High-Level Launch | 23 August 2018 | Bangkok, Thailand

PROMOTING A FAIR BUSINESS ENVIRONMENT IN ASEAN

Summary Report

TABLE OF CONTENTS

Opening and Introduction................................................................................................................................................1

Presentation of the Project ‘Promoting a Fair Business Environment in ASEAN’......................................2

Panel Session 1: Ease of Doing Business: How Can Governments, Private Sector and Civil Society

Join Forces?............................................................................................................................................................................4

Panel Session 2: Doing Business Responsibly to Achieve the Sustainable Development Goals:

How Can We Go Beyond Minimum Standards?......................................................................................................5

Closing Session: the Way Forward.................................................................................................................................6

Highlights..................................................................................................................................................................7

Social Media Activities...........................................................................................................................................................9

Annex: Agenda...................................................................................................................................................................11

Opening and Introduction

The launch of the regional Project on Promoting a Fair Business Environment in ASEAN attracted over 90 participants from government, private sector and civil society across ASEAN as well as development partners. Mr. Lewis Neal, Director for Economic Diplomacy, Foreign and Commonwealth Office and Ms. Valerie Cliff, Deputy Regional Director for Asia & the Pacific, UNDP provided opening remarks for the event. They both noted that ASEAN economy is very dynamic and fast-growing, the seventh largest worldwide. Despite this economic success inequalities have widened within the region. They recognized the crucial role private sector plays in achieving the Sustainable Development Goals, and the need for more engaged dialogues between public and private sector to create an enabling environment towards this end.

In the introduction of the following session Patrick Keuleers, Director of Governance and Peacebuilding for UNDP BPPS, highlighted that the project can be a trigger to promote a new model of governance for government and private sector in ASEAN.

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Presentation of the Project ‘Promoting a Fair Business Environment in ASEAN’

‘Promoting a Fair Business Environment in ASEAN’ is a three-year (2018-2021) regional project, with a funding of 7 million USD. The project is the result of a close cooperation between the government of the United Kingdom and UNDP. The project aims to promote a fair business environment in the region by developing transparent systems in both public and private sectors, championing sustainable business practices, as well as strengthening rule of law and anti-corruption mechanisms. The project targets ASEAN countries, with particular focus on Indonesia, Malaysia, Myanmar, the Philippines, Thailand and Viet Nam. Support for the project comes from the UK Foreign and Commonwealth Office’s Prosperity Fund program in South East Asia, which focuses on promoting economic reforms and development needed for growth in middle income countries.

A key pillar of the project will be the promotion of policy dialogues between governments and private sector across ASEAN to ensure an environment which facilitates ease of doing business and fosters business integrity. In terms of country-level support, UNDP will, for

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example, provide support to governments in ensuring transparency in public procurement and infrastructure projects particularly in Indonesia, the Philippines, and Thailand. It will also provide technical assistance on anti-corruption measures and access to redress mechanisms, especially in Myanmar and Viet Nam.

There was a very strong engagement from the participants in the Question and Answer session which showed the importance of this reform agenda for the region, as well as the innovative character of this project that targets both government and private sector. Participants highlighted the importance of ensuring that key performance indicators for the project capture change in the context of the project and beyond.

The project will facilitate the exchange of knowledge between ASEAN countries across the various areas of cooperation mentioned. UNDP will work closely with various global partners (such as UNODC, UNGC, TI, OGP, WB, IBLF Global, CoST) and regional partners (ASEAN BAC, ASEAN CSR Network, OECD South East Asia Programme) and academia to ensure effective project implementation and measure progress in ASEAN through evidence-based research.

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approach to compliance, businesses should be encouraged to mainstream integrity throughout all their operations. In this instance, Transparency International mentioned their initiative to bring all stakeholders on a common reform agenda through the Business Integrity Country Agenda. Discussions also highlighted the need for law enforcement and anti-corruption agencies to have both the legal mandate and capacities to address corruption in the public and private sectors.

