AEC Is Not Just About Liberalisation

BANGKOK (Thailand), Oct 21 (Bernama) -- The Asean Economic Community (AEC) is not just about liberalisation, as much of it embraces trade and investment facilitation, such as improvements to processes and procedures beneficial to businesses, both small and big, alongside promotions through the regional supply chain. There is also a need for both national and regional initiatives to work in tandem to ensure an effective AEC, the Second Asean Economic Community Symposium in Yangon, Myanmar last week, concluded. The symposium was jointly organised by Myanmar's Ministry of National Planning and Economic Development Myanmar and the Asean Secretariat, with support from the Asean-Australia Development Cooperation Programme (AADCP II). It was attended by about 100 Myanmar companies, as well as representatives of the Asean Small and Medium Scale Enterprises Working Group, and government officials from both the Myanmar and Australian governments. Participants raised the need for efficient institutional and physical connectivity, in particular, business friendly processes such as faster customs clearance, said the Jakarta-based Asean Secretariat. Overemphasis on finished goods was noted and the opportunities in intermediate products and services that lend to the value chain integration were highlighted, it added. It was also pointed out that capacity building for smaller companies and the development of a conducive SME policy through transparency, predictability and consistency for business, are key towards their integration into the supply chain. Some concerns were expressed on the need for enhanced equitable economic development given that Asean member states are at different levels of development and the lesser developed members may lose out post-integration. However, it was also noted that Cambodia, Laos, Myanmar and Vietnam are benefiting the most from the Asean integration with higher levels of growth and adaptation to harmonised rules and processes being the fastest in these countries as less adjustments are required. It was also highlighted that business are generally not well informed about the AEC and there is a need for better information dissemination, particularly to SMEs, which lack access to information on the opportunities available. The secretariat said recent surveys such as those done by the Boston Consulting Group, noted that as many as 120 million consumers would join the affluent middle class by 2020, driven in particular by the fast growing markets in Indonesia, Myanmar, the Philippines and Thailand. By 2020, it is expected that Asean may even move into position as the 5th largest economy in the world. --BERNAMA