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Cohesiveness vital for ASEAN’s post-COVID-19 economic recovery
ASEAN should be well-placed to succeed, given its young and adaptable population, high urbanization rates and levels of internet penetration and its geographical location.
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e live in extraordinary times, when a health emergency becomes a global economic emergency, creating unprecedented stress on all aspects. We should count ourselves lucky, however, to live in this region: ASEAN is well placed to emerge stronger, and better equipped to seize the opportunities of the future.
The ASEAN economic ministers met in early June to discuss strategies for the post-pandemic economic recovery for the region, with a follow-up meeting by the ASEAN leaders to be held this week.
The EU-ASEAN Business Council, the European business body for Southeast Asia that I chair, and the ASEAN Business Advisory Council – plus a host of organizations representing businesses from the United States, United Kingdom, Australia, New Zealand, Canada, India, Russia, East Asia, as well as young entrepreneurs and specific sectors recently issued a joint statement calling for such an approach: “The time for ASEAN to prove its strength to mitigate the worst impacts of the on-going pandemic and ensure the long-term prosperity and wellness of its people through fast action is now. Swift and effective planning and execution of measures for a post-pandemic economic recovery are of utmost priority.”
The joint statement called for a High-Level Special Commission tasked by the ASEAN leaders for a recovery plan that would improve the response to the current and future pandemics and ensure that ASEAN comes out stronger, more integrated and better able to respond to global challenges and opportunities.
That commission would seek inputs including from the Special Business Advisory Board, as post-pandemic economic recovery will not be easy and the “new normal” requires novel approaches; it transforms our economies and the nature of competition.
We will see increased digitization and automation of everything; shifts in supply chains as businesses look to diversify the sources of essential components away from single locations; an urgent and more profound need to reskill workers and adapt current educational practices for the new paradigms. Environmental sustainability, inclusion, shared prosperity will be paramount.
ASEAN should be well-placed to succeed, given its young and adaptable population, high urbanization rates and levels of internet penetration and its geographical location.
The big stimulus packages that governments in the region have introduced will soften COVID-19’s economic blow. Some needed actions are basic, such as defining and easing the movement of essential goods and services or setting clear and effective rules to reopen travel and tourism across the region. Other actions require bolder steps. To equip ASEAN’s talented work force and unleash the power of 650 million consumers,
ASEAN needs to accelerate progress on the promised “single market and production base” – means finally taking action to eliminate non-tariff barriers to trade in the region, starting with price control restrictions, import quotas, and ownership and control restrictions; quickly harmonizing standards across the broadest possible range of sectors; simplifying and automating customs procedures, and enable the growth of the digital economy.
These will make the region a preferred location for new investment as companies everywhere are looking to diversify away from over reliance on a single source of supply to make supply chains more resilient, thus leading to advanced manufacturing, research and development and higher paying jobs.
Another way to accelerate the post-COVID-19 recovery is investment in sustainable infrastructure. It will create jobs in the short term and provide a foundation for long term sustained growth that will benefit ASEAN and its citizens.
Designing and building quality infrastructure, and financing and insuring it, are areas of expertise where European industry can help. This includes both traditional physical infrastructure – roads, railways, airports, power systems – and digital infrastructure, including smart cities and digital health.
Robust recovery plan will establish a foundation for growth that unlocks innovation, enhances the well-being of people living in ASEAN, ensures inclusive, wide-spread economic and social development. Cooperation between the public and private sector can help prepare the work force for an increasingly digitized and innovative future, including more vocational training, increased mobility of the workforce, and regional internship and training programs.
ASEAN will need to be at the top of its game. The power of ASEAN, 10 countries and all stakeholders working together, will be a force for good for its citizens and the world.
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The writer is chairman of EU-ASEAN Business Council.
