Deepen integration to navigate an uncertain world, PM Wong tells ASEAN leaders

MANILA - ASEAN can expect more turbulence and storms ahead in an increasingly uncertain world, but as long as the grouping remains cohesive and united, it can navigate its path forward and emerge stronger, said PM Lawrence Wong on Nov 15.

This will require responding decisively to disruptions by deepening integration, such as through advancing digital integration, strengthening energy security and broadening external partnerships, he added on the first day of the ASEAN Summit in the Philippines capital.

The Philippines has advanced many initiatives on these fronts under its chairmanship of ASEAN, and Singapore, as incoming chair, will build on them to sustain the momentum, said PM Wong on the cusp of Singapore leading the group.

He also pledged to work with Thailand, the next chair, to ensure continuity in the grouping’s agenda.

The South-east Asean leaders are coming together to take stock of the year’s work and progress at the second meeting of the biannual summit. The first meeting took place in May in Cebu in the Philippines. 

Recalling the May meeting, which almost did not take place due to the upheaval in transport, energy and food sectors caused by the Middle East conflict and the closure of the Strait of Hormuz, PM Wong said such the situation continues to be highly volatile.

“ASEAN has navigated difficult waters before over the decades, and each time we have always been able to hold the course and move forward,” he said.

A day before the Nov 15 meeting, ASEAN member states had signed the Digital Economy Framework Agreement (Defa) after three years of negotiations.

The agreement lays the foundation for closer digital economic integration and is projected to double the region’s digital economy to US$2 trillion by 2030.

Speaking at the formal plenary session of the meeting on Nov 15, PM Wong cited this as an example of how the grouping had worked decisively to deepen integration and make progress on issues that matter to the region’s people in response to disruption.

But this is just the first step, and more needs to be done to link up the economies so as to harness the benefits of the single ASEAN market, he said.

One way to do so would be to make cross-border transactions more seamless across the region and to strengthen regional coordination in tackling cyber threats and online scams, he suggested.

Bilateral connections between payment systems already exist, such as between Singapore and Malaysia, and Singapore and Thailand, and can be expanded into a regional network, he said.

This will allow businesses, tourists and those sending remittances home to transact more cheaply and easily, he added.

Meanwhile, a resilient digital economy requires trusted and secure systems, he added, commending the Philippines for shepherding an East Asia Summit Leaders’ Statement on strengthening cooperation against online scams and related offences.

He also called on member states to expand access to AI tools and capabilities to drive growth and productivity.

In recent years, ASEAN has been growing at about 4 to 5% per annum, which is better than the global average, but the region has the potential to grow even faster, he noted

“If we can do so consistently over the next 10 to 20 years, we can make ASEAN a sizeable and considerable growth centre in our own right,” he said.

As ASEAN economies embrace AI and technology, there will be more demands on energy and power, and the region will also have to strengthen its energy resilience, he said.

The recent energy disruptions caused by the Middle East conflict underscore further the importance of energy security.

He urged all member states to ratify the ASEAN Petroleum Security Agreement and to prioritise the ASEAN Power Grid.  

That agreement sets out a framework for the sharing of petroleum during emergencies, while the power grid allows member states to trade surplus electricity and share reserve capacities.

PM Wong said ASEAN already has bilateral and multilateral energy interconnections that demonstrate that cross-border energy trade is feasible.

Building on these initiatives will help ASEAN lower transition costs, support greater renewable energy uptake, and unlock new business and investment opportunities, he said. 

The recent Middle East disruptions underscore further the need to strengthen the region’s collective capacity to respond to disruptions in energy, he added.

He urged all member states to ratify the ASEAN Petroleum Security Agreement swiftly and to prioritise the development of the ASEAN Power Grid.  

This will allow the region to better deal with energy crises together, he said.

The petroleum agreement sets out a framework for the sharing of petroleum during emergencies, while the power grid allows member states to trade surplus electricity and share reserve capacities.

Finally, even as ASEAN works to integrate more closely, the grouping must also actively broaden its network of friends and partners to maintain peace and stability in the region, said PM Wong.

ASEAN will commemorate its 50th anniversary of relations with the United States, Canada, and the European Union, as well as the 30th anniversary of its ASEAN Plus Three meetings with China, Japan, and South Korea.

Describing these as important milestones, PM Wong said it will be an opportunity to reaffirm ASEAN’s commitment to open and mutually beneficial partnerships and identify new opportunities for practical cooperation.

“ASEAN has been the arena for proxy fights between major powers before. We have been through that difficult experience. We don’t want that to happen again,” he said.

“So, we should continue to reject zero-sum competition and engage with all major powers and ensure that they have stakes in a peaceful, open, and inclusive region.”