DOING BUSINESS IN ASEAN -...

Doing Business in ASEAN 2015 1

Foreword 5

IntroductIon to ASeAn 8• AimsandPurposes��9• FundamentalPrinciples�� 10• ASEANCommunity�� 10

Ű ASEANPolitical-SecurityCommunity(APSC) 10Ű ASEANEconomicCommunity(AEC) 11Ű ASEANSocio-CulturalCommunity(ASCC) 11

• ASEANCharter�� 12

ASeAn At A GlAnce 13• RegionProfile:ASEAN�� 14• CountryProfile:BruneiDarussalam�� 15• CountryProfile:Cambodia�� 16• CountryProfile:Indonesia�� 17• CountryProfile:Laos�� 18• CountryProfile:Malaysia�� 19• CountryProfile:Myanmar�� 20• CountryProfile:Philippines�� 21• CountryProfile:Singapore�� 22• CountryProfile:Thailand�� 23• CountryProfile:Vietnam�� 24

ASeAn todAy: SocIo-PolItIcS 25• UnderstandingASEANDemographics:IsthereaDividend?�� 26• HumanRights�� 27• LabourandMigrants�� 27• ExtractiveIndustries:Mining,GasandOil�� 28• Environment,ClimateChangeandClimateJustice�� 28• GenderandChildRights�� 28• IndigenousPeoples�� 28• FreedomofInformation�� 29• Myanmar�� 29• Disability�� 29

ASeAn todAy: economIcS And Aec 2015 30• GrowingWithASEAN:TheAEC2015Vision�� 31• SingleMarketandProductionBase�� 32

Ű FreeFlowofGoods 32Ű FreeFlowofServices 32Ű FreeFlowofInvestment 33Ű FreerFlowofCapital 33Ű FreerFlowofSkilledLabour 34Ű PriorityIntegrationSectors 34Ű FormsofForeignInvestments 35Ű Food,AgricultureandForestry 35Ű DisputeResolutionEnvironment 35

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• CompetitiveEconomicRegion��35Ű CompetitionPolicy 35Ű ConsumerProtection 36Ű IntellectualPropertyRights(IPR) 36Ű InfrastructureDevelopment 36

• EquitableEconomicDevelopment��37Ű Small-MediumEnterprise(SME)Development 37Ű InitiativeforASEANIntegration(IAI) 37

• IntegrationintotheGlobalEconomy��38Ű CoherentApproachtowardsExternalEconomicRelations 38Ű EnhancedParticipationinGlobalSupplyNetworks 38

• BridgingDevelopmentGaps��39

lookInG Beyond ASeAn 40• ASEANandChina��41

Ű TradeRelationsintheModernEra 41Ű TheChinaConnectionforASEAN 42Ű ABrightFutureforASEANandChina 43Ű TheAsianInfrastructureInvestmentBank 44

• ASEANandJapan��44Ű RelationsbetweenSoutheastandEastAsia 44

• ASEANandSouthKorea��45Ű ASEAN-KoreanMultilevelCooperation 45

• ASEANandIndia��46Ű ASEAN-IndiaTradeRelations 46

• ASEANandtheTrans-PacificPartnership��47• ASEANandtheEuropeanUnion��47• ASEAN,AustraliaandNewZealand��48

dId you know: AmAzInG FActS ABout ASeAn 49

GloSSAry And AcronymS 54

reFerenceS And AcknowledGementS 55

AttrIButIon And credItS 57

rePoSItory oF PolIcIeS And dAtA 58

ABout the AuthorS 99• SpecialMention�� 105

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tABleS

Table1:PayingTaxesinASEAN(asat31December2013)��58Table2:RestrictionstoForeignInvestment(asat31December2014)��59Table3:CorporateFramework(asat31December2014)��60Table4:LegalSystemsandDisputeResolutionEnvironment(asat31December2014)��67Table5:Competition(asat31December2014)��69Table6:ASEAN:Population,TerritoryandEconomy(2012)��75Table7:ASEANandSelectedTradingPartners:Population,Economy(2012-2013)��76Table8:ASEAN:NominalGrossDomesticProductforperiodsindicated��77Table9:ASEAN6:ConsumerPriceIndexforFood,Housing,Transport(2008-2012)��78Table10:ASEAN:InflationRate,end-of-period(inpercent)forperiodsindicated��79Table11:ASEANLendingRates(inpercent)forperiodsindicated��79Table12:ASEAN:ExchangeRates,average-of-period(nationalcurrency/US$)forperiodsindicated��80Table13:ASEAN:TotalTradeforperiodsindicated��81Table14:ASEANwithSelectedTradePartners:TradeBalanceforperiodsindicated��82Table15:ASEANMemberStates:TradeBalanceforperiodsindicated��83Table16:ASEANMemberStates:TotalTradewithASEAN+3(2012)��84Table17:ASEANMemberStates:TotalTradeswithSelectedTradePartners(2012)��85Table18:ASEANMemberStates:PercentShareofTotalTradewithSelectedTradePartners(2012)��86Table19:ASEAN:Top20ExportCommodities1(2013)��87Table20:ASEAN:Top20ImportCommodities1(2012)��89Table21:Intra-ASEAN:TrendofPriorityIntegrationSectors’Exportsforperiodsindicated��91Table22:ASEAN:TrendsinFDIInflowsforperiodsindicated��92Table23:ASEAN:TrendsinTouristArrivals,byhostcountryforperiodsindicated��93Table24:ASEAN:InternetSubscribers/Users,per1,000personsforperiodsindicated��94Table25:ASEAN:DistributionofPopulation,byagegroup(2012)��94Table26:ASEANMemberStates:PopulationLivingunderPPP$1�25,inpercentforperiodsindicated��95Table27:ASEANMemberStates:GiniCoefficientinASEANMemberStates,inpercentforperiodsindicated��95Table28:ASEANMemberStates:LifeExpectancyatBirth,inyearsforperiodsindicated��96Table29:ASEANMemberStates:GovernmentHealthExpenditureasPercentageofGDPforperiodsindicated��96Table30:ASEANMemberStates:AdultLiteracyRate15YearsOldandAbove,inpercentforperiodsindicated��97Table31:ASEANMemberStates:UnemploymentRatebyGender,inpercentforperiodsindicated��98

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FIGureS

Figure1:ASEANTotalTradewithChina��43Figure2:ChinaODIDestinations��43Figure3:ASEAN:AverageTariffRatesonIntra-ASEANImports��90Figure4:ASEAN:ItemswithZeroPercentTariff��90

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dISclAImerTheinformationcontainedinthispublicationdoesnotconstituteprofessionaladvice�Theauthorshaveendeavouredtoaccuratelystatethecontentsofthispublicationasat31March2015butdonotmakeanyrepresentation,expressorimplied,inrespectoftheaccuracyofthematerialandcannotacceptanylegalresponsibilityforanyerrorsoromissionsthatmaybemade�

coPyrIGht notIceNopartofthispublicationmaybereproduced,storedinaretrievalsystem,ortransmittedinanyformorbyanymeans,electronic,mechanical,photocopying,recording,orotherwisewithoutwrittenpermissionoftheauthorsoralicencepermittingrestrictedcopying�Copyright©UnitedOverseasBankLimited,RSMChioLimLLPandRajah&TannSingaporeLLP2015�Allrightsreserved�

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Foreword

unIted overSeAS BAnk lImItedSoutheastAsia’sgrowthstoryhaspropelledforwardinrecentyears�

