ASEAN Economic Community (also known as AEC) is one of the ASEANs

main pillars declared on October 7, 2003 in Bali by two head of economic countries;
Singapore and Thailand. Based on the blueprint, AEC aims to achieve higher level of
economic dynamism, sustain prosperity, inclusive growth and integrated development of
ASEAN. AEC is the realization of the end goal of economic integration, based on
convergence of interests of ASEAN Member Countries to deepen and broaden economic
integration through existing and new initiatives with clear timelines. 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 labor and talents; and strengthening the
institutional mechanisms of ASEAN. Perhaps these goals can benefit for ASEAN
member countries as AEC will simply the regulation of trading. It will turn the gap of
economic regulation borderless.
Yet, in a purpose to welcome AEC, we need such an "early warning system as a
preparation to make us settled in facing free-trade atmosphere. Hence, we need a quality
improvement to prove our skills so as we can be compatible to compete with the other
human resources. In fact that our readiness is an important key for facing AEC, there will
be some consequences for low-income countries. Seeing that the basic principle of AEC
is creating an atmosphere of free-trade area among ASEAN Member Countries, it will
probably worsen the economic sector of low-income country. Based on articles written by
Tri Widodo, one of the principles of free-trade is non-discrimination, which means that
there will be an abolition of tariffs and non-tariffs barrier. This regulation will be
beneficial for the countries whose income is high, like Singapore, as they can buy
products from other country with low price. For instance, the cost of gas in Indonesia is
much cheaper than that of in Singapore that turns purchasing power higher. It will a good
opportunity for Singapore to fulfill the domestic needs of gas by purchasing gas from
Indonesia. As a result, the domestic fulfillment will be constrained as the gas stocks
already bought up by Singapore. Furthermore, to overcome that problem, country with
low-income will try to equate their standard products. In other words, ASEAN single
market indirectly pre-suppose retraction of government subsidies in some commodities.

As a result, under-developed country will hardly abolish the poverty.

In a brief, AEC can bring both the positive and negative impact to ASEAN
Member Countries that depend on their readiness in competing in free-trade atmosphere.