asean economic cooperation ministry of · pdf filemalaysia in the global economic ......

HOTEL TRADERS PENANG| 28 JUNE 2012

ASEAN ECONOMIC COOPERATION MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY

The presentation will cover 3 main areas:

CONTENTS OF THE PRESENTATION

Malaysia in the Global Economic Environment

ASEAN as a Global Hub

AEC and its Implications to Malaysia

LEADING TRADING NATION

25 LARGEST EXPORTER (2011)

27 LARGEST IMPORTER (2011)

TOP 30 EXPORTER AND IMPORTER OF COMMERCIAL

SERVICES

MALAYSIA IN THE GLOBAL ECONOMIC ENVIRONMENT

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

NATIONAL TRANSFORMATION

FTAs AND TRADING ARRANGEMENTS

ASEAN ECONOMIC COMMUNITY (AEC) 2015 & DYNAMIC ASIA

Ex

tern

al

Dim

en

sio

n

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

1960s

1970s

1980s

1990s 2000

Import Substitutio

n

Export-Oriented & Labour-Intensive

Resource-Based & Heavy

Industries

Economic Corridors &

Services

Technology Intensive

Innovation, ETP &

High Income 2011

MALAYSIA’S ECONOMIC DEVELOPMENT JOURNEY

ASEAN AS A GLOBAL HUB

ASEAN ECONOMIC COMMUNITY (AEC) 2015

ASEAN CHARTER (ADOPTED DECEMBER 2008)

Shift from a consensus-based-approach 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.

ASEAN AS A GLOBAL PLAYER

ASEAN CHINA INDIA

Population (million) 592 1,341 1,190

Land Area (million km2)

4.5 9.6 3.3

GDP (US$ billion) 1,859 5,980 1,600

GDP Per Capita (US$) 3,124 3,163 1,369

Exports (US$ billion) 1,074 1,510 245

Imports (US$ billion) 968 1,440 350

Exports as % of GDP 57.8 25.2 15.4

Imports as % of GDP 52.1 24.1 21.9

GDP Growth (%) 7.5 10.3 8.5

Source: ASEAN Secretariat (2010 Figures)

ASEAN’S EXTERNAL TRADE COUNTR

Y

EXPORT IMPORT TOTAL TRADE CHANGE 2008-

2010 (%)

2008 2009 2010 2008 2009 2010 2008 2009 2010

Brunei 7.8 5.9 8.3 1.3 1.1 1.2 9.1 7.0 9.5 4.4

Cambodia

4.0 4.3 4.8 2.8 2.4 3.2 6.9 6.7 8.0 15.9

Indonesia

109.8 91.9 124.4 88.2 69.1 88.5 198.0 161.0 212.9 7.5

Lao PDR 0.1 0.24 1.3 0.3 0.2 0.6 0.41 0.5 1.9 363.4

Malaysia 144.1 116.5 148.7 109.6 91.6 120.3 253.7 208.1 269.0 6.0

Myanmar 2.8 3.1 3.9 2.1 1.8 2.2 4.8 4.9 6.1 27.1

Philippines

42.0 32.5 39.9 42.3 34.0 42.0 84.3 66.5 81.9 (2.8)

Singapore

229.7 188.2 259.9 245.0 186.7 249.4 474.7 374.9 509.3 7.3

Thailand 135.5 120.0 151.0 147.7 107.0 143.1 283.2 227.0 294.1 3.8

Viet Nam 51.8 48.1 61.8 60.1 55.7 68.5 111.9 103.8 130.3 16.4

TOTAL 727.6 610.74 804.0 699.4 549.6 719.0 1,427.0 1,160.4 1,523.0 6.7

NOTE: ALL FIGURES ARE IN US$ BILLION

ASEAN’S INTERNAL TRADE

COUNTRY

EXPORT IMPORT TOTAL TRADE CHANGE 2008-

2010 (%)

2008 2009 2010 2008 2009 2010 2008 2009 2010

Brunei 2.5 1.1 1.2 1.2 1.3 1.2 3.7 2.4 2.4 35.1

Cambodia

0.3 0.6 0.7 1.6 1.5 1.7 1.9 2.1 2.4 26.3

Indonesia

27.2 24.6 33.3 41.0 27.7 47.1 68.2 52.3 80.4 17.9

Lao PDR 0.7 1.0 3.6 1.49 1.48 1.42 2.2 2.5 5.02 128.8

Malaysia 50.4 40.4 50.6 34.7 31.7 45.0 85.1 72.1 95.6 12.3

Myanmar 3.9 3.2 3.7 1.7 2.1 2.0 5.6 5.3 5.7 1.8

Philippines

7.1 5.8 11.6 14.3 11.6 16.3 21.4 17.4 27.9 30.4

Singapore

108.5 81.6 111.3 74.8 59.0 78.7 183.3 140.6 190.0 3.7

Thailand 39.5 32.5 44.3 29.9 26.8 39.3 69.4 59.3 83.6 20.5

Viet Nam 10.0 8.6 10.3 19.5 13.6 16.3 29.5 22.2 26.6 (9.8)

