ASEAN Countries Want To Develop Close Ties Further With Japan – OpEd

In Indonesia, people used to call Japan as their ATM (Automatic Teller Machine) of Indonesia. Because it was Japan that used to provide funding for many projects and investments in various sectors. This was happened during the 1970s,1980s and 1990s. It was also the largest trading partner.

Now Japan has been replaced by China, which is not only the largest trading partner and biggest investor in many Association of Southeast Asian Nations (ASEAN) countries. Many people consider Japan is an important country for ASEAN.

As conflicts continue to arise around the world, the importance of economic security is rising, which includes securing supply chains and developing and preserving crucial technologies. In light of this, the Japanese government and Japanese businesses are working to contribute to the economic security of various Southeast Asian countries, the Inquirer newspaper reported.

In July 2024, the Asian Business Summit was organized by Keidanren (Japan Business Federation) in Tokyo, where then-Prime Minister Fumio Kishida announced that Japan would support the development of large language models (LLMs) to form foundations for conversational AI.

Japanese AI companies will work together on LLM infrastructures that specialize in various Southeast Asian languages to allow users from those countries to better utilize ChatGPT, which relies heavily on English data. From an economic security outlook, improving the research environment in a country’s local language is necessary.

In his summit speech, “Young people in Japan and Asia will work together in friendly competition to hone their skills, further advance AI technologies, and carve out the future of Asia. Let us work together to create such an era,” the Inquirer reported quoting Kishida as saying.

The Japanese government led the establishment of the Asia Zero Emission Community (AZEC) and is promoting decarbonization across Asia. Businesses are also actively cooperating with one another to this end.

Japan has been investing in Indonesia, Thailand, Vietnam, the Philippines, Cambodia and Laos. For many years since, Japan has aided ASEAN’s economic development through Official Development Assistance (ODA). However, the era of Japan being a “provider” from a position of superiority is coming to an end because of China.

The population within the ASEAN region is around 680 million people, which is over five times larger than that of Japan. The average age in Japan, with its aging society and low birthrate, is 49 years old (as of 2023), whereas in Indonesia and the Philippines, it is still in the 20s.

The gross domestic product (GDP) in the ASEAN region, which boasts rich natural resources and young workers and is now a growth engine in the world’s economy, is predicted to overtake Japan’s by around 2030.

Nobuhiro Aizawa, a professor at Kyushu University who studies political situations in various ASEAN countries, said in a newspaper interview with The Yomiuri Shimbun newspaper, “ASEAN, which has grown into a giant market, is now in a position to choose partners that offer value, not only from Japan but also from the United States, China, South Korea, Australia and the European Union (EU). We are at a turning point where the dynamics of Japanese-ASEAN relations are changing from ‘Japan choosing who to aid’ to ‘Japan being chosen as a partner.”  He said it is crucial for Japan to be seen as a desired partner and emphasized, “ASEAN itself is essential to Japan’s survival.”

Japan was selected at the top of the list in a Singapore’s ISEAS survey with 17.1 percent. This shows that Japan maintains its status as a country that can be trusted, with people in ASEAN appreciating its reliability in keeping economic commitments and a shared sense of cultural affinity.

The ISEAS awareness survey revealed that 67.4 percent of respondents were “worried about China’s growing regional economic influence,” which was more than double the 32.6 percent who welcomed it. The growing power of China as a single nation brings economic security risks.

According to the Inquirer, the U.S. President showed little interest in the South China Sea territorial disputes until tensions escalated between the United States and China, giving a strong impression of belittling Southeast Asia.

As countries, including Vietnam, has a huge trade surplus with the U.S., Trump may make ASEAN a primary target by imposing additional tariffs on goods.

As both the United States and China continue to aggressively pursue policies focused on advancing their own national interests, strengthening partnerships between Japan and ASEAN will be mutually beneficial. It will spark growth for Japan, with its aging society, low birthrate and sluggish growth, and allow ASEAN to maintain high-speed growth and independence. It is time for Japan and ASEAN to further cultivate their years-long relationship of trust, now as equal partners.

Japan also wants to enhance defence cooperation with ASEAN countries to counter aggressive China. It has been providing defence equipment to various countries of ASEAN. 

According to Channel News Asia (CNA) news website, Japan is invested in deepening ties with ASEAN to the tune of more than US$250 million in funds for cultural exchanges over the next decade, Japanese ambassador to ASEAN said.

Calling the bloc a “trusted partner”, Japan’s envoy to the ASEAN Masahiko Kiya said the two-way relationship has blossomed since dialogue was formalised in 1977. 

“Japan and ASEAN have become trusted partners based on 50 years of friendship and cooperation. A major pillar … of this relationship is people-to-people exchange,” the ambassador told CNA during an interview in Jakarta, where he is based.

Going forward, Japan wants to co-create a shared future with the bloc for the next generation, by doubling a grant that will encourage deeper collaborations in culture and education, he said. 

“We (have secured) 40 billion yen – more than $250 million – in the next 10 years… to intensify and increase (two-way) cultural and intellectual exchange programmes,” the CNA reported quoting Kiya as saying.

He added that initiatives will include inviting ASEAN academics to study in Japan and vice versa.

Japan is not only a provider of loans, aid but also a provider of tourists to Southeast Asia. ASEAN considers Japan as an important partner of ASEAN.