ASEAN Integration:

Relating to Global Issues and Trends

Dave Vincent A. Mangilet

PUP DBA Student
July 2016

Slide template adapted from:

h0p://www.asean.org/resources/asean-resources-tool-kit
TOPICS
•  Overview of ASEAN Community
•  ASEAN Political-Security Community (APSC)
•  ASEAN Economic Community (AEC)
•  ASEAN Socio-Cultural Community (ASCC)
•  Issues and Challenges on ASEAN 2015
•  ASEAN 2030
•  Recommendation

2
ASEAN Community:
An Overview
 ASEAN
Association of Southeast Asian Nations

10 Member States:
•  Brunei Darussalam
(7 January 1984)
•  Myanmar
•  Cambodia (23 July 1997)
(30 April 1999)
•  Philippines
•  Indonesia (8 August 1967)
(8 August 1967)
•  Singapore
•  Lao PDR (8 August 1967)
(23 July 1997)
•  Thailand
•  Malaysia (8 August 1967)
(8 August 1967)
•  Viet Nam
(28 July 1995)
4
 POLITICAL
Country Form of Government Leader
Brunei Absolute monarchy Hassanal Bolkiah (Sultan)
Darussalam
Cambodia Parliamentary cons>tu>onal monarchy Hun Sen (Prime Minister)
Indonesia Presiden>al cons>tu>onal republic Joko Widodo (President)
Lao PDR Unitary Marxist-Leninist one-party state Bounnhang Vorachith (General
Secretary & President)
Malaysia Federal parliamentary democracy under Najib Razak (Prime Minister)
an elec>ve cons>tu>onal monarchy
Myanmar Unitary parliamentary republic H>n Kyaw (President)
Philippines Presiden>al cons>tu>onal republic Rodrigo Duterte (President)
Singapore Unitary parliamentary republic Lee Hsein Loong (Prime Minister)
Thailand Cons>tu>onal monarchy under military Bhumibol Adulyadej (Monarch)
junta
Vietnam Unitary Marxist-Leninist one-party state Tran Dai Quang (President)
5
 ECONOMIC
Country GDP [in US $] Land area
Brunei PPP: $25.245 billion [2015 est.]/ $54,537 per capita 5,765 sq. km.
Cambodia PPP: $54.035 billion [2015 est.]/ $3,476 per capita 181,035 sq. km.
Indonesia PPP: $895.677 billion [2015 est.]/ $11,135 per capita 1,904,569 sq. km.
Lao PDR PPP: $34.400 billion [2014 est.]/ $4,986 per capita 236,800 sq. km.
Malaysia PPP: $800.169 billion [2016 est.]/ $25,833 per capita 330,803 sq. km.
Myanmar PPP: $269.996 billion [2015 est.]/ $5,207 per capita 676,578 sq. km.
Philippines PPP: $811.726 billion [2016 est]/ $7,846 per capita 300,000 sq. km.
Singapore PPP: $452.686 billion [2014 est.]/ $82,762 per capita 719.1 sq. km.
Thailand PPP: $1.152 trillion [2016 est.]/ $16,706 per capita 513,120 sq. km.
Vietnam PPP: $593.509 billion [2015 est.]/ $6,414 per capita 332,698 sq. km.

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 SOCIAL
Country Popula8on Religion
Brunei Darussalam 415,717 Sunni Islam
Cambodia 15,205,539 Theravada Buddhism
Indonesia 255,461,700 Islam
Lao PDR 6,803,699 Buddhism
Malaysia 31,116,000 Sunni Islam
Myanmar 51,486,253 Theravada Buddhism
Philippines 102,714,000 Roman Catholic
Singapore 5,535,000 Buddhism
Thailand 67,959,000 Theravada Buddhism
Vietnam 91,700,000 Non-religious or folk-beliefs

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 ASEAN Vision

“A concert of Southeast Asian

nations, outward looking, living
in peace, stability and
prosperity, bonded together in
partnership in dynamic
development and in a
community of caring societies.”

