Promote Greater Intra-Asean Investments

KUALA LUMPUR, Aug 11 – The Association of South-East Asian Nations (Asean) should promote greater intra-Asean investments, especially by the grouping’s home-grown firms, said Minister of Internation Trade and Industry, Datuk Seri Mustapa Mohamed said.

He said Asean companies should be encouraged to take steps to strengthen intra-Asean investment flows, which was in line with the aspiration to build and form an Asean Economic Community (AEC) by 2015.

“A number of Malaysian companies are already operating in Asean and are keen to expand and invest in new projects,” he said.

Mustapa said this at the Asean Economic Ministers-Asean Investment Area (AIA) Council Meeting yesterday in Manado, Indonesia, according to a statement by the Ministry of International Trade and Industry (MITI) today.

The statement said intra-Asean investment increased significantly to US$12.1 billion (US$=RM3.02) in 2010 from US$5.2 billion in 2009, exceeding the peak of 2007 (US$9.6 billion), and average levels (US$4.5 billion) over the last 15 years (1995-2009).

Intra-Asean investment accounted for 16 per cent of total foreign direct invest (FDI) flows to Asean. The major Asean investors are Singapore (US$7.4 billion), Malaysia (US$2.3 billion) and Indonesia (US$1.6 billion), it said.

MITI said at the meeting, Mustapa also has expressed confidence in Asean’s economic growth prospects but stressed the importance of achieving greater Asean integration through the establishment of the AEC by 2015.

“The AEC is vital for the generation of new economic growth opportunities for all Asean member states in the years to come,” he said.

The statement said global economic and FDI recovery has had a positive impact on Asean.

FDI flows into Asean in 2010 reached US$75.8 billion, double the 2009 level of US$37.9 billion.

Investments into Asean were mainly from the European Union (US$17 billion), US (US$8.6 billion), Japan (US$8.4 billion), South Korea (US$3.8 billion), China (US$2.7 billion) and India (US$2.6 billion).

The services sector continued to increase both in terms of value and share of FDI inflows, and amounted to US$49.2 billion, or 65.7 per cent, of total Asean FDI inflows in 2010.

The financial intermediation (US$16.5 billion) and real estate (US$12.9 billion) sub-sectors were the main FDI recipients in this sector.

The manufacturing sector was second with US$21.0 billion, or 28.1 per cent, of total FDI flows in 2010, it said.

MITI said Mustapa welcomed Asean’s strong rebound from the 2008 global financial crisis indicated by increased regional gross domestic product growth of 7.4 per cent in 2010 from 1.6 per cent in 2009.

Mustapa said while focusing on achieving a functioning AEC, which would make Asean a single market, efforts should also be made to strengthen Asean global competitiveness.

He supported Indonesia’s initiative to host the Asean Investment Forum on the sidelines of the 19th Asean Summit in Bali in November 2011.

The forum seeks to develop a regional approach on investment to position Asean as a highly competitive global economic region.

DISUNTING DARI UMNO ONLINE @ DISIARKAN PADA 17 JANUARI 2012