The 38 the ASEAN-Japan Business Meeting
Summary of Proceedings and Conclusions
1.

Introduction
The 38th ASEAN-Japan Business Meeting (AJBM) on the theme “Global Challenges andthe ASEAN-Japan Response” was held in Kuala Lumpur, Malaysia. The Pre-Conference
Steering Committee Meeting was held on 22 October 2012 and the Post-Conference
Steering Committee Meeting was held on 24 October 2012.
The 38th AJBM was attended by 37 delegates from Japan representing Keizai Doyukai
and 87 delegates from ASEAN participated in the Conference.
Keizai Doyukai hosted a dinner on 22 October 2012 and the AJBM Malaysia NationalCommittee hosted the dinner on 23 October 2012.

2.

Opening Ceremony
2.1 Tan Sri Azman Hashim, the Co-Chair of the 38th AJBM, welcomed all delegates toMalaysia and expressed his hope that the AJBM platform be used to address thebusiness concerns to improve the business environment for a greater flow of tradeand investment between ASEAN and Japan.
2.2

Mr Yasuchika Hasegawa, the Chairman of Keizai Doyukai, expressed deep
appreciation for the warm support and encouragement the Japanese people havereceived from ASEAN over the last year since the Great East Japan earthquake.
In the wake of global slowdown, he said, there was the need to address current andfuture issues affecting Japan-ASEAN relations. He also touched on Japan’s rapidlychanging social demographics, such as the aging population and declining birthrate. He noted that the sense of urgency seen in the ASEAN member countries andASEAN as a whole, the future prospects are looking good for renewed efforts on
the relations between Japan and ASEAN. With Asia becoming the focus on theglobal economic scenario, the position of ASEAN and Japan within this context
needs to be addressed.

2.3

The Japanese Ambassador to Malaysia, H.E. Shigeru Nakamura, delivered theCongratulatory Message from the Prime Minister of Japan.
The Prime Minister, in his message, referred to the setting-up of the MalaysiaJapan International Institute of Technology (MJIIT), which represents theculmination of the Look East Policy. The MJIIT is to become a centre ofexcellence in the ASEAN region for Japanese engineering education.
The Prime Minister also expressed that Japan’s experience in the handling ofdisasters and natural calamities will be shared internationally towards humansecurity and sustainable growth. The common challenges facing Japan andASEAN are to be taken up by a common and concerted effort invoking the spirit ofKizuna (bond of friendship) in the region.

2.4

The Conference was officiated by the Deputy Prime Minister of Malaysia, the1

Honorable Tan Sri Muhyiddin Haji Mohd Yassin.
In his address, the Deputy Prime Minister alluded to the importance of theASEAN-Japan relations and the signing of the ASEAN-Japan Comprehensive
Economic Partnership Agreement (AJCEP). He recalled the fact that as the thenMinister of International Trade & Industry, he signed the Agreement for Malaysia.
He emphasized on the understanding reached between ASEAN and Japan whereby
a 10-year Strategic Economic Co-operation Roadmap to re-energize ASEAN-Japaneconomic relations had been agreed upon. The Roadmap needs to be implemented
vigorously.
3.

Session 1
3.1 The session comprised of two parts. In Part 1, H.E. Ong Keng Yong, the former
ASEAN Secretary-General and currently the Singapore High Commissioner toMalaysia, spoke on the current developments in ASEAN including the ASEAN
Economic Community targeted for 2015. He outlined the rationale and the steadyintegration initiatives taken up by ASEAN as a regional body despite the variationsin economic growth and problems faced by member countries. The U.S. downturnand the Eurozone problems are the current challenges and their impact is alreadyfelt in Asia and among ASEAN countries.
H.E. Ong Keng Yong highlighted that there will be challenges posed to ASEAN by
the three T’s that is, Trade, Technology and Talent and as a result, it is essentialthat all parties in ASEAN have the “connectivity”, both within ASEAN andbetween ASEAN and its dialogue partners, including Japan.
This session was chaired by Tan Sri Azman Hashim, Co-Chair of the 38th AJBM.
3.2

In Part 2 of this first Session, a special focus on the responses of ASEAN-Japan tothe global crisis was envisaged. The Chairman of this Session was Datuk Seri
Mohamed Iqbal, the Secretary-General of Malaysia-Japan Economic Association(MAJECA).

