Removing barriers will hasten integration, say experts

PETALING JAYA: Asean countries must tackle persistent regulatory and financial barriers that continue to hinder regional economic integration, say experts.
Economist Geoffrey Williams said there are still many trade barriers among Asean countries, especially for small and medium enterprises (SMEs).
'Asean needs to establish a framework to identify regulatory barriers across all areas.
'This process should systematically remove or harmonise regulations at the lowest cost,' he said when contacted.
Williams said there are still many constraints on simple issues, such as setting up businesses, bank accounts, and even payment transfers.
'Harmonising regulations on payment transfers, reducing transaction costs and building common platforms for e-payments is essential,' he said.
Asean countries still vary greatly in economic development, political systems, and economic self-interests.
This variance, he said, is holding back closer integration.
'Tourism provides a good model because private-sector-driven business models make travel, accommodation and currency exchange easy.
'So integration is not impossible if it is market-driven, but it is proving difficult if it is government-driven,' he explained.
He said Asean can follow a market-driven integration model using technology platforms and e-commerce which avoids brick-and-mortar business models and moves online.
'An Asean-wide digital nomad visa would be a good idea and would be attractive for the region as a whole while reducing competition between countries.
'Another Asean-wide entrepreneur visa would also be helpful in reducing costs, especially for the non-Asean business community.
'This would allow foreign investors to move easily around the 10 member states,' he argued.
Centre for Market Education chief executive officer Carmelo Ferlito said going cashless can become a burden if a person needs to have a different app in each country.
'I travel often to Indonesia, and I struggled with their cashless system, which must be linked to a local bank.
'So I think having more integration is good, but in reality, it is better to increase options rather than reducing them,' said the economist.
At a special media briefing on May 21, Prime Minister Datuk Seri Anwar Ibrahim outlined a strategic vision for Asean's next phase of growth.
Under Malaysia's Asean chairmanship this year, he emphasized stronger economic integration, trade expansion, and cross-border energy connectivity as key pillars.

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