KUALA LUMPUR, Aug 22 (Bernama) -- The ASEAN Economic Community (AEC) will be the buzzword as regional trade and economic ministers converge here Saturday to finalise initiatives towards closer economic integration.

As the 47th ASEAN Economic Ministers' Meeting (AEM) gets underway, AEC takes on far greater importance amid the current economic slowdown that would potentially affect some economies in the absence of effective remedies to counter, for instance, tumbling crude oil prices.

This is because a more cohesive regional economic entity would be better-placed to deal effectively with such eventualities including weakening currencies and low commodity prices through combined resources and finances.

Minister of International Trade and Industry, Datuk Seri Mustapa Mohamed, who would open and chair the AEM and related meetings from Saturday, sounded out the grouping's unwavering commitment not to roll back on regional initiatives especially the AEC.

Also, as a single market, Southeast Asia would be more attractive to investors particularly from its dialogue partners especially the majors including Japan, China, South Korea and the United States.

As such, the work has been cut out for Mustapa as he leads other ASEAN ministers to leave no stone unturned in pushing the AEC agenda aggressively besides pursuing other initiatives such as free trade pacts with dialogue partners and cross-border investment linkages.

Having reached 90 per cent compliance in measures to establish AEC, ASEAN aims to push it to 95 per cent by November, which would make the 10-member country grouping more integrated and seamless for businesses to prosper.

"We are developing our ASEAN identity. ASEAN will grow to be more dynamic and competitive by 2020," Mustapa had said when asked whether economic challenges confronting the region would scuttle single market initiatives.

AEC is set to propel ASEAN's economy into a global powerhouse with its gross domestic product (GDP) to expand to US$4.7 trillion by the end of the decade from US$2.7 trillion currently.

As ASEAN endeavours to emerge as a strong regional bloc being the priority, AEC and its post economic integration was expected to be focus of the meetings.

The AEM would be followed by the ASEAN Free Tade Area (AFTA) Council Ministers Meeting and the ASEAN Investment Area (AIA) Council Ministers Meeting.

Another important item for discussion is the Regional Comprehensive Economic Partnership (RCEP) while there would also be opportunities for ASEAN ministers to engage in bilateral discussions.

More ministers are expected to arrive today, including Japan's Minister of Economy, Trade and Industry Yoichi Miyazawa, South Korean Minister of Trade, Industry and Energy Yoon Sang-Jick and Australian Minister for Trade and Industry Andrew Robb.

The 47th AEM and related meetings from Aug 22-25 would put the finishing touches to the formal establishment of AEC, which will take off on Jan 1, 2016.

Source: Bernama

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