New Zealand upgrades ASEAN ties with boost in investment

New Zealand Prime Minister John Key said here Sunday that his country will invest more than 200 million NZ dollars (131.32 million U.S. dollars) in the 10-member Association of South East Asian Nations (ASEAN) over the next three years.

Key told ASEAN leaders at the ASEAN Summit in Kuala Lumpur that New Zealand's formal relationship with ASEAN would be upgrade from a comprehensive partnership to a strategic partnership.

The investment would make ASEAN the second largest regional recipient of New Zealand development assistance after the Pacific.

"This year we celebrate 40 years of diplomatic relations with ASEAN, a key regional partner," said Key.

"The funding will focus on building the capability of the region's people and creating links between our young leaders and emerging entrepreneurs - the people who will build on the ties we have forged in the past 40 years."

With a total population of 625 million people and with GDP expected to grow to 5.2 trillion U.S. dollars by 2030, ASEAN presented significant opportunities for New Zealand.

"We are also working closely together on shared political and security challenges. Our new agreement means we will work more closely together on these issues," said Key.

New Zealand would focus its cooperation with ASEAN on two key strategies.

The "people strategy" would build opportunities for training and exchanges and greater flows of people, with a focus on youth.

The "prosperity strategy" would support ASEAN's drive to close the development gap with a focus on New Zealand's expertise in agriculture and trade.

Founded in 1967, ASEAN comprises Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. Endit