Kuala Lumpur, 12 December 2005

1. The 11th ASEAN Summit, with the theme “One Vision, One Identity, One Community”, was chaired by The Honourable Dato’ Seri Abdullah Ahmad Badawi, the Chairman of the 11th ASEAN Summit and the Prime Minister of Malaysia.  The Leaders of ASEAN had a productive meeting, which was held in plenary, and in retreat for the first time allowing for candid and frank discussions.

2. A total of 10 documents listed in the Annex, were issued as the outcome of the 11th ASEAN Summit.

ASEAN Integration and Community Building

3. We welcomed the progress in ASEAN integration and the ongoing community building efforts.  We underscored the importance of ASEAN’s cohesion in dealing with issues and challenges facing the region to enhance ASEAN’s credibility, transparency and solidarity to protect and nurture the collective interest of ASEAN.

ASEAN Charter

4. We signed the Kuala Lumpur Declaration on the Establishment of the ASEAN Charter, which will be a landmark constitutional document embodying fundamental principles, goals, objectives and structures of ASEAN cooperation capable of meeting the needs of the ASEAN Community and beyond.  In this connection, we agreed to establish an Eminent Persons Group (EPG), comprising highly distinguished and well respected citizens from ASEAN Member Countries with a mandate to examine and provide practical recommendations on the directions for ASEAN and nature of the ASEAN Charter.   We further tasked our Ministers to establish, as necessary, a High Level Task Force to carry out the drafting of the ASEAN Charter based on the Declaration and the recommendations of the EPG. 

Vientiane Action Programme

5. We noted the reports on the progress in the implementation of the Vientiane Action Programme (VAP) and the follow-up to the previous ASEAN and Related Summits.  We acknowledged the steady progress made in the implementation of the VAP and our decisions and initiatives.  We welcomed the establishment of the ASEAN Development Fund (ADF) and urged the ASEAN Member Countries and our Dialogue Partners to consider contributing to the Fund to support ASEAN’s integration.  We called on our Ministers and Senior Officials to study the bottlenecks in the implementation and to find creative solutions to carry out pending measures in the VAP and our decisions and initiatives taken at previous Summits.  We requested the Secretary-General of ASEAN to update us with the progress made at our next Summit.

ASEAN Security Community

6. We noted the steady progress made in the implementation of the ASEAN Security Community (ASC) related activities through the VAP and the ASC Plan of Action (PoA). We noted the accomplishments in implementing the ASC, including the establishment of the Inter-Sessional Support Group on Confidence Building and Preventive Diplomacy and the revival of the Inter-Sessional Meeting on Disaster Relief under the ASEAN regional Forum (ARF); the setting up of the ASEAN-China Joint Working Group on the Implementation of the Declaration on the Conduct of Parties in the South China Sea; and the promotion of greater public awareness about ASEAN through holding activities on the occasion of ASEAN day. 

7. We welcomed the efforts towards enhancing ASEAN’s cooperation in combating terrorism and other transnational crimes through the implementation of agreements among ASEAN Members Countries and the revitalisation and re-ordering of priorities of existing work plans and programmes to give sharper focus to meeting the challenges posed by such crimes.  We recognised the important role of inter-faith dialogue in fighting the spread of terrorism and promoting understanding among our people. 

ASEAN Economic Community

8. We noted with satisfaction ASEAN’s positive trade performance with total trade exceeding US$ 1 trillion.  ASEAN total exports increased by 20.69% from US$ 456.71 billion in 2003 to US$ 551.19 billion in 2004.  ASEAN total imports likewise increased by 26.77% from US$ 388.79 billion in 2003 to US$ 492.86 billion in 2004.  We also noted with satisfaction that after a number of years of consecutive decline in foreign direct investment (FDI), the flow rebounded in 2004.  ASEAN FDI flow for 2004 reached US$ 25.1 billion, a 22% year-on-year increase.  Prospects for 2005 are good with FDI for the first quarter of 2005 already amounting to US$ 7.2 billion.  This achievement was significant in the context of concerns arising from SARS, avian influenza, increasing international competition and a global FDI downturn.

