Asean becoming strong regional bloc

MANILA, Philippines - The Association of Southeast Asian Nations (ASEAN) is becoming a stronger regional economic bloc as seen in the attendance of world leaders during the recently concluded 19th ASEAN summit, UBS said in its latest report.

UBS said that the summit has attracted world leaders speaks well of the strength of the regional bloc.

“Southeast Asia as a focal point for world leaders is growing with China’s regional influence. While there are downsides to being a geopolitical center of attention, there can also be substantial benefits. Reflecting efforts to gain influence, China has agreed to expand sectoral coverage of previously signed agreements on services trade while Japan offered support to infrastructure projects worth $25 billion,” UBS said.

The 19th ASEAN Summit and the associated 6th East Asia Summit, were held in Bali, Indonesia from Nov. 15 to 19.

UBS noted that in addition to ASEAN leaders, the attendance list included the US President and Secretary of State alongside the Prime Ministers of China, Japan and India plus the President of South Korea. Russia’s President did not attend but sent his Finance Minister. Of these the US and Russia were attending for the first time. 

“The key takeaway from last weekend, in our view, is the political weight of the attending leaders and the gifts they brought, rather than the documents adopted at the summit,” it also said.

The move to engage Myanmar by giving making it the chair of the ASEAN group in 2014 is a positive signal, said UBS.

“Another key takeaway is that hitherto isolationist Myanmar will be given the Chair of the ASEAN group in 2014 – a signal that this country’s reform and opening up is impacting the regional dynamic,” UBS said.

With these developments, the investment bank said Southeast Asian nations including the Philippines can benefit well with the strengthening of the regional bloc.

“If ASEAN states play their cards right, this may lead to unusually beneficial access to US and Chinese domestic markets, aid or investment flows – although there will likely be political strings attached,” UBS said.