Despite the successful outcome of last week’s Asean Summit, the private sectors in member countries are pressuring their governments to impose more protective measures to shield businesses, which will delay the regional goal to become a single market by 2015.

Pramon Sutivong, chairman of the Board of Trade of Thailand and the Thai Chamber of Commerce, said that not all sectors are ready for the market liberalisation. The government must fully support some industries, including electronics, textiles, and petrochemicals as they may not be able to compete with rivals in Asean.

He added that the governments must also help strengthen every small and medium-sized enterprises in Asean as they would be affected the most by the liberalisation.

He emphasised that Asean SMEs are in need of financial support the most. The government must ensure that they will be able to access funding to increase their competitiveness.

As the chairman of the Asean Summit, Thai Prime Minister Abhisit Vejjajiva expressed his concern on the issue while addressing the Asean Business Forum on October 26.

Abhisit said that “we (the government) are making progress in liberalisation and a few outstanding issues and agreement were met.

“However, there are still some challenges for member states to meet our obligations. The private sector is pressuring us by asking for an extension period to prepare themselves for liberalisation. They need the government to protect them. This has created a delay in the goal of an Asean Economic Community (AEC).”

He said that every government within Asean had committed to making the region a single market through the AEC by 2015.

To ensure that the AEC goal will be achieved within the timeframe, Abhisit called on Asean private enterprises to realise more the importance of their commitment and time, and punctually follow their adjustment plans to prepare for market liberalisation.

“None of the Asean leaders wants to leave anyone behind. The readiness of the private sector is the key element in achieving the AEC,” said Abhisit.

In addition, to implementing the AEC, which has been recognised as one of the most powerful instrument to strengthen Asean growth, Abhisit said, “Asean shouldn’t just say no to protectionism but also carry on with liberalisation.”

He admitted that he, too, had concerns about the readiness of some areas of the Kingdom’s agricultural sector.

However, every nation in Asean will be faced with the same problems. He said that the government is considering our internal law to protect the domestic market from liberalisation. However, Thailand must comply with the liberalisation eventually.

Asean Secretary-General Surin Pitsuwan sent a clear message that Asean will not be a success unless the private sector gets involved and gives its support to create a new architecture for integrating the three pillars of Asean—politics, economic, and socio-cultural.

“Asean’s new landscape in 2015 will promote the whole Asia region and global economic growth. As Asean is connected with its trade partners, China’s growth means Asean’s growth. Growth for other nations, also means growths for Asean,” said Surin.

He said becoming a single market will lead to the rise of the middle class in Asean, who will also be a key engine to drive economic growth in the region.

Asean has a total population of 582 million people, nearly half the size of China. Market size is not only based on Asean but also the Asian region as a whole as Asean is connected to every country through its integration. Asean has a combined GDP of US$1.5 trillion and a total trade of $1.7 trillion with the world market. Of that 27 per cent of trade came from six Asean countries—Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand. Last year, Asean attracted $60 billion foreign direct investment.

Nandor von der Luehe, chairman of the Joint Foreign Chambers Commerce in Thailand, said Asean’s move towards a single economic community is very attractive to foreign investors of the region.

He called on Asean private enterprises to realise more the importance of following the timeline to achieve the AEC goal so that the region will be able to draw more FDI into the region.

Von der Luehe added that the Asean, in particular Thailand, should open its service sector as the region has high potential to serve as a base for global service business operations.

Arin Jira, chairman of the Asean Business Advisory Council, said Asean is still lacking in the creation of a single-market environment. The government is directly responsible for promoting Asean integration and increasing public and private sectors’ awareness on the market liberalisation. (By Achara Pongvutitham & Petchanet Pratruangkrai in Bangkok/ The Nation (Thailand)/ Asia News Network)