Keynote Address The Macro Aspect of ASEAN Cooperation and Integration Tan Sri Dato Seri Syed Hamid bin Syed Jaafar Albar Former Minister of Foreign Affairs, Malaysia Excellencies, Ladies and Gentlemen, 1. Let me begin by thanking the organiser of this conference for inviting me to speak at this august gathering of think tanks, academicians and members of the civil society. I am confident that the deliberation in the next couple of days will bring forth new approaches and impetus on how the ASEAN/Taiwan cooperation can move forward. 2. We are now in our 10 th year in the 21 st century. You and I know that the global economy and cultural landscape has progressively changed tremendously. Having served as Malaysia s Foreign Minister for over nine years, I can certainly say that ASEAN is a success story of regional organization. Cooperation has transformed ASEAN and is moving to greater unity and cohesion. It is of course judgmental. Its 42 years journey to fulfill the aspirations of its founding fathers, as enshrined in the Bangkok Declaration of 1967, to bind themselves in friendship and cooperation, and through joint efforts and sacrifices, secure for their peoples and for posterity, the blessings of peace, freedom and prosperity has not been in vain. After four decades, I can see and feel it has come of age. Their practice of open regionalism, has brought peace and stability. Speaking from my own experience I find ASEAN s approach as an inclusive organization has been pragmatic. 3. The then UN Secretary General Kofi Annan acknowledged ASEAN s mark when he said, ASEAN is not only a well functioning indispensable reality in the region, it is a real force to be reckoned with far beyond the region. It is also a trusted partner of the UN in the field of development. His statement speaks volume for ASEAN. As we move the ladder of integration we have to deal with the challenges as well as opportunities within and outside ASEAN. More needs to be done to further strengthen the organizations. Nevertheless, community building and in translating the Charter into a functioning living document are work in progress. 1
4. Due to its success, other economies, countries and organization, gravitate towards ASEAN. It has thus become an inseparable part and parcel of the overall network of bilateral relations and regional cooperation which further strengthen its integration. 5. Nevertheless ASEAN cannot take things for granted and rest on its laurels of adulation and self-praise. Much more need to be done to overcome the disparities between ASEAN member countries and within individual ASEAN country. I will not deny that ASEAN has faced and withstood many challenges, internal as well as external before. ASEAN has seen and experienced many changes in the regional and international environment since its establishment. But surely and steadily ASEAN has stayed its course, maintained its principles and objectives and adapted itself to suit the time. 6. Indeed ASEAN s success is underscored by many milestones, which have collectively shaped ASEAN to what it is today. Fortunately ASEAN s trajectory, propelled by the thrust of its founding document has been on an upward trend. 7. Over the years the Treaty of Amity and Cooperation (TAC) in Southeast Asia has been the primary instrument of ASEAN external relations with its partners. Undoubtedly the Treaty has created a confidence level with its dialogue and sectoral partners for them to accede to it. Asean s ability to maintain regional peace and stability is further complement through Treaties like Z0PFAN and SEANWFZ. 8. As you would recall, Vision 2020 was adopted by ASEAN in 1997 with the singular purpose of promoting a peaceful and harmonious coexistence amongst countries in the region. In 2003 this was further consolidated this vision through Bali Concord II, for building an ASEAN Community based on the ASEAN Political Security Community, ASEAN Economic Community and ASEAN Socio-Cultural Community. Hitherto due to the success of cooperation and intensified working closely together on various plans and programmes. 9. ASEAN has moved forward its goal of establishing a Community by 2015, instead of 2020. We are witnessing the growing feeling of ASEAN-ness among ASEAN Member States and its citizens. In order for ASEAN to ensure its goal of building a community will succeed it has to translate the Charter into workable plans and programmes. For these to happen there must be a strong political will and commitment. Reforms and changes must be undertaken in systematic and concerted manner, with targeted time lines, clear cut implementation together with an effective monitoring and Follow up system. The secure annual will have an ensuring compliance as task of well as establishing dispute settlement mechanism, an order to resolve differences. The ASEAN SG clearly emphasized this as a fundamental factor when he said, the ASEAN Charter and the Roadmaps for an ASEAN community (2009-2015) consisting of three Community Blueprints and the initiative for ASEAN Integration Work Plan 2 to capture these requirements for Community Building. 2
