Advent of the Era of the AEC and Its Impacts on Singapore and Indonesia(7)

Comparative Study on the Perception and Response of Singapore and Indonesia

My quest starts at this point. 

In this research, largely relied upon the papers from ‘Achieving the ASEAN Economic Community 2015: Challenges for Member Countries & Businesses’ by the ASEAN Studies Centre of the Institute of Southeast Asian Studies in Singapore and other publications of the ASEAN Secretariat in Indonesia, I will discuss the perception and response of two distinguishing economies in the region, Singapore and Indonesia to the formation of the AEC.

 

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(17)

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

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. Above all, Singapore has been acclaimed the most advance country with per capita GDP of 60,300 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. Indonesia has occupied as much as 40% of the regional GDP and has consistently beefed up its clout across Southeast Asia. 

High Time for Korean Startups to Ride on Digital Fever in Southeast Asia(1)

High Time for Korean Startups to Ride on Digital Fever in Southeast Asia

Startup boom can be named as one of the hot issues in Southeast Asia this year. This may not sound familiar to most Koreans except for those involved in the IT industry or venture capital sectors. However, startup markets across Southeast Asia have been rapidly gaining momentums. 

In fact, locally born leaders of digital economy such as Grab in Malaysia which recently acquired the Southeast Asian business unit of Uber have been acclaimed for changing the conventional industrial map in the region.

Startup fever in Southeast Asia and its implication for India to improve indispensable public services(5)

Recent startup boom across Southeast Asia

Hugh growth potential in the region would be singled out above all things. The number of internet users in key countries of Southeast Asia like Vietnam and the Philippines has been mounting the fastest on the planet. 

A recent article from the Wall Street Journal rings another bell that whopping 120,000 online users are newly marked in the region on a daily basis. There is further prediction that 480 million people almost nearing the entire population of the EU (European Union) will be accessed to internet in Southeast Asia by 2020.

High Time for Korean Startups to Ride on Digital Fever in Southeast Asia(5)

High Time for Korean Startups to Ride on Digital Fever in Southeast Asia

As centered on Indonesia and Vietnam, two countries in the region respectively representing the maritime and the continental Southeast Asia, news of Korean venture capitals eagerly exploring lucrative investment opportunities are heard now and then. Why startup markets in Southeast Asia are much spotlighted? 

High growth potential in the region would be singled out above all things. The number of internet users in key countries of Southeast Asia like Vietnam and the Philippines has been increasing the fastest in the world. 

Expansion of Mobility Services and Its Impact on the Development of a Cashless Society in Indonesia(6)

Global eyes on startup fever in Indonesia

These advantages of the two countries, namely Singapore in quality way and Indonesia in quantity way, have been exercising salient powers in generating most notable startups in the region. 

The fact that 8 out of 10 unicorns in Southeast Asia are headquartered either in Singapore or in Indonesia proves the significance of the two countries in the developments of the digital economy.

Expansion of Mobility Services and Its Impact on the Development of a Cashless Society in Indonesia(1)

Recent startup boom across Southeast Asia

Startup boom deserves to be named as one of the hot issues in Southeast Asia these days. Startup markets across Southeast Asia have been rapidly gaining momentums. 

As a matter of fact, locally born leaders of the digital economy  such as Grab in Singapore which acquired the Southeast Asian business unit of Uber in early 2018 have been credited for redrawing the conventional industrial map in the region. 

Global eyes on startup fever in Indonesia(2)

Global eyes on startup fever in Indonesia

These advantages of the two countries, namely Singapore in quality way and Indonesia in quantity way, have been exercising salient powers in generating most notable startups in the region. 

The fact that 8 out of 10 unicorns in Southeast Asia are headquartered either in Singapore or in Indonesia proves the significance of the two countries in the developments of the digital economy.

Recent startup boom across Southeast Asia(2)

Recent startup boom across Southeast Asia

According to Tech in Asia , startups in Southeast Asia were awarded with as much as $10.9 billion in investment in 2018. This figure is over 30% higher than the total startup investment of $7.9 billion in 2017. 

This is far startling because investment in Southeast Asian startups failed to reach even $1 billion in 2013. Consequently, 10 unicorns  have been emerged in the region.

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.