59. There are number of challenges to achieve a free investment flow by 2015 as set out
by ACIA:
(a) Legal framework: The entry into force of
ACIA needs to be expedited.
(b) Investment restriction: There is a need to
ensure that restrictions are kept to the
necessary minimum and are justifiable. In
ACIA
Grants immediate benefits to both
ASEAN investors and ASEAN-based
foreign investors
26
addition, in accordance with the AEC Blueprint targets, restrictions scheduled
should be reduced and eliminated gradually. The challenge is to ensure that
this is undertaken in a phased, progressive manner ultimately leading to free
flow of investments.
(c) Legal impediments: Some national treatment limitations have been attributed
to provisions under the relevant domestic laws and regulations, including
relevant provisions in the Constitution. This may need a review of these laws
to ensure that such limitations remain valid and are not unnecessary barriers to
the free flow of investment.
(d) Building awareness: ASEAN integration and the creation of a single market
allowing investment connectivity should be accompanied by greater outreach
and advocacy. There is a need for continuous efforts to promote the single
market and the enhancement of the investment climate of ASEAN to ensure
that ASEAN’s share of global FDI remains high.