For ASEAN to merge with SAARC, there has to be greater intergration within SAARC, ASEAN Secretary General Dr. Surin Pitsuwan said.

Interviewed by The Island Financial Review on the sidelines of the 12th Asia- Pacific Conference on German Business, which concluded in Singapore last week, the official said co-operation among SAARC members was very slow.

"SAARC will have to achieve a higher level of integration before mergers are discussed.We are certainly interested in a comprehensive connectivity plan with SAARC," he said. "ASEAN, amidst its diversity, has evolved into a cohesive unit and we would like to see a simillar relationship between SAARC members."

Pitsuwan said ASEAN has an ongoing dialogue with BIMSTEC,which includes Sri Lanka and it augurs well for the region.

The talks between ASEAN and India have proved successful,with both sides agreeing to sign a Free Trade Agreement by the end of this month,he said.

"An FTA with India is a huge step. We are talking of a total population of over 1.6 billion people.The opportunites are endless and its a first step towards linking up with the rest of Asia."

Pitsuwan said ASEAN is the centerpiece of Asia and it can look after itself with US$ 120 billion reserve fund at its disposal. "China has increased its financial contributions. It has been a great source of strength to ASEAN."

Singapore’s Trade Minister Lim Hng Kiang said his country has had a long history of co-operation with German business and it was important that it be continued for their mutual betterment.