Advent of the Era of the AEC and Its Impact on Singapore and Indonesia(32)

Comparative Study on the Perception and Response of Singapore and Indonesia

Results of SWOT analysis on the Singapore's perception of and response to the formation of the AEC can be diagramed as below. 

According to the papers by Hadi Soesastro and Raymond Atje (p. 72-77.) and Widdi Mugijayani and Pratiwi Kartika (p. 210-212.), Indonesia's major perception of and response to the formation of the AEC can be summarized as below.

Advent of the Era of the AEC and Its Impact on Singapore and Indonesia(31)

Comparative Study on the Perception and Response of Singapore and Indonesia

Consequently, there is lack of familiarity or limited knowledge of the workings and details of the agreements and their impact on business. Going forward, Singapore will focus on capacity building and human resource development in the ASEAN countries to help them prepare for the 2015 deadline. 

In this respect, Singapore has spent more than US$120 million cumulatively in various initiatives and training programs to help narrow the gaps among ASEAN economies.

Advent of the Era of the AEC and Its Impact on Singapore and Indonesia(30)

Comparative Study on the Perception and Response of Singapore and Indonesia

The larger players, being more experienced, point out that whilst the ASEAN agreements are being help up as the way forward, delays or non-implementation of signed agreements are too common occurrences. 

A more basic reaction from businesses is tied to the process itself of drawing up the ASEAN economic agreements. An underlying concern is that the agreements are concluded without the involvement of or consultation with the private sector.

Advent of the Era of the AEC and Its Impact on Singapore and Indonesia(29)

Comparative Study on the Perception and Response of Singapore and Indonesia

While it fully supports efforts taken to accelerate internal integration towards AEC 2015, the ASEAN needs to deepen its engagement with key trading partners in parallel. 

It is significant that SMEs  tend to be in the more optimistic category in relation to regional integration. SME leaders in Singapore have urged fellow companies to expand within the region and to seriously consider investing in ASEAN neighbors for the many benefits that an integrated ASEAN economic community can bring.

Advent of the Era of the AEC and Its Impact on Singapore and Indonesia(28)

Comparative Study on the Perception and Response of Singapore and Indonesia

Singapore believes that a strong and competitive ASEAN is important in the face of growing challenges posed, not just to the Southeast Asian economy, but the global economy. 

Thus, while Singapore acknowledges that some problems are faced by the ASEAN countries in implementing the AEC Blueprint, there is an urgent need to persevere in order for the region to remain competitive and relevant to the global economy.