TherearehugeinvestmentopportunitiesinSoutheastAsia–frommanufacturingtoinfrastructuretoenergyandservices�Whentheeconomicblocof10nationsistakenasawhole,ASEANranksastheseventhlargestglobaleconomywithacollectivegrossdomesticproductofoverUS$2�4trillion�

ItisthereforenosurprisethatrobustregionalgrowthforecastssuggestthatthecombinedeconomiesofSoutheastAsiawillbeacrucial,long-termdriveroftheglobaleconomy�

However,realisingtheregion’sfullpotentialislikelytobechallenging�Thekeychallengeliesintradeliberalisation,integrationofcapitalmarketsandstandardisationof legalandregulatoryframeworkswhichwillmakeitmucheasiertodobusinessacrosstheregion�

Inspiteofthis,foreigndirectinvestment(“FDI”)inflowsintoSoutheastAsiahavesurgedoverthelastfouryears,growing fromUS$47�8 billion in 2009 toUS$151billion in 2014� This trend is expected to gather evenmoremomentuminthecomingyearsastheregionworkstowardseconomicintegration�

UOBunderstandsthatcompaniesneedtoadoptaregionalstrategytotakeadvantageoftheshiftinginvestmentlandscape�TheBankalsohasdedicatedFDIAdvisoryteamsinChina,HongKongSAR,India,Indonesia,Malaysia,Myanmar, Singapore,Thailand andVietnam to address the diverse needs of companies expandingwithin theregion�

Inlightofthis,wearepleasedtopartnerRSMChioLimandRajah&TannAsiatointroducethisguideaspartofourefforttohelpinternationalandregionalcompaniesnavigatetheirinvestmentsintheregion�

eric thamManagingDirectorandGroupHeadofCommercialBankingUnitedOverseasBank

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rSm chIo lIm llPAnyonewhowishestodobusiness inASEANmustfirstembrace itsdiversity�As a regional network of 10member nations governed by different politicalsystems, ithasapopulationofmore than600millionpeoplewhopractiseamultitudeofreligionsandspeakover70languagesanddialects�

At present, there are three constitutional monarchies (Malaysia, CambodiaandThailand),threerepublics(Indonesia,thePhilippinesandSingapore),twocommuniststates(LaosandVietnam),oneconstitutionalsultanate(Brunei)andaformermilitaryjunta(Myanmar)�

ASEAN’s economicperformance continues tooutperform theglobal averagewiththeAsianDevelopmentBankpredictingthatGDPinASEANcountrieswillgrow5�6%in2014�ItisanticipatedthatwiththeimplementationoftheASEANEconomicCommunity(AEC)endof2015,aimingtointegrateASEAN’seconomyasasinglemarketandproductionbaseviathefreeflowofgoodsandservices,capital,investmentsandskilledlabour,ASEAN’sgrowthprospectswillbeexciting�ASEANwillbeabletoenhanceitscompetitiveness inattractingforeigndirectinvestmentandtherewillbemoreinitiativestopromoteintegrationofbusinessesintheregiontocompeteeffectivelyintheglobaleconomy�

Whataretherisks?CanASEANcontinueforgingaheadamiduncertaintyoverglobaldemand?Thedevelopmentgapswithinandbetweenthecountries,suchasdisparitiesinincome,law,taxsystems,financialsystems,capitalandexchangecontrols,arelikelytounderminetheadoptionofAECandwillcontinuetobethekeychallengesoverthenextfewyears�ASEANneedstofosterdeeperintegrationasamatterofpriority�Morerigorouspoliciesareneededtonarrowthedevelopmentgapsbetweenmembersinordertoreapthedesiredbenefits�

TheAEC2015visionisbutastartingsteponalongjourney�Tobeatthemiddleincometrap,ASEANmustraiseproductivityandcreateanintegratedmarketwithstrongintra-andinter-regionaltradeflows�Accordingly,theseinitiativesmust bebusiness-centric anddrivenby thebusiness community leadership (such as the SingaporeBusinessFederation)andtheprivatesectorfromthegroundup�

WeinRSMChioLim,togetherwithournetworkfirmsinASEAN,arewell-poisedtohelpourclientsridethewaveofopportunitiesthatwillundoubtedlyarisefromthisexcitingjourney�

chio kian huatChiefExecutiveOfficerRSMChioLimLLP

Foreword


rAjAh & tAnn ASIAWithacombinedgrossdomesticproductofUS$2�4trillion,ASEANrankstodayastheworld’sseventhlargesteconomy(ifitwereacountry)�

Demographic factors, suchasproximity toeconomicgiants,andacombinedpopulationrepresentingaround9%oftheworld’spopulation,havecontributedto making ASEAN an attractive destination for foreign investment� Regionalintegration and harmonisation efforts by ASEAN leaders, and notably thecreationofasingleASEANmarketin2015,arealsoexpectedtoputASEANonasteadyandsustainedgrowthtrajectory�

With such amazing prospects for ASEAN in mind, Rajah & Tann Asia wasestablished inAugust 2014 for the vision toprovide anASEAN“home team”�Wehavemore than500 lawyersworking across our offices in nine countries in Asia, all rooted in the know-how and diverse cultures of theregion�Ourclientshavecometotrusttheunparalleledexperienceandon-the-groundinsightsthatwebringtotransactionsinthisverysignificantregion,aswellasbeyond�

WetrustthatthispublicationwillserveasausefulresourceandtoolforthoseseekingtolearnmoreaboutASEANanditsmemberstates,aswellasabouttheregionalinitiativesimplementedandthosewhicharestillunderway�

lee eng Beng ScChairmanRajah&TannAsia

Foreword

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IntroductIon to ASeAn


AImS And PurPoSeS

A gainst a backdrop of the ColdWar and thetumultuous transition to independence inmanySoutheastAsianstates,ASEAN’sobjectiveatitsestablishmentwas“toaccelerate theeconomicgrowth, social progress and cultural developmentintheregionthroughjointendeavoursinthespiritofequalityandpartnershipinordertostrengthenthe foundation for a prosperous and peacefulcommunityofSouth-EastAsianNations”�

AssetoutintheASEANDeclaration,theotheraimsandpurposesofASEANare:

▪ Topromoteregionalpeaceandstabilitythroughabidingrespectforjusticeandtheruleoflawintherelationshipsamongcountriesoftheregionand adherence to theprinciples of theUnitedNations(UN)Charter;

▪ To promote active collaboration and mutualassistanceonmattersofcommoninterestintheeconomic, social, cultural, technical, scientificandadministrativefields;

▪ To provide assistance to each other in theform of training and research facilities inthe educational, professional, technical andadministrativespheres;

▪ To collaboratemore effectively for the greaterutilisation of agriculture and other industries,the expansion of trade (including the studyof problems of international commoditytrade), the improvementof transportationandcommunicationsfacilities,andraisingthelivingstandardsoftheirpeoples;

▪ TopromoteSoutheastAsianstudies;and

▪ To maintain close and beneficial cooperationwith existing international and regionalorganisations with similar aims and purposes,and explore all avenues for even closercooperationamongthemselves�

heAssociationofSoutheastAsianNations,orASEAN,wasestablishedon8August1967in

Bangkok,Thailand,with thesigningof theASEANDeclaration(BangkokDeclaration)bytheFoundingFathersofASEAN,namelyIndonesia,Malaysia,thePhilippines,SingaporeandThailand�Subsequently,Brunei Darussalam joined on 7 January 1984,Vietnamon28July1995,LaosandMyanmaron23July 1997, andCambodiaon30April 1999�Thesecomprisethe10memberstatesofASEANtoday�

