Slowdown in major economies threat to Asean

Economic slowdown faced by major powers and rising inflation across the world are some of the challenges Asean has to deal with in the coming years, said the regional grouping’s Secretary General Dato Paduka Lim Jock Hoi at the 11th ERIA Editors Roundtable in Phnom Penh yesterday.

Addressing the conference online, Lim Jock Hoi said the region is expected to grow by five percent in 2023 and 5.5 percent in 2024. “Trade volume in Asean has reached pre-pandemic levels, so is the progress in the tourism sector. We hope the growth can be sustained despite the geo-political issues and economic slowdown faced by major powers,” he said.

The day-long meet on ‘Asean and Disruptive World,’ organised by Jakarta-based Economic Research Institute of Asean and East Asia (ERIA) along with Khmer Times at Hyatt Regency Phnom Penh was attended by senior journalists from Asean Member States, besides experts from various fields.

The Secretary General, meanwhile, said the Regional Comprehensive Economic Partnership (RCEP) Agreement would make a big difference to regional growth and inclusive development. “Digitalisation, spurred by Covid-19 restrictions, has substantially contributed to the growth of e-commerce and has made trade borderless,” he observed, adding that digital economy and green growth would be the twin drivers of future economic growth in the region.

Replying to a question, Lim Jock Hoi said there was no need to review the Asean Charter as it “has already proven its resilience and vitality.” He further added that the Asean-led mechanisms have played an important role in maintaining peace and stability in the region.

On the South China Sea dispute, he said the negotiations were delayed due to Covid-19, insisting that Asean would continue to work with China.

SIM Vireak, Director-General of the General Department of Asean, Ministry of Foreign Affairs and International Cooperation, in his keynote speech said that during Cambodia’s chairmanship of Asean for more than nine months the major challenges that “we are facing have not decreased or deaccelerated but instead they have intensified, and even increased in number and complexities.”

“Prime Minister Hun Sen has said that it is normal that Asean is facing challenges every year but never before that we are facing so many challenges altogether in one time,” Virek said.

“From the South China Sea to the Myanmar issues, to the ongoing war in Ukraine, and at the eve of the 55th Asean Foreign Ministers’ Meeting (AMM), the cross-strait relation was added up as another hot stone. But we did not run away from those challenges. Asean faced those issues by providing platforms for participating countries to redress their frustrations, anger, or what they think are injustice in terms of regional interest of peace, stability, and rules-based order,” he said, adding that these challenges were faced under the principle of “Asean ACT: Addressing Challenges Together”.

Virek said Asean is now working closely together on developing the core elements of the Asean Community’s Post-2025 Vision. “Given the rapidly changing and increasingly geostrategic landscape, compounded with the unprecedented crisis such as Covid-19, it is of importance that we must carefully craft our post-2025 vision. It shall be outward-and forward-looking that sets out the future direction for the development and aspirations of Asean towards a peaceful, stable, prosperous, integrated, and sustainable community,” he said.

Source: Khmer Times