A key success factor for this cooperation between the public and private actors is building trust. For instance, the Construction Sector Transparency Initiative (CoST) brings together public and private sectors as well as civil society partners to share information on major infrastructure projects and encourage active monitoring of their completion.

The panelists highlighted the importance of the political leadership against corruption, which is critical for attracting domestic and foreign investment. Thailand and Indonesia have taken steps to simplify procedures through “regulatory guillotine” which led to a significant improvement in their rankings on the World Bank Ease of Doing Business Index. Similarly, Malaysia established the ‘Pemudah’ special task force to facilitate business – which promotes public-private sector collaboration and ease of doing business while having zero tolerance for corruption.

The panel discussed potential incentives that governments can provide for promoting business integrity, for example by encouraging companies to adopt international anti-bribery standards and increasing the transparency and competitiveness of public procurement. To go beyond a “checklist”

Panel Session 1: Ease of Doing Business: How Can Governments, Private Sector and Civil Society Join Forces?

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In addition, Open Government Partnership (OGP) shared their approach to co-creating reforms which involves private sector dialogue in the development of OGP action plans.

In sum, strong political commitment is needed to kickstart reforms in areas of anti-corruption and ease of doing business. A comprehensive action plan and multi-stakeholder engagement are key to successfully implementing such reforms, while trust and accountability can be strengthened through active roles of CSOs and other stakeholders.

Panel Session 2: Doing Business Responsibly to Achieve the Sustainable Development Goals: How Can We Go Beyond Minimum Standards?

The panel session highlighted the importance for businesses to go beyond compliance with minimum standards and the need to take a more ambitious approach to creating “shared values”. This is particularly critical in the context of the Agenda 2030 for Sustainable Development, which recognizes the central role of the private sector for achieving the Global Goals. To encourage businesses to go beyond minimum standards and adopt responsible practices, inclusive consultations and ownership of the reforms are necessary. Thus, active dialogue between

governments and business associations is an important part of encouraging sound reforms. For example, the Vietnam Chamber of Commerce and Industry is empowered to review all legal documents affecting business operations.

In addition to promoting shared values, compelling and economically sound arguments are also needed to encourage sustainable practices. Building on the experience of the Philippines, three key perspectives on responsible business were presented as:

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1) future risk management (such as an anticipation of a carbon tax in the future),

2) sustainable growth strategy such as by being forward looking and ready to take advantage of new business opportunities that come as part of efforts to achieve sustainable development), and

3) supply chain optimization (that is, if supply chains are ethical, they are also more efficient and optimal).

Further, persuading corporations to think about how they are already contributing positively to the Sustainable Development Goals can motivate them to take a more active role.

The closing session highlighted the opportunities presented by the project in the context of Thailand’s upcoming chairmanship of ASEAN.

Mr. Arin Jira, Co-Chair of ASEAN Business Advisory Council Thailand noted that regulation, corruption and inflexibility can hinder business activities in this region. Private sector is instrumental in driving the economy and we need to encourage ethical business conduct. For a smooth integration of the ASEAN Economic Community, we also need better alignment and coordination between the ASEAN member states on these measures and standards. He also observed how responsible business

Closing Session: the Way Forward

In ASEAN, businesses are mostly either family-owned or linked to the government, thus this context must be accounted for in policy and reforms. ASEAN CSR Network presented the “Integrity without borders” initiative which requires businesses to be ethical in their home base and abroad. Finally, it was noted that beyond just laws and enforcement, ASEAN countries must also foster a culture of integrity through awareness raising and education campaigns.

conduct is an emerging priority for ASEAN, which should be looked at together with other key reform pillars such as education and investment in new technologies.

Ms. Deirdre Boyd, UN Resident Coordinator and UNDP Resident Representative remarked that given Thailand’s upcoming chairmanship of ASEAN, the country is well-positioned to lead the way on this project, especially since sustainable development is also a key priority in the country. She concluded that the overarching message of the launch is that partnerships are crucial, and that governments need to accelerate reform efforts whilst also

incentivizing behavioral change and strengthening rule of law. ASEAN Vision 2025 and Agenda 2030 for Sustainable Development provide significant momentum and framework for these reforms.

