TikTok, Sea, Alibaba-owned e-commerce corner ASEAN markets

TikTok, Sea, Alibaba-owned e-commerce corner ASEAN markets

Smaller rivals pushed to margins as online shopping booms in Thailand, Malaysia

<TikTok, Sea, Alibaba-owned e-commerce corner ASEAN markets - Nikkei Asia>

Military and trade wars, protests: Top Southeast Asian stories of 2025

Military and trade wars, protests: Top Southeast Asian stories of 2025

Political upheaval, scam centers and a mixed economic picture also grabbed headlines

<Military and trade wars, protests: Top Southeast Asian stories of 2025 - Nikkei Asia>

Who stands to win or lose when Grab takes over Gojek

Who stands to win or lose when Grab takes over Gojek

Analysts say a merger is increasingly likely. While institutional backers set to gain, millions of drivers and retail investors will likely lose out.

<Who stands to win or lose when Grab takes over Gojek - Tech - The Jakarta Post>

Inauguration of the AEC and Its Impacts on Relation between Singapore and Indonesia(8)

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

In this context, taking a brief look at how ASEAN economic integration has been developed and eventually led to the establishment of the AEC would be meaningful. 

A publication from the ASEAN Secretariat titled 'ASEAN Economic Community 2015: Progress and Key Achievements' describes the road towards the AEC. Summary of the report (p. 3-6.) can be introduced as below.

Advent of the Era of the AEC and Its Impact on Singapore and Indonesia(44)

Comparative Study on the Perception and Response of Singapore and Indonesia

What will be the ASEAN like in the time of the AEC? It may be too early to predict the ASEAN in the next 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 take up most parts of the region. 

This could explain why skeptical voices concerning the future of the AEC are ceaselessly echoed. The question is whether the AEC can evolve itself into something beyond a mere economic agreement body.

Advent of the Era of the AEC and Its Impact on Singapore and Indonesia(36)

Comparative Study on the Perception and Response of Singapore and Indonesia

Major players already have a good and comprehensive understanding about the AEC. The major players are large companies whose activities are related to export-import, foreign companies, and foreign affiliates or local companies that are involved in international production networks. 

However, the number of major players is very small and accounts for less than one percent of the total number of business establishments in Indonesia.

Advent of the Era of the AEC and Its Impact on Singapore and Indonesia(29)

Comparative Study on the Perception and Response of Singapore and Indonesia

While it fully supports efforts taken to accelerate internal integration towards AEC 2015, the ASEAN needs to deepen its engagement with key trading partners in parallel. 

It is significant that SMEs  tend to be in the more optimistic category in relation to regional integration. SME leaders in Singapore have urged fellow companies to expand within the region and to seriously consider investing in ASEAN neighbors for the many benefits that an integrated ASEAN economic community can bring.

Advent of the Era of the AEC and Its Impact on Singapore and Indonesia(1)

Comparative Study on the Perception and Response of Singapore and Indonesia

The ASEAN (Association of Southeast Asian Nations), the 6th largest economy in the world appeared quite noisy in the first half of 2018. Singapore seems advantaged with its efforts to raise its national reputation as the hub of neutral diplomacy after successfully hosting the historical summit between North Korea and the United States. 

Internal disorder in Malaysia triggered by the opposition party's recent victory on general election looms large as the new Prime Minister, the comeback kid at 92 has clarified his policy shift apart from the previous cabinet.

Advent of the Era of the AEC and Its Impacts on Singapore and Indonesia(52)

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 Impacts on Singapore and Indonesia(26)

Comparative Study on the Perception and Response of Singapore and Indonesia

The book basically looks over the prospects for achieving an ASEAN Economic Community by 2015 and the obstacles in the way of its achievement from the aspects of each of the member states of ASEAN. 

Though probably considered somewhat outdated, this rare publication still delivers meaningful messages by providing country-specific insights with special highlights on crucial economic roadmaps of the individual members toward the era of AEC. This is no exception to Singapore and Indonesia as well.

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

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 Impacts on Singapore and Indonesia(52)

Comparative Study on the Perception and Response of Singapore and Indonesia

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 in listening to the ASEAN's opinions to have my research upgraded. 

Needless to say, plentiful hands-on experiences to check real-time developments of the AEC would provide my succeeding papers with more colorful and up-to-date judgements in the region.

Advent of the Era of the AEC and Its Impacts on Singapore and Indonesia(18)

Comparative Study on the Perception and Response of Singapore and Indonesia

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. Consequently, both Singapore and Indonesia have played enormous roles in the course of the ASEAN economic integration 

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.

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

High Time for Digital Cooperation between Korea and Indonesia

Consequently, as many as 11 unicorns, privately held startup companies valued at over $1 billion, have emerged from various industries such as the mobility, the e-payment and the online game. 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. 

Expansion of Mobility Services and Its Impact on the Development of a Cashless Society in Indonesia(2)

Recent startup boom across Southeast Asia

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. VNG, an online game platform in Vietnam and Go-Jek, an Indonesian application-based ride-hailing service provider are renowned digital players. Why startup markets in Southeast Asia have been much spotlighted?

High Time for Korean Startups to Ride on Digital Fever in Southeast Asia(7)

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

There are yet pending issues to tackle in startup fever in Southeast Asia. Poor IT infrastructures in non-urban areas, shortage of high-skilled work forces and widespread financial illiteracy have chronically taken roots in most parts of Southeast Asia. 

With the exception of Singapore, capital markets and legal and institutional systems for startups in the region aren't well devised and developed as well. However, venture capitals, symbols of adventurous money would remain indifferent unless they feel confident of more gains than losses by stepping into the digital frenzy in Southeast Asia.

Recent startup boom across Southeast AStartup fever in Southeast Asia and its implication for India to improve indispensable public services(5)

Recent startup boom across Southeast Asia

Why startup markets in Southeast Asia are much spotlighted? 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.

Recent startup boom across Southeast AStartup fever in Southeast Asia and its implication for India to improve indispensable public services(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 Malaysia which acquired the Southeast Asian business unit of Uber in early 2018 have been acclaimed for changing the conventional industrial map in the region. According to Tech in Asia, a Singapore-based online technology media, startups in Southeast Asia enjoyed as much as $7.9 billion in investment in 2017.

Spread of mobility service and Indonesian cashless society(4)

Spread of mobility service and Indonesian cashless society 

As a result, financial environments without coins and bills have been realizing inch by inch. For instance, it is commonly observed that IT-savvy youngsters enjoy full benefits of a cashless society with Go-Jek or Grab on a daily basis. Of course, cashless society is still at its infant stage. 

A life without cash may not ring a meaningful bell to those staying in less-developed parts of Indonesia. However, hopes are higher than ever that a cashless society primarily enabled by unprecedentedly fast expansion of mobility services will surely advance the national dream of digital Indonesia into reality.