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Comparative Study on the Perception and Response of Singapore and Indonesia

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

 

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

Comparative Study on the Perception and Response of Singapore and Indonesia

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. 

Consequently, there is lack of familiarity or limited knowledge of the workings and details of the agreements and their impact on business.

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Comparative Study on the Perception and Response of Singapore and Indonesia

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. 

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.

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Comparative Study on the Perception and Response of Singapore and Indonesia

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. 

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. 

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Comparative Study on the Perception and Response of Singapore and Indonesia

Singapore remains committed and continues to work closely with the other ASEAN countries to achieve the goals of the AEC as set out in the AEC blueprint. According to the latest AEC Scorecard, Singapore has registered more than 93 percent implementation of the requirements in the AEC Blueprint for the period 2008 to 2009.

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.

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Comparative Study on the Perception and Response of Singapore and Indonesia

Relied upon the findings from the papers, SWOT analysis can be further applied for both countries. This is to verify internal strengths and weaknesses, as well as external opportunities and threats of Singapore and Indonesia in the time of the AEC. 

Originating from a strategic planning tool in the business area, SWOT analysis will prove itself handy to demonstrate where Singapore and Indonesia are placed. According to the papers by Juliana Giam (p. 280-281.) and Ong Keng Yong (p. 132-133.), Singapore's major perception of and response to the formation of the AEC can be summarized as below.

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Comparative Study on the Perception and Response of Singapore and Indonesia

In other words, the perception of and response to the formation of the AEC in Singapore and Indonesia are intensively discovered in the papers. Accordingly, perspectives of Singapore and Indonesia can be drawn out respectively. 

The 4 papers are 'Deadline 2015: Assessing Indonesia's Progress towards the AEC' by Hadi Soesastro and Raymond Atje, 'Role of the Singapore Private Sector in ASEAN Economic Integration' by Juliana Giam, ASEAN Economic Integration: Perspectives from Singapore' by Ong Keng Yong and 'Perspective of the Indonesian Business Sector on the Regional Integration Process' by Widdi Mugijayani and Pratiwi Kartika.

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Comparative Study on the Perception and Response of Singapore and Indonesia

Though probably considered somewhat outdated, this rare publication still delivers meaningful messages by providing country-specific insights with special highlights on crucial economic road maps of the individual members toward the era of AEC. 

This is no exception to Singapore and Indonesia as well. Against this background, 4 papers of the book may seem fairly useful in offering comprehensive view of how well Singapore and Indonesia are prepared in accomplishing the goals of the AEC.

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Comparative Study on the Perception and Response of Singapore and Indonesia

As shortly mentioned at the introductory part, the ASEAN Studies Centre of the Institute of Southeast Asian Studies in Singapore came up with a book titled 'Achieving the ASEAN Economic Community 2015: Challenges for Member Countries & Businesses' in 2012. According to the foreword of the book, papers compiled in the volume were presented during the ASEAN Roundtable on 29 April 2010 and a brainstorming session on 23 September 2010. 

The book basically looks over the prospects for achieving an ASEAN Economic Community by 2015 and the obstacles in the way of its achievement from the aspects of each of the member states of ASEAN. 

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Comparative Study on the Perception and Response of Singapore and Indonesia

WIKA has moved into distinct sectors, among them industry, infrastructure and building, energy and industrial plant construction, realty and property, as well as investment. 

After successfully participating in the development of infrastructure and construction projects in Indonesia, WIKA is expecting to expand in ASEAN and beyond. WIKA has expanded into Sarawak in Malaysia and East Timor. As a state owned company, WIKA is a keen supporter of the AEC. 

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Comparative Study on the Perception and Response of Singapore and Indonesia

Currently, Super Group has 15 manufacturing facilities, with manufacturing and packaging plants in Singapore, Malaysia, Thailand and Vietnam, as well as in China and puts out more than 300 products across categories. 

Super Group aims to forge ahead with its regional expansion. Founded as an electrical supplies and water pipe fitter in 1960, WIKA in Indonesia has been transformed into a holding company in construction, engineering procurement construction and investment, with 10 subsidiaries.

 

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Comparative Study on the Perception and Response of Singapore and Indonesia

Business outlines of the two examples incubating the potential of the AEC go like this. Super Group in Singapore has been progressively attempting to reach consumers in Southeast Asia with its instant food and beverage products since 1987. 

Super Group has begun to roll off its manufacturing lines for newer products as its consumer base has become increasingly affluent. Its product portfolio continues to evolve, tracing ASEAN economic development and consumer trends through years. 

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Comparative Study on the Perception and Response of Singapore and Indonesia

As a result, Singapore and Indonesia has enjoyed the benefits of the ASEAN economic integration over the years. Singapore has been actively expanding its business domain all over the region with its service-oriented policy initiatives. For Indonesia, fruits of strategic focuses on economy of scale have been harvested across the secondary industry. 

The ASEAN Secretariat report cited above illustrates two cases (p. 18-22.) as evidences of commercial viability in the age of the AEC. They are Singapore's Super Group for brand reach and Indonesia's WIKA for corporate transformation.