Thailand and Malaysia in the ASEAN Integration Process

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Thailand and Malaysia in the ASEAN Integration Process by Mr. Songsak Saicheua Minister and Deputy Head of Mission Royal Thai Embassy, Kuala Lumpur On the occasion of the Thailand-Malaysia Think Tank and Scholar Network (TMTT) s Socio-Economic Cooperation in the Border Area Seminar 13-14 September 2012, Bangkok 1

ASEAN Community (AC) Political- Security/AEC/ Socio-Cultural community People/Civil Society ASEAN Charter Sub-regional cooperation AC 2015 Master Plan on ASEAN Connectivity ASEAN Structural Strengthening ASEAN s Global Role/ASEAN External Relations 2

Internal Cluster: AC with high productivity, Competitiveness & people-centre ASEAN Strategy Regional Cluster: ASEAN Centrality in Asian Regional Architecture Global Cluster: ASEAN role in global forums/asean External Palpations 3

ASEAN Dialogue Partners U.S.A. Russia Australia New Zealand Canada ASEAN Republic of Korea China Japan E.U. India 4

ASEAN Relations with International Organization & Groupings RIO GROUP SAARC U.N. ASEAN MERCOSUR GCC ECO 5

Enhancement of ASEAN Global Role Joint operations/ activities international : Peace keeping combating piracy, etc Coordination in International/ multilateral fora (UN,WTO,IMF,WB,etc) Collaboration between ASEAN and International Organization: UN,FAO,IAEA,etc Global Cluster: Increase ASEAN Global Role Research & Study Global Trends &ASEAN response Enhancement of ASEAN Role in Third countries Support Possible ASEAN Joint Positions in International Issues 6

ASEAN Political and Security Community 3 Major principles/objectives - A rules-based community of shared values & norms * Community values * Non-Interference - A cohesive, peaceful and resilient region with shared responsibility for comprehensive security - A dynamic and out ward looking region in an increasingly integrated and interdependent world ARF, Law, Defense, Transnational crimes 7

ASEAN Economic Community (AEC) 4 Dimensions - Single Market & Production Base * Freer flows of goods, services, investment, skilled labors * Freer flow of capitals - Enhancement of Competitiveness - Equality in Economic Development - Integration with global economy Other areas of economic cooperation : Tourism, ICT, Transport, energy, ect 8

Master Plan on ASEAN Connectivity There Aspects - Infrastructure - Rules and Regulations - People Beyond ASEAN Connectivity - Thailand s Proposal : ASEAN+3 Connectivity Partnership 9

ASEAN Socio-Cultural Communities One Caring Society 6 Major Areas - Human Development - Social Welfare and Protection - Social Justice and Rights - Environmental Sustainability - Building on ASEAN Identity - Narrowing the Development Gap Social Network in ASEAN 10

Thailand s Role and Contributions ASEAN Process/ AC, ARF Contributions and Role in sub-regional cooperation Thailand s Internal Preparation & Strategy Thailand s Role & Contribution Thailand s Role in ASEAN+3 EAS Bilateral Cooperation To support ASEAN Process AC Thailand s role In other related forums/ Fame works: Mekong-Japan Forums,US-ASEAN LMI,etc 11

Thailand and ASEAN Community Thailand : ASEAN, AFTA, ARF Continues to play a key role ASEAN is a cornerstone of Foreign Policy 12

Thailand s Preparation & Strategy Raising ASEAN Awareness - Mobile Team - Seminar for Teachers - ASEAN Young Ambassador Camp - TV/Radio Programme - Seminars/Workshops more than 200/per year ASEAN Countries Language 1 English Coordination among agencies concerned School/ASEAN Curriculum Universities/Educational Institutions Private sector/smes 13

Thailand and the three Communities Political and Security - Democracy, Good Governance, Rules of Law, Human Rights - Civil Society Cooperation - Non Traditional Security : Drug Trafficking, Human Trafficking, Natural Disaster Management, etc. - Transparency in Defense & Military Affairs, Arms Modernization, Exchange of Information - More cooperation in certain areas : Peace Keeping, Natural Disaster Management, Maritime Security & Combating Piracy 14

Thailand and the three Communities AEC - ASEAN Connectivity/Support Other ASEAN Counties - Contributions to IAI - ASEAN Investments & Business Networks - Bridging Development GAP - Internal Infrastructure Developments - Economic Zone/Areas 15

Thailand and the three Communities Social Cultural Community Human Development : Scholarships & Training Programme Social Welfares and Protection : sharing experiences, cooperation activity Social Justice and Rights Environmental Sustainability Education : AUN, collaborations Sports Cultural Co operations etc 16

