2015 will be a critical year for ASEAN as the ASEAN Economic Community will officially be launched by 31 December 2015. Much has been accomplished towards the achievement of this milestone, but people and businesses still need to embody and benefit from the ASEAN community.
31 December 2015: launch of the ASEAN Economic Community
At a time of global economic enthusiasm, the leaders of Southeast Asia were optimistic about their common future. In 2007, it was therefore agreed that the ASEAN Economic Community project -AEC – would be accelerated to be established by 2015, while it was initially conceived for 2020.
Political challenges for ASEAN
Much has changed since 2007: many countries, especially the more advanced, have suffered and are still suffering from one of the worst economic crisis of all times that began in 2008. And even though Southeast Asia remains a stronghold for global growth, many ASEAN countries still experience the ripples of difficult times abroad.
Developed countries have suffered the most: though the US seems to finally show signs of recovery, Europe is still far from economic stability. In Asia where some countries have maintained good activity through the crisis, nationalistic sentiment is on the rise. It provides a fertile ground to exacerbate expansionist appetites from the stronger countries.
Southeast Asia is not exempt of these frictions; in 2014, ASEAN has experienced several tensions with China. Vietnam and the Philippines have especially confronted their giant neighbor over the resource-rich South China Sea. The situation has thankfully soothed a little, but the Chinese leaders are the ones with the strong hand, and they can unilaterally decide to play fair with their neighbors or impose their views.
Within Southeast Asia, or even within some ASEAN countries, many lesser conflicts in 2014 have also brought some shade on an otherwise bright situation. They could still bring some clouds in 2015:
- opposition from Cambodia and Vietnam on Lao projects to build dams on the Mekong river
- sinking of Vietnamese fishing ships in Indonesian waters, and various other fishing vessels trespassing report from coast guards in the South China Sea
- ongoing religious community conflicts in the South of Thailand, North of Myanmar and Southeast of the Philippines
- conflicts between different factions in Thailand, which has seen a coup d’état in 2014
- serious political struggles between majority and oppositions in Myanmar, Malaysia and even Indonesia where the newly elected president has already experienced a political setback in parliamentary elections
Review the news from Southeast Asia:
- ASEAN news
- Brunei news
- Cambodia news
- Indonesia news
- Laos news
- Malaysia news
- Myanmar news
- Philippines news
- Singapore news
- Thailand news
- Vietnam news
Worries from the upcoming ASEAN Economic Community
On the ground, the people of several ASEAN countries are voicing concerns about the ASEAN Economic Community. Some fear that their countries will be invaded by foreign workers coming to take the jobs and salaries of the locals, others that foreign companies will crush local businesses and steal the wealth to bring it back home.
These nationalistic views are often expressed by people who do not have a clear understanding of the AEC. Many people in ASEAN are actually not even aware of the upcoming economic integration of ASEAN and the actual changes that it will bring.
Grasping the ASEAN community
The ASEAN countries still need to communicate to their people and businesses about what to expect, and how they will benefit from the AEC. Local companies still have to think about their expansion in other countries and to take an active role in the ASEAN market. They should strive not only to make profit but also to share, learn and make employees, clients and shareholders experience the ASEAN integration for good.
It will be the responsibility of each ASEAN country’s governments to take its part in the AEC and help its people benefit from the integration, open to other countries. They will need to protect national cultures and traditions while also creating a new common good for the whole ASEAN.
ASEAN has created a peaceful ground for a Southeast Asian community; the AEC will take it to the next for increased exchanges and shared prosperity. The way of economic openness will bring benefits through the provision of goods and services that will make people’s life easier thanks to cheaper and better quality products.
The AEC will also ultimately help people get smarter and culturally richer from diversity. In the end, ASEAN countries, governments, people and businesses need to understand that they have much more to gain from being united than from being separated. Competing against other large countries and integrated regions and reinforcing one another.
Gaining from the ASEAN Economic Community
Do not be alarmed, all in all the ASEAN Economic Community will provide many more advantages than inconveniences. The ASEAN nations, the ASEAN people will share, learn and experience a greater diversity that will ultimately help to lift the whole region to new heights.
And businesses, big and small, that will look further to the ASEAN market, and be able adapt to the national specificities will be the winners in the end. To help the dynamic businesses succeed in each Southeast Asian countries, and ASEAN as a whole, ASEAN UP will continue to provide and gather useful, quality resources for business, together with information and tools for business in Southeast Asia.
For now, to help you grasp the reins of the ASEAN Economic Community and get ready for its official launch on 31 December 2015, here is a list of some of the most useful resources for businesses in ASEAN already on ASEAN UP:
- “Why ASEAN” infographic explaining the major advantages of ASEAN with comparisons to the US, Europe, China, India and Japan
- Detailed benefits of the ASEAN Economic Community for business, together with details on the goals and achievements of the AEC, and complemented with a video on opportunities of the AEC
- 3 trends for success in Southeast Asia report presenting how to profit by the 3 major forces shaping business in ASEAN: integration in the global economy, urbanization and technology deployment
- Guide on how to invest and do business in ASEAN with an extensive strategic perspective for the region
- Getting in the head of ASEAN people with a survey on ASEAN consumers’ psychology, trends, interests and habits of the different peoples of ASEAN
- Free icons of ASEAN and ASEAN countries flags for the design of your websites and presentation
- Overview of energy in ASEAN in 3 parts:
- Overview of free-trade agreements in Southeast Asia, how they are used and how they could be used
- Monitoring the ASEAN stock exchanges for stock investors through the ASEAN Exchange
Of course, you can also browse our menu to view and follow our ASEAN and country specific resources, news, directory, blog and other goodies to come.
Have a great, productive and prosperous year 2015!