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Bridging Borders Through Business OFFICIAL NEWSLETTER OF AIBC

Vol. 1 No . 1

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Ma rch, 2021

PCCI and CII spearhead Business Conference on India-Philippines Infrastructure Corporation

Soaring into greater heights, the Philippine Chamber of Commerce and Industry (PCCI) together with the Confederation of Indian Industry (CII) hosted the Business Conference on India-Philippines

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Quad summit indicates strong desire, but difficult to rope in ASEAN states

ASEAN Economic Ministers and ASEAN BAC to Push for Effective Regional Health Response as Prerequisite to Solid Economic Recovery

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ASEAN economic ministers propose common digital vaccine certificate, says Azmin

KUALA LUMPUR (March 3): The Association of Southeast Asian Nations (ASEAN) economic ministers has proposed a common digital vaccine certificate to speed up the reopening

Business Conference on India – Philippines Infrastructure Cooperation” Infrastructure Corporation that was held on February 18, 2021 via zoom gathering with the outmost support given by the Embassy of India in Manila and the Embassy of the Philippines in New Delhi, India.

The program was attended by the distinguished gentlemen which includes the Asean India Business Council that was represented by Jhonny Chottrani who stood as one of the pillars of this frienship.Through the perseverance and dedication of the council, India has broaden its connection to the ASEAN countries that has formed a great bond between the Philippines and India. The program started with welcome remarks from Mr. Sachin Bhanushali, Co-Chairman, CII National Committee on Railways and Director & CEO, Gateway Rail Freight Ltd and Amb. Benedicto Y. Yujuico President, PCCI followed by Ambassador of Philippines to India, H.E Ramon Bagatsing Jr. and H.E Shambu S. Kumaran Ambassador of India to Philippines.

The economic development of two countries has grown rapidly in these modern years. The aim of the conference is to build a stronger relations together with the Indian government and encourage the Indian companies to actively participate in the “Build, Build, Build Program” (BBB Program) of the Duterte Administration to explore greater heights and strengthen infrastructure cooperation between both countries who envision on giving comfort and opportunities for economic sustainability.

Philippines may have been one of the most visited paces in the world aside from the beaches and also the unique infrastructures that’s been built over the centuries during colonial periods.

With its panoramic and picturesque landmarks, Philippines bagged awards as one of the most attractive destinations in the world. Tourism may have been one of the contributory factors for economic development but it didn’t hold the progress of the whole country alone. So after several years of desertion, President Rodrigo

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Roa Duterte intiated the Build! Build! Build! (BBB) Program. This was formally launched in 2016 in order to expand and create new horizons for the country’s economic development, as well as, to usher the “Golden age of Infrastructure in the Philippines”.

This program seeks to hasten infrastructure spendings, as well as, develop industries that will yield robust growth, create jobs that could mend the lives of the Filipinos. The budget allocated for this ambitious program is amounting to 7.74 trillion pesos which is equivalent to 160 billion USD from 2016 to 2022. The program will concentrate on the major identified projects under BBB Program such as railway sectors, ports, seaports, airports, terminals, and other projects like minors repairs, as well.

With the words coming from the DTI Secretary, Hon.Ramon A. Lopez, India has been considered as one of the strongest trade partners of the Philippines. Before reaching its full potential, Philippines has to continue building its landmarks globally like the rest of the world.

The construction may be heavily affected by the economic challenges brought by the pandemic but signs of recovery have been spotted which sprung hope to the business partners and investors to start planting seeds again, he added.

As the program continued, opportunities for Indian investors were also discussed in the “Build, Build, Build Program” which was presented

by Mr. Renato S. Simbulan, International Affairs & Chairman, Philippine Chamber Development Institute. The meeting resulted to the six leading Indian companies together with their leaders who expresses their interests and showed their full support to the BBB Program by showcasing their global potentials and capabilities when it comes to infrastucture development.

These are: GMR Airports Singapore P Ltd. which was presented by the CEO himself, Mr. Vivek Singhal; L&T (Larsen and Turbo) for warship construction and maritime vessels presented by Mr. KS Nathan; IRCON

who showcased their experties in railways presented by Parag Verma, Chief General Manager; Shapoorji Pallonji for engineering and construction presented by Mr. Vineet Shankdher, Addl. General Manager-Emerging Markets, Business Centre, Shapoorj& Pallonji; Adani for Ports and logistics which was presented by Mr. Sandeep Mehta, Head-Ports & Logistics, Promoter Office, Adani Ports & SEZ Ltd. Lastly, RITES for railways sectors and aiports that was presented by Mr. Alok Gard, Executive Director of the company.

