Advent of the Era of the AEC and Its Impacts on Singapore and Indonesia(6)

Comparative Study on the Perception and Response of Singapore and Indonesia

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.

Singapore, the most advanced economy and Indonesia, the largest economy has led the ASEAN so far.

Advent of the Era of the AEC and Its Impacts on Singapore and Indonesia(5)

Comparative Study on the Perception and Response of Singapore and Indonesia

Under this circumstance, it is no wonder that academic attempts to browse the era of the AEC have been carried out over the past decade. Researches prospecting the possible changes and impacts that AEC may bring to the region have been mainly addressed.

However, country-level reports are not easily seen as most studies have been focused on the investigation and prediction of the region's overall economy in the wake of the AEC. In particular, comparison of the AEC's influence on individual ASEAN member states has rarely been made. My quest starts at this point.

 

Advent of the Era of the AEC and Its Impacts on Singapore and Indonesia(4)

Comparative Study on the Perception and Response of Singapore and Indonesia

The AEC has drawn huge attention from the global society ever since discussions over the formation of the new regional economic community became the talk of the town. It isn't too much to say that agendas of the AEC Blueprint 2015 such as elimination of tariffs, facilitation of skilled labor mobility, liberalization of investment have been greatly valued to the international community. 

In that more than 95% of intra-regional trades have been conducted free from any types of tariff, expectation for meaningful progresses of the AEC gets bigger and bigger.

Advent of the Era of the AEC and Its Impacts on Singapore and Indonesia(3)

Comparative Study on the Perception and Response of Singapore and Indonesia

Along with the ASEAN Political-Security Community and the ASEAN Socio-Cultural Community, the concept of the AEC was first emerged in the ASEAN Vision 2020 articulated in 1997. Then in 2003, leaders of the ASEAN member states declared the formation of an ASEAN Economic Community by 2020 as an agreed goal of the regional economic integration. 

According to the AEC Blueprint 2015, a comprehensive master plan accelerated the formal establishment of the AEC from 2020 to 2015, AEC rests on four pillars; a single market and production base; a competitive economic region; equitable economic development; and integration with the global economy.

Advent of the Era of the AEC and Its Impacts on Singapore and Indonesia(2)

Comparative Study on the Perception and Response of Singapore and Indonesia

While Myanmar is still under international criticism for the massacre against its minority group, Indonesians witness social conflicts with controversy over the majority religious party's alleged attempt to exercise influences on the political sector. 

Though the ASEAN members are faced with their own weighty political or diplomatic issues, all countries pay close attention to one regional watershed in common. It is the AEC (ASEAN Economic Community) which marked the 3rd year of its ambitious inauguration 48 years after the establishment of the ASEAN in 1967.