REGIONAL CONFERENCE ON

ASEAN ECONOMIC INTEGRATION

9 August 2013, J Center Mall Convention Hall
Organized by FINEX-Cebu
ASEAN Economic Community
The ASEAN Economic Community (AEC) shall be the goal of the regional economic integration by 2015. The
AECs key characteristics are:
A single market and production base
Highly competitive economic region
Region of equitable economic development
Region fully integrated into the global economy
AEC Areas of Cooperation include:
Human resources development and capacity building
Recognition of professional qualifications
Closer consultation on macro-economic and financial policies
Trade financing measures
Enhanced infrastructure and communications connectivity
Development of electronic transactions through e-ASEAN
Integrating industries across the region to promote regional sourcing
Enhancing private sector involvement for the building of the AEC
In short, AEC will transform ASEAN into a region with free movement of goods, services, investment, skilled
labor, and freer flow of capital.
ASEAN Economic Community (AEC) Blueprint
The Asean Leaders adopted the ASEAN Economic Blueprint at the 13th ASEAN Summit on 20 November 2007
in Singapore to serve as a coherent master plan guiding the establishment of the ASEAN Economic Community
2015.
ASEAN Economic Integration
The 10 member states of ASEAN are on track to completing the measures needed for the integration of their
economies by 2015, according to the 2012-2013 Annual Report released by the Regional Economic and
Political Bloc.
In his annual report message, ASEAN Secretary General Le Luong Minh noted that, as of March 2013, ASEAN
has already implemented nearly 80% of measures in the economic pillar of the AEC Blueprint, with significant
progress across sectors.
Minh explained, a Regional Comprehensive Economic Partnership, of which negotiations have started among
member states of ASEAN and its 6 FTA (free trade agreement) partners namely Australia, Chaina, India, Japan,
Korea and New Zealand are expected to conclude by 2015, will further cement ASEANs central role as an
emerging hub of economic integration in the Asia-Pacific.
In 2012, ASEAN grew by 5.6%, up from 4.7% in 2011, due largely to strong domestic demand. According to the
report, the ASEAN Comprehensive Investment Agreement is now fully enforced and the landmark ASEAN

Agreement on Movement of Natural Persons (MNP) has been signed. The pilot implementation of the ASEAN
Single Window which is expected to improve trade facilitation in the region is well underway while in
transport facilitation, progress on the ratification of agreements is being made.
On the political-security pillar, Minh noted that the adoption of the ASEAN Human Rights Declaration in 2012
was an important milestone in ASEANs mission to promote and protect human rights.
As a key player in the maintenance of regional peace and stability through promoting dialogue and peaceful
resolution of disputes and conflicts, ASEAN is intensifying efforts to ensure full and effective implementation
of the Declaration on the Conduct of Parties in the South China Sea and work towards the early conclusion of a
Code of Conduct in the South China Sea, Minh said in his message. He further pointed out the significant
progress made on the socio-cultural community pillar, which is essential for building a people-centered
ASEAN.
Is the Philippines Ready for ASEAN 2015?
Manila, Philippines Filipino businessmen believe that the country may not be out of the race in terms of
successfully integrating with other ASEAN countries by 2015.
In a general membership meeting on 29 April, the Management Association of the Philippines (MAP) President
Melito Salazar said, however, that the progress of the Philippines in integrating with other countries in the
region will be uneven, with some industries falling behind others.
Some of the industries that will be ready by 2015 include the tourism sector, while industries that may fall
behind include manufacturing. There are many reasons for this but the main point of contention is the
political will that is needed to push for necessary reforms.
Challenges and Opportunities of AEC 2015
Opportunities:

ASEAN as an economic powerhouse, 600 Million market in 10 countries

Relatively more open but still controlled movement of goods, services, investmentment and labor
Foreign ownership of 100% in another ASEAN country
Reduced or eliminated import and export duties for intra-ASEAN trade

Challenges:

Increased competition resulting in lower prices for end-consumer

PHL SMEs difficulty in access to financing

Weaknesses:

Low awareness of AEC and collaboration among PHL stakeholders

Need to improve marketing skills, technology
In agriculture, coconut and fisheries, need to increase productivity level and product diversification

ASEAN Economic Community

Increasing Awareness, Enhancing Preparedness
By: Junie del Mundo
Chairperson, Committee on ASEAN Integration, Management Assoc. of the Philippines
Chairman & CEO, EON The Stakeholders Relations Firm
The Asean Economic Community will be formalized by December 2015, and all the ASEAN member countries are now in
the midst of heavy preparations to make this all happen. In the Philippines, the MAP and Philippine ASEAN Business
Advisory Council has partnered up to spread the news about AEC 2015, and surface key opportunities and challenges
that the country will face, particularly in the realm of business.
The presentation will focus on a primer of what the AEC entails, especially across the 4 pillars of economic integration: A
single market and production base; a competitive economic region; and integration into the global economy. Given
these regional plans, what are the challenges and opportunities that Filipinos will face in the coming years leading up to
and resulting from progress in 2015?
The presentation will conclude with concrete steps on how small and large businesses can prepare for what appears to
be a large and daunting task through the ABCs of preparing for the AEC. A-Audit your environment and how it is
perceived; B-Build your values and C-Communicate to engage and rally your target customer. Read more:
http://business.inquirer.net/122661/the-abcs-of-preparing-for-the-asean-integration
PHL Competitiveness Insights:
JDM: PHL is around 50 years behind Singapore
On business registration processing:
o 36 days (estimate) in the Philippines
o 3 days in Singapore
o 5 days in Malaysia
o 1 day in New Zealand
Big challenges in:
o Connectivity (airport, seaport)
o Agriculture, Coconut and Fisheries
o Efficiencies (including Justice System)
Country brand is multi-faceted and entails: Tourism, Export, Governance, Investments and Immigration, Culture
and Heritage, People
When PHL has developed and improved the needed efficiencies, it is in a good position to leverage on the AEC
Greater collaboration will facilitate integration
Hans Sicat (PSE President): Optimism on 3rd Upgrade
Important Date:
2 September (Monday) Launch of MEGA-Cebu Project