a) Mr. Haruya Uehara, Senior Advisor, Mitsubishi UFJ Trust & Banking Corporation,spoke on the Japanese experiences since the Great Japan Earthquake and the Thaifloods. He pointed out that the recent anti-Japanese demonstrations in China also
have caused great concern to Japanese businesses and reminded many Japanese
corporations of excessive dependence on China. As a result, Japan is looking at
ASEAN with renewed interest and number of companies would pursue “China +One” strategy to diversify their assets and investment to countries and regions otherthan China. Mr. Uehara, who sees such trend as good opportunity to further
strengthen the economic collaboration between ASEAN-Japan, expressed his
expectation to ASEAN countries in the area of further enhancement ofinfrastructure, such as qualified labor, improved transportation and so forth.
b) Mr Lee Yoong Yoong, Research Associate, Institute of Policy Studies, Lee Kuan
Yew School of Public Policy, Singapore, traced the various trade groupings andagreements that are now in force in the region. While the bilateral free trade2

agreements are specific between two countries, the regional and sub-regionalagreements are broader and aim to promote trade and investments across theASEAN region and beyond, including the Trans-Pacific Partnership (TPP). The
overlapping of many of these initiatives and agreements pose challenges. It isimportant, he observed, to work on the ASEAN-Japan Comprehensive EconomicPartnership Agreement as a platform to further ensure the relationship between
ASEAN and Japan. The ASEAN-Japan 10-Year Strategic Plan is consideredanother milestone in this direction.
c) Dr. Thanong Bidaya, Chairman, Thai Tap Water Supply PLC, in his presentation,
outlined Japan’s contributions to the development of the member countries ofASEAN, especially the founder nations and the first ASEAN six. Even in theCLMV countries, the role of Japan is significant, he observed. He also recalled thetimely role played by Japan during the Asian financial crisis.
With changes in the global economy, and also in the context of Japan’s own
domestic challenges, he said that time is now ripe for an integrated ASEAN rolevis-à-vis Japan.
He alluded to the fact that Thailand is a beneficiary and that Cambodia, Laos andMyanmar, bordering Thailand need greater attention from Japan. The
opportunities are huge in these less developed economies of ASEAN. Therefore,
he called on AJBM to influence initiatives by ASEAN companies in joint ventureswith Japanese corporations.
d) Mr Eusebio Valdez Tan, Chairman, Philippines-Japan Economic Cooperation
Committee, Inc, presented his views on the future of ASEAN as an integrated
economic community. The ASEAN vision 2020 and the Bali Concorde 2, he said,provided the basis for such integration. The realization of a single market and thedevelopment of production bases in ASEAN have become real possibilities withthe global problems, the disasters in Japan, and the protests in China. Towards
achieving these goals, the need for further harmonization of trade issues and liftingof barriers to commerce and trade are more imperative now than before.
4.

Luncheon Address
The Hon. Dato' Mukhriz Tun Mahathir, Deputy Minister of International Trade andIndustry Malaysia, delivered a luncheon address on the theme “Global Challenges: JapanASEAN Response”.
The Deputy Minister was introduced by Datuk Seri Mohamed Iqbal, who said that theDeputy Minister studied in the Sophia University in Tokyo, and was one of the pioneers
to study in Japan when the Look East Policy was first introduced.
Dato’ Mukhriz said that the distinguishing feature of ASEAN-Japan relations continues
to be the deep and extensive economic and commercial ties. He said that Japan was
ASEAN’s second largest investor, contributing 17% of total FDI inflows in 2010 and that
this amount increased by 30% in 2011 to reach USD15.3 billion. On the trading front, hesaid, Japan is ASEAN’s second largest trading partner after China and that Japan is also
ASEAN’s largest export destination.
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He made four observations to strengthen further trade and investment relations between
ASEAN and Japan.
First, ASEAN countries must step up efforts to implement the ASEAN Economic
Community Blueprint to realize the AEC by 2015.
Second, as ASEAN moves fast to form AEC, a parallel and simultaneous effort must also
be mounted to strengthen and deepen ASEAN-Japan economic ties.
Third, ASEAN and Japan should conclude the ASEAN-Japan Investment Agreement andthe ASEAN-Japan Services Agreement as early as possible.
Fourth, strengthen economic integration within East Asia itself in line with the ASEAN
Free Trade Agreements with China, Japan and Korea on the one hand, and with India,
Australia and New Zealand on the other hand. This will pave the way for the Regional
Comprehensive Economic Partnership (RCEP).
5.

