Japan-ASEAN Relations in the New Era
Toward the Realization of a Sustainable Society
through Cooperation and Co-creation

June 15, 2021

KEIDANREN1. Foreword
Association of Southeast Asian Nations (ASEAN)• Consists of 10 member countries: Brunei, Cambodia, Indonesia, Laos,Malaysia, Myanmar, the Philippines, Singapore, Thailand, Vietnam• Aims at regional economic growth and socio-cultural development sinceinception in 1967ŁKeywords defining ASEAN

ASEAN’s diversity
Languages, racial mix, culture, climate, political systems, etc., vary by memberstates
ASEAN centrality
Securing ASEAN’s presence and interests in relations with non-ASEAN countries
Economic growth in member states and ASEAN community(Each Member state)

Steady growth in primary, secondary, and tertiary industries under national policies
Stepped-up moves to incorporate industrial digitization, nurturing of startups, and otherpolicies in growth strategies in recent years(ASEAN community)
Promotion of physical and institutional connectivity in the region, e.g. abolition oftariffs and infrastructure building
Conclusion of EPAs with non-ASEAN countries based on ASEAN centrality⇒ASEAN has great potential as the world’s growth center

It is important for Japan to strengthen cooperation with ASEAN andstrive for mutual development

12. History of Relation-Building between Japan and ASEAN States
Japan-ASEAN Relations:• Geographical proximity• Building multi-tiered relations: bilateral, regional, with ASEAN• Building partnerships and cooperative relationships by government andprivate sector for development and prosperity through social infrastructure
construction, conclusion of FTAs, etc.
Since mid-1980sPresent• Vigorous business expansion tapping
ASEAN countries’ rich labor force,
diligent people, potential for market
expansion, steady progress ininfrastructure building, and otheradvantages• Expansion of trade and investment(Manufacturing industries)• Pivotal position as core of overseas
production bases• Extensive global supply chains assource of international competitiveness(Non-manufacturing industries)• Support for manufacturing industries
through logistics, financial, insurance,and other services• Addressing expanding consumption
needs and domestic demand

Japanese companies in ASEAN grow with ASEAN countries while
playing a major role in job creation and human resources development⇒Japan and ASEAN are inseparable partners bound by strong ties2

3. Importance of Japan-ASEAN Relations in Changing Global Environment
Historical Turning Point:• Global issues more pronounced under COVID pandemic, worsening climatechange issues due to global warming, etc.
• Use of digital technology brings greater convenience, but reveals
unexpected social risks• Many countries take protectionist measures, seriously destabilizing
international economic order

Generation and implementation of new ideas under multilateral
cooperation are necessary for realizing sustainable societyWith this in mind, Keidanren issued “.The NEW Growth Strategy”
for building sustainable society in November 2020

⇒Japan and ASEAN must continue to drive world economy andresolve social issues as key players in Asian region⇒It is increasingly important for Japanese business sector tostrengthen cooperation with ASEAN to co-create new values
toward the realization of a sustainable society and work
together to open up a new era3

4. Japan-ASEAN Cooperation and Co-creation in New Era
Japan-ASEAN realization of dynamic growth and resolution of social issues:<Cooperation> Continue trade and investment in infrastructure and diverseindustrial sectors, and undertake human resources development, technology
transfer, etc. taking into consideration of diversity and needs of each country<Co-creation> Respond to climate change and other issues common to Japanand ASEAN<Opening up new growth areas> Startup cooperation through DX promotion torealize Society 5.0
Five Actions toward realizing sustainable ASEAN society

Dynamic Growth(1) Building hard and soft social
infrastructure for greater
connectivity(a) Promote quality infrastructure building
Build roads, bridges, ports, airports,
electric power facilities, and otherquality infrastructure for greater
connectivity
Build digitized trade platform(b) Improve institutional infrastructure
Improve institutional infrastructure
through early RCEP effectuation andbetter business environment(c) Fortify global supply chains

