With the emergence of the ASEAN-Economic Community, a historical landmark has been realized amongst the member states of South-East Asia.
Background and the Rationales
With the emergence of the ASEAN-Economic Community, a historical landmark has been realized amongst the member states of South-East Asia. Experts predict its significance and benefits to the people and businesses in the near future. The aim of AEC is to assimilate the economies of South-East Asian countries [with 625 million individuals and an estimated GDP of US$2.5 trillion (2014)] and to turn it into a single market economy. In a nut shell, the successful implication of the ideology will subsidize the whole of South-East Asia.
Few facts and details which are unfamiliar to the general public about the AEC are as follow:
1. Member states
The 10 ASEAN members will make up the ASEAN-Economic Community. Each of the member state has its own tempting and appealing economic features for the venture capitalists, among many attractive characteristics is the abundant natural resources and low-cost labor. Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, The Philippines, Singapore, Thailand and Vietnam are the member states who will establish the community.
2. Single market economy
The AEC has formed the model under which, the free flow of goods and services and skilled labor from across the region will be made possible. Moreover, the free movement of capital and investment is another noteworthy feature by the Association of South-East Asian Nations (ASEAN) as it is creating a single market and a base for effective production.
With the projected 600 million individuals living in the region, it is clear that the market potential of the ASEAN is more than that of European Union and even more influential than the North America’s. Wonders can be achieved by integrating such an economy. The third largest labor force after China and India is said to be in the ASEAN region, there is a great potential and possibility that in the near future, an economic giant will emerge from South East Asian region.
The challenge confronted by the ASEAN community is how to bridge the older and established member states like Brunei, Indonesia, Malaysia, Philippines, Singapore, and Thailand, known as the ASEAN-6 with the new and emerging states such as Cambodia, Lao People's Democratic Republic, Vietnam and Myanmar, as there is enormous socio-economic gap between these states.
5. Structural reforms
The ADB report depicts that, ASEAN is seeking for such reforms so as to accomplish long-term strategies for the development of all the 10 member states under the authority of AEC. Audacious steps on national and regional level are being engaged for more and more integration and incorporation in the region.
6. Benefits to individuals and businesses
It is said that by 2025, more than 14 million jobs can be generated under the canopy of AEC, more opportunities for the youth/individuals of this region will be generated.
A single market economy is worth the attention of millions of investors around the globe. Low trade barriers, tariff almost eliminated and higher trade flow are the major aspects of AEC which will be seized by the entrepreneurs.
7. Progress of AEC
The full integration of AEC haven’t been achieved according to the officials of government and market observers. The investors from across the borders are still facing problems regarding the issue of non-tariff. For the skilled wage earner, labor mobility is another major issue.
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