Inside APEC

1. Inside APEC ASIA PACIFIC ECONOMIC COOPERATION Presented by N. VASUDEVAN SENIOR DIRECTOR ASIA PACIFIC ECONOMIC COOPERATION (APEC) MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY

2. Contents Introducing APEC APEC Key Initiatives APEC and the Business Community 2010 APEC Work Programmes Benefits to Malaysia Meetings and Activities in 2010 APEC Division MITI

3. Introducing APEC

4. (21) APEC Member Economies APEC Official Observers • Association of South East Asian Nations (ASEAN) Secretariat • Pacific Economic Cooperation Council (PECC) • Pacific Islands Forum (PIF)

5. Economic Profile Area; Population; GDP (current prices); GDP per capita Source: Economic Fact Sheets, http://www.dfat.gov.au/geo/fs Exports and Imports Source: The APEC Region Trade and Investment 2008

6. Economic Profile : Con’d

7. Trade and Investment In APEC • APEC is a home for 40% of world population (2.68 billion people), 56% of world GDP and 44% of global trade. • Malaysia’s total trade with APEC economies increased by 119.3% from US$104.7 billion in 1989 to US$229.6 billion in 2009. In 2009, APEC accounted for: • - 76.7% of Malaysia’s total trade; • - 75.8% of Malaysia’s total exports; and • - 77.8% of Malaysia’s total imports. • In 2009, APEC economies accounted for 45.4% (US$5.6 billion) of approved FDI in manufacturing sector in Malaysia. Major APEC investors in Malaysia were Australia, USA, Japan, Singapore, Chinese Taipei and Republic of Korea.

8. Scope of Work • APEC is guided by the Bogor Goals (1994) to achieve trade and investment liberalisation in the Asia Pacific by 2010 for developed economies and 2020 for developing economies. Work is premised on 3 pillars: • Trade and Investment Liberalisation; • Business Facilitation; and • Economic and Technical Cooperation. • Decisions and initiatives are based on • voluntary, consensus and non-binding principle.

9. How APEC Operates • Work programmes are guided by decisions taken by Leaders and Ministers. • APEC Leaders and Ministers meet annually. • In addition, Sectoral Ministerial Meetings such as Trade, Finance, SME, Transport, Health, Education, Tourism, Energy, Telecommunication, Mining and Women Affairs are held annually or biannually.

10. How APEC Operates • APEC Senior Officials implement decisions taken by Leaders and Ministers through four core committees: • Committee on Trade and Investment (CTI); • Steering Committee on Economic and Technical Cooperation (SCE); • Economic Committee (EC); and • Budget and Management Committee (BMC). • These four committees are led by MITI and the respective sub-committees and expert groups are led by relevant ministries and agencies.

11. How APEC Operates

12. SOM Special Task Groups (5): • Anti Corruption Task Force (ACTF); • Counter Terrorism Task Force (CTTF); • Gender Focal Point Network (GFPN); • Mining Taskforce; and • Task Force on Emergency Preparedness (TFEP).

13. Working Groups(11) • Agriculture Technical Cooperation; • Fisheries; • Energy; • Human resources Development; • Industrial Science and Technology; • Marine Resources Conservation; • Small & Medium Enterprise; • Telecommunication and Information; • Tourism; • Health;and • Transportation.

14. APEC Host Economies Vladivostok Honolulu

15. APEC KEY INITIATIVES

16. APEC Key Initiatives • Regional Economic Integration (CTI) • Strengthen REI by taking a comprehensive approach to work on trade liberalisation “at the border”, improving the business environment “behind the border” and enhancing supply chain connectivity “across the border”. • Trade Facilitation Action Plan to reduce trade transaction cost by 5% (2008-2010) involving Customs Procedures, Standards and Conformance, Business Mobility and Electronic Commerce. • Investment Facilitation Action Plan to improve transparency, predictability and facilitate investments in the region.

17. APEC Key Initiatives • Explore possible pathways to realise the Free Trade Area of the Asia Pacific (FTAAP). • Initiatives such as Supply-Chain Connectivity, Environmental Goods and Services, Rules of Origins, Services, Intellectual Property Rights (IPR), APEC Business Travel Card and Digital Connectivity are designed to create opportunities and improve the business environment in the region.

