Thanks to AEC, ASEAN recovers from financial turmoil faster

ASEAN has been able to recover from the financial turmoil at a faster pace than other countries and regions, thanks to the continuous inflow of investments coupled with its resilient growth rate, Prime Minister Datuk Seri Najib Razak said.

He said the formation of the single market under the ASEAN Economic Community (AEC) has been instrumental in ensuring this stability, allowing regional economies to diversify and attract greater amounts of foreign direct investments (FDIs).

"This is reflected in the fact that since the adoption of the Economic Community (EC) seven years ago, FDI inflows have increased significantly – from US$85 billion in 2007 to US$136 billion in 2014," he said Thursday in a written response to questions posed by Bernama on the 27th ASEAN Summit and Related Summit 2015 beginning Saturday.

With the exception of China and India, no other region has attracted such strong inflow of FDIs, said Najib, who is also Finance Minister.

"We must acknowledge that these are difficult times for the economies in ASEAN, but that is true also for economies around the world, which have all been impacted by a global slowdown in growth," he said.

However, he pointed out that if one compared ASEAN states with other major economies, the member states have performed relatively well and continued to enjoy stable growth.

Citing Malaysia, the country's economy is still expected to grow between 4.5 and 5.5 percent over the full year, added Najib.