Asian businesses seek closer integration in continent

At the third Asian Business Summit held yesterday in Bangkok, leaders from 14 business organisations from 12 Asian economies shared similar views that the continent should establish a regional financial centre so as to be less reliant on Western countries.

They said deeper integration among Asean, Asean+3 and Asean+6 would pave the way for establishment of the Free-Trade Area of the Asia-Pacific (FTAAP) by 2020.

Phongsak Assakul, chairman of the Board of Trade of Thailand, said private enterprises would like to see that Asia has its own financial centre to ensure businesses suffer fewer impacts from crises like the current euro-zone crunch.

"Currently, the centres of global financial trading are in Western countries. Asia has high potential to be a new centre for financial trading and transactions thanks to stable economic growth," Phongsak said.

Moreover, he said the private sector wanted to see closer integration on seamless trade under Asean’s agreement with six partner countries – China, Japan, South Korea, India, Australia and New Zealand – as it would encourage stronger integration in the Asia-Pacific region.

The meeting also proposed establishment of an Asian bond market to stabilise regional financial growth.

Nelson An-ping Chang, vice chairman of Taiwan’s Chinese National Association of Industry and Commerce, said that amid the global uncertainty, Asia should set up an efficient mechanism for stable exchange rates in the region and with trading-partner countries.

"Asia needs to promote closer financial cooperation and help small and medium-sized enterprises ensure sustainable growth in the region," he said.

Chang added that countries in Asia should also strengthen cooperation through public-private partnerships as governments could not alone drive growth amid global difficulty.

Twatchai Yongkittikul, secretary-general of the Thai Bankers Association, said the euro crunch would have impacts, direct and indirect, on every Asian country. To promote sustainable growth of Asia, it needs to boost intra-regional trade and integration, and increase financial buffers in the capital market.

Hiromasa Yonekura, chairman of the Japan Business Federation (Keidanren), said it was essential to launch the FTAAP by 2020 and move Asian countries forward to deeper cooperation. The Trans-Pacific Partnership (TPP) and Asean+3 and Asean+6 Economic Partnership Agreements will be important stepping stones to achieve the FTAAP.

Yonekura said the Asian business community would work together to call on governments to reach an agreement at the East Asia Summit to launch negotiations for Asean+3 and Asean+6 pacts officially.

To promote trade and investment among Asia, he also urged all countries to reduce tariff rates further, promote cross-border movement of people with professional skills, ease restrictions on foreign-owned businesses in investment and services. Asia should also relax restrictions on energy and mineral resources and improve the public procurement market.

Payungsak Chartsutipol, chairman of the Federation of Thai Industries, said Asia should strengthen cooperation in a variety of areas, particularly joining the TPP agreement to ensure competitiveness and market penetration in the United States. A proposal from the private sector will be submitted to the East Asia Leaders Summit and Asia-Pacific Economic Cooperation Summit this year.

Yu Ping, vice chairman of the China Council for the Promotion of International Trade, said Asean and partner countries should set up a clear time frame for concluding the Asean+3 and Asean+6 agreements to promote further integration among Asia-Pacific countries.

To boost regional growth, business leaders at the summit also stressed that they would like to see closer integration on energy and environmental issues, while promoting innovation and development of human resources and infrastructure.