Advice body champions benefits of brand Asean

NAREERAT WIRIYAPONG, Bangkok Post,  26/02/2009 at 12:00 AM 

Asean leaders are being asked at this weekend's summit to establish regional brands for products and services and create a standard across the region. 

Asean business leaders will also be encouraged not to slow their investments so that there are more segments being marketed to counter slow consumer spending resulting from the global financial meltdown. 

Arin Jira, chairman of the Asean Business Advisory Council (Asean-BAC), said regional brands should start with tourism-related products and services, such as fashion and hotels, to create more businesses and attract more tourists to the region. 

An example of this, Mr Arin said, would be the creation of Asean budget hotel brands which provide the same standard of service.

Also, intra-Asean trade should be stepped up while markets elsewhere slow down, notably the United States, Europe and Japan, which are major trading partners of the region, he added. 

Intra-Asean trade now is valued at US$410 billion (14.7 trillion baht), which is a fivefold increase over 1993, accounting for 25% of the region's overall trade value. 

"I think the intra-Asean trade ratio has the prospect to grow to 30-35% in the next three to five years," Mr Arin said. 

Sundram Pushpanathan, deputy secretary-general of Asean for the Asean economic community, agreed with the Asean brand concept, saying it was in line with Asean's Think Global, Act Asean initiatives. 

Mr Pushpanathan said foreign direct investment (FDI) flows to Asean totalled $63.3 billion in 2007, representing 3.5% of global FDI, with the 2008 figure expected to rise. 

However, the region had to take additional steps to stay attractive by speeding up integration and offering greater openings to the rest of the world, he said. 

The business sector had to play a key role in helping the region be more resilient to the global crisis, he said. 

"You should continue to invest to cut costs and create consumer spending," Mr Pushpanathan said. 

At the weekend Asean summit, the leaders are scheduled to endorse a comprehensive investment agreement that would basically set clear timelines for investments and industry liberalisation, he said. 

Suthad Setboonsang, former deputy secretary-general of Asean and a former PricewaterhouseCoopers partner, said intra-Asean investments had so far been limited and should be promoted. 

The Asean member countries should look at their neighbours as cooperators rather than competitors. The automotive sector, for example, should be considered by Asean countries to find out which role each nation wants to play, he said.