KUALA LUMPUR: Prime Minister Datuk Seri Najib Razak said the full implementation of the Asean Free Trade Area (Afta) this year is expected to spur the bloc's economic prowess as member countries pursue greater economic integration.

Greater connectivity among Asean's 10 member countries would boost trade, investment, tourism and development ties, he said in his special address at the Official Monetary and Financial Institutions Forum on Monday, May 17.

He said while the members of the grouping were diverse, they were bound together by the common desire to transform and uplift the economies individually, which in turn would reinforce the economic and financial integration of the region in the New World Order.

"The challenges arising from the international financial crisis also present an opportunity for Asia and the West to work together to find solutions that work for all,"  he said.

Asean was formed following the signing of the Asean Declaration by its initial member countries — Indonesia, Malaysia, the Philippines, Singapore and Thailand.

The bloc, with a land area of 4.4 million sq km, later included five additional members — Brunei, Vietnam, Laos, Myanmar and Cambodia. Latest updates on Asean's website indicate that its member countries have a combined population of close to 600 million people.

Afta aims to make the region a cost-competitive production base via the elimination of tariff and non-tariff  barriers within member countries.

Najib said Asean's integration was also in line with the bloc's aim to enhance ties with other major Asian economies — China, Japan, South Korea and India.

Apart from trade and investment ties, the prime minister said regional countries, as whole, were becoming more confident in tackling integration issues, especially implications of financial contagion which had a direct impact on Asian economies.

"Malaysia is a microcosm of Asia, in that, we have a rich cultural and ethnic diversity. Our strength has been our ability to integrate so as to propel the country's progress and prosperity further, together as one community of Malaysians," Najib said.

Najib had said last week that Malaysia's economic growth target of 6% this year was achievable, helped by policymakers' economic transformation initiatives, against the backdrop of the country's favourable economic performance.