Asean Is an Attractive Business Destination: Kim

REPLAY VIDEO
Your next video will start in
Pause

Recommended Videos

  • Info

  • Comments

  • VIDEO TEXT

Aug. 25 (Bloomberg) –- In an exclusive interview, Proctor & Gamble Asean Vice President and General Manager Sam Kim discusses how small and medium sized Asean businesses can be more competitive and which Asian countries offer the best bets with Angie Lau on Bloomberg Television’s “First Up.” (Source: Bloomberg)

Proctor and gamble.

Sam joins us exclusively from singapore.

Sam, as those economic ministers meet in myanmar this week, part of the agenda is going to be how cooperation is going to build the wealth of asean nations.

Talk about what challenges still lie ahead.

Good morning.

The asean economic community focuses on equity, economic development for all.

Small and medium enterprises make up over 90% of all commercial enterprises.

It is imperative that we work for the sme's to be successful.

In order to do that, we have to work against barriers such as eliminating trade registration complexities, regulatory standardization.

We need better access to financing as well as some breakthroughs in technology.

Are some countries better at it than others?

Give me an example of a bright spot in asean.

Certainly there are challenges in different contexts given the diversity of economic development across countries from singapore all the way to myanmar, one of the later entrants.

But we share a similar problem.

Particularly the area of trade regulations.

For instance, when a company registers a product in one country for goods and services, that doesn't necessarily mean it is harmonized across all countries.

Therefore, they have to go around registering their products in every single country, which creates an economic barrier for growth.

Also, free trade is a huge issue here with the trade barriers knocked down.

Recently, we have heard from another report that in fact, despite those free-trade pacts in place, it is this lack of understanding and fear and intimidation.

How did policymakers help their manufacturers as well?

Talk about that support.

Well, in fact, despite the fact that the intra-asean trade has gotten to be $50 million, there are a lot of levels at which our autonomous were recognized.

That is one of the reasons why u.s. companies such as p&g, hp, ups and others have decided to work on creating a forum to help those sme's cover these complexities.

As i mentioned, regulatory complexities and so forth.

The challenges are that we need to bring capabilities and knowledge transfer so they can do a much better job understanding how to go about thriving in this new economy.

Give us a macro sense of it.

With the challenges in place right now, if they were all removed, how big could the asean cooperation be for all the economies in that region?

As you know, asean is already the second fastest growing economy in asia with over $2.4 trillion.

Certainly, the economic development is in many different places across 10 nations.

I can't put a specific number to it but there is a huge potential.

The asean economic ministers and participants recognize the potential and the vision of making it come true.

Particularly for the sme's which are the backbone of asean.

Given that the economy has grown over 300% since 2001, if all divisions can come true, the growth rate will continue and continue to thrive.

It is an paradigm that sme's continue to be the backbone of our economy and grow with us.

Ok, so policymakers need to take note of that and help with the effort there.

Also, financing is a challenge.

But also, access to technology seems to be one of the big obstacles as well.

Right.

In fact, we have been working very closely with the asean secretary and all the member states to bring more knowledge and experience from around the world, particularly from the u.s., to show them the importance of free data flow across borders.

Understanding how they can leverage technology to run their business in multiple countries as well as understanding how we can turn this into a clear, single market.

In that regard, it is great that we have partners such as microsoft, hp, google and others from the u.s. working with us in this goal of creating small and

This text has been automatically generated. It may not be 100% accurate.

Advertisement

BTV Channel Finder

Channel_finder_loader

ZIP is required for U.S. locations

Bloomberg Television in   change