8
 ASEAN Aims and Purposes
(Bangkok Declaration 1967)

•  To accelerate the economic growth, social progress

and cultural development in the region through joint
endeavors

•  To promote regional peace and stability through

abiding respect for justice and the rule of law

9
 ASEAN Charter (“Constitution”)
Entered into force on 15 December 2008

•  Provides legal status and institutional framework for ASEAN

•  Codifies ASEAN norms, rules and values
•  Sets clear targets for ASEAN
•  Presents accountability and compliance
•  Committee of Permanent Representatives (CPR)
•  Convening of ASEAN Summit twice a year
•  Establishment of the ASEAN Intergovernmental Commission
on Human Rights (AICHR)
•  Ambassadors to ASEAN

10
If ASEAN were a single country, it would already be the seventh-
largest economy in the world, with a combined GDP of $2.4
trillion in 2013.
It is projected to rank as the fourth-largest economy by 2050.
McKinsey & Co. – May 2014
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 Gross Domestic Product 2014
COUNTRIES GDP
1.  United States 17,419,000
2.  China 10,360,105
3.  Japan 4,601,461
4.  Germany 3,852,556
5.  United Kingdom 2,941,886
ASEAN 6.  France 2,829,192 USD 2.48
7.  Brazil 2,346,118 trillion
8.  Italy 2,144,338
9.  India 2,066,902
10.  Russia Federa>on 1,860,598

Indonesia (16) 888,538

World 77,868,768

Source: World Development Indicators, The World Bank (As of 1 July 2015) 12
 ASEAN Community As compared to…
ASEAN’s broad picture
Total population 580 million > European Union

GDP size = 1.5 trillion USD = South Korea’s

International trade 1.61 trillion = 6 times Thailand’s

FDI approximately 50 bil. USD = 60% of China’s

International tourists 65 mil. = World’s second

persons order from France
ASEAN 10 : 583 Millions of Pop. (9 % of the world's population)
GDP 1,275 Billions USD (2% of the world’s GDP)

ASEAN+3 : 2,068 Mil. of Pop. (31 % of the world) ASEAN+6 : 3,284 Mil. of Pop. (50 % of the world)
GDP 9,901 Bil. USD (18% of the world’s GDP) GDP 12,250 Bil. USD (22% of the world’s GDP)

www.nesdb.go.th 3
 ASEAN
•  Highly connected:
Physically,
Institutionally and
among the Peoples
•  Free trade
agreements with
major regional
economies
•  Young, educated
labor force

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ASEAN: A Community of Opportunities

GDP:
Huge Market:
USD 2.4
625 million+ people
trillion
Courtesy of ASEAN Na@onal Tourism Organisa@ons

FDI: Steady
USD 122.4 economic
billion growth rate

Courtesy of ASEAN Na@onal Tourism Organisa@ons

ROBUST 15
 ASEAN: A Community of Opportunities

Young,
Highly Connected
educated labor
Region
force
Courtesy of ASEAN National Tourism Organisations

Free Trade
Agreements with
major regional
economies
Courtesy of ASEAN National Tourism Organisations
Image source: Flickr.com/RussellGilbert

DYNAMIC 16
 ASEAN: A Community of Opportunities
Home to major Rich culture
religions

Courtesy of ASEAN Na@onal Tourism Organisa@ons

Vast natural
resources
Courtesy of ASEAN Na@onal Tourism Organisa@ons Courtesy of ASEAN Na@onal Tourism Organisa@ons

DIVERSE 17
 ASEAN Community Building

ASEAN:
A people-oriented community

ASEAN ASEAN ASEAN

Political-Security Economic Socio-Cultural
Community Community Community
(APSC) (AEC) (ASCC)

Narrowing the Development Gap (NDG) 18

The ASEAN Journey to Community Building

2015
2007
Dec 31st
Cebu
2003 Declaration Realisation of
the ASEAN
Bali Concord II Community
1997
ASEAN Vision 2020

1967
Bangkok
Declaration
The ASEAN Journey to Community Building
Strengthening Framework of
ASEAN Integration

ASEAN Charter 2008

Roadmap for an ASEAN 2009
Community
2009-2015

Master Plan on ASEAN 2010

Connectivity

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ASEAN Political-Security
Community (APSC)
 APSC Blueprint
PoliPcal Security External
CooperaPon CooperaPon RelaPons
•  A rules-based •  A cohesive, •  A dynamic and
community of peaceful, stable & outward-looking
shared values & resilient region with region in an
norms shared increasingly
responsibility for integrated and
comprehensive interdependent
security world

22
APSC Community-Building Mandate

Rela>ons between
People live in
ASEAN & Dialogue
peace
Partners

Maintain centrality Open, transparent

& inclusive

23
ASEAN Sectoral Bodies Under the APSC
ASEAN
Summit

ACC

APSC
Council

SEANWFZ
ARF ADMM AMM AMMTC ALAWMM
Commission

Executive
ARF SOM ADSOM Committee of SOM SOMTC ASLOM
the
SEANWFZ
Commission AICHR DGICM

