Opening Remarks by Mr LIM HNG KIANG, Minister for Trade and Industry (Trade) at the 16th ASEAN Economic Community (AEC) Council Meeting on 26 April 2018, 9.00AM, at SHANGRI-LA Hotel

OPENING REMARKS BY MR LIM HNG KIANG, MINISTER FOR TRADE AND INDUSTRY (TRADE) AT THE 16TH ASEAN ECONOMIC COMMUNITY (AEC) COUNCIL MEETING ON 26 APRIL 2018, 9.00AM, AT SHANGRI-LA HOTEL

Your Excellencies,
Distinguished Guests,
Ladies and Gentlemen,

1.         On behalf of my delegation, I would like to welcome you to Singapore. It has been our pleasure to host you in 2018 and we hope you will continue to enjoy your stays with us in the months ahead.

2.         Ahead of the 32nd ASEAN Summit, we have gathered here today for the 16th AEC Council Meeting to take stock of what we have accomplished so far under the ASEAN Economic Community. This also presents us with the opportunity to exchange views on pertinent economic issues which confront our region, and consolidate our work before our Leaders meet this Saturday.

3.         The realisation of the ASEAN Economic Community in 2015 marked an important economic milestone in our regional economic integration journey. As we embark on the AEC 2025, we renew our commitment to build a more economically integrated and prosperous ASEAN. Our collective efforts have since brought about benefits and increased opportunities for our people. To continue unlocking the potential of our economies and preserve ASEAN’s credibility, ASEAN will need to stay on track and press on with our implementation of the AEC.

4.         ASEAN’s economic outlook has remained promising over the years. We have continued to grow despite the uncertain global economic environment. With 4.8% in 2016, ASEAN’s growth is expected to accelerate by 5.2% in 2017 and 2018.1 With our youthful population, growing middle class and increasing urbanisation, ASEAN is well-poised to realise the potential to become fourth largest economy in the world by 2030.2

5.         ASEAN’s perseverance in advancing the AEC 2025 is assuming greater significance in a world where anti-globalisation sentiments and protectionist rhetoric are on the rise. The advent of the Fourth Industrial Revolution and the digital economy have caused disruptions which are multi-dimensional and occurring at an unprecedented scale. These developments present both challenges and opportunities.

6.         E-commerce is the new reality for businesses today, and is becoming an increasingly important tool for Small and Medium Enterprises (SMEs) to plug into global supply chains. Improving the operating environment for our businesses in the digital economy is therefore crucial. As we help businesses tap on the digital economy to expand their reach to global markets, crossborder movement of goods needs to be facilitated simultaneously.

7.         With customs duties falling from the proliferation of Free Trade Agreements, non-tariff measures have become more pertinent barriers to trade. ASEAN will need to pay stronger attention to trade facilitation to ensure that businesses continue to benefit from improved market access.

8.         Singapore’s ASEAN 2018 Chairmanship thus focuses on strengthening ASEAN to become a resilient and innovative region which can adapt and thrive amidst global uncertainties and capitalise on emerging trends. To this end, we continue to build on the shared vision and thought leadership of previous ASEAN Chairs, to prepare ASEAN for deeper regional connectivity and position ASEAN as a region for seamless trade and economic activities. As we work with other to realise the potential of our economies, our efforts to facilitate trade and enhance regional connectivity in ASEAN have borne fruit:

                I.        The ASEAN Single Window, an online platform to expedite customs clearance via the electronic exchange of information across borders, is now operational among five ASEAN Member States (AMS). The remaining AMS will come on board soon. The ASEAN Single Window, once fully established, would reduce transaction costs for businesses and better facilitate the clearance of goods within ASEAN.

                II.       Through the Declaration on Cruise Tourism, ASEAN has also committed ourselves to transforming Southeast Asia into a vibrant cruising destination via infrastructure development and improved on-shore activities. This Declaration brings ASEAN a step closer to the shared vision of becoming a thriving cruise hub, deepening connectivity within Southeast Asia and driving strong economic contribution to new ports-of-call and their communities.

9.         Our collective efforts will ensure that ASEAN remains on the trajectory to closer economic integration and sustained, longterm growth. ASEAN’s regional integration efforts have also anchored ASEAN’s relevance on the world stage. Going forward, ASEAN will need to continue to stay attuned to the emerging global trends and sharpen our value proposition to become more future-proof and globally ready.

10.       We look forward to fruitful discussions today and to your continued support as we make meaningful strides in the next lap of ASEAN’s integration journey. Thank you.

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