Firms see Asean as second base

       Leading companies operating both in Asean and outside the region have eyed the regional grouping as a second base for their investment next to their homeland, thanks to the area's strength not only in manufacturing but also service and investment.
       At an Asean Business Forum seminar titled "Doing Business in Asean", Toyota Motor Asia Pacific Engineering and Manufacturing president Mitsuhiro Sonoda said his company considered Asean as its second mother country and an export base for alternative-energy vehicles.
       "The region contributes more in developing Asean business and supports affiliated companies in other regions to ensure that Southeast Asia can be a great base for production, engineering and human-resources management to serve business growth," said Sonoda.
       He described Asean as a strong export base for alternative-energy vehicles and a new energy-supply base rich in resources and technology development. However, some barriers have hampered it from serving as a second investment centre for Toyota, including national schemes to promote the auto industry.
       Asean member states on their own may have limitations on the availability of capable second- and third-tier suppliers. To achieve real localisation, they must further develop suppliers' capabilities and set up a regional alternative-fuel policy, said Sonoda.
       Anon Sirisaengtaksin, chief executive officer of PTT Exploration and Production, said Asean would be a new emerging destination as the company's production base for serving business growth in the region. "As car factories or other service industries have expanded their business in the region, the firm must also comply with other industries in order to serve those businesses' growth," he said.
       Aloke Lohia, chairman of the executive committee of Indorama Polymers, said Asean's economic integration would make the region more attractive for foreign direct investment (FDI)
       "Business sectors are looking forward to integration as it will create greater opportunity for sustainable business growth," Lohia said.
       He said that to accomplish the goal of an Asean Economic Community (AEC), the region must have a mindset focused more on innovation and have strategic policies to draw more FDI into the region.
       William Heinecke, CEO of Minor International, said the region has high potential as a base for service and tourism businesses. With 580 million people, it is rich in natural resources and has high capability in service business development. But Heinecke said the lack of cooperation between agencies and the plethora of red tape had hindered movement toward the AEC, and that could affect Asean's FDI attractiveness.