Reporting Line

Coordinating ASOD 24
APSC Community-Building Milestones
•  Treaty of Amity and Cooperation

•  78 non-ASEAN Member States & organisations

have accredited their Ambassadors to ASEAN

•  42 ASEAN Committees in Third Countries to

raise ASEAN awareness and profile

25
Ongoing Work in APSC Pillar

ASEAN Community’s Vision 2025

Timor-Leste’s ApplicaPon for ASEAN Membership

South China Sea

SEANWFZ Protocol

Women & children: ACTIP & RPA

Transna>onal crime & violent extremism: AMMTC

26
Post-2015 Vision for APSC
“An ASEAN Political-Security Community where peace,
stability and security prevail and the peoples live in a safe
and secured environment, with shared principles, values
and norms, with enhanced external relations in depth and
scope, strengthened ASEAN’s centrality in the regional
architecture, and an ASEAN common platform on global
issues.”
From the Nay Pyi Taw Declaration on
the ASEAN Community’s Post-2015
Vision
12 November 2014

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ASEAN Economic
Community (AEC)
Mandate, Blueprint &
Milestones
AEC Blueprint: Adopted Nov 2007

ASEAN ECONOMIC COMMUNITY

STRATEGIC SCHEDULE OF THE AEC BLUEPRINT (2008-2015)
1. Single Market 2. Competitive 3. Equitable 4. Integration into
& Production Base Economic Region Economic Global Economy
Development
•  Free flow of goods •  Competition policy •  Coherent approach
•  Free flow of services •  Consumer •  SME development towards external
•  Free flow of protection Initiative for ASEAN economic relations
investment •  Intellectual property Integration •  Enhanced
•  Freer flow of capital rights participation in
•  Free flow of skilled •  Infrastructure global supply
labour development networks
•  Priority Integration •  Taxation
Sectors •  E-Commerce
•  Food, agriculture
and forestry

HUMAN RESOURCE DEVELOPMENT RESEARCH & DEVELOPMENT

29
AEC Community Building Mandate
Establish ASEAN as:

30
 AEC Milestones
ASEAN ASEAN Bali Concord II Vientiane
Birth of Free Trade Vision (ASEAN Plan of ASEAN Bali Concord III
ASEAN Area 2020 Community) Action Charter (RCEP/AFEED)

1967 1977 1992 1995 1997 1998 2003 2004 2007 2008 2009 2011 2015

ASEAN
Preferential
ASEAN
Framework ASEAN Hanoi Roadmap for AEC
Trading Agreement Investment Plan of AEC an ASEAN
Agreement on Services Agreement Action Blueprint Community

31
AEC Pillar #1

SINGLE MARKET AND

PRODUCTION BASE

32
Single Market & Product Base – Milestones

Tariffs near zero

ASEAN Trade in Goods Agreement

ASEAN Framework Agreement on Services

ASEAN Comprehensive Investment Agreement

Movement of professionals

Trade facilita>on

ASEAN Exchanges
33
Trade in Goods Liberalisation

ASEAN-6
99.65% tariff lines eliminated
CLMV
Almost 98% tariff lines reduced to 0-5%

34 34
Facilitating Movement of Professionals

•  ASEAN Qualification Reference Framework (AQRF)

•  Mutual Recognition Arrangements (MRAs) in 8 fields:

Engineering Architecture Accountancy Surveying

Medical Dental Tourism

Nursing
prac>>oners prac>>oners Professionals

35
AEC Pillar #2

COMPETITIVE ECONOMIC
REGION

36
Competitive Economic Region - Milestones
Compe>>on policy Consumer Interna>onal IP
and law protec>on laws protocols

ASEAN Highway ASEAN Single

ASEAN Power Grid
Network Shipping Market

Trans-ASEAN Gas Principles for PPP ASEAN Open Skies

Pipeline Frameworks Policy

Telecommunica>on
infrastructure
37
ASEAN Open Skies Policy

Capacity of ASEAN Capacity to absorb

airlines almost tripled international arrivals
from 94 million seats in also tripled, from 33
2003 to 268 million million to 99 million in
seats in 2013 the same period