“This is the beginning of the new era for the two countries”, H.E Shambu S Kumaran said.

He believed that despite the rapid growth led by these two leaders, the interactions they made with the Philippines has showed them the way to build a healthier relationship when it comes to trade and ivestments. Kumaran also deckared that it is important to consider the 3A’s and these are: Awareness; Ability and Access. With this 3A’s we can all achieve a brighter and healthier economy. He also expressed his gratefulness that six of their leading infrastructure companies are now partnering with the Philppines.

Before the program ended, DOTr Secretary Arthur Tugade expressed his excitement and joy for conducting this business conference. Tugade added that common and beneficial interest and respecting each other’s sovereignity especially in the fields of ports and ship building, railways,, airport development construction will yield fruits in the future. By working together, this strong relationship serves as the key in building block on implementing a lasting parternship that will lead to the progress and development of two countries. At the same time, maintaining each other’s sovereignty signifies a new era for two developing countries’ partnership. As President Duterte said, “Make the filipino lives convenient and comfortable”- through the BBB program. The DOTr, together with the multi national investors and business alliance will work hand in hand to bring progress and hope to the Filipino people.

Digital vaccine certificate... Cont. of hardest-hit sectors such as tourism, Senior Minister cum International Trade and Industry Minister Datuk Seri Mohamed Azmin Ali said.

However, he said there was no specific timeline set when the common digital vaccine certificate would be introduced, as the matter would be brought up to the health ministers level meeting.

“This is a new proposal, I was informed (about it) by Brunei as chairman.

“There is no timeline imposed on this particular proposal, but I believe if it can be finalised in the near future, it will definitely help facilitate movements among ASEAN members,” he said after the 27th ASEAN Economic Ministers Retreat here Wednesday.

Mohamad Azmin said during the meeting, the ASEAN Economic Ministers also discussed the progress of the ASEAN Comprehensive Recovery Framework implementation as the region’s recovery tool.

He said the ministers pledged to work intensively to explore all avenues to deepen and

Another Title Please Place Right Here Australian Prime Minister Scott Morrison on Friday said US President Joe Biden will join him, and the leaders of Japan and India, in a first-ever “Quad” bloc virtual summit, the Hill reported on the same day.

This demonstrates the Biden administration will intensify collaboration with other members under the Quad framework. Even since days before taking office, Biden has repeatedly said the US would return to multilateralism in his presidency. Rebuilding cooperation and coordination with allies and partners will be an important part of such return. In the Asia-Pacific region, apart from strengthening alliances with countries such as Japan, South Korea, the Philippines and Australia, the US’ other leverage is the Quad.

In the past, the highest level of Quad meetings was among foreign ministers of the four countries. This time, the bloc is going to hold a meeting among the top leaders of the four countries, including President Biden. This shows the US has attached great importance to the mechanism.

The first-ever Quad summit among four top leaders is anticipated to talk about nothing more than intensifying members’ cooperation in politics, the economy, military and security, jointly dealing with the uncertainties within the region, and drawing up a coordinated China policy and strategy. Washington’s aim is to maintain its dominance in the region, while the other three want to prevent China’s rise from affecting their interests.

essential products.

broaden regional integration in various areas of mutual interest that would contribute to the sustainability of livelihoods, as well as regional economic resilience in ASEAN and beyond.

The retreat also looked into the expansion of the list of essential goods under the memorandum of understanding on the implementation of non-tariff measures on essential goods under the Hanoi Plan of Action on Strengthening ASEAN Economic Cooperation and Supply Chain Connectivity in Response to the Covid-19 Pandemic that was signed in November 2020.

“With regard to the proposed number of products being considered for the expanded list, I suggested that we should be realistic on the quantum as the current number is a little too ambitious.

“The ministers also concurred on the need to further deepen ASEAN’s participation in global value chains (GVCs) to boost intra-ASEAN trade and investment which would enable greater businesses and job opportunities, especially for ASEAN to build back regional resilience during this global reordering,” he said.