TOTAL 250.1 199.4 270.3 220.2 176.8 249.0 470.3 376.2 519.62 10.5

NOTE: ALL FIGURES ARE IN US$ BILLION

FDI FLOWS TO ASEAN BY COUNTRY OF ORIGIN

SOURCE 2006 2007 2008 2009 CUMULATIVE

(2006–2009)

Japan 10,715.3 9,540.2 4,657.8 5,308.4 30,217.7

USA 3,112.2 5,077.4 5132.6 3,357.7 16,679.9

Canada -646.4 -166.9 799.4 310.9 297.0

EU 8,744.5 14,055.1 9520.1 7,297.2 39,616.9

China 1,071.8 1,097.0 2109.5 1,509.5 5,787.8

India -284.6 681.6 698.6 983.6 2079.2

Korea 1,304.0 2,757.8 1583.5 1,421.8 7,067.1

Australia 295.1 989.5 919.7 700.9 2,905.2

New Zealand -254.3 44.6 (165.1) 239.9 -134.9

ASEAN 7,946.9 9,502.2 10,461.5 4,428.9 28,354.3

Others 17,511.7 17,967.6 13,694.1 13,898.8 63,072.2

TOTAL 50,343.7 62,299.7 49,411.7 39,457.6 215,742.4

NOTE: ALL FIGURES ARE IN US$ MILLION

FDI INFLOWS INTO ASEAN

HOST COUNTRY

2007 2008 2009 2010 CUMMULATIVE

(2007-2010) Brunei Darussalam

260 239 370 629 1,498

Cambodia 867 815 539 783 3,004

Indonesia 6,928 9,318 4,877 13,304 34,427

Lao PDR 324 228 319 333 1,214

Malaysia 8,538 7,248 1,381 9,156 26,323

Myanmar 715 976 579 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 75,758 236,365

NOTE: ALL FIGURES ARE IN US$ MILLION

ASEAN POPULATION & DIALOGUE PARTNERS

ASEAN IN THE GLOBAL ECONOMY 2010 (GDP)

ASEAN

$1,859b

China

$5,750b

Japan

$5,068b

India

$1,430b

Australia

and New

Zealand

$1,354. b

ROK

$986.2b

Source : ASEAN Secretariat 17

ASEAN GLOBAL CONNECTIVITY

ASEAN COMMUNITY 2015

MAIN COMPONENTS OF AEC

Single Market and Production

Base

Equitable Economic

Development

Competitive Economic

Region

Integration into the Global

Economy

4 Main Pillars :

Human Resource Development Research and Development

Free flow of goods

SINGLE MARKET AND

PRODUCTION BASE

Free flow of

services

Free flow of

investment

Freer flow of

capital

Free flow of skilled

labor

Priority Integration

Sectors

Food, Agriculture and

Forestry

EQUITABLE

ECONOMIC

DEVELOPMENT

Initiative for

ASEAN Integration

(IAI)

SME development

INTEGRATION INTO

THE GLOBAL

ECONOMY

Coherent

Approach towards

External Economic

Relations

Enhanced

participation in

global supply

networks

COMPETITIVE

ECONOMIC

REGION

Competition policy

Intellectual

Property Rights

Infrastructure

development

Taxation

e-Commerce

Consumer

Protection

ASEAN ECONOMIC COMMUNITY

Strategic Schedule

MAIN ELEMENTS OF AEC

AEC KEY PRIORITIES

AEC initiatives are on track and member states are

committed towards achieving AEC in 2015

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

ASEAN-6 : 0% Tariff

(2010)

CLMV : 0-5% Tariff

(2015)

FREE FLOW OF GOODS

- to enhance and strengthen

cooperation among service

suppliers in ASEAN; and

Signed in 1995

- progressively liberalise

trade in services among

ASEAN countries through

reduction / elimination of

restrictions.

