Potential for circular economy to drive Asean economic growth
24 May 2021
The circular economy concept has the potential to spur economic growth in the Asean region, said Economic Research Institute for Asean and East Asia chief operating officer Hachiyama Koji.
A circular economy is an economic concept that prioritises material recovery at the end of a product lifecycle to channel resources back into production and eliminate waste, such as smart city and recycling.
Koji said in order to build a circular economy, there should be a large private investment and new technologies would potentially be established to change the social system.
“A circular economy will make a long-term contribution and the Asean way has to be respected for better coordination between countries in the region.
“A circular economy also contributes to promoting economic integration among Asean nations,” he said during the Asean-Japan Business Week conference entitled ‘Transforming Southeast Asia, Transforming Japanese Business’ today.
He highlighted the importance of an international production network, as well as production cost, especially for small and medium enterprises (SMEs).
“Before starting a business, they must secure sustainable financing feasibility.
“By using this principle, we can have outcomes such as a responsive framework, institutionalisation and raising awareness across countries involved in the Industrial Revolution 4.0,” he said.
Citing legal frameworks for circular economy from several countries, he said Malaysia has a Guideline on Procurement, Thailand has the National Master Plan for Waste Management, and Indonesia has a Policy and Strategy for the Management of Household Waste.
He said Japan, with its advanced technologies, encourages its people to get involved in the circular economy to grow together with Asean.
The five-day Asean-Japan Business Week is an online event hosted by multiple organisations from the region and Japan.