9. As a result of the above fine performances, the ASEAN economies continued to grow with real GDP expanding by 6.1% in 2004.  ASEAN has certainly done well compared to the average global GDP growth of 5.1%.  Based on the momentum generated, despite the current uncertainty in oil prices and rising interest rates, ASEAN’s economic growth is likely to be sustained at around 5.5% in 2005.

10. We endorsed the ASEAN Economic Ministers decision to accelerate the liberalization of trade in services not covered in the Priority Integration Sectors by 2015, with flexibility.  We are encouraged by the signing of Agreements on the Mutual Recognition Arrangement (MRA) for the ASEAN Harmonized Electrical and Electronic Equipment (EEE) Regulatory Regime; Mutual Recognition Arrangement (MRA) on Engineering Services and the Agreement to Establish and Implement the ASEAN Single Window.  We urged our Ministers responsible for tourism and air transport to integrate the sectors at an even faster pace. 

11. We discussed the possibility of advancing the target date for the realisation of the ASEAN Economic Community from 2020 to 2015 with some flexibility for the new Member Countries.  We recognise the challenges some ASEAN Member Countries might face by advancing the target date and tasked our Ministers and senior officials to study the matter.     

12. We noted the progress in the implementation of the two plus x formula in moving the Multilateral Agreement on the Full Liberalisation of All Cargo Air Services.  We recognise the formula is an extension of bilateral cooperation between two ASEAN Member Countries to other countries for promoting economic cooperation.  We agreed that more should be done for the development of the Asia Bond Market Initiatives.

13. We noted with concern that the prolonged rise in oil prices will have a negative impact on the economic growth of the ASEAN Member Countries and the region.   We agreed to further enhance ASEAN cooperation in the energy sector and between ASEAN and other countries, including our Dialogue Partners, to promote energy efficiency and to explore and develop alternative energy sources to ensure energy security and sustainable economic growth.

14. We welcomed the launching by the ASEAN Finance Ministers in September 2005 of the FTSE-ASEAN Indices, the first internationally recognised indices that have been created for the ASEAN equity markets, which will raise the profile of leading ASEAN companies to global investors and encourage greater direct investments.  This marks an important milestone in promoting ASEAN as an asset class. 

15. We stand committed to the common goals of eradicating poverty and hunger in ASEAN as pledged at the World Food Summit and Millennium Declarations, and reiterated in the VAP.  We, therefore, strongly support further resource mobilisation for agriculture and rural development in the ASEAN Member Countries as agriculture plays a pivotal role in improving food security and poverty reduction.   We acknowledged that more and better investment in the sector will create additional employment opportunities, enhance competitiveness and ensure sustainable economic growth.  In this regard, we welcomed a number of national and ASEAN initiatives and plans of action and cooperation with various regional and international organisations, including those within the United Nations system such as the Food and Agriculture Organisation and the Economic and Social Commission for Asia and the Pacific to bolster projects and activities in agriculture and propose practical modalities for financing the cooperative programmes.

ASEAN Socio-Cultural Community

16. We were satisfied with the overall progress made in the implementation of the ASEAN Socio-Cultural Community (ASCC)-related measures and activities of the VAP and the ASCC PoA, particularly, in the areas of disaster management and emergency relief; prevention and control of the diseases such as HIV and AIDS and avian influenza; combating transnational crimes; promoting social, women and child development; and poverty eradication.  We agreed to further enhance cooperation in these areas to move towards the realisation of the ASCC by 2020. 

17. We welcomed the responsive action and coordinative efforts by ASEAN Member Countries to control and eradicate the spread of Highly Pathogenic Avian Influenza (HPAI) in the region.  We called for further institutional linkages and partnerships among all stakeholders in public and private sectors and civil society. We reaffirmed the commitment and support of our countries to the various initiatives undertaken by HPAI Taskforce and ASEAN Expert Group on Communicable Diseases, through the Regional Framework for Control and Eradication of HPAI, establishment of ASEAN Animal Health Trust Fund, and ASEAN Plus Three Emerging Infectious Diseases Programme.  We emphasised the importance of ASEAN’s collective strength in coordinating a common regional approach and sharing resources to address transboundary threats, including the setting up of a regional network of antiviral drugs stockpile. We called upon our Dialogue Partners, international organisations, and other relevant donors to work closely with ASEAN and all concerned parties in combating avian influenza. 

