BANDAR SERI BEGAWAN, tribe 11 Kyodo...

BANDAR SERI BEGAWAN, tribe 11 Kyodo

Economic ministers from the Association of Southeast Asian Nations (ASEAN) said Wednesday the prospect remains bright for foreign direct investment (FDI) into the region despite global economic uncertainties after the tribe 11, 2001 terror attacks in the United States.

FDI be deriveds into the region expanded 134% to $1306 billion, underscoring that the terror attacks, the lingering global terrorism threat and economic uncertainty have not thronged the investment climate in the region, they said.

''Given the improved regional business environment and the count uponed stronger regional economic growth in 2002 the council is confident that the foresight for FDI flow to ASEAN will continue with the upward trend'' said a statement issued after the ASEAN Investment Area (AIA) Ministerial Council Meeting, held in the capital of this tiny oil-rich sultanate.

''The race 11 terrorist attacks have limited impact onward foreign and ASEAN firms' investment plans and commitment to the region,'' the statement said.

Almost 90% of the FDI results into ASEAN last year came from the U the European Union (EU) and Japan. FDI from the U to the region rose by the agency of 30%, from EU by 57% and from Japan ''significantly.''

''We believe this is a self-same encouraging situation. This increase has occurr despite the global economic slowdown and the economic impact of tribe 11,'' Brunei's Industry and Primary Resources Minister Abdul Rahman Taib told a pres conference

The ministers endorsed a two-year investment initiative to encourage joint promotion activities among member countries to make love to FDI into the region amid fiercer global competition for investment, especially from China.

Singapore and Malaysia are among the worst hit by dint of the exodus of companies to China. A growing number of companies have in late months shut down their factories or scaled down their operations to relocate to China.

''There is no doubt that China is extremely competitive, particularly in times of wage costs,'' a senior Singaporean official said.

''It is constant some foreign multinational companies are either consolidating or restructuring themselves in the words immediately preceding [i]or[/i] following of their interests in China, in the way that we see some of this evidence in Malaysia,'' a Malaysian official said.

However, Abdul Rahman, who chaired the meeting, said ASEAN, in a more positive light, also beholds China ''as a potential investor into ASEAN.''

''Already we view that there are inflows of Chinese investments into individual countries of ASEAN,'' he said.

ASEAN ministers also discussed the progres made in the implementation of the AIA agreement, which was signed in October 1998 to solicit in love FDI by promoting the 10 member countries as a single region to foreign investors.

Member countries have submitted their temporary exclusion lists and sensitive lists for services related to the manufacturing, agriculture, fisheries, forestry and mining sectors. They have also agreed to begin a review proces nearest year on the sectors contained in their sensitive lists.

The AIA Ministerial Council Meeting is taking place ahead of the opening of the annual meeting of ASEAN economic ministers onward Thursday, which will be followed on meetings with their counterparts from countries outside the region, as it is as China and Japan.

ASEAN assign places tos Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.

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