Potential of the circular economy to stimulate economic growth in Asean
KUALA LUMPUR (May 24): The concept of circular economy has the potential to boost economic growth in the Asean region, said Hachiyama Koji, director of operations of the Institute of Economic Research for Asean and the ‘East Asia.
A circular economy is an economic concept that prioritizes the recovery of materials at the end of a product’s life cycle to redirect resources to production and eliminate waste, such as smart cities and recycling.
Koji said that in order to build a circular economy, there would have to be significant private investment and that new technologies would potentially be put in place to change the social system.
“A circular economy will make a long-term contribution and the Asean method must be respected for better coordination between the countries of the region.
“A circular economy also helps promote economic integration between ASEAN countries,” he said at the Asean-Japan Business Week conference entitled “Transforming Southeast Asia, transforming Japanese business ”today.
He underlined the importance of an international production network, as well as the production costs, especially for small and medium enterprises (SMEs).
“Before starting a business, they need to ensure the feasibility of sustainable financing.
“Using this principle, we can achieve results such as a responsive framework, institutionalization and awareness of countries involved in industrial revolution 4.0,” he said.
Citing legal frameworks for the circular economy in several countries, he said Malaysia has a procurement directive, Thailand has a national waste management master plan and Indonesia has a policy and strategy for waste management. household waste management.
He said that Japan, with its advanced technologies, encourages its people to get involved in the circular economy to develop with Asean.
The five-day Asean-Japan Business Week is an online event hosted by several organizations in the region and Japan.
ASEAN urged working with the private sector