Being a major disruptor, Mohamad Azmin said the pandemic has also brought to light existing gaps in the GVCs resulting from unexpected extreme fluctuations in demand and supply of Morrison also said, “The Quad is very central to the United States and our [Australia’s] thinking about the region, and looking at the Indo-Pacific also through the prism of our ASEAN partners and their vision of the Indo-Pacific,” cited by Bloomberg.

Australia takes Quad as central first because the country follows the US due to its ideological differences with China, and keeps a high level of vigilance regarding China’s rise. Second, Australia hopes to boost its strategic status in the AsiaPacific region and intends to play a bigger role in regional affairs. Despite close economic exchanges between China and Australia, the latter has tied itself to the US’ anti-China chariot.

Canberra wants to exploit Washington’s antiChina efforts to impair China’s regional influence.

On the possibility of getting India to reconsider joining the Regional Comprehensive Economic Partnership (RCEP), Malaysia as the country coordinator for ASEAN-India economic relations would first discuss the ASEAN-India Trade in Goods Agreement (AITIGA) Review.

“AITIGA has been implemented for 10 years and it is time for us to review some provisions.

We are waiting for feedback from India, and once received, we will initiate a committee to review AITIGA. “At the same time, I believe we will be able to persuade India to revisit and review the decision not to join RCEP taken last year,” Mohamad Azmin said.

On another note, he said Singapore has assured Malaysia that the suspension of the Reciprocal Green Lane (RGL) between both countries, which is causing much difficulty for businesses on both sides of the border, is temporary.

He said his Singapore counterpart, Chan Chun Sing, said the RGL arrangement will resume once the Covid-19 situation improves, and the republic’s vaccination programme would also include Malaysians who are residing and working there.

especially in economy, and the two countries are also involved in island disputes, Japan has regarded China as a threat. Counterbalancing the rise of China has become part of Japan’s China policy. Resting on its alliance with the US, Japan also hopes to woo in more forces to contain China.

India seems to have deviated from its traditional non-alignment policy. During Prime Minister Narendra Modi’s second term, India’s economy is not doing well, and its domestic contradictions have seen a rising trend. As its border disputes with China have not been settled, anti-China voices in India still remain a force. The Modi administration intends to divert attention from its domestic contradictions by underlining China’s threat.

It cannot rule out the possibilities that Quad members including the US and Australia will further rope in ASEAN members to counter China as Southeast Asia is of great significance to the US’ Indo-Pacific Strategy.

Against this backdrop, India and Japan are both likely to collaborate with the US under the Quad framework. Even if the four members’ interests are not exactly identical, the desire to counter China will tie them together.

Yet ASEAN will not easily take sides. ASEAN members have frequent exchanges with China in terms of economy. The two sides have launched the ASEAN-China Free Trade Area since 2010, in which Southeast Asian countries have received a wide range of benefits. China has become vital to Southeast Asian countries. But on the other hand, these countries hope the US can balance China in terms of security in the face of a rising China.

The international community is suspecting whether the Quad will expand into an “Asian NATO.” This is unlikely. The current scenario differs from that in the Cold War. China and the US will unlikely engage in an all-out cold war.

When compared with the Cold War era, economic and people-to-people exchanges are markedly boosted. Due to globalization, China’s relations and interests have been intertwined with other countries, including the members of the Quad.

Canberra’s national strengths and regional influence are limited. It also has friction with Indonesia. In this context, Australia will not be able to make a big splash in the region. Besides the US, attention should be paid to Japan and India.

As China has been far ahead of Japan,

Actually, whether an “Asian NATO” can be established also depends on China’s relations with the four members of the bloc as well as other neighboring countries. China unswervingly pursues a foreign policy of peace and puts forward and practices a neighborhood policy featuring amity. This will to a large extent

Bridging BordersThrough Business

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Bridging Borders Through Business

ASEAN Economic Ministers and ASEAN BAC to Push for Effective Regional Health Response as Prerequisite to Solid Economic Recovery

ASEAN INDIA BUSINESS COUNCIL

Economic Ministers the AEM BAC - ASEAN Business ASEANASEAN Economic Ministers andatASEAN to Push for Advisory EffectiveCouncil Regional nd on 2 to March 2021 at the 27th AEM Retreat.

Health ResponseConsultation as Prerequisite Solid Economic Recovery The AEM commended the ASEAN BAC AEM agreed to task the concerned ASEAN Bodies O n 2nd March 2021, the ASEAN Economic 2021 Chairmanship’s theme “Recover. Stronger. to closely consult and engage with ASEAN BAC for Ministers held its consultation with the ASEAN Together. Sama-Sama” as presented by Chair The this purpose.

