AEC Makes Asean More Attractive To Foreign Investors

Jakarta, Nov 18 (Antara) - Leading economist from the University of Indonesia Faisal Basri said the ASEAN Economic Community (AEC) would make southeast Asia regions more attractive for foreign investors. Speaking at Insurance Outlook 2015, "Business Prospects in Era of New Government," here on Monday, Basri said ASEAN attraction is greater with the inclusion of five ASEAN countries in "TNC`s top prospective host economies for 2014-16" issued by UNCTAD in World Investment Report 2014. AEC, which would be implemented by the end of 2015, would strengthen the connectivity of ASEAN countries MEA that foreign investors would see the economic grouping as a big investment destination, Basri said. The five countries are Indonesia, Thailand, Vietnam, Malaysia and Singapore. ASEAN combined will make the fourth largest economy in the world putting Japan behind, Faisal said. In addition, this region is considered the most stable with little ripple of political disputes, he said. "ASEAN, therefore, should fully capitalize on the benefit brought about by AEC. ASEAN as a single entity would be more competitive among investment destinations in the world," he said. He said when AEC is out into effect , competition is no longer among ASEAN companies but more between countries. "Countries that could offer lowest fixed cost would gain more and the variable cost would be less determinant," he said. Meanwhile a banker said the government is expected to strengthen industrial base of exporters to expand market in Asean when AEC is fully implemented . "Industrial bases should be strengthened to allow us to export more to other ASEAN countries," Director of Investor and Sales Head of PT Citibank Indonesia I Made Budhi P. Artha said. Larger exports will help redress out trade to become more positive, Artha said. He said the opportunity is wide open for increasing exports to other ASEAN countries to boost the country`s economic growth. "There is big potential for increasing exports as the export bases could still be expanded," he said.