INVESTMENT



99. The Fifth ASEAN Summit recognised the importance of investment for sustaining the momentum of ASEAN economic growth and industrial development. The Summit declared that "ASEAN shall work towards establishing an ASEAN investment region which will help enhance the area's attractiveness and competitiveness for promoting direct investment". Concomitantly, the Leaders called for increased cooperation among the ASEAN Member Countries to enhance the ability of the region to attract greater and sustainable levels of FDI.

100. In line with this, the Summit endorsed an ASEAN Plan of Action on Cooperation and Promotion of Foreign Direct Investment and Intra-ASEAN Investment. The Plan of Action would function as an initial set of measures among other investment proposals, aimed at realising the vision of making ASEAN a major investment region by facilitating greater direct investment. A work programme geared to making this a reality, spanning 1996-1998 has been developed and adopted by the Member Countries. The programme covers 31 investment projects and programmes, some of which are currently being implemented.

101. In view of the heightened ASEAN cooperation in the area of investment, the Heads of ASEAN Investment Agencies met twice within a period of eight months. The first of these was held from 27 - 28 November 1995 in Bangkok. The second meeting was held from 4-5 July 1996 in Shah Alam, Malaysia. The Heads agreed that they would have to meet more frequently to further strnegthen their cooperation and to facilitate the promotion of investment in the region in a concerted manner.

102. During the year under review, the Working Group on Investment Cooperation and Promotion (WGICP) met four times. These efforts have borne heartening results. Various regional investment projects and programmes have been developed and adopted for implementation. Among the major activities of the WGICP was the updating of the 1987 ASEAN Agreement on the Promotion and Protection of Investments to reflect the current global, regional, and unilateral investment development. The features, elements, measures and approaches to realising the ASEAN Investment Area expeditiously are also being developed. Joint investment promotion events and regional publications on investment opportunities and developments were just two examples of several efforts aimed at raising awareness of the developments unfolding in this area.

103. The Experts Seminar on the Promotion of Foreign Direct Investment in the Context of the ASEAN Investment Area, was held in Bangkok from 23 - 24 May 1996. Organised by the ASEAN Secretariat, the seminar was part of a strategy to develop effective measures to promote ASEAN as a top investment region. In addition, a comprehensive policy survey entitled ASEAN Survey on the Promotion of Foreign Direct Investment into and within ASEAN is near completion. Both the seminar and the survey are expected to yield findings that will provide meaningful recommendations that will hasten the realisation of AIA and promote ASEAN as a highly competitive FDI destination.