ASEAN ECONOMIC COOPERATION MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY

Transcription

1 ASEAN ECONOMIC COOPERATION MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY HOTEL TRADERS PENANG 28 JUNE 2012

2 CONTENTS OF THE PRESENTATION The presentation will cover 3 main areas: Malaysia in the Global Economic Environment ASEAN as a Global Hub AEC and its Implications to Malaysia

3 MALAYSIA IN THE GLOBAL ECONOMIC ENVIRONMENT 25 LARGEST EXPORTER (2011) TOP 30 EXPORTER AND IMPORTER OF COMMERCIAL SERVICES LEADING TRADING NATION 27 LARGEST IMPORTER (2011)

4 FOREIGN TRADE POLICY Committed to progressive liberalisation of the Malaysian economy and strong supporter of multilateral trading system (WTO) China, Japan, Korea, India and New Zealand Chile, Pakistan, India, New Zealand, Australia EU, Transpacific Partnership Agreement (TPP), GCC and possibly with Korea and Bangladesh

5 External Dimension NATIONAL TRANSFORMATION Government Transformation Programme (GTP) Effective Delivery Of Government Services Economic Transformation Programme (ETP) New Economic Model A High Income, Inclusive & Sustainable Nation Political Transformation Repeal/Amendment Internal Security Act (ISA) Printing Press Publication Act (PPPA) Emergency Ordinance January 2010 March 2010 September 2011 ASEAN ECONOMIC COMMUNITY (AEC) 2015 & DYNAMIC ASIA FTAs AND TRADING ARRANGEMENTS

6 Export-Oriented & Labour- Intensive MALAYSIA S ECONOMIC DEVELOPMENT JOURNEY 1960s Import Substitutio n 1970s Technology Intensive 1980s Resource-Based & Heavy Industries 1990s 2000 Economic Corridors & Services Innovation, ETP & High Income 2011

7 ASEAN AS A GLOBAL HUB

8 ASEAN ECONOMIC COMMUNITY (AEC) 2015

9 ASEAN CHARTER (ADOPTED DECEMBER 2008) Shift from a consensus-basedapproach to rules-based organisation. Structured organisation to meet the emerging challenges to ensure ASEAN s relevancy in the global environment. Builds the concept of ownership by the people of ASEAN.

10 ASEAN AS A GLOBAL PLAYER ASEAN CHINA INDIA Population (million) 592 1,341 1,190 Land Area (million km 2 ) GDP (US$ billion) 1,859 5,980 1,600 GDP Per Capita (US$) 3,124 3,163 1,369 Exports (US$ billion) 1,074 1, Imports (US$ billion) 968 1, Exports as % of GDP Imports as % of GDP GDP Growth (%) Source: ASEAN Secretariat (2010 Figures)

11 ASEAN S EXTERNAL TRADE COUNTR Y EXPORT IMPORT TOTAL TRADE CHANG E (%) Brunei Cambodi a Indonesi a Lao PDR Malaysia Myanmar Philippin es (2.8) Singapor e Thailand Viet Nam TOTAL , , , NOTE: ALL FIGURES ARE IN US$ BILLION

12 ASEAN S INTERNAL TRADE COUNTRY EXPORT IMPORT TOTAL TRADE CHANG E (%) Brunei Cambodi a Indonesi a Lao PDR Malaysia Myanmar Philippin es Singapor e Thailand Viet Nam (9.8) TOTAL NOTE: ALL FIGURES ARE IN US$ BILLION

13 FDI FLOWS TO ASEAN BY COUNTRY OF ORIGIN SOURCE CUMULATIVE ( ) Japan 10, , , , ,217.7 USA 3, , , ,679.9 Canada EU 8, , , ,616.9 China 1, , , ,787.8 India Korea 1, , , ,067.1 Australia ,905.2 New Zealand (165.1) ASEAN 7, , , , ,354.3 Others 17, , , , ,072.2 TOTAL 50, , , , ,742.4 NOTE: ALL FIGURES ARE IN US$ MILLION

14 FDI INFLOWS INTO ASEAN HOST CUMMULATIVE COUNTRY ( ) Brunei Darussalam ,498 Cambodia ,004 Indonesia 6,928 9,318 4,877 13,304 34,427 Lao PDR ,214 Malaysia 8,538 7,248 1,381 9,156 26,323 Myanmar N/A 2,270 Philippines 2,916 1,544 1,963 1,713 8,136 Singapore 37,033 8,589 15,279 35,520 96,421 Thailand 11,330 8,539 4,976 6,320 31,165 Viet Nam 6,739 9,579 7,600 8,000 31,918 ASEAN Total 75,650 47,076 37,881 75, ,365 NOTE: ALL FIGURES ARE IN US$ MILLION