Session 2
5.1 This Session on ASEAN-Japan Business Collaboration was a new feature in thisyear’s AJBM. The objective was to highlight successful ventures and businesslinkages between ASEAN and Japanese corporations. The Session was chaired byMr Shazali Sulaiman, Partner, KPMG (Brunei).
5.2

There were five panelists and their presentations are summarized as follows:a) Mr Akihiko Kaji, President, KK Meguro Gajoen, described how wedding relatedbusinesses have been growing as an industry in Japan, and then expanding to Asiancountries. With this example of his own business, Mr. Kaji indicated potentials theJapanese service sector would have in ASEAN markets.
b) Dr Mary Wong, Chief Executive Officer, Malaysia Healthcare Travel Council(MHTC), gave a presentation on the growing healthcare tourism and how Malaysia
is positioning itself within the region, as is Singapore and Thailand.
c) Mr. Takeshi Hibiya, Audit & Supervisory Board Member, Fuji Xerox Co., Ltd,
presented that Fuji Xerox has been conducting business locally in the ASEAN
region, and putting great effort in human resources development under theirphilosophy. He also emphasized the importance for companies to take a “Balance”of being “Strong (economy)”, “Kind (Society)” and “Interesting (Humanity)”.
d) Mr JJ Samuel Alday Soriano, Chairman, Soriano Projects & Ventures Group(SPV) of Philippines, traced his own involvement with Japan as a student, and hisinvolvement in the youth training programme in a ship sponsored byJapan.
He outlined the success of Philippines in attracting FDIs, via special economic andtrade zones.
e) Mr. Motoaki Nishii, Executive Managing Director, Ajinomoto Co. (Thailand) Ltd.
traced the origin of Ajinomoto in Japan and how the production base expanded toASEAN and beyond to the rest of the world. Of particular importance was thelocation of a regional headquarters in Thailand, where production is done for global
market including the EU and the Middle East, for which halal certification isessential.
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6.

Closing Ceremony
6.1 At the Closing Ceremony, Tan Sri Azman Hashim of Malaysia and MrEizo
Kobayashi, Co-Chairman, AJBM Japan, made their respective closing remarks.
Also, during this session, H.E. Mr. Kimihiro Ishikane, Ambassador of Japan toASEAN, made some observations.
a) Tan Sri Azman HashimTan Sri Azman Hashim said that the Malaysian Steering Committee tried its best toorganize the 38th AJBM. The changes made to the format of the meeting had
produced very good results as both topics and presentations as well as ensuing
discussions were of a high standard and of value to delegates.
He also stated that the AJBM this year was officiated by the Deputy Prime Ministerof Malaysia and this was truly a recognition of the importance of the role of AJBM.
The presence of the Deputy Minister of International Trade & Industry also added
value to the Conference.
He thanked Mr Hasegawa, Chairman of Keizai Doyukai and Mr Kobayashi, CoChair of AJBM, for their presence, guidance and support. He thanked all Steering
Committee members from ASEAN countries.
b) H.E. Kimihiro Ishikane
Ambassador of Japan to ASEAN, H.E. Mr. Kimihiro Ishikane appreciated thegrowing resilience in ASEAN countries against exogenous shocks. He also pointed
out key agenda for ASEAN for the future such as its role for stability and security
in the region, improved connectivity within the region, and strengthened resilienceand preparedness for potential risks their cross border effects. His Excellency
expressed commitment of the Japanese governemnt to developing stronger ties
among people in ASEAN and Jaapn toward commemoration of the 40th
anniversary of ASEAN-Japan relations in 2013.
c) Mr. Eizo Kobayashi
Mr Kobayashi said that he was very pleased to see that Malaysia had made very
good arrangements for the 38thAJBM and that Keizai Doyukai had brought 37
delegates to the meeting.
He said that Keizai Doyukai works out to improve the contents of this meeting
continuously, under the support from all the participants of AJBM in order to makethe objective of AJBM more focused and beneficial for every participant. Afterreviewing the discussion at the sessions, Mr. Kobayashi thanked Tan Sri Azman
Hashim and the Malaysian Steering Committee, members from ASEAN countries
as well as honorable guests and speakers for their support and contribution.
Mr Kobayashi, on behalf of Keizai Doyukai, informed the meeting that the next
AJBM will be held in Tokyo, Japan in 2013.

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