Such a commitment was of great importance forbuilding trust in a region divided by stark ethnicdifferences and a scant history of inter-statecooperationduringtheperiodofcolonisation�

The1967BangkokDeclarationwasan initiativetoensurepeaceandstabilityintheregion,throughacommitmenttoworktogetheranddealpeacefullywithmutualdifferences� Memberstateshopedtoforge an independentbloc in SoutheastAsia thatwouldnotbedominatedorexploitedbyexternalpowers�

Today, the notions of sovereignty, equality,territorial integrity and non-interference amongmember states remain central tenets of ASEANunityandcooperation�

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(APSC), ASEAN Economic Community (AEC) andASEANSocio-CulturalCommunity(ASCC)�

Eachpillarhasitsownblueprint,andtogetherwiththe Initiative for ASEAN Integration (IAI) StrategicFrameworkandIAIWorkPlanPhaseII(2009-2015),forms the Roadmap for an ASEAN Community2009-2015�

ASeAn Political-Security community (APSc)

T he ASEAN Political-Security Community hasits origins in over four decades of closecooperationandsolidarity�

At the 13th ASEAN Summit in Singapore, ASEANheads of states / governments signed the ASEANCharter, which marked ASEAN member states’commitment towards intensifying communitybuilding through enhanced regional cooperationandintegration� In linewiththis,theytaskedtheirministersandofficials todraft theAPSCBlueprint,which would be adopted at the 14th ASEANSummit�

TheAPSCBlueprintisguidedbytheASEANCharterandtheprinciplesandpurposescontainedtherein�TheAPSCBlueprintbuildson theASEANSecurityCommunity Plan of Action, the Vientiane ActionProgramme(VAP),aswellasrelevantdecisionsbyvariousASEANsectoralbodies�

The ASEAN Security Community Plan of Action isaprincipleddocument that sets out the activitiesneeded to realise the objectives of the ASEANPolitical-SecurityCommunity,whiletheVAPsetsoutthemeasuresnecessary for 2004-2010�These twodocumentsare important references incontinuedpoliticalandsecuritycooperation�

The APSC Blueprint provides a roadmap andtimetable to establish the APSC by 2015� ThisBlueprintwouldalsohavetheflexibilitytocontinueprogrammesandactivitiesbeyond2015inordertoretainitssignificanceandhaveanenduringquality�

FundAmentAl PrIncIPleS

I n their relationswith one another, the ASEANmember states have adopted the followingfundamentalprinciples,ascontained intheTreatyofAmityandCooperation inSoutheastAsia (TAC)of1976:

▪ Mutual respect for the independence,sovereignty, equality, territorial integrity, andnationalidentityofallnations;

▪ The right of every State to lead its nationalexistence free from external interference,subversionorcoercion;

▪ Non-interference in the internal affairs of oneanother;

▪ Settlement of differences or disputes bypeacefulmeans;

▪ Renunciationofthethreatoruseofforce;and

▪ Effectivecooperationamongmemberstates�

ASeAn communIty

T he ASEAN Vision 2020, adopted by ASEANleaders on the 30th anniversary of ASEAN’sestablishment,agreedonasharedvisionofASEANas a concert of Southeast Asian nations that isoutwardlooking,andlivinginpeace,stabilityandprosperity as development partners within acommunityofcaringsocieties�

At the9thASEANSummit in2003,ASEAN leadersresolved that an ASEAN Community shall beestablished� At the 12th ASEAN Summit in 2007,the leaders subsequently affirmed their strongcommitment to accelerate the establishmentof an ASEAN Community by 2015 and signedthe Cebu Declaration on the Acceleration of theEstablishmentofanASEANCommunityby2015�

The ASEAN Community comprises three pillars,namely, the ASEAN Political-Security Community



ASeAn Socio-cultural community (AScc)

T heASCC contributes to the realisation of anASEAN Community that is “people-centredand socially responsiblewith a view to achievingenduring solidarity and unity among the nationsand peoples of ASEAN by forging a commonidentityandbuildingacaringandsharingsocietywhichisinclusiveandharmoniouswherethewell-being, livelihood, and welfare of the peoples areenhanced�”

Areas of cooperation in this community includeculture,artsandinformation,disastermanagement,education, environment, health, labour, ruraldevelopment and poverty eradication, socialwelfare and development, youth and civil servicecooperation�

Embedded in theASEANVision 2020,DeclarationofASEANConcord I (1976),DeclarationofASEANConcord II (2003) and the Hanoi Plan of Action(HPA)isASEAN’sgoalofacommunityofcohesive,equitable and harmonious societies, boundtogetherinsolidarityfordeeperunderstandingandcooperation�Itskeyfeaturesare:

▪ Equitable access to opportunities will beuniversal, rising above the barriers of religion,race, language, gender and social and culturalbackground;

▪ Humanpotentialsarenurturedtothefullestsothatallindividualscanparticipatemeaningfullyin a competitiveworld in amanner that givesparamount importance to their welfare anddignity;

▪ Norms of social and distributive justice areupheld by addressing issues of poverty andequity, and special care is given to vulnerablegroups – children, youth, women, the elderly,andpersonswithdisabilities–whocouldbethesubjectofabuse,neglectanddiscrimination;

ASeAn economic community (Aec)

T he AEC envisages the following keycharacteristics:▪ asinglemarketandproductionbase;

▪ ahighlycompetitiveeconomicregion;

▪ a region of equitable economic development;and

▪ aregionfullyintegratedintotheglobaleconomy�

The AEC’s areas of cooperation include humanresources development and capacity building,recognition of professional qualifications, closerconsultation on macroeconomic and financialpolicies, trade financing measures, enhancedinfrastructure and communications connectivity,development of electronic transactions throughe-ASEAN,integratingindustriesacrosstheregiontopromoteregionalsourcing,andenhancingprivatesectorinvolvementfordevelopingtheAEC�

Enabling economic development throughoutASEAN is also an important objective of the AEC�TheenlargedmembershipofASEANcamewith anew set of challenges� The last fourmembers tojoin–Cambodia,Laos,MyanmarandVietnam–hadsignificantdevelopmentgapswiththesixfoundingmembers�

Narrowingthis“developmentgap”thusbecameanadditional priority of ASEAN� Projects under theInitiative for ASEAN Integration are designed toenablenewASEANmemberstoacceleratethepaceofeconomicgrowth,andenablethemtoparticipateonasimilarlevelwiththefirstsixmembers�

Inshort,theAECwilltransformASEANintoaregionwithfreemovementofgoods,services,investment,and skilled labour, aswell as freer flowof capital�WeaddresstheAECvisioningreaterdetailonthe“GrowingWithASEAN:TheAEC2015Vision”section�

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▪ The environment and natural resources areprotectedandmanagedtosustaindevelopmentandasalegacyforfuturegenerations;

▪ Civilsociety isengaged inproviding inputs forpolicychoices;

▪ Peoplearehealthyinmindandbodyandlivinginharmonyinsafeenvironments;and

▪ ASEAN citizens interact in a communityconscious of its historical ties, aware of itscultural heritage and bound by a commonregionalidentity�

ASeAn chArter

T heASEANCharterservesasafirmfoundationin achieving the ASEAN Community byproviding a legal status and an institutionalframeworkforASEAN�ItalsocodifiesASEANnorms,rulesandvalues,setscleartargets forASEAN,andpromotesaccountabilityandcompliance�

The ASEAN Charter entered into force on 15December 2008� A gathering of ASEAN foreignministers was held at the ASEAN Secretariat inJakartatomarkthishistoricoccasion�

With the entry into force of the ASEAN Charter,ASEAN effectively operates under a new legalframework and has established a number of neworganstoboostitscommunity-buildingprocess�

Ineffect, theASEANCharterhasbecomea legallybindingagreementamongthe10ASEANmemberstates�



ASeAn At A GlAnce

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motto“OneVision,OneIdentity,OneCommunity”

ASeAn day8thAugust

total trade in 2013 US$2�48trillion(2012estimate)

Intra-ASeAn trade in 2013US$602billion(2012estimate)

top 5 trade Partners in 2013China–US$319billionJapan–US$263billionEU–US$243billionUSA–US$200billionSouthKorea–US$131billion

reGIon ProFIle: ASeAn

IntroductionASEANwasformedon8August1967inBangkok,Thailand,throughthesigningof theASEANDeclaration(BangkokDeclaration)by Indonesia,Malaysia, the Philippines, Singapore andThailand� Brunei Darussalamsubsequentlyjoinedon7January1984,Vietnamon28July1995,LaosandMyanmaron23July1997,andCambodiaon30April1999�

map

Population616�61million(2013estimate)

Population between 20 and 54 years of age51�3%(2013estimate)

total land Area4�44millionsquarekilometres

GdP (PPP) in 2013 US$3�62trillion

GdP per capita (PPP) in 2013 US$5,869

ASeAn At A GlAnce


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capitalBandarSeriBegawan

ethnic Groups (2011 estimate)Malay65�7%,Chinese10�3%,OtherIndigenous3�4%,Others20�6%

languagesMalay(official),English,Chinese

religions (2011 estimate)Muslim(official)78�8%,Christian8�7%,Buddhist7�8%,Others(includesindigenousbeliefs)4�7%

life expectancy 77years

literacy95�4%

country ProFIle: BruneI dAruSSAlAm

IntroductionTheSultanateofBrunei’sinfluencepeakedbetweenthe15thand17thcenturies when its control extended over coastal areas of northwestBorneo and the southern Philippines� Brunei’s ruling family providedmuchneededstabilityoverthe18thand19thcenturiesasgeopoliticalstrife fromEuropean colonial expansion andglobalpiracy threatenedthe Sultanate� In 1888, Brunei became a British protectorate andindependence was achieved in 1984� Today Brunei benefits fromextensivepetroleumandnaturalgasfields,andhasoneofthehighestpercapitaGDPsinAsia�


urbanisation76%(2011estimate)

economyBruneihasasmallwell-to-doeconomythatdependsonrevenuefromnaturalresourceextraction,andencompassesamixtureofforeignanddomesticentrepreneurship,governmentregulation,welfaremeasures,andvillagetradition�Crudeoilandnaturalgasproductionaccountfor60% of GDP andmore than 90% of exports� Brunei’s GDP per capitais among the highest in Asia, with substantial income from overseasinvestment supplementing its income fromdomesticproduction�ThegovernmentprovidesBruneiancitizenswith freemedicalservicesandeducation throughtheuniversity level�ThegovernmentofBruneihasbeenemphasizingthroughpoliciesandresourceinvestmentsitsstrongdesiretodiversifytheeconomyintonewsectors�

central Bank and currencyBruneiCurrencyandMonetaryBoard,BruneiDollar(BND)

GdP (PPP)US$32�11billion(2014estimate)

GdP per capita (PPP)US$77,824(2014estimate)

unemployment rate2�7%(2014estimate)

Inflation rate0�4%(2014estimate)

ASeAn At A GlAnce

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capitalPhnomPenh

ethnic GroupsKhmer 90%, Vietnamese 5%,Chinese1%,Others4%

languages (2008 estimate)Khmer(official)96�3%,Others3�7%

religions (2008 estimate)Buddhist (official) 96�9%, Muslim1�9%,Christian0�4%,Others0�8%

life expectancy64years

literacy 74�0%

country ProFIle: cAmBodIA

IntroductionMostCambodiansconsiderthemselvesasKhmers,descendantsoftheAngkorEmpirethatextendedovermuchofSoutheastAsiaandreachedits zenith between the 10th and 13th centuries� Today, Cambodia isrecoveringfromdecadesofcivilunrestduringtheKhmerRougeregimeand subsequent foreign occupation�This recovery has been aided byCambodia’sentryintoASEANin1999,foreignaid,aswellasaboomintourism�



economySince 2004, Cambodia’s growth has been driven by industries ingarments,construction,agricultureandtourism�ItsGDPclimbedmorethan7%ayearbetween2010and2013�TheCambodiangovernmenthasbeenworkingwithbilateralandmultilateraldonorssuchastheAsianDevelopment Bank (ADB), theWorld Bank (WB) and the InternationalMonetaryFund(IMF), toaddressthecountry’smostpressingneeds�Asubstantialpartofthegovernmentbudgetcomesfromdonorassistance,andaneconomicchallengeforCambodiaoverthenextdecadewillbefashioning an economic environment inwhich the private sector cancreateenoughjobstohandleCambodia’sdemographicimbalance�

central Bank and currencyNationalBankofCambodia,CambodianRiel(KHR)





ASeAn At A GlAnce


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capitalJakarta

ethnic GroupsJavanese40�1%,Sundanese15�5%,Malay3�7%,Batak3�6%,Madurese3%,Betawi2�9%,Minangkabau2�7%,Buginese2�7%,Bantenese2%,Banjarese1�7%,Balinese1�7%,Acehnese1�4%,Dayak1�4%,Sasak1�3%,Chinese1�2%,Others15%

languagesBahasaIndonesia,English,Dutch,over700localdialects

religions (2010 estimate)Muslim87�2%,Christian7%,RomanCatholic2�9%,Hindu1�7%,Other0�9%(includesBuddhistandConfucianist),Unspecified0�4%


literacy93�0%

country ProFIle: IndoneSIA

IntroductionFollowing centuries of colonial rule followed by military strongmendictatorships, Indonesia has emerged strongly as a modern Muslimnation in the 21st century despite some teething problems� Today,Indonesia under President JokoWidodo is amongst theworld’smostpopulous democracies, theworld’s largest archipelagic state, and theworld’s largestMuslim-majoritynation�Thecountryisanembodimentofunity indiversityandthereremainsastrongnationalconsensusondeliveringeconomicgrowthaccompaniedbyfreeelections�


urbanisation50�7%(2011estimate)

economyIndonesia has had strong growth since 2010� During the 2008 globalfinancial crisis, Indonesia outperformed its regional neighbours andjoinedChinaand Indiaas theonlyG20members thatpostedgrowth�Fiscallyconservativepolicieshaveresultedinadebt-to-GDPratiooflessthan25%andhistoricallylowratesofinflation�Indonesiaisacceleratingpolicies aimed at dealing with poverty, unemployment, inadequateinfrastructure,corruption,acomplexregulatoryenvironment,unequalresource distribution among regions, labour unrest and the thornysubjectoffuelsubsidies�

central Bank and currency BankIndonesia,IndonesianRupiah(IDR)

GdP (PPP)US$2,554�31billion(2014estimate)