15 ASEAN POPULATION & DIALOGUE PARTNERS

16 ASEAN IN THE GLOBAL ECONOMY 2010 (GDP) India $1,430b China $5,750b ROK $986.2b Japan $5,068b ASEAN $1,859b Australia and New Zealand $1,354. b

17 ASEAN GLOBAL CONNECTIVITY Source : ASEAN Secretariat 17

18 ASEAN COMMUNITY 2015

19 MAIN COMPONENTS OF AEC Single Market and Production Base Competitive Economic Region 4 Main Pillars : Equitable Economic Developmen t Integration into the Global Economy

20 MAIN ELEMENTS OF AEC ASEAN ECONOMIC COMMUNITY Strategic Schedule SINGLE MARKET AND PRODUCTION BASE Free flow of goods COMPETITIVE ECONOMIC REGION EQUITABLE ECONOMIC DEVELOPMENT INTEGRATION INTO THE GLOBAL ECONOMY Free flow of services Free flow of investment Competition policy Consumer Protection Intellectual Property Rights SME development Initiative for ASEAN Integration (IAI) Coherent Approach towards External Economic Relations Enhanced participation in global supply networks Freer flow of capital Infrastructure development Free flow of skilled labor Taxation Priority Integration Sectors e-commerce Food, Agriculture and Forestry Human Resource Development Research and Development

21 AEC KEY PRIORITIES Enhancing physical & non-physical connectivity Aviation, maritime & land transport Integration of the services sector Enhancing trade facilitation operationalization of the ASEAN Single Window Elimination of non-tariff barriers Promoting inclusive and sustainable growth SME development Enhancing regional economic partnership with dialogue partners ASEAN+FTAs AEC initiatives are on track and member states are committed towards achieving AEC in 2015

22 FREE FLOW OF GOODS ASEAN-6 : 0% Tariff (2010) CLMV : 0-5% Tariff (2015)

23 FREE FLOW OF SERVICES Signed in to enhance and strengthen cooperation among service suppliers in ASEAN; and - progressively liberalise trade in services among ASEAN countries through reduction / elimination of restrictions.

24 EQUITY TARGETS AND PARAMETERS PRIORITY SECTORS Value US$ Million End date for Liberalisation Foreign (ASEAN) equity participation e-asean (ICT), Tourism, Healthcare Logistics NON-PRIORITY SECTORS % by % by % by % by % by % by % by % by % by % by 2015 * construction: not less than 51% by 2006

25 MRAs MRA Engineering Services Nursing Services Architectural Services Framework Agreement for the Mutual Recognition of Surveying Qualifications DOWNLOAD g/18009.htm g/19210.htm g/21137.pdf g/21137.pdf SIGNING DATE & VENUE 9 December 2005, Kuala Lumpur, Malaysia 8 December 2006, Cebu, Philippines 19 November 2007, Singapore

26 MRAs MRA MRA Framework on Accountancy Services Medical Practitioners Dental Practitioners DOWNLOAD rg/22225.htm rg/22231.htm rg/22228.htm SIGNING DATE & VENUE 26 February 2009 Cha-am, Thailand

27 ASEAN COMPREHENSIVE INVESTMENT AGREEMENT Main objectives: (ACIA) to create a free and open investment regime to achieve economic integration A more comprehensive Agreement: Covering 4 pillars i.e. liberalisation, protection, facilitation and promotion Inclusion of additional provisions Improvement of existing provisions A total of 49 Articles, 2 Annexes, and 1 Schedule (reservation list of Member States)

28 HIGHLY COMPETITIVE ECONOMIC REGION ASEAN to enhance cooperation in new areas: competition policy; consumer protection; intellectual property rights; infrastructure development; and taxation and e-commerce.

