ASEAN expects significant rise in investments

ASEAN has agreed to strengthen its focus on action agenda on investments as the 10-member states expect a significant increase in investments into the region, which seeks to become a production hub and single market.

This was agreed at the conclusion of the ASEAN Coordinating Committee on Investments (CCI) 69th Meeting here chaired by the Board of Investments (BOI) where the committee agreed to push the Focused and Strategic Action (FAST) Action Agenda on Investment as among the Committee’s priority deliverables for the year.

BOI Executive Director Ma. Corazon Halili-Dichosa, who also served as the Philippine Head of Delegation to the CCI, said that investments among the 10 member states of ASEAN is expected to significantly increase, and linkage among ASEAN micro, small, and medium enterprises (MSMEs) with ASEAN and global multinational enterprises (MNEs) to further strengthened.

Intra-ASEAN investments continue to significantly contribute to the investment inflows in ASEAN. In 2015, intra-ASEAN investments’ share to total investment inflows rose to 18.5 percent from 17 percent in 2014. Intra-ASEAN investment reached $22.2 billion in 2015.

The CCI is ASEAN’s technical body tasked to oversee the implementation of the ACIA since its effectivity in 2012. ACIA serves as the regional bloc’s instrument in support of the ASEAN Economic Community’s goal of free flow of investments in the context of an integrated ASEAN community.

Dichosa explained that the four pillars of the ASEAN Comprehensive Investment Agreement (ACIA) namely investment promotion, facilitation, protection, and liberalization, the FAST Action Agenda is composed of four key deliverables.

On the first action agenda, CCI is focused on ASEAN-wide assessment of the outstanding issues on Trade Related Investment Measures (TRIMS) where the key deliverable for the year is a document identifying the TRIMS plus elements that ASEAN may commit and adopt as a common ASEAN’s negotiating strategy.

The second action agenda is focused on linking MSMEs with MNEs where the key outcomes are possible letter of intents (LOIs) and business collaboration between ASEAN MSMEs and MNEs. For this year, the Philippines will host the outbound mission from ASEAN where a conference and business meetings will be undertaken.

The third action agenda is focused on the assessment on the establishment of an ASEAN Investment Tribunal. CCI has recognized the need to do the said assessment given the numerous investment agreements that ASEAN had entered into and the need to have consistency and predictability in the interpretation of ASEAN investment agreements.

Finally, the fourth action agenda is focused on an indepth assessment of the business registration requirements among ASEAN in support of the investment facilitation goal of ACIA.