Chief Justice Sundaresh: Opening Address at the CIL-NUS ASEAN Private Sector Executive Programme 2025

Opening Address at the CIL-NUS ASEAN Private Sector Executive Programme 2025 

“The Asean Economic Community A Decade On: A Vision of Convergence and Coherence”

Tuesday, 18 February 2025

The Honourable the Chief Justice Sundaresh Menon*

Supreme Court of Singapore

Professor Joseph Weiler and Associate Professor Dr Tan Hsien-Li, Co-Heads of the ASEAN Law and Policy Programme at the Centre for International Law, 

Distinguished guests,

Ladies and gentlemen,

I. Introduction

1. A very good morning to all of you. Let me begin by extending my heartiest congratulations to Joseph, Hsien-Li, and their entire team at the Centre for International Law (or “CIL”), on putting together the inaugural ASEAN Private Sector Executive Programme. I am delighted to join you at the start of what I am sure will be a very useful and practical programme for those seeking to navigate the tremendous business opportunities in this dynamic region. 

2. The ASEAN Economic Community (or “AEC”) was established almost a decade ago, in December 2015, to unify the diverse economies in Southeast Asia into a single market and production base. This was intended to facilitate the seamless movement of goods, services, investment, capital and skilled labour within this region.⁽¹⁾ Since then, the AEC has been described as being “prolific” in the number of declarations, frameworks, strategies and action plans that it has produced, all of which have been directed towards advancing regional economic integration.⁽²⁾  

3. The focus of my address today is not on these legal or quasi-legal instruments, which you might explore in greater detail in some of the other sessions. Instead, my central thesis is that in order to realise ASEAN’s vast economic potential, it is imperative that we all work hard to promote the development of a coherent body of commercial laws and practices. Indeed, the need for legal convergence can be seen as a natural corollary of the single market and production base envisioned by the AEC. 

4. I will develop my address in three parts:

(a) To set the context, I will first highlight some of ASEAN’s key economic indicators. 

(b) Next, I will set out the case for convergence and coherence in our region, in the specific context of our commercial laws and practices. 

(c) And finally, I will detail some of the efforts that have been taken to promote this shared vision of convergence and coherence. While this will undoubtedly remain a long-term endeavour, there has been substantial progress made – especially over the last decade – and this should give all of us cause for optimism that this is an undertaking well worth pursuing.

II. The Economic Potential of Asean 

5. Let me begin with ASEAN’s economic potential. To be clear, the importance of ASEAN is not limited to the economic space. Among other key roles, it has promoted the peace, stability, and security of our region, and it has also allowed its members to better coordinate their collective responses to challenges affecting all of humanity, such as climate change and global health pandemics. 

6. But the need for ASEAN to become more economically integrated and connected has perhaps assumed even greater urgency, in an increasingly divided and uncertain geopolitical environment where businesses are starting to shift their operations and supply chains closer to their home markets – a trend which has been associated with the terms “reshoring” or “nearshoring”.⁽³⁾ As Singapore’s Foreign Minister Dr Vivian Balakrishnan put it just last month, in a more protectionist and nationalistic world, there is a need for ASEAN “to double down on our own integration, enhance our own trade and investment environment …, enhance our own connectivity, and make ASEAN as competitive as possible, as a trading partner, as an investment destination, or even as an investment source”.⁽⁴⁾  

7. Already, the key indicators suggest that this is a region with tremendous economic potential. I highlight four in particular:

(a) First, with a combined gross domestic product (or “GDP”) of just under US$4 trillion, ASEAN is already the world’s fifth largest economy, and it is projected to become the fourth largest economy by 2030.⁽⁵⁾  

(b) Second, ASEAN has witnessed significant growth in foreign direct investment (or “FDI”) inflows. The annual average FDI inflows from 2021 to 2023 stood at US$220 billion – more than double the average figure of US$92 billion recorded from 2006 to 2015 before the AEC was established.⁽⁶⁾ Indeed, ASEAN is the largest FDI recipient among developing regions.⁽⁷⁾ 

(c) Third, in terms of trade, ASEAN has been China’s largest trading partner since 2020,⁽⁸⁾ and it is also the fourth largest trading partner of the United States.⁽⁹⁾ 

(d) And finally, ASEAN’s population comprises 677 million people,⁽¹⁰⁾ characterised by two particularly significant trends – a young workforce that is becoming better educated, as well as a rapidly growing middle class with stronger purchasing power.⁽¹¹⁾