ASeAn At A GlAnce

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capitalVientiane

ethnic Groups (2005 estimate)Lao 55%, Khmou 11%, Hmong8%,Others (over100minorethnicgroups)26%

languagesLao (official), French, English,variousethniclanguages

religions (2005 estimate)Buddhist 67%, Christian 1�5%,OthersandUnspecified31�5%

life expectancy 63�5years

literacy73�0%

country ProFIle: lAoS

IntroductionModern-dayLaoshasitsrootsintheancientLaokingdomofLanXang,establishedinthe14thcenturyunderKingFaNgum�For300years,LanXang’sinfluenceextendedtopresent-dayCambodiaandThailand,aswellasoverallofwhatisnowLaos�Aftercenturiesofgradualdecline,LaoscameunderthedominationofSiam(Thailand)fromlate18thcenturytolate19thcentury,whenitbecamepartofFrenchIndochina�TheFranco-SiameseTreaty of 1907defined Lao’s currentborderwithThailand� In1975,thecommunistPathetLaotookcontrolofthegovernment,endinga six-century-old monarchy and instituting a strict socialist regimethatwas closely alignedwith thatofVietnam� From1988, Laos sawaliberalisationofitsforeigninvestmentlawsandagradual,limitedreturntoprivateenterprise�LaosbecameamemberofASEANin1997andtheWorldTradeOrganisation(WTO)in2013�



economyThegovernmentofLaos,oneofthefewremainingone-partycommuniststates,begandecentralisingcontrolandencouragingprivateenterprisein1986�Theresultswerestriking–growthaveraged6%ayearfrom1988to2008exceptduringtheshort-liveddropcausedbytheAsianfinancialcrisisthatbeganin1997�

central Bank and currency BankoftheLaoPDR,LaoKip(LAK)





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capitalKualaLumpur

ethnic Groups (2010 estimate)Malay50�1%,Chinese22�6%,Indigenous11�8%,Indian6�7%,Others0�7%,Non-citizens8�2%

languagesBahasaMalaysia(official),English,Chinese(Cantonese,Mandarin,Hokkien,Hakka,Hainan,Foochow),Tamil,Telugu,Malayalam,Panjabi,Thai

religions (2010 estimate)Muslim(official)61�3%,Buddhist19�8%,Christian9�2%,Hindu6�3%,Others3�5%


literacy93�1%

country ProFIle: mAlAySIA

IntroductionDuringthelate18thand19thcenturies,GreatBritainestablishedcoloniesandprotectoratesinMalaysia’scurrentarea;thesewereoccupiedbytheJapanesefrom1942to1945�In1948,theBritish-ruledterritoriesontheMalay Peninsula, except Singapore, formed the Federation ofMalaya,whichgainedindependencein1957�Duringthe22-yeartermofPrimeMinister Mahathir bin Mohamad (1981-2003), Malaysia successfullydiversifieditseconomy,fromdependenceonexportsofrawmaterialstothedevelopmentofmanufacturing,servicesandtourism�PrimeMinisterMohamed Najib bin Abdul Razak has continued these pro-businesspoliciesandintroducedsomecivilreforms�



economyMalaysiahassincethe1970s,transformeditselffromaproducerofrawmaterialsintoanemergingmulti-sectoreconomy�Asanexporterofoilandgas,Malaysiahasprofitedfromhigherworldenergyprices�Itscentralbank,BankNegaraMalaysia(BNM),maintainshealthyforeignexchangereserves,andawell-developedregulatoryregimehaslimitedMalaysia’sexposuretoriskierfinancialinstrumentsandtheglobalfinancialcrisis�

central Bank and currencyBNM,MalaysianRinggit(MYR)





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capitalNaypyidaw

ethnic Groups Burman 68%, Shan 9%, Karen 7%,Rakhine4%,Chinese3%,Indian2%,Mon2%,Others5%

languagesBurmese(official)

religionsBuddhist89%,Christian4%,Muslim4%,Others3%


literacy93�0%

country ProFIle: myAnmAr

IntroductionVarious ethnic Burmese and ethnic minority city-states or kingdomsoccupiedthepresentbordersthroughthe19thcentury�Overaperiodof 62 years (1824-1886), Britain colonisedMyanmar and administeredthe country as part of its Indian Empire until Myanmar attainedindependencein1948�Afteraperiodof juntarule,thecountrybeganaseriesofpoliticalandeconomicreformsinthelastdecade�Myanmaris beginning to reap the economic dividends of its policies with theincreaseinFDIandtradeflows�Population51�42million(2014estimate)

urbanisation 32�6%(2011estimate)

economySinceMyanmar’stransitiontoaciviliangovernmentin2011,ithasbegunan economic overhaul targeted at attracting foreign investment andintegrationintotheglobaleconomy�Reformsincludethemodernisationandopeningupofthefinancialsector,anincreaseinbudgetallocationsforsocialservices,andanaccelerationofagriculturalandlandreforms�

central Bank and currencyCentralBankofMyanmar,BurmeseKyat(MMK)





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capitalManila

ethnic Groups (2000 estimate)Tagalog28�1%,Cebuano13�1%,Ilocano9%,Bisaya/Binisaya7�6%,HiligaynonIlonggo7�5%,Bikol6%,Waray3�4%,Others25�3%

languagesTagalog(official)andEnglish(official)

religionsCatholic82�9%,Muslim5%,Others12�1%

life expectancy 72years

literacy 95�4%

country ProFIle: PhIlIPPIneS

IntroductionThePhilippineislandsbecameaSpanishcolonyduringthe16thcentury;theywerecededtotheUSin1898followingtheSpanish-AmericanWar�AfterWorldWarII,theRepublicofthePhilippinesgainedindependencein1946�A20-yearrulebyFerdinandMarcosendedin1986whenCorazonAquinowaselectedpresident�Thecurrentpresident,BenignoAquinoIII,waselectedtoasix-yearterminMay2010�



economyThePhilippineeconomyhasweatheredglobaleconomicandfinancialdownturnswellduetolowerdependenceonexports,relativelyresilientdomestic consumption, large remittances from overseas Philippineworkers,andarapidlyexpandingbusinessprocessoutsourcingindustry�Efforts to improve tax administration and expenditure managementhave helped to ease the Philippines’ tight fiscal situation and reducehighdebtlevels�

central Bank and currencyBangkoSentralngPilipinas,PhilippinePeso(PHP)





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capitalSingapore(citystate)

ethnic Groups (2013 estimate)Chinese74�2%,Malay13�3%,Indian9�2%,Others3�3%

languages (2010 estimate)Mandarin (official) 36�3%, English(official) 29�8%, Malay (official)11�9%,Tamil(official)4�4%,Hokkien8�1%, Cantonese 4�1%, Teochew3�2%,Others3�4%

religions (2010 estimate)Buddhist 33�9%, Muslim 14�3%,Taoist 11�3%,Catholic 7�1%,Hindu5�2%, Christian 11%, Others 0�7%,None16�4%


literacy 95�9%

country ProFIle: SInGAPore

IntroductionSingaporewasfoundedasaBritishtradingcolonyin1819�ItjoinedtheMalaysianFederationin1963butseparatedtwoyearslaterandgainedindependence�Singaporewentontobecameoneoftheworld’smostprosperouscountrieswithstronginternationaltradinglinks(itsport isoneoftheworld’sbusiestintermsoftonnagehandled)andhasaGDPpercapitacomparablewiththoseofleadingWesternEuropeannations�



economySingaporehasahighlydevelopedandsuccessfulfree-marketeconomy�Ithasaremarkablyopenandcorruption-freeenvironment,stableprices,andahighGDPpercapita�Theeconomydependsheavilyonexports,particularly inconsumerelectronics, informationtechnologyproducts,pharmaceuticals,andonagrowingfinancialservicessector�Inthelongterm,thegovernmenthopestoestablishanewgrowthpaththatfocuseson raising productivity� Singapore has attractedmajor investments inpharmaceuticalsandmedicaltechnologyproduction,andhaskeptupwith efforts to establish the country as Southeast Asia’s financial andhigh-techhub�

central Bank and currencyMonetaryAuthorityofSingapore,SingaporeDollar(SGD)