10. I believe in its external dimension, ASEAN has established a very constructive, productive and balanced relationship with its dialogue and sectoral partners. The various vehicles and fora, such as ASEAN Post Ministerial Conferences, ASEAN Plus Three Cooperation, ASEAN Regional Forum and East Asia Summit (which includes countries outside the region namely India, Australia and New Zealand) are established to ensure the effectiveness of the partnership based on cooperation. It is due to cooperation that ASEAN is able to evolve a regional position in APEC and allow it to plan a significant role in its meetings. 11. I am sure you will agree that ASEAN s success in integration, is dependent on economic cooperation. For this purpose AFTA was signed in 2005. It is further augmented by other cooperative instruments such as Free Trade Agreements (AFTA), Economic Partnership Agreements (EPA) with East Asian neighbours and Dialogue partners. This will go a long way in fulfilling the goal of a single market and production base by 2015 as an envisaged by the ASEAN Economic Community Blueprint. 12. It is pertinent for an economic community to be achieved successfully for ASEAN to promote closer economic cooperation to narrow the development gaps that still exist between the ASEAN countries as well as within individual ASEAN member. In my view an ASEAN Common Market can only be realized once the disparities between and in the Asean countries are overcome. The goal of a single market, which allows for free flow of goods, services and investment will determine growth and development. Some of these processes are already successfully undertaken such as tariff liberalisation which in 2000 was 4.43% and by 2008 the average tariff has been reduced to 1.95%. 13. It is true that ASEAN has attained good economic growth, however this is still underscored by wide disparities especially in the health care, economic achievements and IT connectivity. With economic growth and development, ASEAN can catch up with the rest of the world in good governance as well as democratic practices. This is a challenge that should be confronted seriously for integration to be meaningful. It is time that ASEAN revisits the issues of citizens involvement when electing a government of their choice and the question of freedom of expression and association. Taiwan is exemplary in its practice of good governance and democracy. As ASEAN moves in this direction we can learn from your experiences. ASEAN has to address the question of the effectiveness of their governments, rule of law and corruption. For genuine regional integration to be successful ASEAN has to ensure its standards of economic and social development are based on goals and principles acceptable internationally. 14. As trade is a key factor of ASEAN s integration, AFTA is successfully implemented and tariffs have been significantly reduced. The focus now should be on the policies that will enhance locational advantage in order to reduce the cost of cross border transactions, including elimination of non tariff barriers and enhancing trade facilitation such as customs, standards, financial rules and consumer protection 3
initiatives. The signing of two Agreements namely ASEAN Trades in Goods Agreement and The ASEAN Comprehensive Investment Agreement are consistent with the move towards a single market and production base. Undoubtedly for other economies and regions to have the necessary comfort level, ASEAN has to put in place framework and institutions that are viewed by them as predictable, transparent, streamlined and consolidated. I also see the signing in February 2009 of the Protocol to implement the Package of Services Commitment is another right step in the integration process. 15. On the financial sphere progress has been achieved especially on The Chiang Mai Initiative Multilateralization. The agreement of ASEAN plus three on the main elements of the swap agreements including the contribution of individual country as part of strengthening financial cooperation in the region is another positive move. 16. The time is opportune for ASEAN to strategise a regional strategy to address the issues of cross border human mobility vis-à-vis the social costs and unintended consequences of migration. A step by step approach is a key factor in ASEAN s efforts to form the building blocks of confidence building, in order to move forward. The most significant factor that will determine the speed of integration is the growing intensity of interactions and dialogues at all levels. It is through these actions that the we feeling is harnessed to strengthen the spirit of ASEAN-ness amongst Member States. 