NEAT Working Group on"East Asian Cooperation on Enhancing Inclusive, Resilientand Sustainable Connectivity beyond COVID-19"
Final ReportTokyo
5th November 2020

1. Working GroupThe objective of this Working Group (WG) is to explore the possibilities of East Asian
cooperation on enhancing inclusive, resilient and sustainable connectivity. Noting thatconnectivity has wide implications, such as physical, institutional and people-to-people, theWG will focus on (1) effectively implementing and extending the “Master Plan on ASEAN
Connectivity 2025 (MPAC 2025),” 1 (2) promoting further economic institution building
through Regional Comprehensive Economic Partnership (RCEP), Comprehensive andProgressive Agreement for Trans-Pacific Partnership (CPTPP, or TPP11) and other frameworks
that support “ASEAN Economic Community Blueprint 2025,” 2 and (3) strengthening
people-to-people connectivity through economic activity in the maritime and other domains,such as supporting the recovery of business persons’ cross-border movement, international
tourism and economic activity that involves people-to-people contact in the APT region.
2. Background
In East Asia, ASEAN-centered, multi-layered regional frameworks, including APT, the East
Asia Summit (EAS) and others, have been the driving force of regional integration andcooperation in various functional areas, such as trade and economy, finance, education, energy,
the environment, disaster management, and health. Importantly, ASEAN has led the regional
integration and cooperation efforts by establishing the ASEAN Economic Community (AEC),
adopting “AEC Blueprint 2025” and “MPAC 2025”, and launching free trade agreement (FTA)
processes such as ASEAN+1 FTAs and RCEP. Through these endeavors, East Asia has
experienced rapid economic growth and development and formed supply chains within theregion and beyond, which has helped deepen regional economic interdependence.
East Asian countries, however, have been severely hit politically and economically by theescalation of US-China trade, technology and security conflict since 2018 and by the
COVID-19 pandemic in 2020 which has limited economic activities both regionally andglobally. As noted in the “Joint Statement of the Special ASEAN Plus Three Summit on
1 https://asean.org/storage/2016/09/Master-Plan-on-ASEAN-Connectivity-20251.pdf
2 https://www.asean.org/storage/2016/03/AECBP_2025r_FINAL.pdf

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Coronavirus Disease 2019 (COVID-19),” adopted in April 2020, 3 the region needs tostrengthen joint efforts toward post-pandemic recovery, stimulate economic development andfinancial resilience, restore growth, connectivity and tourism, maintain market stability, andprevent potential risks of economic recession.
At the APT Summit held on 4 November 2019, the leaders reaffirmed regional connectivity
enhancement by adopting the “ASEAN Plus Three Leaders’ Statement on Connecting theConnectivities Initiative,” 4 which noted the AOIP's principles of openness, transparency,
inclusiveness and ASEAN centrality and characterized the AOIP's approach as putting“connecting the connectivities” as a priority area of cooperation. In the trade and investmentarea, the “Joint Leaders Statement of the 4th RCEP Summit,”5 held in November 2020, said that
15 RCEP participating countries signed the RCEP Agreement. It also noted that “the signing of
the RCEP Agreement demonstrates our strong commitment to supporting economic recovery,
inclusive development, job creation and strengthening regional supply chains as well as our
support for an open, inclusive, rules-based trade and investment arrangement. We acknowledge
that the RCEP Agreement is critical for our region’s response to the COVID-19 pandemic andwill play an important role in building the region’s resilience through inclusive and sustainable
post-pandemic economic recovery process.” However, India was not in a position to sign theagreement, and the 15 countries decided that “the RCEP Agreement is open for accession by
India from the date of entry into force.” To implement RCEP smoothly, the private sector role isessential and trade facilitation and supply chain connectivity need to be improved in the region.
Thus, it is time for the APT member countries to consider how it can support APT’s and
ASEAN’s efforts at “connecting the connectivities,” through enhanced cooperation on physical,
institutional and people-to-people connectivity, eyeing the COVID-19 pandemic and beyond.
3

https://asean.org/storage/2020/04/Final-Joint-Statement-of-the-Special-APT-Summit-on-COVID19.pdf
4https://www.mofa.go.jp/files/000534506.pdf

