Malaysian Prime Minister, Datuk Seri Najib Tun Razak has called on the 10-member Association of Southeast Nations (ASEAN) to work vigorously to bring down tariffs in the region to zero and eliminate non-tariff barriers. He said this is the only way to create a seamless economy.
He said ASEAN has made great strides in the last 50 years by multiplying the economy 28 times, from US$87.2 billion (RM380 billion) in 1975 to US$2.5 trillion (RM10.88 trillion) in 2014 and it was now expected to grow to US$9.2 trillion (RM40 trillion) by 2050, making it the fourth largest economic grouping in the world. “These are big numbers and impressive positions. But, we have yet to achieve them. The big challenge is to ensure that the integration of our individual economies, that is necessary for ASEAN itself to become a significant world market, is driven through. “On that, we still have a long way to go,” he said in his keynote address at the Prosperity For All Summit organised by the ASEAN Business Advisory Council held in conjunction with the 30th Asean Summit in Manila.
The region must also work to facilitate Intra-ASEAN trade further. “To achieve the US$9.2 trillion figure by 2050 there has to be a 20 per cent reduction in fixed trade costs. We need to work towards facilitative measures such as national single windows seamlessly linked to the ASEAN single window and standardised customs procedures.” Most of all, non-tariff barriers and measures – or NTBs and NTMs -, called the “stubborn world-wide problem,” must be reduced and ultimately removed.
The prime minister pointed out that between 2000 and 2015, NTBs and NTMs in ASEAN actually rose – from 1634 measures to 5975. “This has to be checked and reversed. For ASEAN to reach the target economic total of US$9.2 trillion, NTBs and NTMs have to be reduced by 50 per cent.
“There is no alternative if we wish to be able to seize that prize. So huge, coordinated efforts are required to deal with this problem.
“These are important, as without economic success, there is nothing to be shared,” he said.