38
Competition Policy

Strengthening Regulatory Environment

Institutional-Building and Enforcement of CPL

Regional Competition Advocacy

Cross-Cutting Regional Initiatives

39
AEC Pillar #3

EQUITABLE ECONOMIC
REGION

40
Equitable Economic Development -
Milestones
ASEAN Business Incubator Network

ASEAN SME Guidebook

Ini>a>ve for ASEAN Integra>on (IAI)

ASEAN Framework for Equitable Economic Development

ASEAN Equitable Development Monitor Report

41
AEC Pillar #4

INTEGRATION INTO GLOBAL

ECONOMY

42
 ASEAN Free Trade Agreements
Entry Size of Size of Total
Into Force Market Economy ($) Trade ($)

ACFTA (China) 2005 1.98 B 11.3 T 351 B

AKFTA (Korea) 2007 0.67 B 3.59 T 135 B
AJCEP (Japan) 2008 0.75 B 7.41 T 241 B
AANZFTA (Aus-Nzl) 2010 0.65 B 4.07 T 78 B
AIFTA (India) 2010 1.87 B 4.16 T 68 B
AHKFTA (Hong Kong) Jul 2014* 0.63 B 2.67 T 97 B
RCEP May 2013* 3.4 B 20.9 T 872 B

* First round of negotiations

43
Regional Comprehensive Economic
Partnership (RCEP)
Integration of the ASEAN economy into the global economy continues by
enhancing ASEAN+1 FTAs, and establishment of RCEP and ASEAN-HK FTA

Regional Comprehensive
Economic Partnership

AFTA ACFTA AKFTA AJCEP AIFTA AANZFTA AHKFTA

ASEAN’s
other
external
economic
partners

44
Initiative for ASEAN Integration

CLMV assisted,
Narrow the ensuring benefits of
development gap ASEAN integra>on are
equitably shared

Posi>ve-bias approach:
Growing the ASEAN
cake and increasing the
share going to the
CLMV countries

45
ASEAN GDP
9.0%
7.8%
8.0%
7.0%
5.8%
6.0%
4.9% 5.1%
5.0% 4.7%

4.0%
3.0%
1.8%
2.0%
1.0%
0.0%
2008 2009 2010 2011 2012 2013

Source: ASEAN Integration Monitoring Office (AIMO)

46
Priorities Towards AEC 2015

Fast track Improve

implementa>on of communica>on
priori>sed AEC and outreach to
deliverables stakeholders

Finalise AEC’s
post-2015 agenda
for deeper REI

47
47
AEC 2025

Integrated and Compe>>ve, Enhanced sectoral

highly cohesive innova>ve and integra>on and
economy dynamic ASEAN coopera>on

Resilient, inclusive,
people-oriented
Global ASEAN
and people-
centered ASEAN

48
Post-2015 Vision for AEC
An ASEAN Economic Community for 2016-2025 (AEC
2025) that includes an integrated and highly cohesive
economy, a competitive, innovative and dynamic
ASEAN, a resilient, inclusive and people-oriented,
people-centred ASEAN, enhanced sectoral integration
and cooperation, and a global ASEAN.

49
ASEAN Socio-Cultural
Community (ASCC)
ASCC Community Building Mandate

People-oriented & socially-responsible

to achieve enduring solidarity & unity

Common iden>ty to build caring, sharing

and inclusive society

51
ASCC Blueprint
Primary Goal:
To contribute to realising a people-centred and socially-responsible
ASEAN Community by forging a common identity and building a
caring and sharing society

Human Environmental Building

Development Sustainability ASEAN Iden>ty

Narrowing the
Social Welfare Social Jus>ce
Development
& Protec>on & Rights
Gap
52
 Human Development

Advancing and Human resource Promo>on of decent

Promo>ng ICT
priori>sing educa>on development work

Entrepreneurship skills
Access to applied for women, youth, Building civil service
Science & Technology elderly, and persons capability
with disabili>es

53
Social Welfare and Protection
Poverty allevia>on

Social safety net and protec>on from the nega>ve impacts of integra>on and globalisa>on

Enhancing food security and safety

Access to healthcare and promo>on of healthy lifestyles

Improving capability to control communicable diseases

Ensuring a drug-free ASEAN

Building disaster-resilient na>ons and safer communi>es

54
Social Justice and Rights

Promo>on and
protec>on of the rights Protec>on and
and welfare of women, promo>on of the rights
children, the elderly and of migrant workers
persons with disabili>es

Promo>ng corporate
social responsibility
(CSR)

55
Environmental Sustainability

Trans-boundary Educa>on and Environmentally

environmental public Sound Technology
pollu>on par>cipa>on (EST)