5https://asean.org/storage/2020/11/RCEP-Summit-4-Joint-Leaders-Statement-Min-Dec-on-India.
pdf

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3. Agenda
What can APT members do to support APT itself and ASEAN in “connecting theconnectivities” in the post- pandemic era? Basically, they can support ASEAN in helping todeepen AEC, enhancing inclusive, resilient and sustainable connectivity, and broadening theareas of economic cooperation within APT.
NEAT Japan proposes three areas of focus for this purpose: enhancing physical,
institutional and people-to-people connectivity from economic perspectives. When tackling eachof these three areas, there is a need to consider two key issues: how the economic impact of
COVID-19 can be mitigated and a recovery from economic downturn can be accelerated; andhow the economic gap among the ASEAN countries can be reduced. To achieve a deeper AEC
through greater connectivity, the existing disparity between the advanced members of ASEAN
and the lagging members, i.e., CLMV (Cambodia, Laos, Myanmar and Vietnam) needs to be
reduced. The CLMV countries have much lower per capita incomes, less diversified industrial
structures, narrower fiscal and debt space, and more limited institutions and human resources
than advanced members of ASEAN and thus face the challenge of catching up with their moreadvanced peers if ASEAN wishes to pursue deeper economic integration in the form of AEC.
Each of the three areas to be examined requires sufficient attention to be paid to how much it
would contribute to the mitigation of, and a recovery from, economic downturn and the
reduction of the development gap for CLMV so that ASEAN can move toward a truly integrated
economic unity.
First, APT can focus on strengthening physical connectivity in the APT region in an
inclusive, resilient and sustainable manner. In addition to existing physical connectivity
initiatives via “MPAC 2025” and others, this WG will examine the ways to expand ASEAN’sconnectivity to the APT region while strengthening the current efforts of connectivity within
ASEAN and ASEAN+1 frameworks. In the era of COVID-19, inclusive and resilient digitalconnectivity is crucial for health, education and economic activity, and such efforts need to be
reinforced in the post-pandemic era. To help reduce economic disparities within ASEAN,
stronger support for GMS connectivity is particularly important. Better connectivity for GMS
will induce Myanmar to be more involved with other GMS countries and also promote CLMV’s
3economic development, thus helping deepen AEC and APT integration and cooperation.
The WG will discuss ways to implement “high quality infrastructure,” design public
private partnership (PPP) to mobilize project funding, and collaborate with the existing
frameworks such as the Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN
Growth Area (BIMP-EAGA) and the GMS.
Second, with the deepening of AEC and the importance of the abovementioned stronger
physical connectivity in mind, APT can promote institutional connectivity in the form of FTAs
and economic partnership agreements (EPAs) to lower barriers on trade and investment and set
higher-level trade and investment rules and support the supply chains of the 21st century. In East
Asia, various FTAs and EPAs, such as AFTA and ASEAN+1 FTAs, have been in effect. RCEP
which has been signed will be one of the world’s largest comprehensive economic partnershipsthat includes all APT members, Australia and New Zealand (with India encouraged to join), and
CPTPP (or TPP11), which is already effective and of higher level than RCEP with four ASEAN
countries, Japan, Australia and New Zealand as its members, aims to expand its membership.
The APT countries are urged to make joint efforts at maintaining free trade in medical
equipment, food and other essential products to cope with COVID-19 and promoting
post-pandemic recovery through greater trade and investment and more resilient supply chains.
The WG will examine the ways to deepen APT’s economic institutional connectivity, forexample by implementing RCEP and enlarging CPTPP to embrace more APT countries andbeyond. Also, the WG will explore a strategy to support CLMV development so that they can be
more closely integrated with the APT region.
Third, to help deepen AEC and East Asian economic integration, APT can explore how
people-to-people connectivity can be further promoted. There are many ways to enhancepeople-to-people connectivity from economic perspectives. One way is to support the recoveryof business persons’ cross-border movement and international tourism for the post-COVID era.
Another way is to foster economic activity that intensifies cross-border contact of people. One
such example is the development of the blue economy, which aims at sustainable economic
development through the utilization of marine resources and the protection of the existing
maritime environment. As the ocean is a rich source of foods, natural resources and energy
4supplies, the blue economy aims to develop related industries, such as fishery, culture, seafood
processing, transport and shipbuilding, maritime tourism, and renewable and non-renewableenergy, in a sustainable way. Creation of supply chains in the fishery product industry, maritime
tourism, etc. do encourage people-to-people interactions. Most maritime countries of APT
consider the development of the blue economy as a priority area and Lao PDR which is the only
land-locked country in APT faces the challenge of developing a blue-river economy out of the
Mekong River.
The WG explores how people-to-people connectivity can be enhanced in an inclusive,
resilient and sustainable way from economic perspectives. Examples include the promotion ofcross-border movement of business persons, international tourism and economic activity that
intensifies the cross-border exchanges of people in the APT region, particularly as a part ofstrategy for post-pandemic economic recovery, while paying adequate attention to its potential
for ASEAN’s less developed members.
4. Task of the Working Group
The task of the WG, as Track II apparatus, is to produce policy recommendations to help
deepen AEC—the symbol of ASEAN’s economic integration—and enhance APT connectivity
and economic cooperation, while narrowing ASEAN’s development gap and addressing thechallenges of mitigating the economic impact of COVID-19 and promoting post-pandemic
recovery. The objective of the policy recommendations is to encourage the APT member
countries to enhance inclusive, resilient and sustainable connectivity by building on the
on-going regional efforts.
5.