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capitalBangkok

ethnic Groups (2010 estimate)Thai95�9%,Burmese2%,Others1�3%,Unspecified0�9%

languages (2010 estimate)Thai(official)90�7%,Burmese1�3%,Others8%

religions (2010 estimate)Buddhist93�6%,Muslim4�9%,Others1�5%


literacy93�5%

country ProFIle: thAIlAnd

IntroductionAunifiedThaikingdomwasestablishedinthemid-14thcentury�Knownas Siamuntil 1939,Thailand is the only Southeast Asian country thathasneverbeen controlledbya Europeanpower� In1932, abloodlessrevolution occurred leading to the development of a constitutionalmonarchy�AnallyofJapanduringWorldWarII,ThailandbecameaUStreatyallyin1954aftersendingitstroopstoKorea�ThailandlaterfoughtalongsidetheUSintheVietnamwar�



economyWith a well-developed infrastructure, a free-enterprise economy,generallypro-investmentpolicies,andstrongexportindustries,Thailandhas achieved steady growth due largely to industrial and agriculturalexports–mostlyelectronics,agriculturalcommodities,automobilesandparts,andprocessedfoods�Unemployment,atlessthan1%ofthelabourforce,isoneofthelowestintheworld,whichputsupwardpressureonwagesinsomeindustries�

central Bank and currencyBankofThailand,ThaiBaht(THB)

GdP (PPP) US$990�09billion(2014estimate)




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capitalHanoi

ethnic Groups (1999 estimate)Kinh (Viet) 85�7%, Tay 1�9%, Thai1�8%, Muong 1�5%, Khmer 1�5%,Mong1�2%,Nung1�1%,Others5�3%

languagesVietnamese (official), English,French,Chinese,andKhmer

religions (1999 estimate)Buddhist9�3%,Catholic6�7%,None80�8%,Others3�2%


literacy93�4%

country ProFIle: vIetnAm

IntroductionVietnamdeclaredindependencefromFranceafterWorldWarIIin1954andwasdividedintothecommunistNorthandanti-communistSouthundertheGenevaAccords�USeconomicandmilitaryaidtoSouthVietnamgrewthroughthe1960sinanattempttobolsterthegovernment,butUSarmedforceswerewithdrawnfollowingaceasefireagreementin1973�Two years later, NorthVietnamese forces overran the South, unifyingthecountryundercommunistrule�Since1986,Vietnameseauthoritieshave committed to increase economic liberalisation and introducedstructural reformsnecessary tomodernise the economy andproducemorecompetitive,export-drivenindustries�



economyVietnam is a densely populated developing country that has beentransitioning from the rigidities of a centrallyplannedeconomy since1986� In recent years, Vietnamese authorities have reaffirmed theircommitment to economic modernisation� In January 2007, Vietnamjoined the WTO and became an official negotiating partner in theTrans-PacificPartnershiptradeagreementin2010�Povertyhasdeclinedsignificantly,andVietnamisworkingtocreatejobstomeetagrowinglabourforcethatisexpandingbymorethanamillionpeopleeveryyear�

central Bank and currencyStateBankofVietnam,VietnameseDong





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ASEAN countries are, on the whole, in a moredeveloped stage of their demographic transitiontowards a lower dependency ratio� In SoutheastAsia, relatively stable population growth rates ofless than1%ayearbetween1950and1990haveshotuptowellover2%�

Atthisrate,SoutheastAsia’sworking-agepopulationwillaccountfor68%oftheregion’stotalpopulationby2025–upfromlessthan60%in1990�Alongsidethisshift,dependencyratioshavebeenfallingatanincreasingrateasyouthdependencyfallsfrom0�77tolessthan0�60�

While some ASEAN countries, such as Indonesia,havealreadybeguntoexperienceandcapitaliseontheir demographic dividends, Vietnam, Malaysia,and others are just beginning to experience theirowndemographictransitions�

Indonesia exemplifies an ASEAN country that hascapitalisedon its demographic transition throughrigorousinstitutionaldevelopmentandashifttoanexport-oriented manufacturing sector� Reformingits economy in the 1970s (pre-empting itspopulation dividend), Indonesia has experiencedGDPgrowthfrom6%to8%almosteveryyearthepasttwodecadessinceenactingitsmarketreforms�

Despitethissuccess,Indonesiacandomoretobuildonitsinvestmentsineducationandhealthcare:twopossibleavenuesforcreatingamorehighlyskilled,healthyworkforcetoattractFDI�

AlongwithIndonesia,threeotherASEANcountries– Vietnam, Malaysia and the Philippines – areexpected to experience double-digit labour forcegrowth through 2020 and beyond� In Vietnam,market liberalisation and government reformsinitiated in 2011 will be among the first stepstowards capitalising on the nation’s growingdemographic dividend and falling dependencyratio�AttractingrecordFDI inthepasteightyears,VietnamappearssettoreapsignificantGDPgrowthfrom itsdemographic transitionas it continues toliberalise trade and investmore in education andhealthcare�

A nyonewhowishestodobusiness inASEANwoulddowelltofirstunderstandjustwhatadiverseregionASEANis–anetworkof10membernations,numberingmorethan600million,ruledbya plethora of different governmental styles,practising a multitude of religions and speakingover70languagesanddialects�

ASEAN’s wide variety of governmental stylescurrently includesthreeconstitutionalmonarchies(Malaysia, Cambodia and Thailand), threerepublics (Indonesia, Philippines and Singapore),two communist states (Laos and Vietnam), oneconstitutional sultanate (Brunei) and a formermilitaryjunta(Myanmar)�

In addition to such entrenched differences, thepopulation of ASEAN is a relatively young one –51�3% of the population are between 20 and 54yearsofage�

Despite the diversity of political styles and therelativeyouthof itspeoples,ASEANhasremainedremarkablyresilientandcomparativelystableinthepoliticalarena,weatheringtheglobalcrisesof1997,2001and2008,andfindingitselflargelyontrackforcontinuedeconomicsuccessin2015andbeyond�

Before embarking on any business ventures inASEAN, it would therefore make good sense tounderstandthesocio-politicalforcesthatshapethisregion: itspeoples,governments,culturesandthenatureofsocietiesformedtherein�

underStAndInG ASeAn demoGrAPhIcS: IS there A dIvIdend?