Thailand and Sub Regional Co operations ACMECS IMT-GT Thailand& Sub-Regionals GMS ACMECS : Ayeyawady-Chao Phraya-Mekong Economic Cooperation Strategy BIMSTEC: Bangladesh-India- Myanmar-Sri Lanka-Thailand Economic LMI : Lower Mekong Initiatives BIMSTEC Mekong-Japan US-LMT Mekong-ROK 17

ASEAN Basic Facts and Figures Pop (Million) GDP (b.usd) GDP Per capita (USD) Trade Volume (b.usd) ASEAN 600 1856 3111 1542 China 1341 5878 4382 3073 India 1191 1632 1371 421 EU 499 16,242 32,537 9094 Japan 128 5459 42,783 1119 NAFTA 453 17,138 37,858 3603 MERCO SUR 273 2812 10,312 520 - MERCOSUR : Argentina, Brazil, Paraguay, Uruguay, Venezuela - World Economic Outlook Database, September 2011 18

1. USA 15,060,000 2. China 6,989,000 3. Japan 5,855,000 4. Germany 3,629,000 16. Indonesia 834,300 31. Thailand 339,400 36. Singapore 266,500 37. Malaysia 247,600 GDP (nominal) 2011: million USD 46. Philippines 216,100 57. Vietnam 121,600 76. Myanmar 50,200 113. Brunei 15,600 121. Cambodia 13,200 136. Laos 7,900 180. Timor-Leste 700 19

Per Capita Income (US $) 2007 2008 2009 2010 2011* 2012* Singapore 36,655 36,738 37,790 41,120 Brunei 32,443 37,414 21,390 - Malaysia 6,905 8,099 6,902 8,373 9,204 Thailand 3,643 3,993 3,835 4,608 5,257.9 5,598.3 Indonesia 1,859 2,172 2,272 2,946 Philippines 1,685 1,925 1,836 2,140 Vietnam 843 1,070 1,130 1,224 Lao PDR 718 910 966 1,177 Cambodia 632 742 744 795 Myanmar - - - 700 Timor-Leste 375 461 544 624 China 2,615 3,414 3,749 4,428 Sources : World Bank 20

WTO Trade Ranking 2010 Singapore Thailand Malaysia 13 th 22 nd 24 th 21

Ease of Doing Business 2011-2012 (World Bank) 2011 2012 Singapore 1 st 1 st Thailand 19 th 17 th Malaysia 21 st 18 th Viet Nam 78 th 98 th China 79 th 91 th Brunei 112 th 83 th Indonesia 121 st 129 th Cambodia 147 th 138 th Philippines 148 th 136 th Laos 171 st 165 th 22

Global Top 20 Destination Cities (2012) : MasterCard Survey 1. London 16.9 m 2. Paris 16.0 m 3. Bangkok 12.2 m 4. Singapore 11.8 m 5. Istanbul 11.6 m 6. Hong Kong 11.1 m 7. Madrid 9.7 m 10. Kuala Lumpur 8.1 m 23

Thailand-Malaysia Cooperation in ASEAN & ASEAN Community (AC) 1. General Aspects of Thailand-Malaysia Cooperation in ASEAN & AC 2. Thailand-Malaysia Cooperation in ASEAN Political-Security Community (APSC) 3. Thailand-Malaysia Cooperation in Enhancing ASEAN Role 4. Thailand-Malaysia Cooperation in AEC 5. Thailand-Malaysia Cooperation in ASEAN Socio-Cultural Community (ASCC) 24

1. General Aspects of Thailand-Malaysia Cooperation in ASEAN ASEAN Process, Development and External Relations Development & Cooperation Policy : Possible Tripatite Cooperation Sub-Regional Cooperation : IMT-GT IAI : Initiatives for ASEAN Integration 25

Thailand and Malaysia in Sub-Regionals GMS BIMSTEC ACMEC Lower Mekong Initiatives Mekong-Japan Mekong-ROK Thailand IMT-GT Malaysia BIMP-EAGA (Brunei Darussalam-Indonesia-Malaysia -Philippines (Eastern Area of ASEAN) 26

2. Thailand-Malaysia Cooperation in ASEAN Political-Security Community (APSC) 2.1 Military-to-Military Cooperation Thailand-Malaysia Joint- Exercise/Training : a model for other ASEAN countries Defense Technology/Defence Industry/Putrajaya Forum International Security/Defense Strategy/Global & Regional Security & Defence Outlook 27