Discussions at the Working Group meeting
Twenty-three experts from APT member think tanks and the sponsoring organization, theJapan Forum on International Relations (JFIR), took part in a working group meeting online on
5 November 2020 and topics regarding “inclusive, resilient and sustainable connectivity beyond
COVID-19” were discussed. The titles of presentations made by the representatives were as
follows (in the order of presentation):51. Lye Liang FOOK (Singapore). “Promoting Connectivity as New Growth Area: A
Singapore Perspective.”
2. Rathanaksabath LY (Cambodia). “Current Status of Infrastructure Connectivity in
Cambodia.”
3. Shofwan Al Banna CHOIRUZZAD (Indonesia). “COVID-19 and Connectivity in East
Asia: Developing a More Sustainable and Inclusive Connectivity in Post-Pandemic East
Asia.”
4. NISHIZAWA Toshiro (Japan). "Enhancing Inclusive, Resilient and Sustainable
Connectivity."
5. Nuanvilay RATTANAKON (Lao PDR). “Regional Connectivity through theDevelopment of Land Transport Infrastructure: Implications, Challenges andRecommendations.”
6. Juita MOHAMAD (Malaysia). "Enhancing Inclusiveness in the Digital Economy Post
Pandemic."
7. Khin Ma Ma MYO (Myanmar) “Enhancing Inclusive, Resilient and Sustainable
Connectivity in East Asia: Myanmar's Cooperation in Regional Physical Connectivity.”
8. ISHIKAWA Koichi (Japan). “Promoting Institutional Connectivity in the form of FTAs
and EPAs.”
9. KIM Hyung Jong (Korea, Rep. of). “COIVD-19 and the ASEAN Plus Three: Human
Security and Connectivity.”
10. Nisit PANTHAMIT (Thailand). “APT: Boosting Trade and Investment Cooperation in
GMS.”
11. ZHA Daojiong (China). “Solidifying Humanity-driven Connectivity through APT
Framework.”
12. KOBAYASHI Masanori (Japan). “Fostering a Sustainable Blue Economy.”
13. Chu Minh THAO (Vietnam). “Context of COVID-19 Recovery.”
6. Policy Recommendations
Based on the discussions during the meeting on above topics, the Working Group on “EastAsian Cooperation on Enhancing Inclusive, Resilient and Sustainable Connectivity beyond
COVID-19” summarized the main policy recommendation as follows:
Strengthen APT cooperation for physical, institutional and people-to-people connectivity
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to not only overcome the negative socio-economic impacts of COVID-19 but also rebuild
the economy forward to a more resilient, sustainable and inclusive growth path from theperspective of enhancing human security
More detailed policy recommendations are as follows:
1. Increase the resilience of connectivity to economic, natural, health and other adversity froman integrated physical, institutional and social point of view. Address disparities within andacross countries to ensure that physical resilience of connectivity to various types ofadversity leads to social resilience and inclusiveness. Strengthen institutional resilience topromote the uninterrupted sharing of knowledge and information.
2. Strengthen APT cooperation to respond effectively to the COVID-19 pandemic and publichealth emergencies in line with the “Special ASEAN Plus Three Summit on Coronavirus
Disease 2019 (COVID-19).” More specifically, support ASEAN's initiatives on COVID-19
such as the ASEAN Comprehensive Recovery Framework and the COVID-19 ASEAN
Response Fund and initiate an East Asia cooperation framework for Infectious Disease
Control and Public Health to not only overcome COVID-19 but also prepare for future
pandemics including the establishment of early warning systems. Harmonize rules for theaccessibility and affordability of safe and effective vaccines approved by national
authorities and recognized by the international health community.
3. Enhance connectivity by investing in infrastructure with emphasis on quality, particularly
inclusiveness, resilience and sustainability, and in light of the nature of public services.
Maximize the positive economic, environmental, social and developmental impact by
pursuing quality infrastructure investment in line with the “G20 Principles for Quality
Infrastructure Investment” to ensure an efficient and effective allocation of a limited amountof financial resources in advancing the post-pandemic recovery going forward, as the
pandemic challenges may lead to a smaller size of infrastructure investment.
4. Promote institutional connectivity by deepening economic integration in East Asia throughfurther trade and investment liberalization and by strengthening the resilience andsustainability of supply chains to ensure the smooth movement of essential goods7

