Asean to maintain annual growth rate of over five per cent
KUALA LUMPUR: Asean’s favourable demographics, steady urbanisation pace and growing middle class, leaves it poised to maintain a projected annual growth rate of over five per cent in the next decade, said the US–Asean Business Council.
“Asean’s 630 million citizens, make it the world’s third largest population and workforce, the fifth largest global economy and one of the youngest regions worldwide, with over 380 million people below 35 years old.
“Since its establishment by the Bangkok Declaration on Aug 8, 1967 by founding members, Indonesia, Malaysia, the Philippines, Singapore, and Thailand, Asean has seen increasing levels of economic prosperity, political stability and peace,” the council said in a statement yesterday.
This year also marks the 40th anniversary of the US- Asean Dialogue, which launched formal relations between the US and Asean. It was upgraded to a strategic partnership in 2015 and is an increasingly vital economic, political, and strategic link to the Asia Pacific.
The Council was encouraged by the US government’s continued investments in Asean, including President Trump’s meetings with the leaders of Indonesia, Singapore, and Vietnam and his invitations to leaders of Thailand and the Philippines to visit him at the White House this year.
US- Asean Business Council president and chief executive officer, Alexander Feldman, said it was important to reflect how far Asean had come, not only growing substantially in size and as a successful economic bloc, but also as a powerful stabilising force for continued prosperity in Asia.
“Asean’s centrality has been an important outcome of the region’s development and its ability to help balance and engage major powers in Asia.
“As we take stock of Asean’s many successes and identify
Asean’s 630 million citizens, make it the world’s third largest population and workforce, the fifth largest global economy and one of the youngest regions worldwide, with over 380 million people below 35 years old. US–Asean Business Council
new opportunities for continued growth and integration, the US business community remains committed to helping Asean achieve its full potential for years to come,” he added.
Meanwhile, the council’s Senior vice president/regional managing director, Ambassador Michael Michalak, said the US’ economic success was inextricably linked to its trade and investment in Asean.
Globally, Asean is the US’ fourth largest export market for its products and sixth largest in the agriculture segment.
“The US’ exports to Asean supported over half a million jobs with 20 states having at least US$1 billion in annual exports to the regional grouping. We have also seen a US$7 billion trade surplus with Asean in services,” said Michalak.
On the other hand, Vice President-Policy, Marc Mealy, said the socio-economic transformation processes in Asean represented some of the most profound economic development success stories of the 20th century.
“In just one lifetime, these relatively small nations, which depended on the production of commodities (rubber and palm oil) and low-skilled, labour-intensive manufacturing, have today diversified economies with fastgrowing domestic consumption, dynamic services sectors and industries.
“Asean holds strategic positions in some of the world’s most technologically advanced global value chains in sectors such as electronics (Malaysia), automotive (Thailand), and biotechnology (Singapore),” said Mealy.
For more than 30 years, the USAsean Business Council has been the premier advocacy organisation for US corporations operating within Asean. — Bernama