Inauguration of the AEC and Its Impacts on Relation between Singapore and Indonesia(43)

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

What will be the ASEAN like in the time of the AEC? It may be too early to predict the AEC in 10-20 years when the AEC just pulled up its anchor. Even short-term outlook is not an easy thing to challenge as emerging markets with high volatility comprise most parts of the area. 

The question is whether the AEC can evolve itself into something beyond a mere economic agreement body or not. Above all things, doubts are cast upon the considerable economic gap among the member countries.

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

Comparative Study on the Perception and Response of Singapore and Indonesia

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(45)

Comparative Study on the Perception and Response of Singapore and Indonesia

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(16)

Comparative Study on the Perception and Response of Singapore and Indonesia

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. 

Components of a national economy such as natural resource reserves, labor force abundancy, industrial structure and infrastructure condition are all dissimilar, more or less. This disparity inevitably results in economic gap among the ASEAN members.

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(16)

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

Components of a national economy such as natural resource reserves, labor force abundancy, industrial structure and infrastructure condition are all dissimilar, more or less. This disparity inevitably results in economic gap among the ASEAN members. 

For example, in spite of the recent economic boost, CLMV countries (Cambodia, Laos, Myanmar and Vietnam) are estimated to possess only around 5% share of the overall ASEAN GDP (Growth Domestic Product). In this regard, this paper primarily concentrates on two countries. 

The establishment of the AEC and its implication for South Korea(5)

The establishment of the AEC and its implication for South Korea

Doubts are cast upon the significant disparity of the social and cultural environment among the member countries. In addition, neither a single currency nor a central decision-making tower as those in the EU could be found. There exists considerable economic gap in the region as well. 

For example, Singapore is acclaimed to be in the rich Northern Hemisphere while Cambodia only records per capita GDP of about 1,000 USD. In this sense, it is no wonder that a tough itinerary is anticipated on the way to the substantial integration of the AEC.

Establishment of the AEC and its implication for South Korea(5)

Establishment of the AEC and its implication for South Korea

There exists considerable economic gap in the region as well. For example, Singapore is acclaimed to be in the rich Northern Hemisphere while Cambodia only records per capita GDP of about 1,000 USD. In this sense, it is no wonder that a tough itinerary is anticipated on the way to the substantial integration of the AEC. 

In spite of the skepticism raised, the importance of the birth of a sizable single economic community shouldn't be underestimated. Along with Africa and South America, the ASEAN has been called as the symbol of underdeveloped areas.

The foundation of the AEC and its implication for South Korea(5)

The foundation of the AEC and its implication for South Korea

In addition, neither a single currency nor a central decision-making tower as those in the EU can't be found. There exists considerable economic gap in the region as well. For example, Singapore is acclaimed to be in the rich Northern Hemisphere while Cambodia only records per capita GDP of about 1,000 USD. In this sense, it is no wonder that a tough itinerary is anticipated on the way to the substantial integration of the AEC.

In spite of the skepticism raised, the importance of the birth of a sizable single economic community shouldn't be underestimated. Along with Africa and South America, the ASEAN has been called as the symbol of underdeveloped areas. Thus, major powers like America, the EU and China would remain invincible if the ASEAN members try to compete with them individually.

The foundation of the AEC and its implication for South Korea(4)

The foundation of the AEC and its implication for South Korea

Even short-term outlook is not an easy thing to challenge as emerging markets with high volatility consist of most parts of the region. This could explain why negative voices concerning the future of the AEC started to be echoed. The question is whether the AEC can evolve itself something beyond a regional agreement body. 

Doubts are cast upon the significant disparity of the social and cultural environment among the member countries. In addition, neither a single currency nor a central decision-making tower as those in the EU can't be found. There exists considerable economic gap in the region as well. 

Establishment of the AEC and its implication(2)

Establishment of the AEC(ASEAN Economic Community)

What will be the ASEAN like in the time of the AEC? It may be too early to forecast the AEC in 10~20 years when the AEC just pulled up its anchor. Even short-term outlook is not an easy thing to challenge as emerging markets with high volatility consist of most parts of the region. This could explain why negative voices concerning the future of the AEC started to be echoed.

The question is whether the AEC can evolve itself something beyond a regional agreement body. Doubts are cast upon the significant disparity of the social and cultural environment among the member countries. In addition, neither a single currency nor a central decision-making tower as those in the EU can’t be found. There exists considerable economic gap in the region as well. For example, Singapore is acclaimed to be in the rich Northern Hemisphere while Cambodia only records per capita GDP of about 1,000 USD. In this sense, it is no wonder that a tough itinerary is anticipated on the way to the substantial integration of the AEC.

In spite of the skepticism raised, the importance of the birth of a sizable single economic community shouldn’t be underestimated. Along with Africa and South America, the ASEAN has been called as the symbol of underdeveloped areas. Thus, major powers like America, the EU and China would remain invincible if the ASEAN members try to compete with them individually. However, situation would be different if joint efforts of the 10 countries to cope with superpowers is designed and carried out.

As the old saying goes, “United we stand, divided we fall”, the countries will have their confidence built up step by step. The economic clout will be further strengthened if the ASEAN succeeds in actualizing the AEC. Consequently, the influence of the AEC on the regional security issues will be also growing bigger. Against this background, hopes are high that the beginning of the AEC will serve an opportunity to create a new landscape for the 21^st century.