MAGELANG, 22 March 2023 – The ASEAN Economic Ministers (AEM) met in Magelang, Indonesia today for the 29th AEM Retreat. The Meeting discussed the progress of ASEAN’s economic community-building efforts and exchanged views on the current global economic situation. H.E. Jose Lucas do Carmo da Silva, Minister of Tourism, Trade and Industry of Timor Leste also attended the meeting as observer.
The Meeting noted that despite regional and global challenges, the region continued to keep its momentum towards achieving robust post-pandemic economic recovery. ASEAN economy is expected to grow by 5.5% last year and 4.7% this year, driven by an accelerated recovery in services, especially travel and tourism, coupled with robust consumption and expansion in trade. Merchandise trade reached US$ 3.4 trillion in 2021, an increase of around 25% from the previous year while foreign direct investment inflow stood at US$ 174 billion, an increase of around 42% from the previous year.
The Meeting, recognising the importance of intra-ASEAN trade and investment in the ASEAN Economic Community (AEC), reaffirmed its commitment to doubling intra-ASEAN trade between 2016 and 2025.
In this regard, Secretary-General of ASEAN Dr. Kao Kim Hourn highlighted, “ASEAN will need to redouble its efforts to deepen its economic integration by, amongst others, pursuing initiatives that are forward-looking and relevant to the 21st century global economic environment, such as the upgrade of the ASEAN Trade in Goods Agreement, the ASEAN Digital Economy Framework, and the development of an ASEAN Strategy for Carbon Neutrality.”
The Meeting endorsed the seven priority economic deliverables (PED) of Indonesia’s Chairmanship of ASEAN in 2023 under the purview of the AEM, categorised into three strategic thrusts, namely: 1) Recovery and Rebuilding: Rebuilding Regional Growth through Connected Markets and New Competitiveness; 2) Digital Economy: Accelerating Inclusive Digital Economy Transformation and Participation; and 3) Sustainability: Promoting Sustainable Economic Growth for a Resilient Future.
If fully implemented, these PEDs could significantly contribute to deepening ASEAN’s economic integration agenda and the region’s post-pandemic economic recovery efforts.
The Meeting exchanged views on the ASEAN post-2025 Vision to ensure the region is well-equipped as it transition towards digitalisation and sustainability while reinforcing the pillars of the regional economic integration, taking into account the challenges due to the evolving global economic landscapes.
The Meeting also discussed matters regarding ASEAN’s external economic relations, including the implementation of the RCEP Agreement and the strategic direction for other ASEAN FTAs.
The Meeting also deliberated on notable issues including Timor Leste’s accession including the AEC component of the Roadmap for Timor-Leste’s Full Membership as well as the capacity building activities with a view of providing support for the country to accede to the various economic agreements and instruments.
The Meeting also had a dialogue with the ASEAN Business Advisory Council (ASEAN-BAC) to exchange views on the private sector’s priorities and legacy project for Indonesia’s Chairmanship. The Meeting noted that the ASEAN-BAC will continue to play a role in coordinating views and efforts of the ASEAN business community to contribute into the development of the AEC.
The 29th AEM Retreat was the first meeting of the Economic Ministers in 2023. The Ministers will convene again in August this year during the 55th AEM Meeting.
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