29 ASEAN CONNECTIVITY ASEAN Community APSC AEC ASCC Enhance rules and good governance for ASEAN Enhance integration and competitiveness of ASEAN Narrowing the Development Gaps Enhance the wellbeing and livelihood of ASEAN peoples Physical Connectivity People-to- People Connectivity Institutional Connectivity Resource Mobilisation ASEAN Connectivity

30 ASEAN CONNECTIVITY

31 KEY STRATEGIES TO ENHANCE PHYSICAL CONNECTIVITY Strategy 1 Strategy 2 Strategy 3 Strategy 4 Strategy 5 Strategy 6 Strategy 7 KEY STRATEGIES FOR ENHANCED ASEAN CONNECTIVITY Complete the ASEAN Highway Network Complete the implementation of the Singapore Kunming Rail Link (SKRL) project Establish an efficient and integrated inland waterways network Accomplish an integrated, efficient and competitive maritime transport system Establish integrated and seamless multimodal transport systems to make ASEAN the transport hub in the East Asia region Accelerate the development of ICT infrastructure and services in each of the ASEAN Member States Prioritise the processes to resolve institutional issues in ASEAN energy infrastructure projects

32 KEY STRATEGIES FOR ENHANCED ASEAN CONNECTIVITY KEY STRATEGIES TO ENHANCE PEOPLE-TO-PEOPLE CONNECTIVITY Strategy 1 Promote deeper intra-asean social and cultural understanding Strategy 2 Encourage greater intra-asean people mobility

33 KEY STRATEGIES TO ENHANCE INSTITUTIONAL CONNECTIVITY STRATEGY 1 STRATEGY 2 STRATEGY 3 STRATEGY 4 STRATEGY 5 STRATEGY 6 STRATEGY 7 STRATEGY 8 STRATEGY 9 STRATEGY 10 KEY STRATEGIES FOR ENHANCED ASEAN CONNECTIVITY Fully operationalise the three Framework Agreements on transport facilitation Implement initiatives to facilitate inter-state passenger land transportation Develop the ASEAN Single Aviation Market (ASAM) Develop an ASEAN Single Shipping Market Accelerate the free flow of goods within ASEAN region by eliminating barriers to merchandise trade within the region Accelerate the development of an efficient and competitive logistics sector, in particular transport, telecommunications and other connectivity-related services in the region Substantially improve trade facilitation in the region Enhance border management capabilities Accelerate further opening up of ASEAN Member States to investments from within and beyond the region under fair investment rules Strengthen institutional capacity in lagging areas in the region and improve regional-sub-regional coordination of policies, programmes and projects

34 RESOURCE MOBILISATION Traditional Funding Sources: Multilateral Development Banks (MDBs) Bilateral development partners Regional/global funds and facilities Technical assistance from ASEAN Dialogue Partners and other external parties National Government Budgets

35 RESOURCE MOBILISATION New and Innovative Sources: Private individuals and businesses ASEAN Infrastructure Fund (AIF) financed by ASEAN Member States and ADB Private-Public Partnerships (PPPs) Regional & Domestic Capital Markets

36 CROSS FLOWS OF INVESTMENTS IN ASEAN Direct Investment by Malaysia in ASEAN YEAR INVESTMENTS 2011 : RM25,775 MILLION 2010 : RM24,754 MILLION 2009 : RM16,058 MILLION Source: Bank Negara Malaysia

37 CROSS FLOWS OF INVESTMENTS IN ASEAN Direct Investment by ASEAN Countries in Malaysia YEA R Source: Bank Negara Malaysia INVESTMENTS 2011 : RM21,680 MILLION 2010 : RM15,675 MILLION 2009 : RM15,756 MILLION

38 OPPORTUNITIES TO MALAYSIAN BUSINESS COMMUNITY A Single Integrated Market offering increase business opportunities for trade in goods, services and investment, through: removal of import tariffs and non-tariff barriers for trade in goods; liberalisation of the services sector covering all 4 modes of supply and removal of market access limitations creating a liberal investment regime Serve as a production base for regional and international market

39 OPPORTUNITIES TO MALAYSIAN BUSINESS COMMUNITY Enhance competitiveness and efficiency by expanding domestic production facilities for the larger markets:

40 OPPORTUNITIES TO MALAYSIAN BUSINESS COMMUNITY Undertake outsourcing activities and specialisation of production Relocate and rationalisation of business operations Enhance Malaysian service providers competitiveness and capacity Employment and business opportunities for Malaysian service providers

41 OUTREACH PROGRAMMES Seminars/Briefings/Workshops. Establishment of FTA Service Units in MATRADE, MIDA and SMIDEC MITI Website provides latest updates on Malaysia s FTAs Conduct Surveys to ascertain level of awareness amongst stakeholders of FTAs and their benefits derived.

42 CONCLUSION Economic Dynamism AEC Sustained Prosperity Inclusive Growth Integrated Development of ASEAN

43 THANK YOU ASEAN ECONOMIC COOPERATION MITI Fax : allasean@miti.gov.my l MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY, MALAYSIA l ALL RIGHTS RESERVED l