ASEAN eyeing investment in regional connectivity - Klipping Jakarta Post

Mustaqim Adamrah, The Jakarta Post, Jakarta | Fri, 11/05/2010 10:20 AM | World
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ASEAN is inviting countries outside the region to invest in Southeast Asia, as ASEAN member states are working on numerous projects to connect with one another and integrate, creating a single market.

ASEAN Secretary-General Surin Pitsuwan reaffirmed the importance of building intra-regional connectivity within ASEAN.

ASEAN connectivity will enhance trade, investment, tourism, infrastructure, people-to-people exchanges and development among member countries, which are the main goals of the people-oriented ASEAN Community by 2015, he said.

“Goods being shipped from Bangkok to Los Angeles are cheaper than goods shipped from Bangkok to a small port in the southern Philippines, because there is no connectivity,” Pitsuwan said Thursday in an address at the ASEAN secretariat before ambassadors to ASEAN and Indonesia.

ASEAN declared the adoption of the ASEAN Connectivity master plan on Oct. 28, during the 17th ASEAN Summit in Hanoi.

With the association’s decision to promote connectivity, all are now looking at an opportunity to make (or improve) investment in the region, Pitsuwan said.

Japan had reaped ¥280 billion (US$3.45 billion) in profits each year from its investments in ASEAN, he said.

“This is just to show you that we’re productive and that ASEAN should not be considered only a boutique of collections,” he said.

According to Pitsuwan, last year’s total trade among ASEAN members stood at $1.5 trillion, $3.3 trillion among members of ASEAN+3 (China, Japan and South Korea), $13.2 trillion among ASEAN+6 (plus India, Australia and New Zealand) and $28.5 trillion among ASEAN+8 (plus the US and Russia).

Pitsuwan said those trade figures would increase further if there was better connectivity.

Indonesian Ambassador to ASEAN Ngurah Swajaya, who also spoke at the ASEAN secretariat, said Japan, China, Australia and New Zealand had expressed an interest in improving connectivity in the region.

“In Indonesia alone there are at least 12 flagship projects to be offered to ASEAN’s partners in the form of [official development assistance], and [public private partnerships],” he said.