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4. Other ASEAN Co-operation Efforts
- ISEAS–Yusof Ishak Institute
- Chapter
- Additional Information
45 Chapter 4 Other ASEAN Co-operation Efforts INTRODUCTION In addition to trade and investment liberalization discussed in Chapters 2 and 3, this chapter looks at other ASEAN co-operation efforts. The role of the private sector in trade, investment and other economic co-operation efforts is presented. As ASEAN takes an increasingly more market-oriented approach to economic cooperation , appreciating the role and importance of the private sector is imperative. The physical infrastructural networks are discussed, followed by e-ASEAN, social development and cooperation efforts, including an ASEAN community. ASEAN PRIVATE SECTOR EFFORTS While economic integration through government-to-government reduction of tariff and non-tariff barriers is at work, private sector participation is invaluable. The ASEAN Chambers of Commerce and Industry formed in 1972 takes part in ASEAN official meetings and projects. It has four tiers at the council governing and administration level, in regional commodity clubs, in national industry clubs and finally, in national commodity clubs. Again, these provide the platforms and occasions for ASEAN business and industry groups to get together for collaboration and shaping proposals for ASEAN 46 ASEAN Eco no mic Co -o peratio n and Challeng es leaders and officials. ASEAN Chambers of Commerce and Industry joint business and economic councils with dialogue partners provide the needed external extensions as well. Reinforcing economic co-operation, certain areas and the private sector also contribute to greater socio-cultural interaction. These include energy, rural youth development and disease research and training, as shipping, banking, tours and travel, and fisheries. More interestingly, growth triangles have evolved out of private sector efforts. Business relocation prompted by cost and other supply factors first prompted the migration of Singapore business into Johor in Malaysia in the late 1980s. This was extended to Batam in Riau, giving rise to the SIJORI configuration by 1989 before it was extended to more generic IndonesiaMalaysia -Singapore growth triangle. This in turn inspired the Indonesia-Malaysia-Thailand growth triangle and East ASEAN Growth Area covering Brunei-Indonesia-Malaysia-Philippines. The Greater Mekong Scheme has attracted Japanese interests since the late 1950s with the United Nations Development Plan’s financial assistance in transport and communication involving Thailand, Vietnam, Cambodia and Yunnan province in China. Myanmar is peripherally involved and the area covered is a large one, indeed. To make the Greater Mekong River Project more an ASEAN project and also more viable, a corridor concept, cutting across the four ASEAN states has come about. The genesis of growth triangles started by private sector impulses, followed by government and other official support especially in infrastructure, immigration and other crossborder issues has the distinct advantage of being market-led and driven. There are many problems that require government intervention and intercession. These include integrated development, unequal benefits across uneven development, inadequate infrastructure, complex decision-making structure and bureaucracy, areas running [54.226.94.217] Project MUSE (2024-03-29 13:33 GMT) 4. Other ASEAN Co -o peratio n Effo rts 47 into sensitive security issues, labour mobility and welfare concerns. Even that may not always be easy or successful. Continued dialogues with the ASEAN private sector, other regional organizations, including non-governmental organizations engaged in new parameters like environment, become important. Another evolving area in private sector economic co-operation is in regional cross-border production networks from traditional textile and garments, footwear products to Toyataism and hightechnology clusters. Japanese carmaker, Toyota, has recognized the various strengths and comparative advantage of ASEAN countries under the industrial complementation scheme. It has accordingly spread a network of subsidiaries and associated companies across ASEAN as a pioneer model of cross-production networks. Over time, American multinational corporations especially in electronics, semiconductors, disk drives and such, have also moved into ASEAN to set up high-technology production clusters. Such regional cross-border production networks are also built on the comparative advantage of the leading multinational corporation in collaboration and with support from national agencies. Those that are keen to help technology transfer, nurture local enterprises as partners with a multinational corporation. The local enterprises in time become multinational corporations in their own right. Singapore’s Economic Development Board has been such an industrial developer and champion, as has the Malaysian Industrial Development Agency. The next phase would be collaboration in service, especially research and development. With information communication technology and the new knowledge-based economy focused on intellectual capital involving creativity and innovation, Singapore’s broadband infrastructure and Malaysia’s multimedia supercorridor stand them in good stead for the high...