AEC to narrow development gap among Asean nations

KUALA LUMPUR: The Asean Economic Community (AEC) is expected to spur economic growth and enhance the well-being of the people, as well as reduce the development gap among nations in the region.

International Trade and Industry Minister Datuk Seri Mustapa Mohamed said that the formation of AEC by year-end will also increase the per capita income of Asean members.

"On the latest AEC development, I can bravely say that Asean had recorded a lot of successes, and among them the highest growth rate globally at an average 5.1%, with per capita income of all members improving to US$4,000.

"All levels of the community in the various sectors of the economy are also expected to feel the benefits offered by the Asean region," he added.

Mustapa said this in reply to a question from Senator Datuk Yoo Wei How in the Dewan Negara here today. Yoo had asked about the progress of the AEC and its benefits it will bring to the people .

The minister said Asean was also Malaysia's largest trading partner, accounting for RM389bil or 27% of the country's total global trade.

"Malaysia's exports to the Asean market in 2014 increased by 5.8% to RM213.58 billion. Countries as Thailand, Indonesia and the Philippines have begun to invest in Malaysia and see the country as an important market," he added.

According to Mustapa, small and medium enterprises will also benefit from the Asean integration.

"SMEs are an important component. If they are not touched or impacted, a policy is deemed to have failed," he said.

He said Asean was also strengthening relations with its trading partners through various free trade agreements as well as economic cooperation with China, Japan, South Korea, India, Australia and New Zealand. - Bernama