Singapore's quiet rise in the global 'deep tech' race

Singapore's quiet rise in the global 'deep tech' race

U.S.-China rivalry spurs investment in Asia's top startup ecosystem

<https://asia.nikkei.com/Spotlight/ASEAN-Money/Singapore-s-quiet-rise-in-the-global-deep-tech-race>

Indonesia's bid to create family office hub in Bali is a tough ask

Indonesia's bid to create family office hub in Bali is a tough ask

Emulating Singapore's gold standard requires investment and strategic reforms

<https://asia.nikkei.com/Opinion/Indonesia-s-bid-to-create-family-office-hub-in-Bali-is-a-tough-ask>

High Time for Digital Cooperation between Korea and Indonesia(4)

High Time for Digital Cooperation between Korea and Indonesia

It seems that Indonesia has caught eyes of the global investment experts more actively than Singapore in the regional competition of startup waves. The potential for growth in the country's digital industry has made it attractive to investors and entrepreneurs alike. 

Actually, a growing number of venture capitals and startup accelerators have sensed exceptional business opportunities of Indonesia especially in terms of the market size. This favorable viewpoint has led to produce thousands of startups and 5 unicorns across the country. Against this background, it may not be too much to say that Indonesia will remain as a critical pillar of the regional digital ecosystem.

High Time for Digital Cooperation between Korea and Indonesia(3)

High Time for Digital Cooperation between Korea and Indonesia

It is Singapore and Indonesia which has been spotlighted the most for the startup frenzy in Southeast Asia. The two countries have been in the forefront of the development of the digital economy in the region. 

Singapore has been recognized to incubate the advent of the digital era with its strong commitment to innovation while Indonesia has been viewed to beef up the digital fever based upon its presence as the most sizeable playground. The fact that 9 out of 11 unicorns in Southeast Asia are headquartered either in Singapore or in Indonesia proves the significance of the two countries in the ASEAN digital economy.

Inauguration of the AEC and Its Impacts on Relation between Singapore and Indonesia(51)

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

I can't help agreeing this view and admitting drawbacks of my research to some extent. In this context, I will try to allocate more time and energy in listening to various opinions of the related parties in Singapore and Indonesia to have my research upgraded. 

Needless to say, plentiful hands-on experiences to monitor real-time developments of the AEC in the two countries would provide my succeeding papers constantly looking into the relation between Singapore and Indonesia with more balanced and up-to-date insights.

Inauguration of the AEC and Its Impacts on Relation between Singapore and Indonesia(50)

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

This is why extra active commitments of the Indonesian government to the AEC and ongoing engagement of the Singaporean government for the success of the AEC remains essential at this critical juncture. 

Although local perspectives on the AEC mostly extracted from the publications cited above consist of primary sources for my argument, this paper may be potentially exposed to criticisms indicating lack of real comments on the spot.

Inauguration of the AEC and Its Impacts on Relation between Singapore and Indonesia(47)

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

Two countries have represented the ASEAN in two essential ways. While Singapore tops the region with its world-level economic status, Indonesia covers alarmingly about 40% of the overall ASEAN economy. 

Therefore, both countries have been immensely highlighted as key stakeholders of the newly-born economic community. In general, Singapore is appraised more prepared to browse the age of the AEC than Indonesia.

Inauguration of the AEC and Its Impacts on Relation between Singapore and Indonesia(42)

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

To cope with the new economic environment and to survive the unavoidable race with Singapore, the Indonesian government shouldn't make little efforts to enhance overall capabilities of its industries, SMEs in particular. In doing so, the AEC will be more likely shaped up evenly to both Singapore and Indonesia. 

Then relationship between the two countries may maintain the status quo, at least and the neighbors will rather seriously devote themselves to seeking mutual prosperity across the region.

Inauguration of the AEC and Its Impacts on Relation between Singapore and Indonesia(41)

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

In the meantime, there stands a possibility that Singapore's readiness on edge for the AEC powered by internationally-claimed competitiveness may impose burdens on Indonesia. Severe damages on the economic interests of Indonesia caused by Singaporean enterprises, if repeatedly happens, may spark political conflicts between the two countries. 

This is in line with my stance that Indonesia, as a whole, needs to pay attention to the inauguration of the AEC in a more desperate manner.

Inauguration of the AEC and Its Impacts on Relation between Singapore and Indonesia(39)

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

Needless to say, Indonesia hasn't been sitting idle. As the largest market in the region, Indonesia has braced for this budding economic environment in its own way. The fact that Indonesia has already implemented a competition law would be an exemplary movement.

As a matter of fact, small number of countries in the region has regulated fair trades by adopting a competition law like Indonesia. On top of that, larger local firms such as traditional family businesses are also deeming the AEC as a valuable chance to miss for their future growth engines.

Inauguration of the AEC and Its Impacts on Relation between Singapore and Indonesia(37)

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

When it comes to the details of the perception of and the response to the AEC, however, Singapore is often evaluated ahead of Indonesia by and large. Proactive approach of Singaporean SMEs aiming the AEC may demonstrate Singapore's skyrocketed anticipation for the unprecedented common market. 

Most experts have been in the same boat that the AEC may serve Singaporean SMEs armed with regional competitiveness well to navigate tremendous business momentums in one single market with 650 million populations.

Inauguration of the AEC and Its Impacts on Relation between Singapore and Indonesia(35)

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

As identified above, Singapore and Indonesia may have been claimed to pour continuous efforts to deal with the era of the AEC. Both countries have concentrated on the emergence of the AEC and the impacts that the new regional economic community would bring to them. 

Nevertheless, there are yet complaints especially from the private sectors in both countries that incomplete information sharing and insufficient corporate engagement on the core agendas of the AEC has been left shortages.

Inauguration of the AEC and Its Impacts on Relation between Singapore and Indonesia(31)

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

Going forward, Singapore will focus on capacity building and human resource development in the ASEAN countries to help them prepare for the 2015 deadline. 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.

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(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(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.

Advent of the Era of the AEC and Its Impact on Singapore and Indonesia(50)

Comparative Study on the Perception and Response of Singapore and Indonesia

Expectation is unprecedentedly snowballing that physical barriers will be torn down and regional exchanges of goods and services will be fairly propelled with the extra active commitments of the Indonesian government to the AEC. 

Brisk engagement of the Singaporean government for the success of the AEC should be continued, too. In short, this is the right time for both Singapore and Indonesia to hit the AEC road to the better tomorrow of the ASEAN.

Advent of the Era of the AEC and Its Impact on Singapore and Indonesia(47)

Comparative Study on the Perception and Response of Singapore and Indonesia

However, situation would be different if joint efforts of the 10 countries to confront superpowers is designed and implemented. The countries will be surely observing their confidence built up step by step. The economic clout will be increasingly strengthened if the ASEAN succeeds in fully actualizing the AEC. 

As a result, the influence of the ASEAN on the regional security and political issues will be also fortified. Under this circumstance, hopes are higher than ever that the beginning of the AEC will serve a precious opportunity to create a new landscape for the 21^st century in the world.

Advent of the Era of the AEC and Its Impact on Singapore and Indonesia(42)

Comparative Study on the Perception and Response of Singapore and Indonesia

The fact that Indonesia has already implemented a competition law would be an exemplary movement. As a matter of fact, only a few countries in the region have regulated fair trades by adopting a competition law like Indonesia. 

On top of that, larger local firms such as traditional family businesses are also deeming the AEC as a valuable chance for their new source of growth engines.