(particularly food, medical supplies and pharmaceuticals), services, capital, and people(particularly business persons and students) and information for a post-pandemic economic
recovery. Embark on air travel bubble arrangements within and beyond the APT region in asafe and controlled manner and harmonize rules for cross-border travel. Pursue minilateralapproaches to promote connectivity to complement or reinforce the principles ofglobalization and the multilateral trading order.
5. Enhance APT cooperation to further trade facilitation with a view to reducing trade cost andtime by accelerating the implementation of the existing initiatives. In addition, eliminate
NTMs, improve logistics services, harmonize standards and strengthen customs cooperation
to contribute to greater flows of goods and more resilient supply chain connectivity.
6. Accelerate the digitalization of trade-related procedures for customs clearance, as it is aneffective measure to prevent the spread of the pandemic by minimizing physical contact andto enhance competitiveness and efficiency by lessening transactions costs through speediercustoms clearance and release of goods. Adopt Digital Economy Agreements (DEAs)
between two or more economies in the APT region to establish enhanced digital trade rules
and standards, promote digital economy cooperation and complement the existing networkof free trade agreements and other digital cooperation initiatives. Fully implement andexpand the existing regional mechanisms such as ASEAN Single Window.
7. Provide capacity building support for customs officials of CLMV to narrow the logistic gap
and enable equitable development within ASEAN. Create Co-Special Economic Zones(C-SEZs) for the CLMV as a priority pilot project and embrace the CLMV in the global andregional supply chains through the linkage of the C-SEZs.
8. Reinforce sustainability as a guiding principle in fostering a blue economy (which includes
sustainable fisheries and onshore/offshore aquaculture, elimination of illegal, unreported
and unregulated [IUU] fishing, blue tourism, renewable energy development, low carbon
maritime transport, and marine plastic elimination) and supporting a blue recovery amid andbeyond COVID-19 in East Asia, as a sustainable blue economy that is also inclusive andresilient is one of the vehicles to support economic growth and enhance the well-being ofpeople in the region. Conserve ocean and marine resources and use ecosystems sustainably
8for all, including the present and future generations.
9. Build institutional networks of research institutes, universities and think tanks for East Asia
to promote a sustainable, resilient and inclusive socio-economy through innovation,
partnership, and multi-stakeholder involvement. Utilize such networks to identify ways toimprove the functions of the existing economic, social, environmental, health, and natural
disastermanagement

