13/12/05 KUALA LUMPUR (Bernama) -- The establishment of Asean corporate entity in the form of conglomerates was the main recommendation by Asean Business Advisory Council (ABAC) to Asean leaders.

The private sector report, presented by ABAC chairman, Datuk Syed Amin Aljeffri had proposed that entrepreneurs from member countries cooperate in certain specific businesses or promote specific industry technology.

One such conglomerate that was established early this year was in the area of oil palm fibre technology, he told Bernama here Monday.

"This conglomerate involves Malaysia, Singapore and Thailand. Indonesia may join as it is one of the major palm oil producers while Vietnam and Myanmar have shown interest," he said.

The Asean fibre technology conglomerate is led by a Malaysian company, Sabutek Sdn Bhd, which specialises in palm oil waste derivatives.

The conglomerate had agreed on sharing technology knowledge, product applications and working environment and the signing of a detailed framework will be held next year.

The conglomerate would also work on inter country levy, concessions, tax incentives and funds.

"We also informed the leaders that there are other projects that can be involved by these specific conglomerates, some of which are already in the pipeline. These include bioenergy, wood-based products, tourism and agriculture sectors," he said.

ABAC is also working with Asean Foundation to promote corporate governance especially among small and medium enterprises (SMEs) so that transparency of their business could be put forward, Syed Amin said.

He said that ABAC will continue to interact and have dialogues with other associations in manufacturing, textile, wood-based industry, tourism and electronics sectors

-- BERNAMA