Inauguration of the AEC and Its Impacts on Relation between Singapore and Indonesia(14)

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

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 as shown below. 

And a step further from the inauguration of the AEC, AEC Blueprint 2025 picturing the strategic direction of regional economic integration for the next 10 years was already adopted at the 27th ASEAN Summit in November 2015.

Advent of the Era of the AEC and Its Impact on Singapore and Indonesia(14)

Comparative Study on the Perception and Response of Singapore and Indonesia

As projected by the AEC Blueprint, the AEC was finally launched on the 31th of December, 2015. The AEC has been perceived to open a new phase of more deepened economic integration in Southeast Asia. 

It is because the AEC's ultimate target is to become an Asian version of the EEC (European Economic Community), the precursor of the EU (European Union). Consequently, 10 member states have put considerable efforts to keep pace with the new economic norm envisioning a single market in the region. 

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

Comparative Study on the Perception and Response of Singapore and Indonesia

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 SMEs in Singapore toward the AEC may demonstrate Singapore's skyrocketed anticipation for the new generation of a 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. 

Advent of the Era of the AEC and Its Impacts on Singapore and Indonesia(46)

Comparative Study on the Perception and Response of Singapore and Indonesia

In this realistic angle, it is no wonder that a tough itinerary is forecasted on the way to the substantial realization of the AEC. In spite of the pessimism surfaced, the importance of the birth of a sizable single market shouldn't be underestimated. 

Along with Africa and South America, the ASEAN has been looked down on as a symbol of an underdeveloped area. Thus, major powers including America, the EU and China would remain invincible if the ASEAN members try to compete with them individually.

Advent of the Era of the AEC and Its Impacts on Singapore and Indonesia(40)

Comparative Study on the Perception and Response of Singapore and Indonesia

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 SMEs in Singapore toward the AEC may demonstrate Singapore's skyrocketed anticipation for the new generation of a 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. 

Advent of the Era of the AEC and Its Impacts on Singapore and Indonesia(15)

Comparative Study on the Perception and Response of Singapore and Indonesia

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(44)

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

In this realistic angle, it is no wonder that a tough itinerary is forecasted on the way to the substantial realization of the AEC. In spite of the pessimism surfaced, the importance of the birth of a sizable single market shouldn't be underestimated. 

Along with Africa and South America, the ASEAN has been looked down on as a symbol of an underdeveloped area. Thus, major powers including America, the EU and China would remain invincible if the ASEAN members try to compete with them individually.

Advent of the Era of the AEC and Its Impacts on Singapore and Indonesia(39)

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

Proactive approach of SMEs in Singapore toward the AEC may demonstrate Singapore's skyrocketed anticipation for the new generation of a 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. 

Besides, awareness of the importance of the AEC is not only high in the corporate sector but also considerably widespread among the general public in Singapore.

The establishment of the AEC and its implication for South Korea(3)

The establishment of the AEC and its implication for South Korea

According to the AEC blueprint 2025, part of the ASEAN 2025, the AEC rests on four pillars; a single market and production base; a competitive economic region; equitable economic development; and integration with the global economy. 

It isn't too much to say that agendas of the AEC blueprint 2025 such as elimination of tariffs, facilitation of skilled labor mobility, liberalization of investment and promotion of connectivity have been greatly valued to the global community.

Establishment of the AEC and its implication for South Korea(2)

Establishment of the AEC and its implication for South Korea

However, all countries may share their uniformed look at the 'AEC(ASEAN Economic Community)'. It is because the AEC came to the 2nd year of its ambitious inauguration 47 years after the establishment of the ASEAN in 1968. Along with the ASEAN Political-Security Community and the ASEAN Socio-Cultural Community, the concept of the AEC was born from the ASEAN 2025 adopted by the leaders of the ASEAN. 

According to the AEC blueprint 2025, part of the ASEAN 2025, the AEC rests on four pillars; a single market and production base; a competitive economic region; equitable economic development; and integration with the global economy.

The foundation of the AEC and its implication for South Korea(2)

The foundation of the AEC and its implication for South Korea

However, all countries may share their uniformed look at the ‘AEC(ASEAN Economic Community)’. It is because the AEC came to the 2nd year of its ambitious inauguration 47 years after the establishment of the ASEAN in 1968. 

Along with the ASEAN Political-Security Community and the ASEAN Socio-Cultural Community, the concept of the AEC was born from the ASEAN 2025 adopted by the leaders of the ASEAN. According to the AEC blueprint 2025, part of the ASEAN 2025, the AEC rests on four pillars; a single market and production base; a competitive economic region; equitable economic development; and integration with the global economy.

The foundation of the AEC and its implication for South Korea(2)

The foundation of the AEC and its implication for South Korea

However, all countries may share their uniformed look at the 'AEC(ASEAN Economic Community)'. It is because the AEC came to the 2nd year of its ambitious inauguration 47 years after the establishment of the ASEAN in 1968. Along with the ASEAN Political-Security Community and the ASEAN Socio-Cultural Community, the concept of the AEC was born from the ASEAN 2025 adopted by the leaders of the ASEAN. 

According to the AEC blueprint 2025, part of the ASEAN 2025, the AEC rests on four pillars: a single market and production base, a competitive economic region, equitable economic development, and integration with the global economy.

Establishment of ASEAN Economic Community(2)

Establishment of the AEC(ASEAN Economic Community) and its implication for South Korea

Along with the ASEAN Political-Security Community and the ASEAN Socio-Cultural Community, the concept of the AEC was born from the ASEAN 2025 adopted by the leaders of the ASEAN. 

According to the AEC blueprint 2025, part of the ASEAN 2025, the AEC rests on four pillars; a single market and production base; a competitive economic region; equitable economic development; and integration with the global economy. 

The AEC has been expected to draw huge attention from the international society ever since it came into the world. It isn’t too much to say that agendas of the AEC blueprint 2025 such as elimination of tariffs, facilitation of skilled labor mobility, liberalization of investment and promotion of connectivity have been greatly valued to the global community. 

In fact, meaningful progress was already achieved since more than 70% of the intra-regional trade has been conducted free from any types of tariff.