18. We agreed on the need to work closely and collaborate in the area of avian influenza.  We noted Malaysia’s intention to establish the Regional Avian Influenza Research and Reference Centre (NAIRRC) as well as the Regional WHO Collaborating Centre for Influenza.  The two centres will share their respective experience in virological surveillance and diagnostic capabilities for the benefit of this region.

19. We noted with encouragement the progress made in addressing the HIV transmission and AIDS treatment through the implementation of the ASEAN Work Programme (AWP) on HIV/AIDS II and look forward to the agenda for future action through a strategic framework for AWP III, which we endorsed.  We strongly believe that ASEAN’s strength in fighting the HIV and AIDS lies in joint action and coordination among the Member Countries. We looked forward to convening the Second Special Session on HIV and AIDS in conjunction with the 12th ASEAN Summit in 2006, to signal ASEAN’s commitment in combating the AIDS pandemic and to give impetus to regional responses in taking urgent action to eradicate this threat to our future generations.  We agreed to promote a higher profile and voice for ASEAN’s work in this area with the international community, particularly in global decision-making on fund allocation for HIV and AIDS prevention and control. 

20. We recalled with sorrow the loss of lives and devastation caused by the Tsunami of 26 December 2004 last year, and resolved to prevent the recurrence of such devastation.  In this regard, we underlined the importance of establishing a regional early warning system.  

21. We welcomed the signing of the ASEAN Agreement on the Disaster Management and Emergency Response in July 2005 in Vientiane, Lao PDR, which inter-alia provides for a stand by regional military and civilian capacity to deal with disasters, to further intensify cooperation in this area among ASEAN Member Countries as well as between ASEAN, and other countries and regional and international organisations.

22. We expressed serious concern over the impact of land and forest fires and the resulting transboundary haze pollution that affects our region almost annually.  While noting the various measures that have been undertaken at the national level over the years, and at the regional level guided by the ASEAN Agreement on Transboundary Haze Pollution, we recognised the need to further intensify and undertake coordinated action, particularly to address the underlying causes of land and forest fires. We noted with satisfaction the concerted action taken by ASEAN Member Countries during the recent severe haze episode by mobilising personnel, aircraft and equipment to suppress the fires and stand ready to provide such assistance during critical periods in the future. We called for swift and more effective inter-agency collaboration and coordination at the national and regional levels to deal comprehensively with the transboundary haze pollution. Recognising also its transboundary nature and widespread impact on various sectors, we have directed our relevant Ministers and agencies to deal collectively with this issue.

23. We also noted the efforts to establish a transboundary network of sanctuaries on the island of Borneo involving Malaysia, Brunei Darussalam and Indonesia.  Such sanctuaries would protect the biological diversity of plants and animals in the green Heart of Borneo and would play a vital role in protecting all of the island major water catchment. 

24. We welcomed the decision of the ASEAN Ministers of Education to convene the ASEAN Ministerial Meeting on Education on a regular basis.  This is a significant development given the important role of education in ASEAN’s social and economic development and its community building efforts including raising the awareness of ASEAN, instilling the ‘we feeling’ and creating a sense of belonging to the ASEAN Community.  We also agreed that the Meeting should focus on enhancing regional cooperation in education matters among Member Countries as well as to cooperate closely with other ASEAN sectoral bodies in the context of the building the ASEAN Socio-Cultural Community (ASCC) and implementing the Plan of Action of the ASCC.

25. We agreed to establish ASEAN university games, ASEAN youth peace corps, ASEAN computer games and ASEAN science olympiad to promote greater interaction and understanding among the youths in the region. We tasked our ministers to look into the possibility of synchronising the university vacation period so as to enable students to partake in the activities.

26. We exchanged views the utilising information communication technology (ICT) to promote interaction among our people, including the possibility of an e-ASEAN community. 