17. I find that ASEAN is mindful and conscious on what is happening to other regional organizations and is eager to learn from their experiences. All nations have benefited from regional blocs such as NAFTA, EU, African Union and GCC. ASEAN recognizes that a single market and production base will make it more competitive, overcome the development gap, for it to integrate into the global economy. I can see many possibilities that can result from this process where goods, services, investments and skilled labour move freely within ASEAN countries. The economic and financial crisis clearly demonstrated the need for working closely together and acting collectively. 18. The primary and ultimate objective is to establish a framework upon which ASEAN can build long term prosperity and security of the region. I remember clearly when the idea of an East Asia Economic Group or East Asia Economic Caucus was mooted though it was not able to get off the ground because it did not receive the required support purely on the basis of distrust and rivalry. Nevertheless, the financial crisis of 1997 changed our views about working together beyond the ASEAN. Thus the ASEAN Plus Three process was born. Dr. Mahathir said in one of his speeches in 1996 quoting from Shakespeare s Romeo and Juliet, What s in a name? That which we call a rose, by any other name would smell as sweet. The ASEAN + 3 process has become successful as both ASEAN and its plus three partners recognized how vital it is to work collectively for our mutual interest. 19. When ASEAN Member States changed mindsets and shifted paradigms to accommodate each other, they were already, consciously or semi consciously preparing 4
themselves to accommodate and interface with the rest of the world. In fact identity and independence of ASEAN Member States is better protected and safeguarded through regionalism. In this way our voices could be heard better globally simply by being part of a bigger bloc. Small and big nations can complement each other to maximize their potentials in term of population and markets. 20. ASEAN has adapted to the changing international environment by introducing new instruments and mechanisms to consolidate and solidify its collective efforts. By promoting economic partnerships through trade and investment liberalization, the benefits to be gained are tremendous. ASEAN has envisaged the creation of a borderless ASEAN (it would not undoubtedly immediately happen). However, as ASEAN continues to undertake programmes it will narrow the development gap between them. ASEAN needs to prioritise effectively to obtain the desired result. 21. Taiwan is a neighbor of ASEAN and located in the East. Without debating on other issues, peace and stability in the Korean Peninsular and strong cross straits relations are also crucial to the overall peace and stability in ASEAN region. ASEAN has benefited from Taiwan s economic success. It goes without saying that there is much to be gained through collaboration in growth and development without interfering with the status quo or thorny political issues. Undeniably, Taiwan has come forward with much needed capital investment and high technology in ASEAN. For certain Malaysia and I am sure other ASEAN countries like to see further expansion of economic relations with Taiwan. For Malaysia, Taiwan s Look South policy is an important step to intensify cooperation for mutual benefits. 22. The Charter has definitely made very good progress since its ratification. Maybe speedier than what many observers thought could be. There is a strong believe amongst ASEAN Leaders that with the ASEAN Charter, Member States will be in a better position to deal with internal and external challenges confronting ASEAN. Of course some of these challenges are more complex and they require mechanisms as well as mutual trust to deal with them. Today in ASEAN meetings, Leaders, Ministers and Officials are more willing to listen and discuss each other s problems in the spirit of friendship, trust, understanding and cooperation. The Charter in my view is a very progressive document that has laid a very solid foundation for cooperation and integration as well as addressing the current weaknesses within ASEAN. 23. In an ever changing global and regional environment integration means there must be new ways of doing business. Whilst I see the Charter as the new hope for ASEAN to move into the next phase of cooperation, a political will and commitment of Member States is required to move into the future politically, economically, culturally and socially. 24. The feelings of ASEANESS and the community building efforts, can be imbued with the participation of stakeholders whether governmental, private sector, civil society and other vested groups. In order to meet this objective a more broad 5