18. APEC Key Initiatives • II. Structural Reform Agenda (EC) • Structural Reform initiatives to improve competitiveness and create the enabling environment for businesses. • Addressing “behind-the-border” constraints through Structural Reform Agenda focusing on 5 priority areas: • Regulatory reform; • Competition policy; • Public sector governance; • Corporate governance; and • Strengthening economic legal infrastructure.

19. APEC Key Initiatives • III. Human Security (CTTF) • Addresses food security through safe food supply chain, sustainable agricultural production and rural development. • Build regional capacity for avian and other potential human influenza pandemics and emerging and re-emerging infectious diseases. • Undertake work in other areas such as trade security, aviation security, anti-terrorist protection of energy infrastructure, countering terrorism financing, fighting cyber-terrorism, and protecting the food supply against terrorist contamination.

20. APEC & THE BUSINESS COMMUNITY

21. APEC & the Business Community • Industry Dialogues • Industry reps. and APEC officials collaborate to facilitate mutual understanding on policy imperatives and ways to improve the business environment. APEC Industry Dialogues include the Chemical Dialogue and the Automotive Dialogue. • APEC Business Advisory Council (ABAC) • Comprises up to 3 senior business people from each economy. • Makes recommendations to APEC Leaders in an annual dialogue and advises APEC officials on business sector priorities and concerns. • CEO Summit • Brings together APEC Leaders, Ministers and leading business figures from around the region.

22. 2010 APEC WORK PROGRAMMES

23. 2010 APEC Work Programmes • Explore possible pathways towards FTAAP. • Implementation of Investment Facilitation Action Plan (IFAP). • Environmental Goods and Services (EGS) work programme. • Trade facilitation initiatives: • Supply-Chain Connectivity Framework; • Promoting Self-Certification of COOs; • Publication of tariffs and Rules of Origin (ROOs) through APEC Web links; and • Revisiting 2001 APEC principles on Trade Facilitation.

24. 2010 APEC’s Work Programmes • APEC Growth Strategy premises on Balanced, Inclusive, Sustainable , Secure and Innovation. • SME development. • Food Security and Safety. • Achieving an APEC-wide improvement of 25% in 5 key areas of doing business by 2015 and a 5% improvement by 2011 based on World Bank Ease of Doing Business indicators: • - Starting a Business; • - Getting Credit; • - Enforcing Contracts; • - Trading Across Borders; and • - Dealing with Permits.

25. ECOTECH Projects (2009) • A total of 70 ECOTECH  projects were implemented in 2009. • In 2009, Malaysia implemented the following ECOTECH activities: • APEC Conference on Community-Based Tourism, 15-17 April 2009 led by MOTOUR; • APEC Technology Entrepreneur Seminar, 4-5 June 2009, led by SME Corp ; • APEC Programmes on Experience Exchange Among Judicial Authorities And Prosecutors, 9-10 June 2009;

26. ECOTECH Projects (2009) Training Course on the Core Elements of International Investment Agreements in the APEC Region, 15-19 June 2009; Training Course on Electricity Meters, 10-13 August 2009; and Workshop on Peer Review of Quality Management Systems as the basis of CPIMMRA (The Global Mutual Recognition Arrangement on National Metrology Standards), 11 December 2009.

27. ECOTECH Projects (2010) • Form January to July 2010, Malaysia implemented the following ECOTECH activities: • 34th APEC Expert Group on New and Renewable Energy Technologies (EGNRET), 6th APEC Bio Fuels Task Force and Related Meetings, 26-30 April 2010 led by Ministry of Energy, Water and Green Technology; • 7th Annual Meeting of APEC Financial Institutions DealingwithSMEs, 15 July 2010; and • APEC Conference: SME Development and Financing at the Threshold of the Next Decade – Review, Re-Strategise and Revamp, 16 July 2010 led by Bank Negara Malaysia;

28. Proposed ECOTECH Projects (2010) APEC Self Certification of Origin (COO) Pathfinder Initiative using the Malaysia-New Zealand FTA as a pilot project. Establishing 2 APEC Digital Opportunity Centre (ADOC) in Malaysia to build capacity on ICT for targeted groups e.g. Women, Youth, rural community. Study on Key Success Factors and Effectiveness of Government Support Programme for SMEs in Malaysia, China, Chinese Taipei and Singapore. Undertake research on the Efficient Use of Human Capital for the Enhancement of Firm Productivity, Innovation and Competitiveness. To organise APEC Forum on Sharing Best Practices in the Export of Services.