8. To allow ASEAN to reach its potential, its members have collaborated on many initiatives to promote economic growth. A notable example is the Regional Comprehensive Economic Partnership (or “RCEP”) that was conceived at the 2011 ASEAN Summit, signed in November 2020, and entered into force in 2022. The RCEP is the world’s largest trade agreement, comprising the 10 ASEAN economies as well as China, Japan, South Korea, Australia and New Zealand – collectively, a 15-nation free trade bloc which accounts for 30% of the current global GDP.⁽¹²⁾ It has been described as “ASEAN’s flagship achievement in its external engagement strategy”, and it is projected to add US$245 billion and 2.8 million jobs to the regional economy by 2030.⁽¹³⁾ And beyond the RCEP, there are ongoing negotiations for major projects such as the ASEAN Digital Economic Framework Agreement, a landmark agreement that could help unlock up to US$2 trillion in value in the digital economy by 2030;⁽¹⁴⁾ and the proposed ASEAN Power Grid, which seeks to achieve a completely integrated regional power grid system to enable the sharing of energy and to enhance cross-border electricity trade.⁽¹⁵⁾

III. The Need for Convergence and Coherence 

9. There has therefore unquestionably been a very substantial effort directed at promoting regional economic integration, and this has taken place at a scale and a pace that is unprecedented. But realising the full value of these initiatives will be significantly affected by how well and how consistently the various legal and quasi-legal instruments are received into and reflected in the domestic legal systems of the ASEAN member states, and how these are then applied and enforced throughout the region, including by the courts. Moreover, true economic integration will be greatly aided by a largely consistent framework of common business and commercial laws to assure the effective enforcement of rights. Against this backdrop, the convergence of these laws emerges as a foremost priority. After all, the rule of law is a critical enabler and sustainer of cross-border commerce because it assures that commercial bargains and agreements will be upheld; the rights of investors and the safety of their assets will be safeguarded; the threat of corruption will be combatted; and that disputes will be resolved effectively and efficiently. 

10. To the extent there is fragmentation and inconsistency in our laws, this could potentially chill the appetite for growth and expansion across the region for two primary reasons. First, any substantive differences in the content and application of these laws may reflect an unequal approach to constructing the frameworks that are designed to achieve the goals articulated by the political leaders in the region who have committed to realise the vision of the AEC. And second, these differences may deter cross-border economic activity and growth because it could lead to higher transaction costs – for instance, the cost of gathering and understanding all the relevant information; the cost of adapting and complying with different legal and regulatory requirements; and the higher cost of resolving cross-border disputes that will all inevitably arise in the course of doing business in such an environment.⁽¹⁶⁾

11. To add to all this, the need for convergence takes on additional significance in the ASEAN context because of the sheer diversity of legal systems that are present here. Because we do not share a common colonial heritage, our region is home to a mixture of legal systems that each have a distinct identity, hailing from either the common or civil law tradition and often fused with various customary and religious laws.  This diversity, while rich in cultural and historical significance, may potentially be an obstacle in our efforts to achieve economic integration. 

12. For these reasons, we should strive towards the meaningful convergence of our commercial laws and practices in ASEAN, not only in substantive areas but also in the processes that we adopt to resolve commercial disputes. This is a realistic endeavour because the field of transnational commercial law is one that is relatively value-neutral. This is an area of law where the divergent effects and pull of special interests and political considerations are somewhat attenuated. On the contrary, we all know that we have much to gain by adopting a more open and more transnational outlook, and by learning from one another, instead of operating in silos.⁽¹⁷⁾

13. To be clear, the pursuit of convergence does not mean that we must aim for complete uniformity of our laws. This would neither be realistic nor even desirable, because our legal systems are shaped by, and operate within, our unique political, social, and economic realities. In any event, some degree of healthy innovation will promote the development of more effective and efficient legal infrastructures. 

14. Rather, what we should aim for is to promote a greater and more conscious awareness of the commercial laws and practices in other ASEAN jurisdictions, and to adopt broadly coherent and consistent positions wherever possible, particularly in areas that strive to give effect to ASEAN instruments and frameworks directed at economic integration, as well as in other key areas that are vital to cross-border commerce. In the latter context, I have in mind issues such as the recognition and enforcement of judgments and arbitral awards, as well as our approaches towards the management of cross-border insolvency and restructuring matters, the latter being critical to the effective recycling of capital. In this way, we will be promoting what I have referred to as the value of coherence, where legal systems – including judiciaries – see themselves as part of a larger transnational system and so strive to take broadly consistent positions in areas of transnational commercial law.⁽¹⁸⁾

IV. Efforts to Promote Convergence and Coherence 

15. In the remainder of my address, I will, in brief terms, elaborate on aspects of the work that has already been done to promote legal convergence and coherence within ASEAN. This work has involved many stakeholders and I want to focus on three in particular: first, the CIL – the organisers of today’s programme; second, the ASEAN Law Association (or “ALA”); and third, the Council for ASEAN Chief Justices (or “CACJ”). This is by no means an exhaustive list – other organisations that have been instrumental in working to promote legal harmonisation in ASEAN include, for instance, the Asian Business Law Institute (or “ABLI”) – but given the time constraints, I will focus only on the three that I have mentioned. 

