Achieving the ASEAN Economic Community 2015: Challenges for Member Countries and Businesses

16. Role of the Singapore Private Sector in ASEAN Economic Integration

16 Role of the Singapore Private Sector in ASEAN Economic Integration Juliana Giam With the ASEAN governments increasingly calling on the region’s private sector to play its part in regional economic integration, the weightage of the role of the business community has become intrinsic to ASEAN’s economic aspirations. As a result, the ASEAN private sector is made more conscious of its place in the process of regional economic integration. However, a certain tension arises from the divergence between ASEAN’s economic aspirations and the private sector’s experience of those aspirations. At the local level, public-private sector partnership in the respective ASEAN countries varies in its degree of intensity. A perspective on the role of the Singapore private sector in ASEAN economic integration serves to provide an indication of its involvement. In this context, consideration is given to the effectiveness of ASEAN economic agreements as perceived by the business community, their impact on trade and investment decisions, and prospects for achieving the ASEAN Economic Community (AEC) by 2015. Role of the Singapore Private Sector in ASEAN Economic Integration 275 The Singapore Business Federation The scope of the topic is to be defined to set the framework of discussion. For the purpose of the perspective being delineated, the Singapore private sector will be taken to mean the private sector which is institutionalized at the apex level across domestic ethnic lines, across foreign business groups, and across industry sectors. Such a definition is realized in the Singapore Business Federation (SBF), the apex business chamber in Singapore. The vision of the SBF, established in 2002, is to be the voice of the Singapore business community locally and to the world, creating business value for its members. Its mission is to act as the bridge between the government and business in Singapore to create and enhance a conducive business environment. SBF represents the business community in bilateral, regional, and multilateral forums for the purpose of promoting trade expansion and business networking. It represents more than 18,000 companies, as well as the local and foreign business chambers, the key national and industry associations from business sectors that contribute significantly to the Singapore economy. By extension, the involvement of the Singapore private sector at the apex level in ASEAN economic integration would be through the SBF’s constituted position in the high-level ASEAN private sector organizations that are institutionalized across generic industry lines. These regional business organizations, in turn, contribute to ASEAN economic integration by their access to the ASEAN governments. As a subtext, it should be recognized that there exist various industry-specific associations and certain foreign business chambers in Singapore that contribute to ASEAN economic integration through membership of their respective regional business associations which provide input to the ASEAN governments. At the level of the SBF, ASEAN business organizations in which it is engaged comprise (1) the ASEAN Business Advisory Council (ASEANBAC ) and (2) ASEAN Chambers of Commerce and Industry (ASEANCCI ). These regional private sector organizations include in their ambit the range of business interests at the apex regional level. The ASEAN Business Advisory Council, the highest-level ASEAN private sector organization, is the business advisory group mandated by ASEAN governments. It aims to provide private sector feedback on the implementation of ASEAN economic integration and identify 276 Juliana Giam priority areas for the consideration of ASEAN leaders. Established in 2003, ASEAN-BAC comprises three high-level CEOs of companies from each ASEAN member country appointed by the respective member country. ASEAN-BAC submits its recommendations during a dialogue with ASEAN leaders at the ASEAN Summit on an annual basis. It also has an annual consultation with the ASEAN Economic Ministers. On its part, the ASEAN Chambers of Commerce and Industry is the regional chamber of commerce and industry formed by the apex business chambers of ASEAN in 1972. Its objectives are to accelerate economic growth and progress in the region through joint approaches, endeavours, and actions to strengthen the foundation and coordination for the enhancement of the communities of ASEAN; foster closer relations and cooperation between and among constituent members; provide mutual assistance in matters of common interest in the solution of economic problems in the area; and maintain closer relations and cooperation with regional and international organizations having similar aims and objectives. With regard to dialogue with the ASEAN governments, ASEAN-CCI is invited to submit its recommendations to ASEAN governments at the level...