Advent of the Era of the AEC and Its Impacts on Singapore and Indonesia(43)

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

The question is whether the AEC can evolve itself into something beyond a mere economic agreement body. Above all things, doubts are cast upon the massive disparity of the social and cultural environment among the member countries. 

There exists considerable economic gap in the region, too. For instance, Brunei, an oil-producing country was shined with its per capita GDP of 28,240 USD in 2017  while Cambodia, one of the poorest countries in the region only recorded per capita GDP of 1,390 USD during the same period.

 

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

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