Chairman’s Statement

TNI

November 2005

Chairman’s Statement
Sixth ASEM Investment Experts Group Meeting
15-16 July 2002, Bali, Indonesia

INTRODUCTION

1. The Sixth ASEM Investment Experts Group Meeting (IEG 6) was held in Bali, Indonesia on 15-16 July 2002. The Meeting was chaired by Indonesia with full support of the IEG Shepherds (Japan, Denmark as Presidency of the European Union and the Commission of the EU). The Meeting was attended by experts from almost all of the 26 ASEM partners.

RECENT INVESTMENT TRENDS

2. Based on national data provided by several ASEM Partners on investment flows, experts discussed recent trends in investment. Some Member Countries presented to the Meeting the overview of their respective economies and trend of FDI in their countries. The Meeting noted that FDI trends in most ASEM countries look promising arising from economic structural reforms undertaken and policies adopted to improve their respective investment environments.

3. To move forward future reports on recent investment trends, all ASEM partners were urged to submit their reports before the IEG meeting and that information/data contained in future reports be reflected on a year-to-year basis.

ASEM INVEST ONLINE (AIO)

4. The Experts thanked the European Commission for providing a factual analysis of the compliance of national AIO websites with the minimum requirements established by the IEG. The Meeting noted that the assessment was made based on the elements of the minimum requirement, as follows:

Up-to-date information on the regulatory framework;
Basic macro/micro information; and
Links to existing websites

5. The Experts noted that the level of the implementation of minimum requirement is satisfactory. However, the assessment revealed that the degree of the details contained in the websites varies across ASEM Partners. The Experts noted that the AIO has registered an average of 2,200 hits per month from September 2001 to April 2002.

6. The Experts agreed to further improve their websites, as and when necessary, taking into account the minimum contents required. Recognising that the AIO is a useful tool for enhancing transparency and attracting investments, the Experts also agreed on the importance of joint efforts among the ASEM Partners to increase the visibility of and knowledge on the AIO among interested parties and the public at large. The Experts also agreed that particular attention should be paid on establishing links with other business related websites.

ASEMConnect

7. The Experts expressed their appreciation to Singapore for spearheading and developing the website for the ASEMConnect, which is an initiative to address the needs of the business sector, in particular SMEs, for ready access to company and business information. According to Singapore, ASEMConnect has been successfully set up with hyper-linking the homepages of 25 ASEM Partners, comprising of both public and business managed-websites and the ASEM Invest Online.

8. In order to maintain up-to-date information in the ASEMConnect, the Experts encouraged ASEM Partners to host their respective homepages in their home country server and link the new URLs to the ASEMConnect website.

9. The Experts noted Singapore’s proposal on the future organisation of ASEMConnect in order to move it forward. The Experts agreed to look into three (3) possible options which include the Singapore proposals. These are as follows:

Entrusting the running of ASEMConnect to AEBF host partner; or
Entrusting the running of ASEMConnect to the host partner of ASEM Summits; or
Merging the AOI, the ASEMConnect and the AEBF websites. The European Commission (EC) agreed to the request of the Experts to look into the feasibility of merging these websites and would revert back to the ASEM Partners before the AEBF meeting in Copenhagen in September 2002.

REPORT ON MEASURES TAKEN TO OVERCOME OBSTACLES TO INVESTMENT AND IMPLEMENTATION OF MOST EFFECTIVE MEASURES

10. The Experts reported on the progress made in implementing the Investment Promotion Action Plan (IPAP), particularly on the progress made after the updated reports presented at the IEG 5. The reports focused on the measures taken to overcome obstacles to investment and measures taken to implement the Most Effective Measures (MEM) in order to attract greater flows of foreign direct investment. After an extensive discussion, the Experts concluded that the progress made is geared towards improving the framework for investment.

11. The Experts noted that ASEM Partners are undertaking the following measures to improve the investment climate in their countries, among others:

Review of current investment policies
Simplification of investment procedures to grant business permits/facilitate investment entry
Greater transparency
Appropriate labour laws
Establishment of one-stop shops for overall investment processes
Provision of various tax incentives
Conclusion of bilateral investment treaties/agreements

12. The Experts agreed to continue improving the investment environment between Asia and Europe and to deliver updated reports in advance so that they can examined in time for IEG7 in 2003. The Experts also encouraged ASEM Partners, who have not submitted their progress reports, to do so before the ASEM Economic Ministers Meeting in Copenhagen in October 2002.