A. CIL

16. Let me begin with the CIL – a research institute based at the National University of Singapore that was established to address the growing need for thought leadership and capacity building in international law for the Asia Pacific region⁽¹⁹⁾ I would like to highlight today just two notable initiatives that relate to ASEAN in particular:

(a) The first is the ASEAN Integration Through Law Project that was launched by the CIL in 2009.⁽²⁰⁾ This is a major research project on ASEAN legal integration, involving more than 80 scholars from around the world. The primary output of this project has been the publication of a series of books which seek to develop a rich body of scholarship on ASEAN integration, that may be useful to policymakers, practitioners and businesses. To date, 18 monographs have been published covering areas such as the AEC, the harmonisation of consumer law, and environmental legal integration.  

(b) The second is the CIL’s flagship programme, the ASEAN Law Academy Advanced Programme.⁽²¹⁾ This is a cross-disciplinary intensive course that brings together policymakers, practitioners and academics annually to discuss and to explore topics concerning ASEAN legal integration, especially in the areas of international trade and investment law.   

B. ALA

17. Next, I turn to the ALA. Established in 1979, ALA is a non-governmental association of lawyers in ASEAN, whose membership encompasses the entire range of the profession, including judges, private practitioners, government lawyers, and law academics.⁽²²⁾ ALA aims to promote closer relations, cooperation and mutual understanding among legal professionals in our region, and a major aspect of its work is to collaborate on legal research directed at the harmonisation of laws.  

18. To these ends, ALA has worked closely with the ASEAN Secretariat to identify potential areas for greater collaboration. Among other things, this includes how we can raise awareness of ASEAN legal instruments and their implementation, as well as how we can promote legal convergence in the enforcement of foreign arbitral awards and international settlement agreements. The work is overseen by the Governing Council which is assisted by the ASEAN Law Institute on implementation matters. The Institute was established by ALA in 2019, and one of its key purposes is to support ALA’s objective of promoting legal harmonisation. To promote this objective, it has recently conducted a series of roundtables on the ASEAN Comprehensive Investment Agreement in several ASEAN countries. 

C. CACJ

19. I turn finally to the CACJ.⁽²³⁾ The CACJ began as a small informal meeting of the heads or representatives of the ASEAN judiciaries in 2013, on the sidelines of an ALA meeting that was held in Singapore. More than a decade on, the CACJ has evolved into a dynamic and forward-thinking platform that has served three key objectives: first, it promotes close relations and mutual understanding amongst ASEAN judiciaries; second, it provides a regular forum for the Chief Justices to exchange views on common issues that our judiciaries face; and third, it facilitates judicial cooperation and collaboration between our judiciaries. 

20. On the last-mentioned point, the CACJ has developed a significant body of instruments, protocols and rules to promote legal convergence and the adoption of best practices, such as on the service of civil processes within ASEAN and the taking of evidence for foreign proceedings in civil or commercial matters. And various other projects are in the pipeline, including a protocol to verify the authenticity of foreign court orders, and guidance on the recognition and enforcement of foreign money judgments. 

V. Conclusion

21. It will be evident from even this very brief account that much effort has already been undertaken to advance the project of greater systemic legal coherence in our region. This is critical because in a more divided and uncertain global environment, ASEAN will, again in the words of Dr Balakrishnan, remain Singapore’s “most important and immediate construct”, with its members sharing a common economic agenda of greater economic integration even as the world seems to be turning negative on cross-border trade.⁽²⁴⁾ But to fully optimise ASEAN’s vast economic potential, we must all direct our attention towards promoting greater legal harmonisation – a journey that has already started and where significant progress has already been made.

22. I thank you for your attention and before I leave, I would like to, on behalf of the CIL, acknowledge the invaluable contributions of some individuals who have made today’s programme possible: Mr Ong Chin Heng from the Attorney-General’s Chambers, Mr Benjamin Gaw from Drew & Napier LLC, Mr Franki Au and Ms Celia Sia from the Economic Development Board, Mr Toh Boon Ho from Enterprise Singapore, Ambassador-at-Large Professor Tommy Koh, Ms Elizabeth Chelliah from the Ministry of Trade and Industry, my colleague Justice Pang Khang Chau, and finally, Mr Alastair Simon Chetty and his colleagues from the International Legal Division and Legal Industry Division of the Ministry of Law. 

