Intra-ASEAN Trade Bodes Well To Hit 30 Pct By 2020

By Azizul Ahmad KUALA LUMPUR, Aug 1 (Bernama) -- Intra-ASEAN trade is expected to grow to 30 per cent of total trade by 2020 as the region now has all the ingredients as a great trading hub, says Malaysia External Trade Development Corporation (Matrade) Chief Executive Officer Dzulkifli Mahmud. He said trade among ASEAN, which currently hovered around 24 per cent, is expected to increase to 30 per cent of their total trade by 2020 driven by ASEAN Economic Community (AEC) initiatives. ASEAN had successfully eliminated many trade barriers and the share of trade among member countries should grow further as their economies continue to develop, he said. "ASEAN has all it takes to become a great trading hub. "We have zero duty, good banking and urbanisation rate, as well as, improved infrastructure and rising productivity," Dzulkifli told Bernama on the sidelines of the agency's Hari Raya (Eid al-Fitr) open house Saturday. ASEAN economies continue to register economic growth and with greater ASEAN economic integration, guided by the AEC framework, the 30 per cent intra-ASEAN trade is highly possible, he said. Intra-ASEAN's share of total trade stood at US$608.63 billion or 24.2 per cent as of July 2014 from a total trade of US$2.51 trillion recorded in the same period compared with US$458.1 billion registered in 2008 when the AEC Blueprint was first implemented. "With a population of over 600 million, larger than either the European Union or North America, our potential market is huge. "As the AEC is scheduled to be in place, intra-ASEAN trade is set to benefit from it," said Dzulkifli. Currently, Malaysia together with its ASEAN members are geared up towards welcoming the AEC which aims to transform the region into a single market and production base where goods, services, investments and skilled labour move freely, beginning Dec 31. On the Trans-Pacific Partnership Agreement (TPPA), Dzulkifli said Matrade would conduct another round of awareness programme on TPPA for small and medium-sized Bumiputera enterprises on Aug 6 to explain on the opportunities and challenges of being in the pact. MITI, in a statement, recently said Malaysia did not sign the pact and the recent meeting in Hawaii was merely to ensure Malaysia's interest and concerns were addressed. The government has taken a firm stand in the TPPA in which the country's constitution, sovereignty and core policies such as government procurement, state­-owned enterprises and the Bumiputera (Malay race) agenda will be safeguarded, said the statement. -- BERNAMA