The launch event concluded with a reception at the British Embassy hosted by H.E. Brian Davidson, British Ambassador to Thailand during which the Ambassador highlighted the strategic importance of ASEAN for the Government of the United Kingdom and the opportunities presented by the project to accelerate the cooperation with ASEAN.

Highlights“We believe that stronger partnerships between government, private sector and civil society will be crucial for ensuring that economic growth leaves no one behind. These partnerships will be key in removing barriers to social growth, lifting people out of poverty and creating sustainable prosperity in the region.”

- Valerie Cliff, Deputy Regional Director for Asia and the Pacific and Director of Bangkok Regional Hub, UNDP

“This initiative aims to create a virtuous cycle of prosperity that ensures everyone shares the fruits of economic growth. We believe that this collective effort has the power to ensure more inclusive growth, and encourage businesses to fulfil their potential and their responsibilities to society.”

- Lewis Neal, Director for Economic Diplomacy, Foreign & Commonwealth Office, Government of the United Kingdom

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“In ASEAN, regulation, corruption and inflexibility can hinder business activities. The private sector is instrumental in driving the economy and in encouraging ethical behaviour. For a smooth integration of the ASEAN Economic Community, we also need more alignment between the ASEAN states.”

- Arin Jira, Co-Chair of ASEAN Business Advisory Council Thailand and Vice Chairman of the Federation of Thai Industries

“This is a very substantive launch event. Good to see that the new regional project builds on previous efforts from the partnership with the UK in Thailand. Going forward, we should leverage Thailand’s ASEAN chairmanship and engage with future chairs to ensure continuity and sustainability and foster south-south exchanges.”

- Lovita Ramguttee, Deputy Resident Representative, UNDP Thailand

“On behalf of the Vietnamese delegation, I’d like to say that this is one of the most informative launch events I have ever attended. We look forward to becoming part of and contributing to the knowledge-sharing community this project will create.”

- Dang Thi Huyen, Political Officer - Justice, British Embassy Hanoi

“This project has the potential to create synergies across initiatives and open opportunities for CoST to support Indonesia and Thailand in implementing national initiatives aimed at driving better value from infrastructure projects by increasing transparency and accountability in their delivery.”

- Petter Matthews, Executive Director of CoST, the Infrastructure Transparency Initiative

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Social Media Activities

UK in Thailand @ ukinthailand | 23 Aug

Delegates from SEAsia @ the launch of the multi-year project on Promoting a Fair Business Environment in #SEAsia. The project, supported by the #UKProsperityFund, aims to enable institutions & systems in SEAsia to raise awareness & enforce anti-corruption https://bit.ly/1o5fR0I

UK in Thailand @ ukinthailand | 23 Aug

Lewis Neal, UK FCO Director, delivered the opening remarks for the launch of the #UKProsperityFund supported project on Promoting a Fair Business Environment in #SEAsia. #Fairbiz4Prosperity #GlobalGoals Know more of the project: https://bit.ly/1o5fR0I

UK in Vietnam @ UKinVietnam | 23 Aug

Jonathan Turner, UK FCO’s #SEAsia Regional Director for Economic and Trade Policy, delivers a presentation on the objectives and activities of the joint project of @foreignoffice and @UNDP on Promoting a Fair Business Environment in ASEAN #Fairbiz4Prosperity #GlobalGoals

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UK in Thailand @ ukinthailand | 23 Aug

Engaging discussions from #SEAsia participants on promoting a Fair Business Environment. Exploring necessary steps & partnerships between government, private sector & civil society to promote transparency, rule of law & prevent corruption. #UKProsperityFund

UNDP Asia-Pacific @ UNDPasiapac | 23 Aug

Honored to have @brijdavidson welcome us at @ukinthailand for a reception after launch of new regional project “Promoting a fair business environment in ASEAN”, made possible w/ @foreignoffice #UKProsperityFund we look forward to sharing results! #Fairbiz4Prosperity #GlobalGoals

