Banking in ASEAN
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THE COMPASS MARCH 2017 ISSUE #3 IN THIS ISSUE Economic and Political Fragmentation Global Trend Malaysian Prime Minister Launches the Jeffrey Sachs Center on Sustainable Development Sustainability A Time For Integration Banking in ASEAN Retaining International Economic Order ASEAN and East Asia Improving Education Access and Quality in Asia Asia Public Policy Forum 2017 SUNWAY UNIVERSITY (KPT/JPT/DFT/US/B15) A member of the Sunway Education Group Tel. (03) 7491 8622 Email. [email protected] Web. sunway.edu.my OWNED AND GOVERNED BY THE JEFFREY CHEAH FOUNDATION (800946-T) IN THIS ISSUE INTERNATIONAL ACADEMIC ADVISORY COUNCIL (IAAC) ESSAYS Page 7 HRH Sultan Dr Nazrin Shah Ibni Dr Mari Elka Pangestu ASEAN and East Asia are the Key to Sultan Azlan Muhibbuddin Shah Former Minister of Trade; Tourism & Retaining the Current International Economic Order The Sultan of Perak Darul Ridzuan; Creative Economy, Indonesia; former Royal Patron, Jeffrey Cheah Institute Executive Director of the Center for Page 9 on Southeast Asia Strategic & International Studies in TABLE OF CONTENT TABLE Vitality of Research-Inspired Teaching in Jakarta; and Professor, Malaysian Universities Professor Dwight Perkins Universitas Indonesia PRESIDENT’S MESSAGE Page 12 Chairman, IAAC of Jeffrey Cheah Banking in ASEAN- A Time for Integration Institute on Southeast Asia; Professor Anthony Saich Page 16 Harold Hitchings Burbank Professor Professor, Kennedy School of Emeritus of Political Economy, Government, Harvard University As a Matter of Fact, All Facts Are Conditional Harvard University Page 18 Professor Mark Smith The EU Faces Economic and Political Threats Professor Helen Bartlett Vice-Chancellor, Lancaster University as Britain Prepares for Membership Vote Pro Vice-Chancellor and President, Dr Chalongphob Sussangkarn Page 19 Monash University Malaysia Former Minister of Finance, Thailand Reimagining Southeast Asia Tan Sri Dato’ Seri Dr Jeffrey Cheah AO and former President of Thailand JEFFREY SACHS CENTER ON Founder and Chairman, Sunway Development Research Institute Group; Trustee, Jeffrey Cheah SUSTAINABLE DEVELOPMENT Professor Datuk Dr Tan Tat Wai LAUNCHING Foundation; and Founder and Chancellor, Sunway University Research Professor, Page 20 Sunway University Malaysian Prime Minister Launches Professor Fan Gang the Jeffrey Sachs Center on Sustainable Director, National Economic Research Professor Emeritus Wang Gungwu, CBE Development Institute, China; and Professor, Chairman, East Asian Institute, Page 26 Peking University; National University of Singapore; Woo Wing Thye What’s Next for the Jeffrey Sachs Center on Chairman, Institute of Southeast Sustainable Development? Professor Tan Sri Dr Ghauth Jasmon Asian Studies, Singapore; and former Senior Fellow Jeffrey Cheah Institute Vice-Chancellor, University of Page 28 on Southeast Asia; and former Hong Kong PRESIDENT’S MESSAGE Who is Jeffrey Sachs? Vice-Chancellor of Universiti Malaya Professor Graeme Wilkinson EVENTS CALENDAR Professor Arthur Kleinman Vice-Chancellor, Sunway University GOOD FRAGMENTATION VERSUS Page 30 Victor and William Fung Director BAD FRAGMENTATION OF THE GLOBAL ORDER of Harvard University’s Asia Professor Datuk Dr Woo Wing Thye President, Jeffrey Cheah Institute EVENT HIGHLIGHTS Center; and Professor of Medical Anthropology and Professor of on Southeast Asia; Professor at Page 34 Psychiatry at Harvard University University of California, Davis; and Asia Public Policy Forum 2017 Director of East Asian Program, the Page 40 Dr Elizabeth Lee Earth Institute, Columbia University ASEAN in 2017 is deservedly celebrating fifty years of impressive Effectiveness of Parliamentary Committees Senior Executive Director, Sunway Education Group Professor Yoon Young-Kwan achievements in socio-economic development. The good luck JEFFREY CHEAH TRAVEL GRANTS Professor, Seoul National University, Professor Tan Sri Datuk Dr Lin See-Yan and former Minister of Foreign from being in this celebratory mood is that Malaysia and other Page 43 Pro-Chancellor of Sunway University Affairs, South Korea ASEAN countries are now more likely to have the self-confidence Ms. Jesslyn Leong Yoke Kiau President Harvard Club Malaysia to recognise the emergence of new, unfamiliar challenges to their Page 44 and Former Deputy Governor, Dato’ Sri Idris Jala Associate Professor Dr. Jeff Tan Kuan Onn Bank Negara Malaysia Jeffrey Cheah Foundation Trustee continued development, and would hence come up with bold effective solutions to these challenges. Page 45 Tan Sri Ramon Navaratnam (alternate) Professor Richard Graeme Larkins AO Ms. Rebecca B. Choong Wilkins Pro-Chancellor of Sunway University Jeffrey Cheah Foundation Trustee Page 46 Professor Sibrandes Poppema Ms. Pamudi Banjitha