Resolution of Social Issues(2) Realization of sustainable growth(a) Respond to climate change issues
Disseminate decarbonization technologies
such as energy conservation, renewableenergy, and others in ASEAN
Provide support through sustainable finance(b) Build society with low ecological footprint
Share technology and knowhow for dealing
with marine plastic waste and other issues(c) Work on disaster prevention and reduction
Share Japan’s hard/soft knowledge andexperience(d) Promote cooperation in medical andhealthcare services(3) Using digital technology (4) HR development (5) Personal exchanges

45. Conclusion—Deepening “Heart-to-Heart Relationship”
 The heart-to-heart relationship, or people-to-people ties
between Japan and ASEAN countries, nurtured by our precursors
over the years, will be asset that serves as basis for partnershipand cooperative relations.
 Keidanren has engaged in policy dialogues with governments andeconomic organizations of ASEAN countries by sending missions,holding joint conferences, etc.
We setup and administer scholarships for talents of the nextgeneration and will continue and strengthen such activities.
 Japan and ASEAN will cooperate and co-create to generate new values.
Keidanren will engage in policy dialogues with the governments
and relevant organizations of ASEAN toward theimplementation of this proposal.
We will advance vigorously toward the realization of asustainable society.
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Keidanren will engage in dialogue with ASEAN countries and promotecooperation and co-creation, focusing on the following areas:
1. Building hard and soft social
infrastructure for greater connectivity(1) Building hard infrastructure Roll out quality infrastructure (build highgrade roads, bridges, railroads, ports,airports, electric power falicilities etc.)
 Continue to develop and operateindustrial parks to serve as core ofregional industries
 Build infrastructure secured against cyberattacks
 Cooperate in building comfortable cities
that tackle traffic congestion and otherurban issues(2) Building soft infrastructure Work for early effectuation of RCEP,
positive application of the agreement, andIndia’s membership Capacity building for greateradministrative efficiency and streamlining Improve business environment, including
streamlining central and local government
administrative procedures
 Facilitate trade procedures with digitaltrade platforms
 Use technology to improve logistics
efficiency

2. Realization of sustainable growth(1) Realizing green growth Deploy Japanese companies’ technology andknowhow in ASEAN countries
 Cooperate toward realization of carbon-freesociety, including during the transition period(2) Building society with low ecologicalfootprint Continue corporate activities contributing totackling marine plastic waste issue, preventing
soil and water pollution, forest conservation, etc.

(3) Working on disaster prevention andreduction

 Share knowledge and experience in disaster
response in both hard and soft aspects
 Support personnel training of disaster prevention
 Set up and promote financing, insurance, andother financial systems to support speedy postdisaster reconstruction(4) Cooperation in medical and healthcare
services Enhance personnel development in medical andnursing care service Build IT-based healthcare and medical service
infrastructure using life course data, AI,
telemedicine, etc.

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3. Using digital technology to open up newgrowth areas and realize Society 5.0(1) Cooperation with startups

4. Human resources development(2) Realizing smart society

5. Promotion of personal exchanges(1) Promotion of tourism, etc.

 Create opportunities for Japan-ASEAN startup
collaboration
 Support building an innovation ecosystem
linking Japan and ASEAN

 Cooperate for early effective deployment of 5Gand Beyond 5G as foundation of smart society
and build key telecommunication networks
including submarine cables, etc.
 Participate in realization of smart cities throughdeployment of ICT platforms
 Implement contactless solutions for “withcorona” and “post-corona” eras using biometricauthentication and other technologies
 Japan-ASEAN collaboration in international
standardization
 Support cybersecurity personnel training Support deployment of system infrastructure
based on “security by design”(3) Cooperation and participation inrulemaking

 Nurture human assets not limited toacquiring skills
 Expand cooperation and student exchange
programs between Japanese and ASEAN
universities

 Revitalize local communities throughattraction of tourists
 Promote traditional culture, food and cuisine,
pop culture, etc.

(2) Keidanren’s initiatives—holding
policy dialogues

 Create and conduct activities under
Subcommittee on ASEAN Economic
Relations, in cooperation with Committee on
Asia and Oceania
 Send missions to ASEAN states to holdpolicy dialogues
 Exchange views with ASEAN states’
embassies in Tokyo Cooperate in making international rules basedon principle of data free flow with trust
 Make rules in response to changes in society
due to advances in digitization, e.g. in personal
information protection

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