Pushing ahead for regional integration
Second, Asia must continue to push ahead with regionalism and economic integration.
In many parts of the world, countries are turning inward, erecting barriers to trade and investment, and prioritising economic security and national interest.
The multilateral trading system, anchored in the World Trade Organisation, is under immense strain.
Yet Asia must push for openness and greater integration.
The Regional Comprehensive Economic Partnership (RCEP) is a good example of this.
Today, the RCEP – comprising 10 ASEAN Member States and five ASEAN FTA partners, namely Australia, China, Japan, South Korea and New Zealand – is the world’s largest trade Agreement, covering approximately 30% of global GDP, and about a third of global exports as well as a third of the world’s population.
In addition to eliminating tariff barriers on about 92% of products, the RCEP offers businesses common and streamlined rules of origin for trade within the RCEP region.
We should build on this by seeking to enlarge and expand the membership of the RCEP. In this regard, we welcome the interest from Bangladesh, Chile, Hong Kong SAR and Sri Lanka to join the RCEP, as well as other economies who are able to meet its standards.
At the same time, we should engage other economic blocs such as the EU and the GCC to explore areas of potential collaboration. This will include digital trade and supply chain resilience. While it may not be possible for these blocs to join the RCEP, there will be opportunities to work together on areas of mutual interest.
In doing so, we will also lay the foundation for the RCEP to become a pathway towards a Free Trade Agreement of the Asia-Pacific, and realise the vision of a more seamless and integrated Asia-Pacific economy.
With greater regional economic integration, we can tap on the comparative advantages of our diverse economies to offer a compelling value proposition to businesses and investors, and reassure them that Asia will continue to remain open to the flow of goods, services, capital, and ideas.
Inclusive and progressive cooperation
Third, Asia can present itself as a model for inclusive and progressive cooperation.
Our region is highly diverse – in geography, size, systems of governance, and levels of development.
We must not let this diversity become an obstacle for cooperation and integration; instead, we must harness it as an advantage and a source of strength.
Take the low-carbon transition as an example – we all share the responsibility to tackle climate change, but not all countries face the same challenges or move at the same pace.
Some countries with an abundant supply of renewable energy may be able to phase out fossil fuels more quickly and support the transition of others; some countries may have to pursue more difficult pathways or require more time and resources to do so, such as to build out the infrastructure and secure the financing to make the energy transition.
The principle of ‘common but differentiated responsibilities’ allows Asia to move forward together, but through different pathways and without losing sight on the common objective of a more sustainable future.
Another example is the digital economy.
From payment systems, digital platforms, e-commerce to AI, Asia has been a hub for digital innovation, a key driver for economic development.
Yet there are significant gaps across Asia in digital readiness, be it in infrastructure, connectivity, digital skills, or cybersecurity readiness.
This is why in negotiating the ASEAN Digital Economy Framework Agreement, we have taken a differentiated approach that will allow those with higher ambition and who are more ready to move ahead to do so first, while keeping the door open for others to join in when they are ready.
We can likewise adopt a tiered approach in expanding our digital economy agreements with other countries in Asia, so that we can enhance the flow of digital trade and grow the digital economy in a way that is not only ambitious but also flexible and inclusive.
This way, Asia can be a pathfinder for the world economy towards a practical approach on multilateralism.
Conclusion
These three areas I’ve outlined above show how Asia can demonstrate the benefits of stability, openness and inclusiveness, and in doing so, remain an attractive region of growth and opportunities.
This will not only enable us to realise an Asian century for our people, but also contribute to a better century for the world.
Thank you.
