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Move to Consumption: Asian Style

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Move to Consumption: Asian Style Boao Forum for Asia Energy, Resources and Sustainable Development Conference BFA Research & Training Institute 10th June, 2015 “One Belt and One Road” & Asian Energy/Resources Cooperation Welcome Dinner Moderator Ms. TIAN Wei, Anchor, CCTV Speaker H.E. Tun Abdullah bin Haji Ahmad BADAWI, Former Prime Minister of Malaysia H.E. Dato’ Sri Mustapa MOHAMED, Minister of International Trade and Industry, Malaysia Mr. ZHOU Wenzhong, Secretary General, Boao Forum for Asia Key Points The Silk Road Economic Belt and the 21st Century Maritime Silk Road Initiatives are expected to benefit the lives of 4.4 billion people in more than 65 countries A joint mechanism for various types of energy cooperation can include the development of cross-border power supply networks; power transmission routes; and regional power grid upgrading and transformation. Regional Comprehensive Economic Partnership (RCEP) that is currently being negotiated among ASEAN, China and several other major economies, coupled with the One Belt and One Road Initiative, will strengthen the relationship between ASEAN and China. Boao Forum has identified energy/resources and financial cooperation as two key areas for future partnership. To operationalise this, two think tanks are to be established to address challenges faced in those aspects. 1 Synopsis Welcome Remarks by H.E. Tun Abdullah bin Ahmad BADAWI H.E. Tun Badawi remarked that Asia’s growth and development is challenged by the effects of urbanisation, public health, climate change and environmental degradation. Hence, it is imperative to urgently address these issues in a holistic manner. H.E Mr. Badawi underscored that in the age of climate change, countries need to upgrade their economic model to a “new normal” that values sustainability and social justice. In light of the ongoing shift of the economic patterns and drive of China’s economic progress of a “new normal”, Mr. Badawi pointed out that China’s adoption of a new model of sustainable development can be set as best practices to achieve a balance between environment and economic sustainability. This refers to China being the world’s largest investor in clean and renewable energy. He is confident that China will outdo the European Union (EU) to become the world’s largest investor in harnessing clean and renewable energy. With the joint development of economic belt that is centred on “One Belt and One Road”, H,E Mr. Badawi believes that it will serve as the solid foundation for collaboration on energy and resources amongst Asian countries. A collaboration mechanism is thus needed to be put in place. Within the context of ASEAN, H.E. Mr. Badawi further inquire on the possible implications that “One Belt and One Road” might have on ASEAN infrastructure; and how these initiatives will impact ASEAN as a single market. The Hon. Dato’s Sri Mustapa Mohamed Addressing the event, Dato Sri Mustapha remarked the annually held Boao Forum for Asia as a highly reputable global forum for meetings of mind. The salience of this event that takes place at the time Malaysia hosts the ASEAN chairmanship this year was also mentioned by him. As made evident by the present China-ASEAN bilateral trade that has increased five-fold from USD 78 million in 2003 to USD 444 bilion in 2013, Dato Mustapha remarked that China is now ASEAN’s largest trading partner and ASEAN is China’s third largest trading partner. Malaysia alone has bilateral trade with China more than US100 billion, making it third country in Asia, after Japan and South Korea. Having regard to the agreement between the Malaysia Prime Minister Najib Abdul Razak and the Chinese President Xi Jinping to upgrade ties to a comprehensive strategic bilateral partnership, Dato Sri Mustapha mentioned that Malaysia and China have set an ambitious bilateral trade target of US160 billion to be achieved by year 2017. The economic interdependence between ASEAN and China has continued to be strengthened since the signing of the Framework Agreement on Comprehensive Economic Co-operation 2002. This agreement has contributed significantly in boosting trade and investment ties of both sides, 2 namely in transport, agriculture, technology, energy, telecommunications, SME, Halal Development and connectivity. Dato Sri Mustapa underscored the effectiveness of ACFTA as a mechanism of partnership has proven to accelerate regional integration; and hence promoting and stimulating economic growth between ASEAN and China. He envisions that the Regional Comprehensive Economic Partnership (RCEP) that is currently being negotiated among ASEAN, China and several other major economies, coupled with the One Belt and One Road Initiative, will strengthen the relationship between ASEAN and China. He went on to explain the critical role China has played in making significant progress towards the realisation of the free trade of the Asia Pacific. China, which hosted APEC last year, took the initiative to propose for the establishment of the FTAAP, in collaboration with the APEC Business Advisory Council (ABAC). In regard to the existing partnership between Malaysia and China, Dato Seri Mustapa pointed out that both countries have established two sister industrial parks; referring to the Malaysia-China Kuantan Industrial Park (MCPIK) that is located in Kuantan and the Malaysia-China Qinzhou Industrial Park (CMQIP) in Qinzhou. He envisions more partnership between the Chinese and Malaysian entrepreneurs in this aspect. Investors are encouraged to consider the business opportunities these two parks are offering. Launching of the Expert Committee by H.E. Zhou Wenzhong H.E. Zhou Wenzhong thanked Tun Badawi, Minister Mustapha, organising partners and all delegated for attending the welcome dinner. H.E. Zhou mentioned that the Boao Forum has identified energy/resources and financial cooperation as two key areas for future partnership. To operationalise this, two think tanks are to be established to address challenges faced in those aspects. He went on to inaugurate the launching of one of the think tanks known as the BFA Expert Committee of Energy, Resources and Sustainable Development. According to H.E. Zhou, the functions of the think tank are to analyse global energy and resources landscape; identify key challenges; explore innovative Asian solutions and to translate Asian solutions into actions. This expert committee will comprise of best minds represented by the government, industries and academia. In his view, the experts committee are authoritative and representative to address issues with quick solutions. 3 .
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