based people centered activities covering all spectrum of ASEAN societies has to be organised. In the final analysis, our intention to inculcate ASEAN-ness will depend on the involvement of our peoples. The ASEAN government must be more sensitive and people-oriented. We should encourage greater grassroots interaction and activities, and organize programmes that will promote their participation. The Hanoi Plan of Action which was adopted in 1998 and its successor, the Vientiane Action Plan (VAP) adopted in 2004 laid down principles which will be instrumental in unifying as well as crosslinking the strategies and goals of the three pillars. ASEAN has shown it could tackle and cooperate regionally in cross border matters such as tsunami, cyclones, avian flu, haze, other natural calamities and crimes successfully. We have the strong support and cooperation from our friends outside ASEAN because ASEAN is perceived as an effective regional organization. 25. I believe these pillars, if successfully implemented will give rise to a prosperous and dynamic ASEAN community. The three pillars are being strategized as a tool for ASEAN s integration. As a person outside the government I am encouraged to read reports, statements and speeches made by ASEAN Leaders and the Secretary General that reaffirmed the coming into force of the Charter will accelerate ASEAN integration. I am heartened that the Secretary General is confident that ASEAN Member States will comply and observe its rights and obligations as enshrined under it. Their enthusiasm and strong commitment to strengthen the ASEAN Secretariat including the establishment of various mechanisms and bodies bode well for ASEAN to handle these challenges. 26. The issue that can affect cooperation and friendly relations is the question of overlapping claims amongst countries within and outside ASEAN. Great care should be taken to ensure we are not estranged or divided as a result of it. Of course the most ideal way is to achieve settlement through negotiation. But this may not be possible at all times. Where these failed, we should adopt an alternative route of referring it to ICJ or other reputable international tribunals. Nonetheless, the outcome through this process is not always popular nationally. Now that ASEAN has a Charter and the role of the Secretariat enhanced, Member States must have the willingness to submit to regional solutions and look at proactive actions to avoid the differences from turning into new tensions or disputes. 27. I trust the bottom line for every country in ASEAN is to see its people happy because they enjoy a good standard of living. With every country in ASEAN enjoying economic development, there will be regional peace and economic resilience. We can then reap the benefits of our cooperation for prosperity and a better future. 28. I strongly believe every Members State, big or small, has a significant role in strengthening our unity and cohesion. True we are geographically located in South East Asia, but at the same time we are also part of East Asia and the Asia Pacific region. Taiwan is part of that East Asian economy. 6
29. We should deliver social justice to all ASEAN societies. The key elements required in meeting the challenges of social justice would differ from country to country. It is the responsibility of each Member State to look at the issue affecting income distribution, poverty, independent judiciary and rule of law. This will also entail the development of a political system that allows the people to participate effectively in the democratic process. 30. It is also of utmost importance at the bilateral and multilateral levels to advocate peace and friendship with all. With the regional process functioning, it will not only add value to peace but also towards empowerment of our people through economic prosperity to create a fair equitable and just society. 31. We can pride ourselves that ASEAN is really a zone of true peace and the community has benefited from it. Our journey had not been easy but through perseverance we have reached where we are today. 32. For ASEAN to move ahead there must be sound policies that will bring change to our countries individually and regionally in term of prosperity and economic dynamism. In order for ASEAN to be credible and respected it has to be sensitive to the changes taking place at the global level in all aspects. ASEAN s policy of noninterference and absolute sovereignty needs to be viewed in the context of current international political development. We have to sustain our unity and cohesiveness. We have made much progress the 2002 Declaration on the Conduct of Parties in the South China Sea is such a good example. 33. We need to work together at all time to build an ASEAN, where we can share common prosperity and economic development. We want to build one ASEAN in our interest, in the interest of East Asia and also in the interest of mankind. We like to be partners to cooperate and grow with the economy of Taiwan and the peace and stability in the straits for economic growth and development. 34. This, as you know, have been due to inventions and innovations mainly in the area of information and communications technology (ICT). And, I will not emphasise on that further. But what I really want to emphasise here is that ASEAN has also embraced the ICT era. ICT literacy has risen and is currently accelerating among the ASEAN people. 35. As ICT influences the way we live, work and play, ICT has also positively influenced the way we add value to the various resources that we have, especially and including our natural resources. Knowledge clusters have developed. We have various types of knowledge workers and entrepreneurs, and the various trade zones that have sprung up in the various parts of ASEAN. 36. Islamic Finance and Banking has embraced by the financial world and is certainly expanding. The ASEAN people have a high number of expertise on this, and I 7
