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ASEAN Economic Community: A New Chapter in ASEAN Economic Integration

Although ASEAN Economic Community (AEC) is work in progress, its official launch on December 31 of this year is an important milestone. The fact that ASEAN economic integration has progressed so far is impressive for the unfavorable initial conditions. AEC seeks to create a single production base and a single market out of the ten ASEAN member states with freer movement of goods, services, capital, investment and skilled labor. It will create economies of scale and a more level playing field, less protectionism and greater competition within the region. Despite the fact that AEC is the most important event that has happened to ASEAN economies in recent years, public and business awareness remain extremely low, inside and outside the region. Governments need to engage businesses for better awareness and preparedness, and businesses need to be pro-active and solicit information. Businesses should look out for changes in regulatory framework, incentives for FDI, and an overall business environment reshaped by AEC.
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