Business Advisory Council during its 27th AEM nd 2 conferencing.

March 2021, Economic Ministers Honorable Yanty Rahman.

The theme isheld highly its consultation with the ASEAN RetreatOn via video The AEMthe was ASEAN inspiringits and27th most relevant most trying time Other ASEAN BAC LegacyThe Projects: Continuing spearheaded by the Brunei Chair, The Honorable Business Advisory Council during AEMat this Retreat via video conferencing.

AEM of having to save lives and livelihoods. Translating to Enhance Connectivity and Empower MSMEs Dato Seri Setia Dr Awang Haji Mohd Amin Liew the theme into action, Chair Yanty presented Abdullah, expressed his full support towards on her chairmanship’s legacy project entitled The AEM conveyed its appreciation on the ASEAN BAC. ASEAN as a region needs to succeed Harnessing Impact with Resilient Employability status given by ASEAN BAC on continuing with its health response to the COVID-19 pandemic Digitally (H.I.R.E.D), which aims to put together Legacy Projects: Digital Startups Towards ASEAN in order for the ASEAN Economic Recovery an ecosystem that will address the skills and Resilience and Sustainability (Vietnam), Digital Framework and consequent Action Plan to be knowledge gaps in ASEAN. The acceleration of Trade Connect (Thailand), SmartGrowth Connect successfully accomplished. digital transformation under the new normality (Singapore), ASEAN Mentorship for Entrepreneurs has given ASEAN an advantage to provide more Network (AMEN), Laos Logistics Link (Laos). The The AEM are in accordance with the key precise skills for its workforce in preparation of AEM encouraged the Council to pursue and sustain recommendations for ASEAN to leverage on its post-pandemic recovery with strong support and the projects which impacts on enhancing people collective strength to go for joint purchase and cooperation from the private business sector. In and business connectivity especially the MSMEs to access to the vaccines which will be funded by response, the AEM has given its commitment to ensure inclusive and resilient growth for ASEAN. the ASEAN Pandemic Recovery Fund. This is to provide strong support and collaboration to the ensure equitable and swift distribution of the H.I.R.E.D. legacy project.

Other Challenges vaccines across member states. This will instill trust and confidence in the movement of goods, Trade Facilitation Front: More Effective Action The AEM conveyed its appreciation to Myanmar services and, above all, natural persons across the on NTMs and NTBs ASEAN BAC for the update on the current status of region. Over and above the immediate access to the business environment in Myanmar. The AEM vaccines, the harmonization of testing and contact ASEAN BAC emphasized its full support to the was pleased to hear of the opinion and sentiment tracing standards and also, removing barriers Brunei Chairmanship’s first of ten priority economic presented by Myanmar that private business for easier access to pharmaceutical and medical deliverables (or PEDs) of streamlining assessment would like to ensure that all international and devices should be put in place in the soonest of NTMs and NTBs which continue to proliferate domestic contracts and agreements will continue possible time. These measures will help revive in number and complexity that stymies growth to be honored, among others, and that normalcy most affected sectors such as travel, tourism and of intra-ASEAN trade. The AEM concurred with be restored and implementation of economic hospitality the ASEAN BAC’s recommendations of ensuring recovery plans be in effect soonest. ASEAN BAC private sector consultation and inputs in the in return was appreciative of the response from The AEM determined to endorse the ASEAN launch of the NTM Toolkit, setting up of the NTM the Myanmar Union Minister for Investment Senior Official Meetings and the ASEAN Independent Panel of Experts. In addition, the and Foreign Economic Relations His Excellency, Coordinating Council Working Group on Public AEM also agreed to increase the annual target of Aung Naing Oo, who assured that the current Health Emergencies to engage and process ASEAN number of actual cases processed and resolved administration is a short-term arrangement where BAC’s health response recommendations. by the Coordinating Committee on ATIGA for 2021 business and reforms will continue to operate and and to initiate, through the ASEAN Secretariat, be pursued until elections can be held shortly.

Capacitating the ASEAN Workforce and the consultations on NTMs and NTBs in the Agri Creating Jobs through H.I.R.E.D. Legacy Project Food, Automotive and Healthcare Sectors. The

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