Inauguration of the AEC and Its Impacts on Relation between Singapore and Indonesia(27)

Comparative Research on Relationship of Singapore and Indonesia in the AEC Aspect

This is to verify internal strengths and weaknesses, as well as external opportunities and threats of Singapore and Indonesia to see where they 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 belowengths and weaknesses, as well as external opportunities and threats of Singapore and Indonesia to see where they are placed. 

Inauguration of the AEC and Its Impacts on Relation between Singapore and Indonesia(26)

Comparative Research on Relationship of Singapore and Indonesia in the AEC Aspect

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. 

Relied upon the findings from the papers, SWOT analysis can be further applied for both countries.

Inauguration of the AEC and Its Impacts on Relation between Singapore and Indonesia(25)

Comparative Research on Relationship of Singapore and Indonesia in the AEC Aspect

In other words, the perception of and the response to the formation of the AEC in Singapore and Indonesia are intensively discovered in the papers. 

Accordingly, perspectives of Singapore and Indonesia, cornerstones employed to speculate new relation between the two countries can be drawn out.

Inauguration of the AEC and Its Impacts on Relation between Singapore and Indonesia(24)

Comparative Research on Relationship of Singapore and Indonesia in the AEC Aspect

Though probably considered somewhat outdated, this rare publication still delivers meaningful messages by providing country-specific insights with highlights on the crucial economic roadmaps of the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

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

Inauguration of the AEC and Its Impacts on Relation between Singapore and Indonesia(23)

Comparative Research on Relationship of Singapore and Indonesia in the AEC Aspect

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. 

The book broadly 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 member countries of the ASEAN.

Inauguration of the AEC and Its Impacts on Relation between Singapore and Indonesia(22)

Comparative Research on Relationship of Singapore and Indonesia in the AEC Aspect

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.

Inauguration of the AEC and Its Impacts on Relation between Singapore and Indonesia(21)

Comparative Research on Relationship of Singapore and Indonesia in the AEC Aspect

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.

Inauguration of the AEC and Its Impacts on Relation between Singapore and Indonesia(20)

Comparative Research on Relationship of Singapore and Indonesia in the AEC Aspect

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.

Inauguration of the AEC and Its Impacts on Relation between Singapore and Indonesia(19)

Comparative Research on Relationship of Singapore and Indonesia in the AEC Aspect

The ASEAN Secretariat report cited above illustrates two cases 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. Business outlines of the two examples incubating potentials of the AEC go like this.

Inauguration of the AEC and Its Impacts on Relation between Singapore and Indonesia(18)

Comparative Research on Relationship of Singapore and Indonesia in the AEC Aspect

Consequently, both Singapore and Indonesia have played enormous roles in the course of the ASEAN economic integration. 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 industries.

Inauguration of the AEC and Its Impacts on Relation between Singapore and Indonesia(17)

Comparative Research on Relationship of Singapore and Indonesia in the AEC Aspect

According to the IMF (International Monetary Fund), Singapore has been acclaimed the most advance country with per capita GDP of 61,800 USD in 2017. In particular, Singapore is leading the region this year as it chairs the ASEAN summit and subsequent summits. 

In contrast with Singapore, Indonesia is ranked the first place in terms of the economic size. Data from the ASEAN Secretariat conveys that Indonesia has occupied as much as 40% of the regional GDP and has consistently beefed up its political clout across Southeast Asia.

Inauguration of the AEC and Its Impacts on Relation between Singapore and Indonesia(16)

Comparative Research on Relationship of Singapore and Indonesia in the AEC Aspect

For example, in spite of the recent economic boost, CLMV countries (Cambodia, Laos, Myanmar and Vietnam) are estimated to hold only around 12% share  of the total ASEAN GDP (Growth Domestic Product). 

In this regard, this paper primarily concentrates on two countries. They are Singapore and Indonesia in the maritime Southeast Asia. The two countries shouldn't be thought lightly of in any economic point of view in the region.