SINGAPORE, May 9 (Xinhua) -- Singapore on Wednesday called for liberalization and integration of services industry within the region, which are important for its competitiveness and growth.

    Speaking at the second Association of Southeast Asian Nations (ASEAN) Services Forum, Singapore's Trade and Industry Minister LimHng Kiang said, "In order for ASEAN to increase the competitiveness of its services industries, we must give a major push to liberalize our markets."

    Because services is a key pillar and it contributes towards a significant proportion of the gross domestic product (GDP) in ASEAN countries. Current figures show that in general, an ASEAN country generates about 40 to 50 percent of its GDP from its services sectors.

    After having accomplished much on goods liberalization, Lim said services liberalization should be placed priority.

    A key milestone the region had was the ASEAN Framework Agreement on Services (AFAS), which was signed in December 1995.

    "AFAS signals a significant commitment by ASEAN member countries to substantially eliminate restrictions to trade in services," said Lim, adding that, "And under the AFAS, the ASEAN Economic Ministers recently agreed on the roadmap to full services liberalization by 2015, whereby every ASEAN member country is committed to liberalize their services sectors in tranches every two years until 2015."

    A sound, competitive service economy is a key contributing factor to a country's economic growth, and is also critical for attracting foreign direct investment, he noted.

    He also called for integration within ASEAN to address globalization challenge facing the region, "Market forces and increased competition in the region and wider global community also necessitate regional economic integration."

    Having had many years of regional cooperation and have established strong bonds and a common understanding, it was not difficult to integrate services industry, he said.

    Even so, good policy making in services, changes in the existing regulatory frameworks and differing levels of licensing and supervision, were required, he said.

    He called on ASEAN member countries to work hard towards an ASEAN Economic Community, in which ASEAN would be a single market and production base with the free flow of goods, services, investment and skilled labor, and a freer flow of capital.

    The two-day services forum attracted more than 100 government officials, businesses, and stakeholders in the ASEAN services industry.