WTO

13. Based on a report by the European Commission on recent developments in the WTO’s Working Group on Trade and Investment, ASEM Partners had an in-depth exchange of views on certain WTO-related investment policy issues, including transparency, definition and scope of investment, pre-establishment conditions, liberalization and non-discrimination. The Experts stressed the need to embark on capacity building exercises in the relevant fora as part of an educative process to promote greater understanding of the issue.

14. The experts also commented that ASEM would provide a useful forum to enhance mutual understanding on WTO investment related issues.

Comments on Investment Related Recommendations adopted by the Asia Europe Business Forum (AEBF)

15. The Experts took note of the relevant investment recommendations adopted by the AEBF during its 6^th plenary session on 9^th October 2001 in Singapore, concerning improvement of investment regimes and public-private partnership in public infrastructure development.

16. In general, the Experts agreed that feedback to the AEBF recommendations should be provided to the AEBF during their meeting in Copenhagen. In this regard, the Experts asked the IPAP Shepherd to report it to the AEBF Meeting in Copenhagen.

17. On the AEBF Recommendation on exhorting multilateral financial institutions to make extra effort to stimulate private investments in ASEM partners, the Experts agreed that multilateral and other international/regional organisations could play an important role in assisting ASEM partners to attract greater flows of investments.

18. Singapore presented a proposal, arising from an investment-related recommendation at AEBF-6, to organize a conference on "Public-Private Partnership" on developing Asia’s public infrastructure. The Experts took note of this proposal and also took note that Singapore will present it to SOMTI VIII

OTHER MATTERS

FUTURE OF THE IEG

19. With a view to the decision on the future mandate of IEG which is due in 2003, the Experts had a preliminary discussion on future activities of IEG.

20. The Experts expressed interest in different aspects of investment-related issues. The Experts raised the need to balance IEG’s work activities on Pillar 1 (Investment Promotion) and Pillar 2 (Policy) and to continue exchange of information and extensive discussions on many investment issues discussed at various international/multilateral and regional fora. Discussions could be on the developments of the WTO Working Group on Trade and Investments, on corporate governance, on best practices on investment promotion, facilitation and protection, on
sectoral development, on public-private partnership, among others.

21. In moving forward the future of the IEG, the following views were raised:

Some of the experts expressed their concern that the current mechanism is not sufficient enough to support IEG activities. In this regard, they raised the need for IEG to take more concrete actions in its future work and to develop a more effective mechanism to support future IEG activities.

Noting that the IEG Shepherds were requested by the Experts to attend the AEBF meeting in Copenhagen in September 2002, the Experts agreed that IEG Shepherds prepare a report, for circulation to all the IEG partners, on the result of their participation at the AEBF Meeting . The report should be used as a basis for each of the IEG partners to prepare their reflections and propositions on the future of the IEG. All ASEM partners are requested to submit to the chairman of the next IEG meeting, which is scheduled in July 2003 in Brussels, their reflections and propositions
at least a month before the IEG Meeting. This will allow the next IEG chairman to consolidate all the submissions and subsequently circulate it to all the IEG Experts for preparation for the discussion on the future of the IEG at the July IEG meeting.

STRENGTHENING THE LINKAGE BETWEEN THE IEG AND THE AEBF

22. The Experts recognised the importance of active private sector participation in balancing Pillars 1 (investment promotion) and 2 (investment polices and regulations) and agreed to strengthen the linkage between the IEG and the AEBF through interactive discussions.

23. The Experts agreed to intensify the cooperation with AEBF. To this end, the Experts agreed to send representatives to participate in the AEBF Working Group on Investment and possibly in other AEBF working groups. On its side the Experts will continue to invite representatives of the AEBF to their meeting.

24. The Partners agreed that the IEG coordinators, who will be attending the AEBF Meeting in Copenhagen, raise the following issues to the AEBF Meeting:

inform the AEBF on the work activities of IEG;
provide feedback on the AEBF recommendations on investment;
explore with AEBF the possibility for joint consultation/interactive discussion between IEG and AEBF Working Group on Investments at future AEBF meetings.

DATE AND VENUE OF IEG7 MEETING

25. The 7^th IEG Meeting will be convened in July 2003 in Brussels.