UNDP Viet Nam @ UNDPVietnam | 27 Aug

#VietNam ranks 109/137 in Irregular Payments & Bribes: @wef’s Competitiveness report. @AkikoFujii1 says Viet Nam can learn from such strong legislations as UK Bribery Act & US Foreign Corrupt Practices Act. Read more https://bit.ly/2Njv632 #Fairbiz4Prosperity #UKProsperityFund

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For more information about the launch, please visit:

Project page

Press release

Op-ed by Mr. Lewis Neal and Ms. Valerie Cliff

Follow #Fairbiz4Prosperity on Twitter

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Annex: Agenda

Time 23 August 2018

9.00 - 9.30 High-level Opening Session: Promoting Inclusive Growth in ASEAN

Opening Remarks by:

• Ms. Valerie Cliff, Deputy Regional Director for Asia & the Pacific and Director of the Bangkok Regional Hub, UNDP

• Mr. Lewis Neal, Director for Economic Diplomacy, Foreign and Commonwealth Office, Government of the United Kingdom

9.30 - 10.00 Promoting a Fair Business Environment in ASEAN: Presentation of the UNDP/UK FCO Project

Objective: Present the UNDP/UK FCO Project, followed by an interactive Question & Answer session with the audience

Moderator: Mr. Patrick Keuleers, Director of Governance and Peacebuilding, Bureau for Policy and Programme Support of UNDP

Presentation by:

• Mr. Jonathan Turner, South East Asia Regional Director for Economic & Trade Policy, British High Commission in Singapore

• Ms. Elodie Beth, Programme Advisor, Governance and Peacebuilding, UNDP Bangkok Regional Hub

10.00 – 10.30 Q&A Session on the Project

10.30 – 11.00 Group Photo and Coffee Break

11.00 - 12.30 Panel session 1: Ease of Doing Business: How Can Governments, Private sector and Civil Society Join Forces?

Objective: Discuss how partnerships between government, private sector, and civil society can be strengthened to reduce the cost of doing business in ASEAN, promote transparency in government contracts, prevent corruption and promote the rule of law.

Panel moderator: Mr. Alexander Boehmer, Head of Division South East Asia, Organisation for Economic Cooperation and Development

Panel discussants:• Mr. Bimo Wijayanto, Senior Advisor to the Chief Of Staff of The

Executive Office of The President, Indonesia • Ms. Chotima Sanguanphant Wechaporn, Public Sector Development

Officer, Change Management and Innovation Bureau, Office of Public Sector Development, Thailand

• Datuk Dr Anis Yusal Yusoff, Deputy Director General of the National Centre for Governance, Integrity & Anti-Corruption, of Malaysian Prime Minister’s Department, Malaysia

• Mr. Petter Matthews, Executive Director of CoST, Construction Sector Transparency Initiative

Plenary discussion

12.30 -14.00 Lunch

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14.00 -15.10 Panel session 2: Doing Business Responsibly to achieve the Sustainable Development Goals: How Can We Go Beyond Minimum Standards?

Objective: Explore how the private sector can go beyond compliance with international standards and champion the adoption of responsible practices that contribute to the Agenda 2030 for Sustainable Development.

Panel moderator: Ms. Meng Liu, Head Local Networks – Asia and Oceania, United Nations Global Compact

Panel discussants:• Mr. Bonar Laureto, Executive Director, Philippines Business for the

Environment • Mr. Bui Trung Nghia, Deputy Secretary General, Vietnam Chamber of

Commerce and Industry• Mr. Thomas Thomas, Chief Executive Officer, ASEAN CSR Network

Plenary discussion

15.10 – 15.30 Concluding Session and Next Steps

Closing remarks by:

• Mr. Arin Jira, Co-Chair of ASEAN Business Advisory Council Thailand and Vice Chairman of the Federation of Thai Industries

• Ms. Deirdre Boyd, United Nations Resident Coordinator and UNDP Resident Representative in Thailand

16.00-18.00 Reception at the British Embassy in BangkokSpeech by H.E. Mr. Brian Davidson, British Ambassador to Thailand

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