ASEAN MUST MOVE BEYOND EXPORT-LED MODEL, SAYS LIEW

By Nur Ashikin Abdul Aziz

SINGAPORE, Oct 9 (Bernama) -- Deputy Investment, Trade and Industry Minister Liew Chin Tong has called on ASEAN to move beyond the traditional export-led industrialisation model, stating that it is no longer sustainable in the face of current global challenges.

Speaking at the Asia Future Summit, Liew said that, moving forward, ASEAN should work towards shaping a new world order and focus on growing its own multinational technology companies.

“I think our economic model is not going to work for us in the years to come. Looking to the future, I believe trade deals are insufficient.

“We can continue to negotiate trade deals, but beyond that, we need to start looking at a customs union and industrial policy,” he said during the summit’s session on geopolitics, themed ASEAN’s Role in a New World Order.

Liew also emphasised the need for a coordinated ASEAN position on the Global Minimum Tax (GMT) to ensure that investors understand tax rules will be uniformly enforced across the region, thereby avoiding a “race to the bottom” in attracting foreign direct investment.

“I certainly hope that more ASEAN countries, and eventually as many as possible, will come together on GMT,” he added.

Liew noted that higher tax contributions from investors could help cushion societies from issues faced by Generation Z, such as depressed wages, which led to protests in some countries.

He said the ultimate goal is to build a sizable middle class and to ensure that the ASEAN population becomes significantly wealthier before it ages.

“A population of 700 million poor people doesn’t help create a market. But if we have a middle class of 300 million, we will be a very interesting market for ourselves and for American, European or Chinese exporters,” he added.

-- BERNAMA