Part One
ASEAN 2025 is a forwardlooking road map that articulates their vision of the Association of Southeast Asian Nations eight years from now; one that is ‘politically cohesive, economically integrated, socially responsible’ and a consolidated community across three pillars—political-security, economic and sociocultural.
In sum, Asean 2025 reaffirms the commitment toward the continuation and consolidation of Asean community building.
Community building over the next decade will build on the experiences and expertise the Asean acquired in the preceding years to tackle new challenges, harness new technologies and ensure opportunities for all.
Through the Asean community-building process, the Asean demonstrates to its partners and the world that it is determined to maintain the Asean’s role in dealing with challenges that affect peace, security and stability of the region.
Goals
THE broad goals of Asean 2025 include the following: putting more emphasis on the peoples of the Asean and their well-being; the increased awareness of the Asean; and more engagement with the peoples of Asean member-states.
Other goals include: commitment to fundamental freedoms, human rights and better lives; strengthened capacity to deal with challenges while maintaining Asean centrality; remaining an outward-looking and global player; implementing the Asean agenda while pursuing national aspirations and contributing to Asean community building; and strengthening Asean organs and the Asean Secretariat.
For Asean peoples, Asean 2025 means that they will continue to live in a more united, secure, peaceful and cohesive region; and enjoy the protection of human r ights and fundamental freedoms—Myanmar and the Philippines will have to do some catching up, be better prepared for pandemics and natural disasters, enjoy greater prosperity and benefit from greater job opportunities and connectivity.
or Asean partners, Asean 2025 means engaging with a community that is committed to and has the capacity to contribute to a peaceful, secure and stable region; can respond effectively to existing and emerging challenges (China to be watched) and is committed to working with external partners to address issues ranging from drug-related crimes to trafficking in persons and people smuggling. Engaging with the Asean community offers more economic, trade and investment opportunities. It also offers linkages with an Asean that has a greater role and voice in global economic fora and contributes to global economic governance.
Opportunities
HOWEVER, the story of the Asean’s future prospects needs a little perspective.
There are 10 member-nations spread across Southeast Asia that have a wide variety of government styles. At the last count, there were three constitutional monarchies, three republics, two communist states, one constitutional sultanate and a former military junta in the Asean. The people in the Asean practice several religions and speak over 70 languages and dialects.
Turning the Asean into a unified powerhouse of manufacturing and trade by 2025 will require both public and private efforts and the removal of key administrative barriers. And, to maximize the benefits of integration, it will need to maintain macroeconomic, political and policy stability, build world-class infrastructure and intensify its focus on work-force skills. It will also require the right set of incentives for investors, removing excessive red tape, loosening foreign investment restrictions and establishing an effective government agency for investor facilitation and protection.
The integration of regional economies through the free movement of products, services and people has challenged companies in the Asean to expand into Asean markets to benefit from the opportunities the Asean 2025 Vision offers.
Footprint
LET’S look at the footprint. Those active in Asean countries include Thailand’s PTT Public Co. Ltd. and Ocean Glass, which are active in all 10 Asean member-states, and Bangkok Bank Public Co., Minor International Public Co. and Regional Container Lines, which are active in nine Asean member countries. There’s also the Malayan Banking Berhad of Malaysia, which is active in all 10 Southeast Asian nations.
Malaysian entities CIMB Group Holdings Berhad and RHB Capital Berhad, to note, are active in nine. Also active in nine countries are Neptune Orient Lines and OSIM International Ltd of Singapore.
The Gokongwei family-led JG Summit Holdings Inc. and Universal Robina Corp. are also active in nine Asean member-states.
A momentum is seen in the growing number of cross-border investments, as well as merger and acquisition activities in banking, manufacturing, transport and communications sectors.
For international and regional investors, there are many opportunities opening in an area that will be able to be addressed as a single market and will allow economies of scale. Integration of the diverse economies promise to make the Asean much more competitive in attracting global investment and as a location for establishing manufacturing operations. This is the time of positive and accelerating change as new growth and development strategies are implemented to sustain economic and social progress.
Asean countries are likely to play a far more significant role in the global economy as the 21st century unfolds.
To be continued