Bridging the Development Gap

27. We reiterated that bridging the development gap is critical to regional integration. We noted ASEAN’s efforts to bridge the development gap through the Initiative for ASEAN Integration (IAI) in the past few years focusing on human resources development, infrastructure (transport and energy), regional economic integration and information technology. We were encouraged by the steady progress in the implementation of the IAI projects and expressed our appreciation to the ASEAN Member Countries, Dialogue Partners and regional and international organisations for their support and contribution.
  
28. We noted the mid-term review report of the IAI, in particular the recommendations put forward in the report.  We acknowledged the need to further broaden the scope of the IAI to meet the urgent needs of the CLMV countries, the need for participation in IAI activities by other underdeveloped sub-regions in ASEAN and the need to mobilise resources to support IAI implementation.

29. We welcomed Malaysia’s additional grant of up to USD500,000 for the period 2006-2008 to support the Smart School Projects for the CLMV, which will provide these countries with ICT facilities and a human resource development programme package.    We also noted Vietnam’s offer to host the Second IAI Development Cooperation Forum in 2006 to accelerate the pace of implementing the IAI.

30. We recognised the important contribution of various sub-regional arrangements to ASEAN integration and noted the substantial progress made in the implementation of the initiatives and programmes under such arrangements.  In this regard, we welcomed the successful convening of the Second Brunei-Indonesia-Malaysia-Philippine East Asia Growth Area (BIMP-EAGA) Summit and the BIMP-EAGA Roadmap to Development, which will guide the stakeholders in the implementation of doable, practical and sustainable strategies, programs and projects that will benefit the communities of member countries in BIMP-EAGA.  We also welcomed the First Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT) Summit, and the Second Cambodia-Laos-Myanmar-Viet Nam (CLMV) Summit on 11 December 2005 in Kuala Lumpur, Malaysia. 

31. We also appreciated the valuable contribution of sub-regional cooperation framework aimed at narrowing the development gap and accelerating the integration of new members, as such as the Greater Mekong Sub-region (GMS) and Ayeyawady-Chao Phraya-Mekong Economic Cooperation Strategy (ACMEC).

ASEAN Foundation

32. We noted the Report of the Executive Director of the ASEAN Foundation.  We agreed that the Foundation should further intensify its efforts in promoting awareness of ASEAN among the peoples of ASEAN, and addressing issues related to poverty alleviation and socio-economic disparities in the region.

Aceh, Indonesia

33. We welcomed the positive developments in the solution of the conflict in Aceh, Indonesia, through the dialogue leading to the conclusion of the Memorandum of Understanding between the Government of Indonesia and GAM.  We also welcomed the efforts made to keep member states of ASEAN informed of such developments.  We supported the cooperation between Indonesia and ASEAN contributing countries to the Aceh Monitoring Mission as a model for cooperation between ASEAN Member Countries in conflict resolution as provided for in the ASEAN Security Community, as well as a model for cooperation between regions, in this case with the European Union.

Myanmar

34. We noted the increased interest of the international community on developments in Myanmar.  In this context, we took note of the briefing by Myanmar on the latest developments in the implementation of its Roadmap to Democracy.  We encouraged Myanmar to expedite the process and welcomed the invitation by Myanmar to the Foreign Minister of Malaysia in his capacity as Chairman of the ASEAN Standing Committee to visit Myanmar to learn first-hand of the progress.  We also called for the release of those placed under detention.  

External Relations

ASEAN Plus Three Cooperation

35. We were pleased with the overall progress made in our cooperation within the ASEAN Plus Three framework, including the steady implementation of the short-term and some of the medium and long term East Asia Study Group measures.  We looked forward to the signing of the Kuala Lumpur Declaration on the ASEAN Plus Three Summit on 12 December 2005 to reaffirm our commitment to the ASEAN Plus Three cooperation.  We reiterated our commitment to ensuring that the ASEAN Plus Three process would be the main vehicle for the realisation of the East Asian community in the future, and would work closely with our Plus Three partners on this common objective.

Cooperation with Dialogue Partners

36. We noted the encouraging progress in ASEAN’s cooperation with its Dialogue Partners.  We also noted the Report of the ASEAN-China Eminent Persons Group, in particular their recommendations to strengthen the ASEAN-China partnership, which we will discuss with the Premier of China on 12 December 2005. We also look forward to the adoption of the Joint Statement with Japan to further enhance the partnership for a stable and prosperous region. 