systems

andadvancehumanresource

development

andhuman-centered policy-making. Adopt cross-sectoral, trans-spatial, interdisciplinary, andscience-based approaches to overcome sectoral boundaries and focus on capacity building
support for less advanced ASEAN member countries such as CLMV.
[END]

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List of Participants
BruneiDk Nur Sajidah Rohana binti Pg Hj Roslan
Research Officer, Brunei Darussalam Institute of Policy & Strategic Studies
Dk Nur Qamarina binti Pg Luba
Research Officer, Brunei Darussalam Institute of Policy & Strategic Studies
Mohamed Nawawi Haji Bolhassan
Special Duties Officer Grade II, Brunei Darussalam Institute of Policy and Strategic Studies
Cambodia
LY Rathanaksabath
Bureau Chief, Ministry of Public Work and Transport
SAR Vathnak
Deputy Chief Officer of Regional Cooperation Office,International Cooperation Department, Ministry of Public Work and Transport
HOR Dolla
Bureau Chief, Ministry of Foreign Affair and International Cooperation
China
ZHA Daojiong
Professor of School of International Studies, Peking University
Indonesia
Shofwan Al Banna CHOIRUZZAD
Lecturer, International Relations Department, Universitas Indonesia
Japan[WG Members]*Director of the WG
KAWAI Masahiro*
Distinguished Research Fellow, JFIR /Representative Director, Economic Research Institute for Northeast Asia (ERINA)ISHIKAWA Koichi
Research Fellow of the Institute of Asian Studies, Asia University
KOBAYAHI Masanori
Senior Research Fellow, Ocean Policy Research Institute, Sasakawa Peace Foundation

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NISHIZAWA Toshiro
Professor, Graduate School of Public Policy (GraSPP), University of Tokyo[Japan Forum on International Relations (JFIR)]WATANABE Mayu
President, JFIRKIKUCHI Yona
Director and Senior Research Fellow, JFIR
TAKEDA Yuki
Research Fellow, JFIR
Korea
KIM Hyung Jong
Associate Professor, Yonsei University
Lao PDR
Nuanvilay RATTANAK
Deputy Director of Strategic and International Studies Division,
Institute of Foreign Affairs of Laos
Malaysia
Juita MOHAMAD
Fellow; Economics, Trade and Regional Integration (ETRI) Division, ISIS Malaysia
MyanmarKhin Ma Ma MYO
Professor, International Relations Department, Yangon University
Kyaw MYAINGCountry Coordinator, NEAT Myanmar
Philippines
Kris FRANCISCO
Research Fellow, Philippine Institute for Development Studies
Singapore
Lye Liang FOOK
Senior Fellow, ISEAS-Yusof Ishak Institute11Thailand
Nisit PANTHAMIT
Director, Center of ASEAN Studies, Chiang Mai University
Vietnam
Chu Minh THAO
Deputy Director, Center for Security and Development,
Institute for Foreign Policy and Strategic Studies, Diplomatic Academy of Vietnam
In Alphabetical Order of Country Name

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