FREE FLOW OF SERVICES

Value US$ Million

PRIORITY SECTORS

NON-PRIORITY SECTORS

e-ASEAN (ICT),

Tourism, Healthcare

Logistics

End date for Liberalisation

2010 2013 2015

Foreign (ASEAN) equity participation

- 49% by 2006

- 51% by 2008

- 70% by 2010

- 49% by 2008 - 51% by 2010 - 70% by 2013

- 30% by 2006 - 49% by 2008 - 51% by 2010 - 70% by 2015 * construction:

not less than 51% by 2006

EQUITY TARGETS AND PARAMETERS

MRA DOWNLOAD SIGNING DATE &

VENUE

Engineering Services http://www.asean.org/18009.htm

9 December 2005, Kuala Lumpur,

Malaysia

Nursing Services http://www.asean.org/19210.htm

8 December 2006, Cebu, Philippines

Architectural Services http://www.asean.org/21137.pdf

19 November 2007, Singapore

Framework Agreement for the Mutual Recognition of Surveying Qualifications

http://www.asean.org/21137.pdf

MRAs

http://www.asean.org/18009.htm








MRA DOWNLOAD SIGNING DATE &

VENUE

MRA Framework on Accountancy Services


26 February 2009 Cha-am, Thailand

Medical Practitioners http://www.asean.o

rg/22231.htm

Dental Practitioners http://www.asean.o

rg/22228.htm

MRAs







Main objectives:

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)

ASEAN COMPREHENSIVE INVESTMENT AGREEMENT

(ACIA)

ASEAN to enhance cooperation in new

areas:

competition policy;

consumer protection;

intellectual property rights;

infrastructure development; and

taxation and e-commerce.

HIGHLY COMPETITIVE ECONOMIC REGION

ASEAN Community APSC AEC ASCC

Enhance rules and good governance for

ASEAN

Enhance integration and competitiveness

of ASEAN

Enhance the well-being and livelihood of ASEAN peoples

Narrowing the Development Gaps

People-to-People

Connectivity Physical

Connectivity

Institutional Connectivity

Resource Mobilisation

ASEAN Connectivity

ASEAN CONNECTIVITY

ASEAN CONNECTIVITY

KEY STRATEGIES TO ENHANCE PHYSICAL CONNECTIVITY

Strategy 1 Complete the ASEAN Highway Network

Strategy 2 Complete the implementation of the Singapore Kunming Rail Link (SKRL) project

Strategy 3 Establish an efficient and integrated inland waterways network

Strategy 4 Accomplish an integrated, efficient and competitive maritime transport system

Strategy 5 Establish integrated and seamless multimodal transport systems to make ASEAN the transport hub in the East Asia region

Strategy 6 Accelerate the development of ICT infrastructure and services in each of the ASEAN Member States

Strategy 7 Prioritise the processes to resolve institutional issues in ASEAN energy infrastructure projects

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


ASEAN CONNECTIVITY

KEY STRATEGIES TO ENHANCE INSTITUTIONAL CONNECTIVITY

STRATEGY 1 Fully operationalise the three Framework Agreements on transport facilitation

STRATEGY 2 Implement initiatives to facilitate inter-state passenger land transportation

STRATEGY 3 Develop the ASEAN Single Aviation Market (ASAM)

STRATEGY 4 Develop an ASEAN Single Shipping Market

STRATEGY 5 Accelerate the free flow of goods within ASEAN region by eliminating barriers to merchandise trade within the region

STRATEGY 6 Accelerate the development of an efficient and competitive logistics sector, in particular transport, telecommunications and other connectivity-related services in the region

STRATEGY 7 Substantially improve trade facilitation in the region

STRATEGY 8 Enhance border management capabilities

STRATEGY 9 Accelerate further opening up of ASEAN Member States to investments from within and beyond the region under fair investment rules

STRATEGY 10 Strengthen institutional capacity in lagging areas in the region and improve regional-sub-regional coordination of policies, programmes and projects


ASEAN CONNECTIVITY

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

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

RESOURCE MOBILISATION

CROSS FLOWS OF INVESTMENTS IN ASEAN

Direct Investment by Malaysia in ASEAN

Source: Bank Negara Malaysia

YEAR INVESTMENTS

2011 : RM25,775 MILLION

2010 : RM24,754 MILLION

2009 : RM16,058 MILLION

CROSS FLOWS OF INVESTMENTS IN ASEAN

Direct Investment by ASEAN Countries in Malaysia

Source: Bank Negara Malaysia

YEAR

INVESTMENTS

2011 : RM21,680 MILLION

2010 : RM15,675 MILLION

2009 : RM15,756 MILLION

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

Enhance competitiveness and efficiency by expanding domestic production facilities for the larger markets:


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


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.

OUTREACH PROGRAMMES

AEC

Economic Dynamism

Inclusive Growth

Sustained Prosperity

Integrated Development of ASEAN

CONCLUSION

asean economic cooperation ministry of · pdf filemalaysia in the global economic ......

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