Asean positive on reaching 95% of AEC blueprint - Potential business prospects

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The Association of South-East Asian Nations’ (Asean) efforts at economic integration have helped to anchor the grouping’s relevance to the world. The AEC is the realisation of the end goal of economic integration as espoused in the Vision 2020, which is based on a convergence of interests of ASEAN Member Countries to deepen and broaden economic integration through existing and new initiatives with clear timelines. In establishing the AEC, ASEAN shall act in accordance to the principles of an open, outward-looking, inclusive, and market-driven economy consistent with multilateral rules as well as adherence to rules-based systems for effective compliance and implementation of economic commitments. The AEC will establish ASEAN as a single market and production base making ASEAN more dynamic and competitive with new mechanisms and measures to strengthen the implementation of its existing economic initiatives; accelerating regional integration in the priority sectors; facilitating movement of business persons, skilled labour and talents; and strengthening the institutional mechanisms of ASEAN. As a first step towards realising the ASEAN Economic Community, ASEAN has been implementing the recommendations of the High Level Task Force (HLTF) on ASEAN Economic Integration contained in the Bali Concord II.

Asean member states are confident that by end-2015, at least 95 per cent of the measures under the Asean Economic Community (AEC) Blueprint will be implemented. A slight shortfall is expected and measures not achieved within the target year will be continued and incorporated into the Post 2015 Economic Vision that is now being developed, according to Malaysia's Minister of International and Industry, Datuk Seri Mustapa Mohamed.

Briefing Malaysian reporters on the progress here this morning, he said the overall average Asean implementation rate of measures under the AEC Blueprint was a credible 82.1 per cent, and slightly higher for Malaysia at 83.9 per cent.

He said the progress has been encouraging despite challenges faced by countries in aligning domestic economic policies to the regional commitment.

The 10 Asean countries have a combined population of 617 million people and Gross Domestic Product of US$2.5 trillion and growing at an average 5.3 per cent for the period 2006-2013. The efforts had also been instrumental in creating more opportunities for businesses operating in the region.

In-depth background studies were prepared for each ASEAN member country and more than 20 thematic papers written on key issues and challenges the region will face. The region seeks to become resilient, inclusive, competitive, and harmonious — realizing a “RICH” ASEAN by 2030. Achieving a “RICH” ASEAN by 2030 implies further lowering intraregional economic barriers and more effective resource pooling. To realize a seamless regional economic community, ASEAN needs to introduce innovative systems to manage its labor and capital markets as it progressively liberalizes them. The group needs stronger institutional frameworks and policy coordination mechanisms on intraregional and external matters

Asean must sustain this good momentum and build on the positive inroads made. Asean’s ability to fully realise its potential depended fundamentally on its efforts in regional integration and most Asean countries were too small individually to be game-changers in the global market. But as an integrated region, it can be benefit by leveraging our collective strength in responding to external challenges. If the AEC vision was aspirational when it was first conceived, it is now an imperative. This has prompted an increased momentum in efforts to realise a truly integrated and competitive region. With close to 80% of prioritised measures identified for 2013 already implemented, Lim said, the journey towards an AEC was well on course. Over the next one year, Asean would step up its efforts to realise the high-impact action plans. These include addressing non-tariff bariers, realising the customs single window, as well as deepening services and investment liberalisation. ‘Behind-the-border’ issues such as improving trade facilitation and harmonising standards and conformance would also be placed at the forefront of Asean’s economic agenda. These remaining issues are challenging, but would offer the most benefits for our businesses and peoples. Overall, Asean was moving in the right direction towards greater economic integration.