Abeynayake Professor Kiyohiko Nishimura President, University of Groningen Senadheerage Dean, Economics Faculty, Mr. Munjed M. Murad University of Tokyo; and former Deputy Governor of the Bank of Japan OUR TOP TEN MOST POPULAR VIDEOS ISSUE #3 Page 47 02 03 First, significant domestic reforms are required in several of people because of its threat to ethnic identity and wage and to mobilise others to join countervailing actions. The ASEAN countries where their internal situations are level. The American working class and middle class in the United States in 1929 was not yet big enough to be the global increasingly characterised by the horror trinity scenario Rust Belt had a lot to be resentful about: the loss of their In the face of the US hegemon, but, even if it had been, it was not mentally willing of economic stagnation, social polarisation, and political manufacturing jobs to foreign imports and to relocation to take on that role. It was only after World War II that the instability. To exorcise this horror trinity by doubling down of production plants abroad, the unresponsiveness of the withdrawal from global United States became the unchallenged global hegemon and on the existing policies would only entrench these ASEAN conservative political class to their need for adjustment developed the mindset to play that role. members in the middle-income trap. The way forward assistance, the contemptuousness of the liberal political roles, major countries in the requires that their actions be guided by enlightened self- class towards their values relating to guns and religion; G20, including China, should A global hegemon no longer exists in 2017 because the size interests than by self-denial. and the blow to their national pride from the decline in the of the Chinese economy measured in PPP dollars is now as international standing of the United States. step up to the plate and large as the US economy. Will China emerge as the global Second, a New International Normal is emerging, and change the governance of hegemon in 2060 if it succeeds in catching up to the US PRESIDENT’S MESSAGE ASEAN has to act collectively to help shape the ongoing Globalisation was seen as the process that brought many standard of living by that time? The answer is no. If India PRESIDENT’S MESSAGE drastic reconfiguration of the international security and of these ills to American shores and also as the process that the international economy maintains its present pace of economic catch-up, its economy economic architecture to a more benign form. For example, strengthened many of America’s enemies. The deepening in 2060 will be at least as big as China’s. In 2060, the standard de-globalisation is occurring because “globalisation” has and widening of US interaction with China were perceived for the better, to prevent of living in India might still be lower than in China, but the become a pejorative word to a large segment of the world’s to be responsible for a significant part of the United States’ Indian population will be significantly larger, making India’s population. As international trade and inward foreign direct problems. After all, even the ever-reasonable Ben Bernanke, deglobalisation. GDP as large as China’s. investment have been the fundamental forces behind the former chairman of the US Federal Reserve, had identified Malaysian economic miracle since the founding of Penang surplus savings from China as one of the key factors in the In brief, the world from this point would no longer have in 1786, de-globalisation is a threat to the national security meltdown of US financial markets in 2008. Finally, China a monopoly economic power that could act as the global and national prosperity of Malaysia. All other Southeast was also seen as the quiet ally of the overly-aggresive hegemon. A multipolar world is the New International Asian countries are similarly threatened unless the emerging North Korean regime and of the highly antagonistic Iranian In the face of the US withdrawal from global roles, major Normal: China–United States–European Union in 2017 and New International Normal is forced on to a new trajectory. theocracy, both of which constantly threaten the destruction countries in the G20, including China, should step up to India–China–United States–European Union in 2060. From Enlightened self-interest should unite ASEAN on this task. of US allies. the plate and change the governance of the international the lens of the hegemonic stability thesis, this is a terrible economy for the better, to prevent deglobalisation. We must development because a leaderless world is prone to adopting US President, Donald Trump, has stayed true to many of keep in mind the conclusion of Charles Kindleberger in his self-defeating protectionism. The world is now facing the his key campaign