23. Thank you very much and I wish you a very fruitful and fulfilling day ahead. 

^{* I am deeply grateful to my colleagues, Assistant Registrars Wee Yen Jean and Bryan Ching, for all their assistance in the research for and preparation of this address.}

^{(1) Association of Southeast Asian Nations, “Economic Community”, available at https://asean.org/our-communities/economic-community; ASEAN Secretariat, “Asean Economic Community Blueprint” (January 2008) at para 9.}

^{(2) Maria Esperanza Frio Alconcel, “What Do Businesses Want from the ASEAN Economic Community” in Denis Hew and Julia Tijaja (eds), Building an ASEAN Economic Community Beyond 2025 (Lee Kuan Yew School of Public Policy, Centre on Asia and Globalisation, April 2024) at page 39.}

^{(3) Hernan Saenz and Adam Borchert, “Businesses Accelerate Reshoring and Near-Shoring Amid Heightened Geopolitical Uncertainties and Rising Costs, Bain & Company Finds” (Bain & Company, 14 November 2024), available at https://www.bain.com/about/media-center/press-releases/2024/businesses-accelerate-reshoring-and-near-shoring-amid-heightened-geopolitical-uncertainties-and-rising-costs-bain--company-finds/.}

^{(4) Minister for Foreign Affairs Dr Vivian Balakrishnan, Doorstop Interview Following his Attendance at the ASEAN Foreign Ministers’ Retreat in Langkawi, Malaysia (18–19 January 2025).}

^{(5) Minister for Home Affairs and Minister for Law Mr K Shanmugam, Remarks at the Reception Commemorating the 40th Anniversary of the Establishment of Diplomatic Relations between Singapore and Oman (20 January 2025).}

^{(6) ASEAN Secretariat, “ASEAN Investment Report 2024: ASEAN Economic Community 2025 and Foreign Direct Investment” (October 2024) at page XVII.}

^{(7) ibid at page XV.}

^{(8) Minister for Foreign Affairs Dr Vivian Balakrishnan, Special Address at the Ministerial Session of the 8th Roundtable of the ASEAN-India Network of Think Tanks (8 November 2024) at para 7.}

^{(9) Office of the United States Trade Representative, “Association of Southeast Asian Nations (ASEAN)”, available at https://ustr.gov/issue-areas/trade-organizations/association-southeast-asian-nations-asean.}

^{(10) Deputy Prime Minister Mr Heng Swee Keat, Speech at the 16th WELT Economic Summit (27 January 2025).}

^{(11) Deputy Prime Minister and Minister for Finance Mr Lawrence Wong, Speech at the Opening of Temasek’s Paris Office (10 April 2024); Lee Joo-OK, “Is Asean on the Cusp of Fulfilling its Long-Held Promise?” (The Straits Times, 14 January 2023).}

^{(12) Senior Minister Mr Teo Chee Hean, Speech at the Singapore Regional Business Forum (24 July 2024).}

^{(13) Julia Tijaja, Simon Tay and Sanchita Basu Das, ASEAN Post-2025: Reimagining the ASEAN Economic Community (ISEAS-Yusof Ishak Institute, 2024) at page 21.}

^{(14) Deputy Prime Minister Mr Heng Swee Keat, Speech at the 10th Anniversary of Rajah & Tann Asia (29 August 2024).}

^{(15) Amir Yusof, “ASEAN-Wide Digital Payment System, Regional Power Grid Key Amid Geopolitical Risks: Vivian Balakrishnan” (CNA, 19 January 2025).}

^{(16) Sundaresh Menon CJ, “Doing Business Across Asia: Legal Convergence in an Asian Century”, Keynote Address at the Launch of the Asian Business Law Institute (21 January 2016) at para 6.}

^{(17) Sundaresh Menon CJ, “Roadmaps for the Transformational Convergence of Commercial Law: Lessons from the CISG”, Speech at the 35th Anniversary of the Convention on Contracts for the International Sale of Goods (23 April 2015) at para 39.}

^{(18) Sundaresh Menon CJ, “Reimagining the Rule of Law: A Renewed Conception”, Speech at the Final Session of the Series of Conversations with the Community (20 September 2024) at para 45.}

^{(19) Centre for International Law, “About CIL”, available at https://cil.nus.edu.sg/about-us/.}

^{(20) More information on the project can be found at https://cil.nus.edu.sg/research/asean-law-and-policy/asean-integration-through-law-project/.}

^{(21) More information on the ASEAN Law Academy Advanced Programme can be found at https://cil.nus.edu.sg/research/asean-law-and-policy/asean-law-academy/ala-advanced-programme/.}

^{(22) More information on ALA can be found at https://www.aseanlawassociation.org/.}

^{(23) For further information on the CACJ, see Sundaresh Menon CJ, Speech at the Gala Dinner to Commemorate the 10th Anniversary of the CACJ (5 November 2022).}

^{(24) Minister for Foreign Affairs Dr Vivian Balakrishnan’s Reply to Supplementary Parliamentary Question on Major Power Blocs (11 November 2024) at para 6.}