Prime Minister Lee Hsien Loong and his Asean counterparts arrived in Bandar Seri Begawan yesterday and were hosted to dinner by Sultan Hassanal Bolkiah. The leaders' retreat takes place today and discussions will focus on the progress towards an Asean Economic Community (AEC).

Asean Secretary-General Le Luong Minh, at his first summit in the role, said that as the 2015 deadline approaches, member states are aware of the need to deliver on goals they have set for themselves. "Our ability to meet the objectives will have far-reaching effects for Asean beyond 2015," he added.

Some 77.5 per cent of the measures in the AEC masterplan have been implemented, and progress on this front is expected to be the thrust of the chairman's statement, which Brunei will issue at the summit's end later today.

The leaders will also endorse the start of negotiations next month on the Regional Comprehensive Economic Partnership, an ambitious 16-country free-trade area that Asean hopes to also have in place by 2015. It will bring the free-trade pacts that Asean has signed with Australia, New Zealand, Japan, China, India and South Korea into a single agreement.

Next up is an Asean-Hong Kong Free Trade Agreement (FTA), which also received the go-ahead this week. While the Asean-China FTA has been in force since 2010, Hong Kong, as a special administrative region of China, has a high degree of autonomy in economic, trade, financial and monetary matters.

Trade between Asean and Hong Kong rose to US$94 billion in 2011.

Beyond the hard numbers of growing trade links, a key achievement of this summit is the restoration of Asean unity, which was sorely tested last year by the South China Sea issue.

Senior officials involved in preparations for today's summit praised Brunei's ability to find a consensus even on divisive issues, and to do so efficiently.

On the South China Sea, where China and four Asean members have overlapping territorial claims, all 10 member states are expected to project a united front today by calling on China to conclude Asean's proposed binding Code of Conduct.

They will also affirm their commitment to peaceful resolution of disputes without resorting to force, through friendly consultations in accordance with international law, a draft version of the chairman's statement said.

The South China Sea is one of the world's busiest waterways. Last year, an attempt by Asean to send a strong message to an assertive China crumbled largely due to resistance by Cambodia, a close Chinese ally who was then Asean chairman.

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