If Asean means business

THE recent Asean Summit and related meetings in Jakarta generated many headlines about the high politics of the region. A new map in the South China Sea drew considerable concern, as did ongoing violence in Myanmar. Diplomatic gestures were noted, particularly that US President Joe Biden skipped the summit, sending Vice-President Kamala Harris in his place.

None of these is trivial. Should there be conflict and instability, negative consequences for the economy and business will be high. Western investors might then bypass Asean as Biden did. Yet, other factors also matter to business and, quite aside from the high politics, bear attention.

Post-pandemic uncertainties

Complex and challenging conditions are evident in the slow growth seen in the first half of the year. There is no easy, even and immediate bounce-back to pre-pandemic levels. Some feel the “scars” from the pandemic – profits lag for companies in most sectors, and many workers struggle to secure jobs. Governments face budget constraints and cannot pump-prime growth. There is also a risk of pandemic amnesia, failing to prepare and build resilience against future shocks.