KUALA LUMPUR: The 8th Selangor Asean Business Conference (SABC) 2024 is crucial in addressing current challenges and exploring new opportunities for economic growth and integration within Asean.
Asean Business Advisory Council Laos (Asean–BAC Laos) chair Oudet Souvannavong said there needed to be more initiatives to promote dialogue and collaboration between the private sector and the government.
"This forum is invaluable as it brings together key stakeholders from across the region to foster dialogue, collaboration and innovation. I anticipate robust discussions on digital transformation, sustainable development, and regional connectivity, which are key priorities for Asean-BAC," he told Business Times.
Souvannavong said Asean-BAC was focused on enhancing strategic connectivity and resilience to ensure sustainable economic growth. Among its focus is promoting infrastructure development projects that improve transportation and communication links across the region.
He said initiatives like the Master Plan on Asean Connectivity 2025 were key to achieving these goals, as they aimed to integrate various sectors such as transport, energy, and information and communication technology.
"As chair of Asean-BAC, I see us playing a pivotal role in propelling economic integration within the region, particularly when global business leaders are increasingly looking to Asean as alternative supply chain destinations while trade relations between China and the United States deteriorate.
Asean-BAC actively seeks inputs and recommendations from its partners to create a frictionless flow of goods, services, and investments across the region. This year, its focus areas include digital transformation, sustainable development, health resilience, food security, streamlining trade and investment, and strengthening connectivity and supply chains.
"Forums like the Selangor Asean Business Conference (SABC) are essential. They convene key stakeholders, fostering dialogue and collaboration to identify roadblocks, share best practices, and develop actionable strategies for propelling regional economic growth," he added.
Souvannavong, who is also the Lao National Chamber of Commerce and Industry president, said digital transformation was one of Asean-BAC's six priority sectors under Laos' chairmanship.
The council is working towards improving digital infrastructure and supporting micro, small and medium enterprises in their digital journey. Aside from that, it also supports the negotiation of the Asean Digital Economy Framework Agreement (DEFA).
DEFA holds significant importance for businesses in the region. Among its aims is to create a level playing field and predictability for digital businesses. This reduces uncertainty and allows businesses to operate with greater confidence by having a clearer idea of the rules in different countries.
"DEFA seeks to harmonise reg- ulations around key areas like e-commerce, digital payments and data flows. This will streamline cross-border transactions, making it easier and cheaper for businesses to sell goods and services across the region.
"By creating a more secure and trusted online environment, DEFA fosters the growth of e-commerce and other online activities. This opens up new market opportunities for businesses of all sizes," he added.
Another measure taken by the council to assist MSMEs is through the Asean Mentorship En- trepreneurs Network (AMEN).
He said AMEN connected experienced business leaders with aspiring entrepreneurs, providing young entrepreneurs with invaluable guidance and support from seasoned professionals who could help them navigate the challenges of starting and growing a business.
"By implementing these initiatives, Asean-BAC empowers SMEs and young entrepreneurs to be- come major contributors to the re- gion's economic growth and innovation. The AMEN programme plays a crucial role by providing them with the tools, knowledge, and network they need to succeed."
Asean does not need to choose sides
Commenting on the competition between the US and China, he said the only side Asean needed to pick was its own region.
Asean-BAC views Asean position in the US-China strategic compe- tition as a critical balancing act.
"This is where Asean centrality is absolutely important; we view Asean as the primary platform to address regional challenges and engage with external powers. Our goal is to foster strong economic ties with all sides while maintaining our Asean centrality.
"This involves leveraging Asean's strategic location and economic potential to attract investments and trade from both the US and China, ensuring that we are not overly dependent on either," he said.
By strengthening intra-Asean trade and enhancing regional cooperation, Souvannavong said the region could build resilience and adaptability, allowing it to navigate geopolitical tensions effectively.
Regional challenges
According to the Asean Investment Report 2023, the region achieved a record-high foreign di- rect investment (FDI) inflow of US$224 billion, driven by manufacturing, energy transition and the digital economy, despite a 12 per cent global decline in FDI to US$1.3 trillion in 2022.
Intra-Asean FDI grew to US$28 billion, making it the second- largest investment source after the US.
Souvannavong said to further bolster investment, closer collaboration and proactive promotion by member countries were essential.
"Complex Customs procedures, varying technical standards, and bureaucratic hurdles can hinder the free flow of goods within Asean. Additionally, inefficient logistics infrastructure, lack of harmonisation in trade documentation, and limited access to trade finance make cross-border trade cumbersome.
"Most importantly, Asean still largely trades finished goods with external partners, rather than components within the region. This reduces the multiplier effect of trade on regional economic growth," he said.
Asean-BAC would play its role in advocating harmonise trade regulations and streamline costumes procedures while promoting deeper economic integration within the region, Souvannavong added.
SABC 2024 is happening from July 25 to 26 at the Kuala Lumpur Convention Centre. For more information, visit www.selangorsummit.com