37. We welcomed the ASEAN-Russian Federation Joint Declaration on Progressive and Comprehensive Partnership and the Comprehensive Program of Action for 2005-2015 to strengthen ASEAN-Russia relations, which we will conclude with the President of the Russian Federation on 13 December 2005.   We will adopt a Plan of Action with the President of the Republic of Korea to implement the Joint Declaration on Comprehensive Partnership on 13 December 2005. 

38. We also welcomed the recent accession of Australia, Mongolia and New Zealand to the Treaty of Amity and Cooperation in Southeast Asia, which will further enhance the role of the Treaty as a code of conduct governing inter-state relations in the region for the promotion of peace and stability.

39.  We noted the progress in the free trade area (FTA) negotiations with China, India, the Republic of Korea, Japan, and the Australia New Zealand.  We underscored the importance of these arrangements in collectively strengthening ASEAN’s trade and economic cooperation with our Dialogue Partners and contributing to the progress, prosperity and development of the region.  We encouraged all partners to work with ASEAN towards the realisation of the FTAs with the longer-term benefits of such FTAs in mind. We looked forward to the signing of the Framework Agreement on Comprehensive Economic Cooperation with the Republic of Korea on 13 December 2005 and welcomed the other agreements pertaining to the ASEAN-ROK FTA signed by our Economic Ministers with the ROK on 9 December 2005.  We further welcomed the signing of the ASEAN-Russian Federation Economic and Development Cooperation Agreement by the ASEAN Foreign Ministers and the Minister of Foreign Affairs of the Russian Federation on 10 December 2005, which will strengthen the economic and development cooperation dimensions of the relations as both sides work towards a progressive and comprehensive partnership.

East Asia Summit

40. We welcomed the convening of the East Asia Summit (EAS) on 14 December 2005, as an open and inclusive forum with ASEAN as the driving force for broad strategic, political, economic issues of common interest. We also agreed that the EAS should be a “top-down” forum for Leaders to exchange views.  We looked forward to the signing of the Kuala Lumpur Declaration on the East Asia Summit.  We agreed that the efforts of the EAS to promote community building in this region will be consistent with and reinforce the realisation of the ASEAN Community, and will form an integral part of the evolving regional architecture.

41. We agreed that the EAS and the ASEAN Plus Three process should move on parallel tracks without overlapping and complement one another as well as other regional processes.

42. We also agreed to propose the convening of the EAS on an annual basis to the other participants of the First EAS.   

Regional and International Political and Security and Economic Issues

43. We exchanged views on the regional and international situation and acknowledged that our regional environment continues to be peaceful and stable.  We are aware that the region is being confronted with challenges such as the threat of terrorism, the outbreak of avian influenza, and the rise in oil prices which have direct negative impact on regional economic development and public health.   We agreed that ASEAN should step up efforts to address these challenges at the bilateral, regional and multilateral levels in accordance with our obligations under international law and with respect for national sovereignty, territorial integrity and the principle of non-interference in the internal affairs of other countries. 

44. We were outraged at the series of terrorist attacks in our region and other parts of the world that resulted in the loss of innocent lives. We strongly condemned such acts of terror and extended our sympathies to the victims and their families.  We condemned acts of terrorism in all its forms and manifestations, and emphasised the need to maintain and intensify cooperation among states in the region to combat terrorism and seriously address the root causes of terrorism. We continue to reject any attempt to associate terrorism with any race, religion, nationality or ethnic group.

45. We reaffirmed our support for the denuclearization of the Korean Peninsula and support the efforts made by the Six Party Talks to find a peaceful and comprehensive solution to the nuclear issue on the Korean Peninsula.  In this connection, we welcomed the fourth and fifth rounds of the Six-Party Talks held in July and November 2005 in Beijing, China, and called on all concerned parties to exert utmost efforts to move towards a peaceful resolution to the nuclear issue on the Korean Peninsula.