2.2 Maritime Security - Maritime Security Strategy - Straits of Malacca/South China Sea - Maritime resource management 28

2.3 Non-Traditional Security - Counter-Terrorism : SEARCCT (Southeast Asian Regional Centre for Counter-Terrorism, under MFA-MY) - Anti-Drug Trafficking : Bilateral Meeting - Combatting Human Trafficking : Draft MoU 2.4 Others - Democracy & Good Governance & Rule of Law - Peacekeeping - Anti-Piracy - Exchange of Experiences in various areas 29

3. Thailand-Malaysia Cooperation in Enhancing ASEAN Role - Moderation, Global Movement of the Moderates, Interfaith Dialogue - Research & Study Global Trend & ASEAN response - ASEAN role in ASEAN+3, ARF, EAS - ASEAN and International Organization (UN, World Bank, IMF, WTO, OIC, NAM, etc.) 30

4. Thailand-Malaysia Cooperation in AEC 4.1 Guidelines : 8 directions Competition VS Complementarity & Cooperation / combined hub/ combined destinations Cooperation at ASEAN Level insome areas may move relatively slow : speed up bilateral cooperation Towards collective ASEAN Competitiveness Acceleration of reduction of NTBs How to integrate more in financial and service sectors 31

Connectivity Dual Approach : Top down & Bottom up Economic and Social Development Philosophy & Strategy : Happiness Index & Economic Growth 32

4.2 Possible Areas of Thailand-Malaysia Cooperation in Economic Areas A. Combined hubs : Education, ICT, etc. B. Combined Destinations : Tourism C. Connectivity : JDS, rail road connections, etc. D. Halal Industry 33

E. Some potential sectors/themes Franchise : Moving Towards ASEAN Franchise Association, ASEAN Retail-Chains & Franchise Federation, Thailand s Franchise & License Association Branding : Branding Association of Malaysia Creative Economy / Multimedia/Digital Entertainment Content Kitchen of the World Gift Premium & Decorative Items Logistics Malaysia Books of Record : Towards ASEAN Book of Records? Skills development standard/mra of certification & qualification/ competent-based skills development Standard and Conformity Assessment SME Cooperation : CIMB ASEAN SME Forum 34

4.3 JDS (Joint Development Strategy) Border Check-point development Bridge construction Feasibility Study on Satul Perlis Tunnel Special Economic Zone & Township development : Sadao-Bukit Kayu Hitam, Tak Bai, Ko-Lok, Wangprachan etc Border crossing New Framework on Inter-State and Transit Transport of Goods and Passengers Southern Thailand Development Plan and NCER & ECER of Malaysia/ Iskandar 35

4.4 Coordination JDS IMT-GT Economic Corridors Province-State economic cooperation Lima-Dasar 36

Malaysia s 5 Economic Corridors (with links from Greater KL and Klang Valley) 37

Malaysia s Economic Areas Corridors of Development in Malaysia 1. Northern Corridor Economic Region (NCER) (focus on modern agriculture/manufacturing & design/tourism/logistics/education & health) 2. East Coast Economic Region (ECER) (focus on tourism/oil & gas/manufacturing/agriculture/education) 3. Iskandar Malaysia (to be a hub of service sector) (creative industry/education/healthcare/financial services/tourism and logistics industries/electrical & electronics services) 4. Sabah Development Corridor (SDC) (focus on Agro-based industry/tourism/logistics/manufacturing) 5. Sarawak Corridor of Renewable Energy (focus on resource based industry/energy/tourism) 38

5. Thailand-Malaysia Cooperation in Socio-Cultural Community Education/Youth - MIT : Malaysia-Indonesia-Thailand - School-to-School Network - University-to-University - Thailand-Malaysia University Student Forum - Thai/Malaysian/Southeast Asia Study - Thai/Bahasa languages - Youth Exchange/Student Exchange/Possible Thailand-Malaysia AFS - Office of Private Education : Towards ASEAN Forums - Towards ASEAN Islamlic University? 39

People-to-People/Rotary/Civilian Organization/etc. Cultural Cooperation Think Tanks : ASEAN-ISIS, NEAT, CSEP, East Asia Forum, Thailand-Malaysia Think Tanks and Scholar Network Media/Press : Thailand-Malaysia Media Forum Exchange of View on Caring Society : Towards ASEAN Caring Society and ASEAN Social Safety Net Food Security Energy Security Sports : Towards the ASEAN Sport Center Human Resource Development (HRD) / Skills Training /Network of HRD/Skills Training กอร ASEAN Qori Association 40

Thank You 41