SINGAPORE: Currently the sixth-largest economy in the world and projected to be the fourth-largest by 2030, ASEAN’s potential has “yet to be fully realised”, said Minister for Trade and Industry (Trade) Lim Hng Kiang on Thursday (Mar 1).

“With our young population, growing middle class and rapidly increasing urbanisation, ASEAN’s potential has yet to be fully realised,” said Mr Lim in his opening remarks at the 24th ASEAN Economic Ministers’ Retreat.

Emphasising that ASEAN is a well-connected region, Mr Lim said it was “well poised” to benefit from the rise in investment, manufacturing activities and trade witnessed globally.

He stressed that the region would benefit from pushing forward with the implementation of the ASEAN Economic Community (AEC).

Conceived as a single market and production base, the AEC is part of broader efforts to integrate ASEAN economies, but observers have pointed out regulatory frameworks that are not harmonised as one of the hurdles it faces.

“To do this, all ASEAN member states must stay the course in pursuing deeper economic integration and liberalisation, so that our citizens can enjoy the benefits of our collective community building efforts,” said Mr Lim.

Adding that Singapore is honoured to take on the ASEAN chairmanship this year, Mr Lim said the country has benefitted from the “able hands of previous chairs”.

“We have benefitted from the able hands of previous chairs – in particular the Philippines in 2017 – all of whom have continued to build ASEAN into a cohesive organisation that can adapt to a complex and uncertain economic environment,” he said. “Singapore looks forward to building upon the good work of previous ASEAN chairs to make meaningful strides in the next lap of ASEAN’s integration journey.”

Singapore’s economic objectives as ASEAN chair include positioning ASEAN for more seamless economic activity, he said, adding that innovation and the digital economy are key areas that Singapore intends to pursue.

Noting that some estimate that the ASEAN digital economy has the potential to grow to US$200 billion by 2025, with e-commerce accounting for US$88 billion, Mr Lim said the bloc must lay the ground for it to fully capitalise on these opportunities.

ASEAN also needs to enhance its trade architecture to ensure trade and investment flows “continue unhindered throughout our region”, said Mr Lim.

In addition to innovation and the digital economy, Singapore will also pursue several initiatives with ASEAN member states to improve trade facilitation, deepen services and investment integration and move ASEAN’s external relations forward, he added.