Inauguration of the AEC and Its Impacts on Relation between Singapore and Indonesia(36)

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

In addition, concerns of SMEs especially in Indonesia that they may be isolated from the far-reaching age of the AEC are getting greater. 

In spite of such negative voices raised, the Singaporean and Indonesian governments have been regarded to take necessary steps to realize their commitments to the AEC as ambitiously set out in the AEC Blueprint.

Advent of the Era of the AEC and Its Impact on Singapore and Indonesia(15)

Comparative Study on the Perception and Response of Singapore and Indonesia

The goals of the AEC go with the interrelated four pillars upon which the AEC Blueprint is based. They are a single market and production base, a highly competitive economic region, a region of equitable economic development and a region fully integrated into the global economy. 

The graph below explains key milestones of the AEC and four pillars of the AEC. And a step further from the inauguration of the AEC, AEC Blueprint 2025 guiding the strategic direction of the regional economic integration for the next 10 years was additionally adopted at the 27th ASEAN Summit in November 2015.

Advent of the Era of the AEC and Its Impact on Singapore and Indonesia(14)

Comparative Study on the Perception and Response of Singapore and Indonesia

As projected by the AEC Blueprint, the AEC was finally launched on the 31th of December, 2015. The AEC has been perceived to open a new phase of more deepened economic integration in Southeast Asia. 

It is because the AEC's ultimate target is to become an Asian version of the EEC (European Economic Community), the precursor of the EU (European Union). Consequently, 10 member states have put considerable efforts to keep pace with the new economic norm envisioning a single market in the region. 

Advent of the Era of the AEC and Its Impact on Singapore and Indonesia(3)

Comparative Study on the Perception and Response of Singapore and Indonesia

Along with the ASEAN Political-Security Community and the ASEAN Socio-Cultural Community, the concept of the AEC was first emerged in the ASEAN Vision 2020 articulated in 1997. Then in 2003, leaders of the ASEAN member states declared the formation of an ASEAN Economic Community by 2020 as an agreed goal of the regional economic integration. 

According to the AEC Blueprint 2015, a comprehensive masterplan accelerated the formal establishment of the AEC from 2020 to 2015, AEC rests on four pillars; a single market and production base; a competitive economic region; equitable economic development; and integration with the global economy.

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

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.

Advent of the Era of the AEC and Its Impacts on Singapore and Indonesia(27)

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.

Advent of the Era of the AEC and Its Impacts on Singapore and Indonesia(12)

Comparative Study on the Perception and Response of Singapore and Indonesia

The AEC Blueprint 2015 was initiated at the 38th ASEAN Economic Ministers Meeting (AEM) in Kuala Lumpur. The AEM agreed to develop a single and coherent plan progressing step by step to the AEC. 

In essence, this was undertaken by identifying the characteristics and elements of the AEC consistent with the Bali Concord II, involving clear targets and timelines for implementation, while taking into account the ASEAN member states' varying levels of development.

Advent of the Era of the AEC and Its Impacts on Singapore and Indonesia(27)

Advent of the Era of the AEC and Its Impacts on 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.

Advent of the Era of the AEC and Its Impacts on Singapore and Indonesia(15)

Advent of the Era of the AEC and Its Impacts on Singapore and Indonesia

The graph below explains key milestones of the AEC and four pillars of the AEC. And a step further from the inauguration of the AEC, AEC Blueprint 2025 guiding the strategic direction of the regional economic integration for the next 10 years was additionally adopted at the 27th ASEAN Summit in November 2015. 

Though all the ASEAN members have been closely related with each other over history, each country shows different interests in the era of the AEC. This is mainly because 10 countries aren't in an identical economic situation. 

Advent of the Era of the AEC and Its Impacts on Singapore and Indonesia(11)

Advent of the Era of the AEC and Its Impacts on Singapore and Indonesia

This was in line with the ASEAN Vision 2020, which aimed to transform the ASEAN into a stable, prosperous and highly-competitive region with equitable economic development, reduced poverty, and socio-economic disparities, progressing in tandem with the establishment of the ASEAN Political Security Community and the ASEAN Socio-Cultural Community. 

The AEC Blueprint 2015 was initiated at the 38th ASEAN Economic Ministers Meeting (AEM) in Kuala Lumpur.

 

Advent of the Era of the AEC and Its Impacts on Singapore and Indonesia(3)

Advent of the Era of the AEC and Its Impacts on Singapore and Indonesia

Along with the ASEAN Political-Security Community and the ASEAN Socio-Cultural Community, the concept of the AEC was first emerged in the ASEAN Vision 2020 articulated in 1997. Then in 2003, leaders of the ASEAN member states declared the formation of an ASEAN Economic Community by 2020 as an agreed goal of the regional economic integration. 

According to the AEC Blueprint 2015, a comprehensive masterplan accelerated the formal establishment of the AEC from 2020 to 2015, AEC rests on four pillars; a single market and production base; a competitive economic region; equitable economic development; and integration with the global economy.

 

The establishment of the AEC and its implication for South Korea(3)

The establishment of the AEC and its implication for South Korea

According to the AEC blueprint 2025, part of the ASEAN 2025, the AEC rests on four pillars; a single market and production base; a competitive economic region; equitable economic development; and integration with the global economy. 

