Members of the Association of Southeast Asian Nations (ASEAN) risk losing their competitiveness and investor confidence if they don't carry through painful structural reforms, Australian Foreign Minister Alexander Downer said in Singapore yesterday.
These reforms have taken on a greater sense of urgency especially after the 1997-1998 Asian crisis and China's pending entry into the WTO, Downer said while on a stopover en route to Hanoi where he will be attending the ASEAN Regional Forum.
Otherwise, it would be difficult for the 10-member regional grouping to become an effective bloc capable of building economic prosperity for the region's 500 million people in the era of globalization, Downer said.
"Commitment to structural reforms must be translated into action, no matter how painful that may be," he said.
"Those who implement reforms are restoring not only their competitiveness, but international confidence."
"In so doing, they boost the ability of ASEAN as a whole to compete successfully for capital inflows."
ASEAN's image as an economically vibrant group was thrown into doubt in the aftermath of the 1997-1998 crisis while that of China has risen substantially, Downer said. Already, China was drawing a lot of foreign investments that used to head ASEAN's way, he said.
"The trouble with ASEAN is that it doesn't have a sufficient reputation for being economically progressive at the moment, yet it had the history of being economically progressive," Downer said.
If ASEAN was to face up to the challenge from China, then it must not detract from pursuing much needed structural reforms and economic policies that encourages trade and investments.
"The need for further reform is still substantial. For some, it is daunting," said Downer.
"But an outward looking ASEAN, committed to structural reform, would be a compelling destination for long-term foreign investors," he said.
In his speech, Downer also urged the grouping to take on a more active role in regional affairs instead of adhering strictly to its policy of non-interference.
"A dual approach -- structural reforms by individual members and a more active ASEAN to shape the overall picture -- would help project a greater sense of regional recovery and restore investor confidence," he said.
ASEAN nations, which have a policy of not interfering in each other's affairs, have been criticized in the past for failing to take a stronger stand on a member's problems that could affect the entire region.
Recent events such as the regional crisis and the smog that blanketed the region four years ago showed that sticking strictly to the principle of non-interference was making the grouping ineffective in dealing with regional issues.
"ASEAN has a culture of working around problems rather than confronting them. But there is no compelling reason why discussing regional issues in a more open way should be seen as interference," Downer said.
"A strict interpretation of the principle ignores the reality that some problem can only be addressed effectively through regional co-operation," he said.
Investors viewed ASEAN -- comprising of Brunei, Cambodia, Indonesia, Laos, Myanmar, Malaysia, the Philippines, and Vietnam -- as a single bloc rather than as individual economies, said Downer.
"I know there are sensitivities but non-interference should not mean non-action," he said.
"It's not such a good idea if that principle of non-interference is translated into non-action when there are problems."
Downer said Australia was still as committed as ever to a free trade agreement with ASEAN even though the grouping last year rejected the set up of a taskforce to look into the feasibility of such a pact.
"I repeat today that we still are this day ... we are still prepared to enter into negotiations with all of the ASEAN countries for a free trade agreement," Downer said.
"And that will be a very good outcome for ASEAN and a very good outcome for Australia."
NO HUMAN ERROR: After the incident, the Coast Guard Administration said it would obtain uncrewed aerial vehicles and vessels to boost its detection capacity Authorities would improve border control to prevent unlawful entry into Taiwan’s waters and safeguard national security, the Mainland Affairs Council (MAC) said yesterday after a Chinese man reached the nation’s coast on an inflatable boat, saying he “defected to freedom.” The man was found on a rubber boat when he was about to set foot on Taiwan at the estuary of Houkeng River (後坑溪) near Taiping Borough (太平) in New Taipei City’s Linkou District (林口), authorities said. The Coast Guard Administration’s (CGA) northern branch said it received a report at 6:30am yesterday morning from the New Taipei City Fire Department about a
IN BEIJING’S FAVOR: A China Coast Guard spokesperson said that the Chinese maritime police would continue to carry out law enforcement activities in waters it claims The Philippines withdrew its coast guard vessel from a South China Sea shoal that has recently been at the center of tensions with Beijing. BRP Teresa Magbanua “was compelled to return to port” from Sabina Shoal (Xianbin Shoal, 仙濱暗沙) due to bad weather, depleted supplies and the need to evacuate personnel requiring medical care, the Philippine Coast Guard (PCG) spokesman Jay Tarriela said yesterday in a post on X. The Philippine vessel “will be in tiptop shape to resume her mission” after it has been resupplied and repaired, Philippine Executive Secretary Lucas Bersamin, who heads the nation’s maritime council, said
CHINA POLICY: At the seventh US-EU Dialogue on China, the two sides issued strong support for Taiwan and condemned China’s actions in the South China Sea The US and EU issued a joint statement on Wednesday supporting Taiwan’s international participation, notably omitting the “one China” policy in a departure from previous similar statements, following high-level talks on China and the Indo-Pacific region. The statement also urged China to show restraint in the Taiwan Strait. US Deputy Secretary of State Kurt Campbell and European External Action Service Secretary-General Stefano Sannino cochaired the seventh US-EU Dialogue on China and the sixth US-EU Indo-Pacific Consultations from Monday to Tuesday. Since the Indo-Pacific consultations were launched in 2021, references to the “one China” policy have appeared in every statement apart from the
More than 500 people on Saturday marched in New York in support of Taiwan’s entry to the UN, significantly more people than previous years. The march, coinciding with the ongoing 79th session of the UN General Assembly, comes close on the heels of growing international discourse regarding the meaning of UN Resolution 2758. Resolution 2758, adopted by the UN General Assembly in 1971, recognizes the People’s Republic of China (PRC) as the “only lawful representative of China.” It resulted in the Republic of China (ROC) losing its seat at the UN to the PRC. Taiwan has since been excluded from