB’s deputy chairman and chief executive Wee Ee Cheong said in an earlier speech about the global macroeconomic situation being “a bit cloudy”. The minister, however, expressed confidence in the long-term growth potential of South-east Asia.
In the digitalisation space, Asean is building a digital economy framework agreement (DEFA) to establish the basis of collaboration for its member states.
“Digitalisation is the foundation for the Asean Single Window to work,” said Gan, referring to the regional electronic platform that promotes economic integration and connectivity through the expedited electronic exchanges of trade-related documents.
The minister stressed the need for DEFA to incorporate the needs of businesses, and urged companies to help ensure the agreement can be successful by giving their feedback to the Singapore Business Federation (SBF).
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In the green economy space, Gan mentioned the pilot cross-border clean energy trade programme involving Laos, Thailand, Malaysia and Singapore, as well as the potential for an integrated Asean power grid.
“The diversity of Asean means that some countries have excess green energy, while some like Singapore are short on alternative energy sources, it is therefore complementary in nature,” he said.
Gan encouraged businesses to think and plan ahead for their digitalisation process and green energy transformation.
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He noted that businesses should be prepared to change their operating models, while also pointing out that the government and organisations like SBF will be there to support them when the market landscape evolves.
The seventh edition of the Asean Conference was launched by SBF and its founding partners UOB, Rajah & Tann and RSM Singapore.
About 400 business leaders, government officials and academics from 14 countries attended the day-long event, which had the theme of “Forging a Digital and Sustainable Asean – Towards Prosperity, Resilience and Sustainable Growth”.
SBF chairman Lim Ming Yan listed the digital and green economies as two emerging areas that present “vast opportunities” for South-east Asia.
Separately, he also said: “Asean’s projected economic growth of over 4 per cent this year coupled with its growing middle class, rapid digitalisation, abundant natural resources and push for greater regional integration makes it extremely attractive for Singapore businesses looking for expansion and growth.”
As part of the conference, SBF renewed its memorandum of understanding (MOU) with UOB that was signed in 2021 to support the internationalisation of Singapore businesses, particularly into South-east Asia.
The renewed MOU expands the scope of collaboration on joint initiatives that promote trade and investment between Singapore and other countries.
It will also help Singapore businesses tap on the services offered by GlobalConnect@SBF and UOB’s Foreign Direct Investment advisory unit. GlobalConnect@SBF is an initiative by SBF in partnership with Enterprise Singapore to help Singapore businesses expand and deepen their presence in overseas markets.
UOB’s Wee said that the bank’s advisory unit has a proven track record of helping companies overcome market-entry barriers with a one-stop solution over the past decade.
“With UOB’s extensive footprint, deep regional connectivity and sector expertise across Asean, we are well-positioned to contribute to the region’s economic development and sustainable growth,” he said.
SBF also signed an MOU with Y3 Technologies, part of logistics service provider YCH Group, to support the cross-border e-commerce activities of Singapore businesses into Asean and beyond.
Y3 Technologies chief executive Navin Bhatnagar said this cooperation will help Singaporean enterprises outpace their regional business growth and concentrate on their core competencies.
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