O ften referred to as ASEAN’s demographicdividend, ASEAN countries’ decreasingdependency ratioshave thepotential to translateinto significant GDP growth if accompanied byeffectivegovernmentpolicies that liberalisetrade,attract FDI, and mobilise capital and labourproductively�



continuetocontemplatehowtobestattractforeigninvestmentsandgrowtheireconomies�

humAn rIGhtS

T he Regional Working Group on an ASEANHumanRightsMechanismandtheSolidarityforAsianPeople’sAdvocacies(SAPA)TaskForceonASEANHumanRightshavebeenmostactiveinthepromotionofhumanrightsinASEAN�

The RegionalWorking Group on a Human RightsMechanismwasformedin1995,followingASEAN’s1993 ministerial declaration that it “should alsoconsider the establishment of an appropriateregionalmechanismonhumanrights�”Itcomprisesgovernment institutions, academicians andhuman rights advocates, non-governmentalorganisations (NGOs) and parliamentary humanrightscommitteeswiththeaimofinstitutionalisingahumanrightsmechanisminASEAN�

TheRegionalWorkingGrouphasnationalworkinggroups in Cambodia, Malaysia, Thailand, thePhilippinesandSingapore�ThroughtheSAPATaskForce on ASEAN and Human Rights, Civil ServiceOrganisations (CSOs) in the region have alsocontributed towards the institutionalisation of anASEAN human rights commission and a humanrights court based on international standardsand treaties, notably theUniversalDeclarationonHumanRightsbytheUN�

Their advocacy has been directed towards theEminent Persons Group and High Level TaskForce (HLTF) on the ASEAN Charter, ASEANIntergovernmental Commission on Human Rights(AICHR) and the ASEAN Commission on thePromotionandProtectionoftheRightsofWomenandChildren(ACWC)�

lABour And mIGrAntS

L abourandmigrantsconcernsareanotherkeyregional theme in which ASEAN engages�RegionalgroupingssuchastheASEANTradeUnion

Similarly, Malaysia and Philippines have begunimproving their fiscal and monetary policies toattractmoreFDIandincreasedcapitalexpenditure�In the next decade, the Philippines will face thelargest challenge and opportunity relating to itsdemographicdividend�

Its 3�06 fertility rate– thehighest inASEAN–willpresent the Philippines with the opportunityto expand its GDP by about 7% a year if it cansuccessfully reform its trade policies and socialservicestoattracta30%increaseininvestment�

Similarly,Malaysia’sfertilityrateof2�58–thethirdhighest in ASEAN – will present it with a largedemographicdividendandrealGDPgrowthifthecountryisabletofollowthroughwithinfrastructureimprovementsandmoretransparenttradepoliciesneededtoattractFDI�

Conversely,iftheappropriatepolicyenvironmentisnotinplace,health,educationalandsocialwelfaresystems will undergo a significant strain, andunemploymentandinstabilitymayresult�

Several ASEAN countries are expected to have alargeworking-agepopulationandacomparativelysmallpopulationofdependentyouthsandelderlypeople over the next two or three decades� Butwhetherornotacountrycantranslatethisdividendinto real GDP growth depends largely on publicpolicy�

For high-tech and high-FDI economies, such asSingapore, demographics are not as important astheyareinmanufacturing,agriculture,andservice-based economies such as Vietnam, Thailand,and the Philippines� If ASEAN countries want tomake the most of their existing or impendingdemographic dividends, critical investmentsmustbemadeineducationandhealthcarealongsideanoverallliberalisationoftradepolicy�

Latin America’s notoriously wasted demographicdividend of the 1970s and 1980s – during whichweakgovernanceanda lackofopenness to tradestalledgrowth–shouldbekeptinmindasASEANlooks to the future, and ASEAN governments


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envIronment, clImAte chAnGe And clImAte juStIce

T heSAPAWorkingGrouponEnvironmenthascalled for a fourth pillar in the ASEANcommunitytobringtogetherregionalorganisationsworking on the environment, climate change,climatejusticeandbiodiversity�

They advocate that the environment is a cross-cuttingissuewithtrans-boundaryimpacts�Indeed,thedesireforafourthpillarontheenvironmenthasbeenexpressedintwoASEANPeoples’ForumsheldinThailandin2009andinVietnamin2010�

Gender And chIld rIGhtS

I n2008,theSoutheastAsiaWomen’sCaucusonASEAN was formed and led by Asia PacificWomen in Law and Development (APWLD) andInternational Women’s Rights Action Watch AsiaPacific�

Child Rights Asia, a network of organisationsworking on children’s rights,was formed in 2010�Child Rights Asia and the Women’s Caucus areparticularly interested in how the ACWC willimplementinternationalhumanrightsinstruments,specifically the Commission on Elimination ofDiscriminationAgainstWomen(CEDAW)andChildRightsCoalition(CRC)regionally,andinawaythatACWCachievescoherencewiththeAICHR�

IndIGenouS PeoPleS

L edbytheAsiaIndigenousPeoples’Pact(AIPP),theIndigenousPeoples’TaskForceonASEANseekstodrawattentiontotheplightofindigenouspeoplesbyhighlightingthehistoricaldenialoftheirdistinctiveness, the denial of their right to self-determination, self-governance and culturalintegrity�

Thecallsaremadetorecogniseindigenouspeoplesas distinct communities within ASEAN membercountries, respect their collective rights through

Council(ATUC)andtheASEANServicesEmployeesTradeUnionCouncil (ASETUC)have attempted tohighlightlabourissues�

ASETUC,forexample,underscorestheimpactthatASEAN economic integration has onworkers andtradeunions,particularlytheconstruction,financialservicesandhealthcareservicessectors�

Following the Cebu ASEAN Summit DeclarationontheProtectionandPromotionoftheWelfareofMigrantWorkersin2006,tradeunionsandmigrantorganisations,haveworkedtogethertochampiona legally binding and regional instrument thatprotectsmigrantworkers�

Among thegroups engaged inmigrant advocacyaretheSAPATaskForceonASEANMigrantWorkersand the Migrant Forum in Asia� They call for theelimination of practices that involve violence,discriminationandotherformsofstigmatisationofmigrantworkers�

extrActIve InduStrIeS: mInInG, GAS And oIl

T heSAPATaskForceonASEANandExtractivesIndustries,workinginclosecoordinationwithenvironmental and indigenous peoples’organisations,advocateforASEANtoforgestandardpracticesforextractiveindustriesintheregion�

Intheshortterm,theirobjective istomainstreamthe Extractive Industries Transparency Initiative(EITI),whiletheiraiminthelongtermistodraftanASEANframeworkforextractiveindustrypracticesthat includes human rights, environmental andsocialstandards,andmechanismstosharebenefits�

And for this, theyhope toaddress their advocacytowards different ASEAN bodies and instruments:ASEAN mining associations, ASEAN oil and gasassociations,SeniorLevelMinisters,andtheASEANExtractivesIndustriesPlanofAction2010to2014�



Theinternationalcommunityhasreactedpositivelytothepracticalandforward-lookingapproachtakenby the Thein Sein administration to implementtangible improvements in the day-to-day livesof ordinary citizens, and FDIs intoMyanmar havegreatly increased through the local incorporationofcompanies,infrastructuralinvestments,aswellastransfersofskillsandknowledgetoMyanmarlocals�

dISABIlIty

A n initiative by persons with disabilities,Disabled Peoples’ International Asia-Pacific(DPIAP) launched the ‘Mainstreaming DisabilityPerspectives in the ASEAN Community’ project inApril2010�Thisprojectseekstodrawattentiontodisabilityperspectivesandtopromoteinclusivenessof disabled persons in the implementation ofASEAN’s three Community Pillars and ASEANhumanrightsmechanisms�

DPIAP has forwarded a proposal to establish theASEAN Disability Forum (ADF), envisioned as amulti-stakeholder initiative proposed by disabledpeople’sorganisations�ThisideawassubsequentlyadoptedinASEAN’sStrategicFrameworkonSocialWelfare and Development (2011 to 2015) duringThailand’schairmanshipofASEAN�

the UN Declaration on the Rights of IndigenousPeoples (UNDRIP) adopted by all ASEANmemberstates,reviewnationallegalframeworksinviewofthe UNDRIP and ensure free, prior, and informedconsentinallASEANprogrammesandprojects�

The AIPP and the Indigenous Peoples Task ForcehavemadesubmissionstotheTermsofReferenceof the AICHR calling for greater corporateaccountability and governmental regulation ofcorporations,andpresentedinnationalworkshopsonASEANandcorporatesocialresponsibility�

Freedom oF InFormAtIon

T heSAPATaskForceonFreedomofInformation(FOI), led by the Focus on the Global SouthandSoutheastAsiaPressAlliance(SEAPA),aimstoputinplaceanASEANFOIProtocol�

The Protocol relates to access to informationheld by ASEAN (and not information held byindividualASEANmembercountries)basedontheinternational human right to information� Sincethisisstillarelativelynewcampaign,theinitiativesarenowfocusedonfine-tuningadvocacycallsandbuildingunitiesonelementsofaproposedASEANFOIpolicyandprotocol�

myAnmAr

S ince Myanmar’s reform-minded PresidentThein Sein came to office in March 2011,numerouspromarketpoliciesandmeasureswereintroduced�

Ministers regarded as conservative orunderperforming were moved aside, and manynew deputy ministers were appointed� There arenowmore technocrats in these positions and thecountryhasitsfirstfemaleminister�

TheThein Sein administration is acutely aware ofexistingproblemswithinMyanmar andhas takenproactivestepsbackedupwithpoliciestomitigateandmanagethem�


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ordertosupportthetransformationtoincreasinglysophisticatedindustries�

Marketsandcompetitionmustalsobeenhancedtoencourageamorefavourableclimateforinvestmentand business� Services should also be developedduetotheircriticalroleinmovingcountriesupthevaluechainaswellasachievingbroadergoalssuchasreducingpovertyandmeetingtheneedsofthegrowingmiddleclasses�

It is of particular importance to underline theincreasinglystrongemphasisthatASEANcountriesare placing on quality and sustainable economicgrowthaspartoftheirmedium-termdevelopmentplans�

GrowInG wIth ASeAn: the Aec 2015 vISIon

I n 2003, the first broad outlines of AEC weremooted by the member states as part of abroader affirmation of the ASEAN Community’sformationby2020�At the13thASEANSummit inSingaporein2007,ASEANleadersagreedtobringforwardtheestablishmentoftheAECto2015�

What is the AEC 2015 vision? In a nutshell, it isan initiative by the ASEAN bloc to transform theregionintoanareawithfreemovementofgoods,services, investment, and skilled labour, aswell asfreerflowofcapital�Atabroaderlevel,theASEANleaders envisaged a partial economic union ofthe10membercountriestousher inaneweraofeconomiccooperationandprosperity�

ThefourmaingoalsoftheAECare:

▪ Asinglemarketandproductionbase;

▪ Acompetitiveeconomicregion;

▪ Equitable economic development, as externaltradeisanintegralpartoftheregion;and

▪ Integrationintotheglobaleconomy�

ountriesintheASEANregionthathavebeenover-dependent on export-led growth in

the past are now rebalancing their economiestowardsdomesticdemandaspartofadeliberatelyengineeredshiftintheirgrowthanddevelopmentstrategies� Indeed, many ASEAN economiescontinue to post impressive growth, and theregion’sinvestmentprospectslookstrong�

ASEAN itself is already a trade driven block andweanticipatethemomentumwillcontinue inthedecades ahead, given the rich stores of resourcesandanestablishedmanufacturingbasewhichwillbefurtherboostedbyAEC�

This will be the key to further drive both intraandextraASEANtradeasthepromisesofasingleproductionplatformand aunifiedmarket furtherstrengthentradeactivities�

Yetthereareseveraldownsiderisksandconcernisgrowing that the region cannot continue forgingaheadheedless of fluctuations inglobal demand�Economic destabilisation is also to be feared ifinflows from thequantitative easingprogrammesof the US Federal Reserve turn into outflows,exposinghiddenflaws inregionaleconomies�Themanagementof capital flowswill thereforebe animportantpolicychallenge�

In addition, ASEAN needs to foster deeperintegration: the development gaps betweenmembers remain substantial and more rigorouspolicies are needed to narrow them and reducepoverty�

In particular, the further development ofinstitutional capacities must be central todevelopment strategies� Growing regionalintegration both amongst ASEAN countries andwith the broader Asian region would be amajorasset in ASEAN’s efforts to get itsmember statesintothehighincomeranks�

As ASEAN member states move towards a moreadvancedstageofdevelopment,ASEANeconomieswillneedtostrengthentheirinstitutionalcapacitiesinhumancapital,infrastructureandinnovation,in

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Free Flow of Goods

F reeflowofgoodsisoneoftheprimarymeansby which the aims of a single market andproductionbasecanberealised�Asinglemarketforgoods (and services) will also help developproduction networks in the region and enhanceASEAN’scapacityasaglobalproductioncentreorasapartoftheglobalsupplychain�

ThroughtheASEANFreeTradeArea(AFTA),ASEANhas achieved significant progress in the removalof tariffs� However, free flow of goods would notonly require zero tariffs but also the removal ofnon-tariff barriers� Another key component tofacilitate the free movement of goods would betrade facilitation measures such as integratingcustomsprocedures,establishingtheASEANSingleWindow, continuously enhancing the CommonEffective PreferentialTariffs (CEPT) Rules ofOriginincluding its Operational Certification Procedures,and harmonising standards and conformanceprocedures�

TheCommonEffectivePreferentialTariffSchemefortheASEANFreeTradeArea(CEPT-AFTA)Agreementwill be reviewed and enhanced to become acomprehensiveagreementthatrealisesfreeflowofgoodsandcaterstoASEAN’sneedsforacceleratedeconomicintegrationtowards2015�

Free Flow of Services

F reeflowoftrade inservices isoneof thekeyelementsinrealisingtheAEC,wheretherewillbesubstantiallyno restrictionsonASEANservicessuppliers providing services and establishingcompanies across national borders within theregion,subjecttodomesticregulations�

Liberalisation of services has been carried outthrough rounds of negotiation mainly under theCoordinatingCommitteeonServices�Negotiationsrelating to some specific services sectors, such asfinancialservicesandairtransport,arecarriedoutby the respective government bodies ofmemberstates� In liberalising services, there should be no

The AEC will establish ASEAN as a singlemarket and production base� This will increaseASEAN’s dynamism and competitiveness, withnew mechanisms and measures put in placeto strengthen the implementation of existingeconomicinitiatives,accelerateregionalintegrationinprioritysectors,facilitatemovementofbusinesspersons, skilled labour and talents as well asstrengthentheinstitutionalmechanismsofASEAN�

AsafirststeptowardsrealisingtheAEC,ASEANhasbeenimplementingrecommendationsoftheHLTFon ASEAN Economic Integration contained in theBaliConcordII�

At the same time, the AEC will address thedevelopmentgapsandacceleratetheintegrationofCLMVthroughtheInitiativeforASEANIntegrationandotherregionalinitiatives�

The AEC will also incorporate other areas, suchas human resources development and capacitybuilding,recognitionofprofessionalqualifications,closerconsultationonmacroeconomicandfinancialpolicies, trade financing measures, enhancedinfrastructure and communi

DOING BUSINESS IN ASEAN -...

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