must add that they are not necessarily confined to Muslims because Islamic finance has been universally embraced and applied as it really differentiated itself from conventional banking methods. 37. The Halal industry is another big and certainly need another platform to elucidate. For me, it would suffice to say that the word Halal does not just denote the avoidance of pork etc in the food production, but also in the manner in which food, pharmaceutical production, cosmetics and other products must be produced, stored, transported, delivered and served with the highest hygienic standards. The various Halal hubs in ASEAN are now destinations for many international production companies to get their products certified and endorsed for the world markets. 38. While the information age is nearing maturity, we have also ushered in the beginning of the Bio-Tech Age. And just like, the earlier Industrial Age has provided the back up and support to the Information Age, similarly the continued momentum of both the Industrial Age and the Information Age will continue to be the back-up and support for the acceleration of the Bio-Tech Age. 39. Knowledge clusters have already developed in the various applicable industry sectors such as plantations, food and beverage, pharmaceutical and health products and livestock. This development is certainly going to TURBOCHARGE the opportunities in the abundant natural and bio-diversified resources of ASEAN. Ladies and gentlemen, 40. I want to ask you another question. What about lifestyles in the 21 st century? My answer to that is, if ICT has changed the way goods are produced and delivered, so is its impact on our lifestyle. 41. As an entrepreneur or manager is more able now to live at the best places of his choice, maybe to even have a mobile office (in his suitcase) and his operations at far way places by way for example, video conferencing and on-line image transfers. Technology has provided virtual nearness for this entrepreneur to manage, communicate and supervise his operations. 42. It has been my observations that there have been three main qualities that enable them to be effective and productive. The first is that they have the CONCEPT. This means ideas, product design, new technologies, patents and patent rights and even branding and product positioning knowledge. In simple terms, they own and control knowledge. We are now living in the era of the knowledge economy. 43. Secondly, any idea is useless if it is produced inefficiently. The second C the person must possess is COMPETENCE. He must have the ability to structure and organize these resources to produce the best quality at the most effective cost for his products. 8
44. The third C is CONNECTION. This means he can bridge distances and sit at crossroads of cultures and are able to move goods and services from one country to another. Here we are not talking about just marketing and sales of goods. We are also talking about the ability to produce and move supplies of raw materials and even the connectivity to the local knowledge clusters. ASEAN is ready with its local knowledge clusters, in various industry areas and importantly in the professional fields too. 45. I simply have not forgotten that in the process of drawing up various concessions and agreement amongst the ASEAN member countries such as the AFTA, each member country was initially looking into how to draw up the concessions to another country. These efforts turned out to be the first round exercises on how to open and be more friendly to investor nations who are not members of ASEAN. 46. When members of ASEAN changed mindsets and shifted paradigms to accommodate each other, they were already, consciously or semi-consciously preparing themselves to accommodate and interface with the rest of the world. 47. We need to work together at all time to build an ASEAN, where we can share common prosperity and economic well being for our people. We want to build one ASEAN in our interest, of East Asia and also in the interest of the global community. We like to cooperate with Taiwan for economic growth and development. 48. ASEAN must continue to be progressive and outward looking while holding to its ASEAN way. In conclusion I like to call on everyone to move forward together, armed with hopes for the future. Let us build on a cooperation that will integrate us in a productive manner for our mutual interest and benefit. Thank you. 9