29. ‘StatsAPEC’- APEC STATISTICS PORTAL ‘StatsAPEC’ is made up of 2 databases on 21 APEC economies: • ‘Key Indicators Database’ which includes more than 120 trade, financial and socio-economic indicators, allowing for detailed analysis of trends in the APEC region; and • ‘Bilateral Linkages Database’ which facilitates detailed analysis of trade and investment flows within APEC and between APEC and the world. It provides free access to an extensive database of APEC statistics for officials, researchers, businesses, students and the public at large. ‘StatsAPEC’ can be accessed at http://statistics.apec.org/ and all data can be exported to Microsoft Excel for further analysis. Alternatively, this website is also accessible via internet-able mobile phones.

30. APEC Business Travel Card (ABTC) ABTC 18 fully participating economies. 3 transitional members: US, Canada and Russia. Benefits Visa-free travel. Dedicated lane at key entry points for fast track immigration clearance. 70,000+ cardholders.

31. BENEFITS TO MALAYSIA

32. Benefits to Malaysia • APEC is a non-binding forum that provides a platform to discuss in a more freely and open manner on current and emerging regional and international issues. • APEC provides a platform for Leaders/Ministers of 21 economies to meet every year and strengthen networking. • Capacity building and ECOTECHprogrammes through sharing of experiences, success stories and best practices that has benefited economies.

33. Benefits to Malaysia • Collective efforts has helped to improve the business environment and enabled the region to remain attractive and competitive location for trade and investment. • Provides information about business-related issues and the business perspective on cooperation within APEC through ABAC. • Facilitates entry of business persons through ABTC.

34. MEETINGS and ACTIVITIES IN 2010

35. Meetings (2010) • APEC Leaders’ and Ministerial Meeting • APEC Economic Leaders’ Meeting (AELM); and • APEC Ministerial Meeting (AMM). • Sectoral Ministerial Meetings • Ministers Responsible for Trade (MRT); • SME Ministerial Meeting; • Finance Ministerial Meeting (FMM) • Growth Strategy High Level Policy Round Table Ministerial Meeting; • Energy Ministerial Meeting (EMM); • Human Resource Development Ministerial Meeting (HRMM);

36. Sectoral Ministerial Meetings (Continued) • Tourism Ministerial Meeting (TMM); • Agriculture Ministerial Meeting (AMM); • Ministerial Meeting on Food Security; • Oceans-Related Ministerial Meeting; and • Ministerial Meeting on Telecommunications • Information Industry. • (Senior Officials Meeting (SOM) • Meets 4 times in 2010: • - SOM I (Hiroshima); • - SOM II (Sapporo); • - SOM III (Sendai); and • - CSOM (Yokohama). • SOM Steering Committee on ECOTECH (SCE)

37. Ministers Responsible For Trade Meeting (MRT) • MRT held from 5-6 June 2010 in Sapporo, Japan. Malaysia represented by Y.B. Menteri MITI. Meeting discussed: • Assessment of Achievement of the Bogor Goals; • Conclusion of the Doha Round and Resisting Protectionism; • APEC Growth Strategy which aims to achieve economic growth that is balanced, inclusive, sustainable, innovative and secure; • Regional Economic Integration (REI); • Human Security ; and • APEC Reform.

38. APEC DIVISION MITI

40. Functions of APEC Division • National coordinator for APEC; • Promote Malaysia’s interests in APEC fora; • Coordinate and formulate Malaysia’s position in APEC initiatives; • Facilitate and liase Malaysia’s involvement under sectoral fora (e.g. SME, telecommunications, tourism, energy, life sciences, human resource and transportation); • Coordinateprivate sector’s involvement including ABAC in APEC activities; and • Organise and coordinate participation in ECOTECH projects.

41. THANK YOU