Use of coastal & Management of

Policies and
marine natural resources
databases
environment & biodiversity

Sustainable Forest
Freshwater
Climate Change Management
Resources
(SFM)
56
Building ASEAN Identity
Promo>on of ASEAN awareness and a sense of
community

Preserva>on and promo>on of ASEAN cultural

heritage

Promo>on of Cultural Crea>vity and Industry

Engagement with the community

57
Narrowing the Development Gap
Issues in developing
and implemen>ng
ASEAN-6 to con>nue
projects under IAI &
assis>ng the CLMV
other sub-regional
frameworks

Assessment studies on
social impact of
regional integra>on

58
ASCC Community-Building Milestones

1.  Heightened commitments:

–  Declaration on Non-communicable Diseases in ASEAN
–  Declaration on Elimination of Violence Against Women
and Elimination of Violence Against Children in ASEAN
–  Development of ASEAN instruments for the protection
and promotion of the rights of migrant workers

2.  Quick, tangible action

–  Humanitarian assistance through the ASEAN
Coordinating Centre for Humanitarian Assistance
(AHA Centre)

59
ASCC Post-2015 Vision

An ASEAN Socio-Cultural Community that is

inclusive, sustainable, resilient, dynamic and
engages and benefits the people.

60
IS THE PHILIPPINES READY
FOR ASEAN INTEGRATION?

61
 TOP OPPORTUNITIES
JOB EXPANSION
•  PROS
–  Competent workforce
–  Sharing of best practice
–  Investments in agriculture
–  Network of OFWs
•  CONS
–  High salary
–  Competition
–  Unemployment
–  Underemployment
–  Weak labor laws
FINANCE/ BUSINESS/
CURRENCY
•  PROS
–  Stable and increasing
investments
–  Automating business procedures
and “fast-tracking” the process.
–  Food security
–  Infrastructure projects
–  Increase tourism
•  CONS
–  Monopoly of some high level
industries
62
–  Export competition
 TOP ISSUES
EDUCATION/ TECHNOLOGY
•  Weak implementation of
K to 12 program.
•  Shortage of teachers and
school facilities.
•  Low bandwidth for
internet connection.
•  Potential energy
shortage.
CULTURE/ LEADERSHIP
•  “Asian” culture/ attitude/
practices.
•  Corruption and political
dynasty.
•  Language barrier/
regional behavior.
•  Security and terrorism
concerns.
63
Are ASEAN Countries ready
for integration?

Case Analysis

64
 CASE 1: Foreign workers are less
welcome in SINGAPORE.
•  High competition in the workplace since Filipinos are
also competing for professionals, managers,
executives and technicians.

•  Total of 157,000 Filipino workers.

•  The Singaporean government aims to push

companies to invest in technology and training instead
on relying on low-skilled, low-wage foreign workers.

65
Source: Rappler Published Aug. 2015 [h0p://www.rappler.com/world/specials/southeast-asia/101876-sg50-singapore-immigra@on-policy]
 CASE 2: Thai Laws are conflicting to
the Asean Economic Community
•  The National Reform Council has identified 106 Thai
laws that needs to be amended.
–  FOREIGN BUSINESS ACT [B.E 2542] – foreign participation
up to 49% only.

•  Thai bureaucrats do not agree with the policies.

•  The Thai government is still struggling to improve its

scorecard among ASEAN countries.

66
Source: h0p://www.na@onmul@media.com/opinion/Challenges-of-Asean-integra@on-2015-30250851.html
 CASE 3: Cambodia, Laos and Myanmar
will get more support
•  Bring down tariffs by 2018.

•  Who covers for them? Singapore? Brunei? Malaysia?

Will this make a potential Singxit? Bruxit? Malayxit?

67
Source: h0p://www.stuff.co.nz/business/opinion-analysis/74827115/The-poten@al-and-challenges-of-the-ASEAN-Economic-Community
Why integrate?

INNOVATE.

68
 RECOMMENDATIONS

•  Stay competitive – strengthen education system

and align with the rest of the world.

•  Be on the lookout and build competencies – our

advantage in speaking English may be short-lived.

•  Political will amongst government officials –

less corruption, increase investments, focus on
priorities that will help the economy.

•  Build on tourism potential – our rich resources

should be preserved and promoted well.

69
END OF PRESENTATION

References:
www.asean.org
www.usasean.org
www.nesdb.go.th

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