ERIA and AsiaGlobal Fellows Discuss the New Economic Order

Jakarta, 23 September 2024: ERIA, in collaboration with the AsiaGlobal Fellows Program of the Asia Global Institute, hosted a discussion on the New Economic Order in Jakarta on 23 September 2024. The event began with an insightful introduction from Prof. Kwok Chuen, Director of the AsiaGlobal Fellows Program, who emphasised the significance of understanding the shifting economic dynamics within Asia. He also highlighted the role of collaborative efforts in navigating these changes. His remarks set the stage for a robust dialogue amongst participants from diverse backgrounds, including academics, policymakers, and industry leaders.

Following Prof. Kwok, Dr Lili Yan Ing, Senior Economist at ERIA, provided an overview of the current economic landscape, identifying the challenges countries face in adapting to an evolving global environment. She underscored the necessity for strategic reforms and innovative policies to foster sustainable growth, particularly in areas such as GDP purchasing power parity (PPP), trade in goods, manufacturing value-added, and foreign direct investment. Her insights were instrumental in framing the discussion for the subsequent Q&A sessions.

The discussion addressed pressing questions regarding economic strategies in Southeast Asia. Chinmay Tumbe, Associate Professor at the Indian Institute of Management Ahmedabad, raised the ongoing debate in Indonesia regarding the prioritisation of manufacturing versus services. In response, Dr Ing noted that manufacturing is preferred for its potential to offer better wages and drive innovation, recommending a focus on this sector before Indonesia transitions to higher value-added services.

The conversation then shifted to digital transformation in Southeast Asia. Magdalena giewska, Assistant Professor at the University of Gdask, enquired about the region's digital growth. Dr Ing explained that Southeast Asia's digital economy is expanding rapidly, with projections reaching US$1 trillion by 2030. While the current emphasis is on trade, ERIA is actively supporting broader digital initiatives across various sectors. Agita Pasaribu, Founder and Executive Director of Bullyid App, voiced concerns about the uneven progress of artificial intelligence (AI) in the region, with countries like Singapore and Malaysia leading the charge. Dr Ing called for a comprehensive legal framework to support AI development, while addressing issues of cybersecurity and data privacy.

Participants also explored Southeast Asia's position in the Indo-Pacific vs. Asia-Pacific debate. Kanica Rakhra, an Assistant Professor at Kautilya School of Public Policy, highlighted the region's preference for maintaining a neutral stance and balanced relations with major powers. Dr Ing confirmed that Southeast Asia is actively engaged in both the Indo-Pacific Economic Framework and the Regional Comprehensive Economic Partnership with China, reflecting the region's commitment to constructive partnerships.

In conclusion, the session shed light on critical economic issues and opened opportunities for collaboration amongst participants. Representatives from various countries expressed interest in working together on research projects, policy development, and knowledge sharing. As the event concluded, AsiaGlobal Fellows were encouraged to continue the conversation and explore practical ways to collaborate, underscoring the importance of collective efforts in shaping the future of the new economic order.