World Economy

ASEAN, G20 Coop. Can Boost Global Growth

ASEAN, G20 Coop. Can Boost Global GrowthASEAN, G20 Coop. Can Boost Global Growth

Malaysian Prime Minister Najib Tun Razak said ASEAN and the Group of 20 can cooperate to ensure a higher rate of investments and contribute to stronger global economic growth.

“ASEAN agrees that the G20 can assist towards a balanced and stronger global economic growth,” he told a media conference here after a working dinner session in conjunction with the G20 Summit, before returning home, Bernama reported.

The prime minister’s comments were made in his position as the current ASEAN Chairman to G20 leaders at the working session on inclusive growth which discussed the issue of the global economy, growth strategies and investments as well as jobs.

Najib highlighted that ASEAN was the most dynamic region in the world, in contributing 6% to global economic growth.

He said it was not just about having a large market with a combined population of 600 million, but, an increasing middle class means demand for products will also rise.

According to Najib, ASEAN will be even more competitive when the ASEAN Economic Community becomes a reality with the creation of a single integrated market which allows for the flow of goods and services, capital as well as more skilled labor.

This move, he said, has had a positive impact with ASEAN trade expanding more than 30% over the last five years.

“We will not just stop at this. ASEAN will focus on abolishing non-tariff barriers, see greater liberalization of the services sector, the promotion of investments as well as the financial and capital market integration”, he added.

Najib also told the G20 leaders that ASEAN believes in the concept of “open regionalism” with various Free Trade Agreements signed with third countries.

At the same time, there were also multilateral FTAs such as the Trans Pacific Partnership and the regional Comprehensive Economic Partnership which is a regional economic architecture supported by ASEAN.