The AEC has been expected to draw huge attention from the international society ever since it came into the world. It isn’t too much to say that agendas of the AEC blueprint 2025 such as elimination of tariffs, facilitation of skilled labor mobility, liberalization of investment and promotion of connectivity have been greatly valued to the global community.

 

The establishment of the AEC and its implication for South Korea(9)

The establishment of the AEC and its implication for South Korea

In doing so, physical barriers will be torn down and regional exchanges and trades will be fairly accelerated. This will also gear up the possibility of the realization of the AEC overcoming the concern that the AEC blueprint 2025 may remain a mere declaratory gesture.

As a matter of fact, a global war without guns has been underway to attract the ASEAN actively stretching itself to the world. For instance, Japan has been striving to enhance its clout on the AEC by devoting itself to investment on the infrastructure and key industries. 

The establishment of the AEC and its implication for South Korea(3)

The establishment of the AEC and its implication for South Korea

According to the AEC blueprint 2025, part of the ASEAN 2025, the AEC rests on four pillars; a single market and production base; a competitive economic region; equitable economic development; and integration with the global economy. The AEC has been expected to draw huge attention from the international society ever since it came into the world. 

It isn't too much to say that agendas of the AEC blueprint 2025 such as elimination of tariffs, facilitation of skilled labor mobility, liberalization of investment and promotion of connectivity have been greatly valued to the global community.

The establishment of the AEC and its implication for South Korea(3)

The establishment of the AEC and its implication for South Korea

According to the AEC blueprint 2025, part of the ASEAN 2025, the AEC rests on four pillars; a single market and production base; a competitive economic region; equitable economic development; and integration with the global economy. The AEC has been expected to draw huge attention from the international society ever since it came into the world. 

It isn’t too much to say that agendas of the AEC blueprint 2025 such as elimination of tariffs, facilitation of skilled labor mobility, liberalization of investment and promotion of connectivity have been greatly valued to the global community.

The establishment of the AEC and its implication for South Korea(10)

The establishment of the AEC and its implication for South Korea

In doing so, physical barriers will be torn down and regional exchanges and trades will be fairly accelerated. This will also gear up the possibility of the realization of the AEC overcoming the concern that the AEC blueprint 2025 may remain a mere declaratory gesture. 

As a matter of fact, a global war without guns has been underway to attract the ASEAN actively stretching itself to the world. For instance, Japan has been striving to enhance its clout on the AEC by devoting itself to investment on the infrastructure and key industries.

Establishment of the AEC and its implication for South Korea(2)

Establishment of the AEC and its implication for South Korea

However, all countries may share their uniformed look at the 'AEC(ASEAN Economic Community)'. It is because the AEC came to the 2nd year of its ambitious inauguration 47 years after the establishment of the ASEAN in 1968. Along with the ASEAN Political-Security Community and the ASEAN Socio-Cultural Community, the concept of the AEC was born from the ASEAN 2025 adopted by the leaders of the ASEAN. 

According to the AEC blueprint 2025, part of the ASEAN 2025, the AEC rests on four pillars; a single market and production base; a competitive economic region; equitable economic development; and integration with the global economy.

The foundation of the AEC and its implication for South Korea(2)

The foundation of the AEC and its implication for South Korea

However, all countries may share their uniformed look at the ‘AEC(ASEAN Economic Community)’. It is because the AEC came to the 2nd year of its ambitious inauguration 47 years after the establishment of the ASEAN in 1968. 

Along with the ASEAN Political-Security Community and the ASEAN Socio-Cultural Community, the concept of the AEC was born from the ASEAN 2025 adopted by the leaders of the ASEAN. According to the AEC blueprint 2025, part of the ASEAN 2025, the AEC rests on four pillars; a single market and production base; a competitive economic region; equitable economic development; and integration with the global economy.

The foundation of the AEC and its implication for South Korea(2)

The foundation of the AEC and its implication for South Korea

However, all countries may share their uniformed look at the 'AEC(ASEAN Economic Community)'. It is because the AEC came to the 2nd year of its ambitious inauguration 47 years after the establishment of the ASEAN in 1968. Along with the ASEAN Political-Security Community and the ASEAN Socio-Cultural Community, the concept of the AEC was born from the ASEAN 2025 adopted by the leaders of the ASEAN. 

According to the AEC blueprint 2025, part of the ASEAN 2025, the AEC rests on four pillars: a single market and production base, a competitive economic region, equitable economic development, and integration with the global economy.

Establishment of ASEAN Economic Community(5)

Establishment of the AEC(ASEAN Economic Community) and its implication for South Korea

A local expert in Indonesia pictures potential changes in the region that the AEC may bring in the upcoming days. "People in Vietnam will start to learn the Thai language to drive taxies in Bangkok. There will be Laotians who will pick up Javanese text books to become cab drivers in Jakarta." 

Actually, Singapore has been importing housekeepers from its neighbors, Indonesia and the Philippines in particular. However, it will be highly likely that more human resources in various fields of the region will cross the borders of the ASEAN members with no limitation. 

In doing so, physical barriers will be torn down and regional exchanges and trades will be fairly accelerated. This will also gear up the possibility of the realization of the AEC overcoming the concern that the AEC blueprint 2025 may remain a mere declaratory gesture.