KUALA LUMPUR (June 2): While progress to integrate the region's diverse economies into a single market has been slow, the 10-member Association of Southeast Asian Nations (Asean) has adopted the "right model" with the Asean Economic Committee (AEC), said International Trade and Industry Minister Datuk Seri Mustapa Mohamed.

He said Asean operates by consensus on policies, which is the right way considering the different levels of economic development in the region.

However, Mustapa is of the view that Asean will not have a similar model like that of the European Union.

"We have got a blueprint moving forward and we are committed to achieve closer economic integration (with the AEC)," he told reporters after speaking at a session on "Battling for Asia's Economic Architecture" during the two-day World Economic Forum (WEF) on Asean 2016, which ends today.

"Of course it is not going to be a political or monetary unit. The model we have in Asean is an incremental one, a gradualist approach.

"Some people may say this has slowed down things a lot. Yes, that's true. But that's the right model to pursue given the different levels of economic development," he said.

Yesterday, CIMB Group Holdings Bhd chairman Datuk Seri Nazir Razak had expressed that the AEC was not what was promised in 2007, with its slow progress.

Nazir also said the larger question that Asean needs to tackle is the right integration formula.

Mustapa said integration will not happen overnight. "Well, it is a journey."

"We are not imposing our views on other member states of Asean. We are committed towards a closer Asean economic integration, but that doesn't mean (unified) political or monetary units.

"Our model is very different and we think it is a practical, realistic model for us to develop," he added.

Mustapa believed that Malaysia has benefited from a more open Asean, with intra-Asean trade and investment having increased over the years.

During a panel discussion with Prime Minister Datuk Seri Najib Razak and other dignitaries from Asean countries at the WEF yesterday, Cambodian Prime Minister Hun Sen also questioned the extent of the AEC's commitment towards forming an inclusive economic region as countries continue to compete with each other for agricultural exports and inflows of foreign direct investment (FDI).

He said for less developed countries striving to climb up the economic ladder, attracting FDI is essential and that is driving competition between Asean members rather than cooperation and integration.

"Asean is competing with itself," he had reportedly said.

Hun Sen had previously criticised the Trans-Pacific Partnership (TPP) agreement for leaving out six of the 10 Asean members, saying it could undermine economic integration in the region like that promoted by the Regional Comprehensive Economic Partnership — a regional free trade area including the ten Asean countries and those nations with existing free trade agreements with Asean — Australia, China, India, Japan, New Zealand and South Korea.

The TPP has 12 members, which includes Asean members Malaysia, Vietnam, Singapore and Brunei.