46. We underscored that current developments in Iraq and Middle-East remain a cause of concern.  We hoped for a solution in the foreseeable future that would lead to a durable peace, security, stability and national harmony so that the Iraqi people can truly be the master of their own destiny and country.  We also looked forward to the realisation of the vision of two states -Israel and Palestine- living side by side in peace within secure and recognised borders. 

47. We welcomed and supported the decision of the ASEAN Regional Forum (ARF) to establish the Inter-Sessional Group on Confidence Building Measures and Preventive Diplomacy (ISG on CBMs and PD) with a view to making the ARF a more proactive forum capable of responding in a timely manner to situations likely to disturb peace and security in the Asia-Pacific region.  We resolved to maintain ASEAN’s role as the driving force in the ARF and agreed to support the operationalisation of the enhanced role of the ARF Chair. 

48. We reaffirmed our commitment to the United Nations and supported a comprehensive reform of the United Nations and underlined the need to enhance the voice and role of the developing countries within the United Nations system. 

49. We reaffirmed our strong support for the ASEAN candidate from Thailand, Dr. Surakiart Sathirathai, for the post of United Nations Secretary-General (UNSG) which will become vacant upon the expiry of the term of the current UNSG at the end of 2006. 

WTO

50. We recognized that a successful outcome of the WTO Doha Development Agenda (DDA) negotiations would crucially contribute towards further strengthening of the multilateral trading system, promoting global economic growth and in particularly enhancing economic development in developing countries. For this reason, it is important to maintain the level of ambition established in the Doha Declaration and ensure that the objectives of the DDA are pursued to a successful conclusion. 

51. An ambitious and overall balanced outcome at the end of the Round must include, among others; a comprehensive package in agriculture to ensure substantial reductions in trade distorting domestic support, substantial improvements in market access for all products by significantly lowering tariffs and reducing quantitative restrictions, and the elimination of all forms of export subsidies of developed Members by 2010; an agreement on non-agricultural market access through a Swiss formula with ambitious coefficients and sectoral agreements on a voluntary basis that will ensure real market access improvements for all WTO Members; an agreement in services that will create commercially meaningful and real market access opportunities in all WTO Members; clarification and improvement of the WTO rules for securing and enhancing benefits in market access that will ensure clearer and more predictable trade disciplines; and clearer and improved WTO rules for trade facilitation that will contribute to further expediting the movement, release and clearance of goods. 

52. We stressed that the development dimension of the Round should be embodied in all negotiating areas and deliver real, effective and operational development benefits to all developing country members and in particularly, take into account the special needs of the least developed countries (LDCs). 

53. We called on all WTO Members, especially those that have the largest stake in the global trading system and derive the biggest benefits from it, to make all necessary contributions and additional efforts to ensure that the upcoming Ministerial Conference in Hong Kong provides a substantial platform to move the DDA negotiations forward to a successful completion of the round by the end of 2006. 

54. We also noted the progress made so far in WTO membership negotiations of Lao PDR and the Socialist Republic of Viet Nam. We called on WTO members to turn their strong support for the WTO membership of these countries into concrete actions by accelerating the negotiations and by not posing excessive requests beyond their capacities so that these countries become WTO members soon. Early accession to the WTO of these countries will facilitate their full integration into the international economy and further strengthen and enrich the multilateral trading system.

Other Matters

55. We noted with appreciation the ASEAN Business Advisory Council (ABAC) report and agreed to continue to support its role in the overall strategy of increasing the private sector engagement in ASEAN economic policy deliberations. We also underscored the need for closer coordination and regular engagement between the private sector and relevant public agencies in the implementation of ABAC’s recommendations as well as the ASEAN economic initiatives and programmes. 

56. We welcomed the convening of the ASEAN Tourism Investment Forum on 9 December 2005 in Kuala Lumpur, Malaysia, which would contribute to our countries’ efforts to attract more tourism-related investment into the region and to developing ASEAN as an attractive tourist destination.

57. We took note of the Report of the ASEAN Civil Society Conference (ACSC) which was held on 7 – 9 December 2005.  We recognised that the civil society will play an increasing important role in ASEAN as we develop a people-centred ASEAN Community.  Thus, we supported the holding of the Conference annually on the sidelines of the ASEAN Summit and that its report be presented to the Leaders.