The ASEAN Economic Community (AEC) aims to establish ASEAN as a single market and production base where goods, services, investment capital and skilled labor flows freely between and among it’s 10-member states.
This means that effective 2015, import duties and non-tariff barriers for products and services will be eliminated, while people living within it’s member-states will have the freedom to work from anywhere within the region even without work permit. You can access the AEC blueprint here.
What do we stand to gain?
This integration is expected to boost investments, job creation, and income in the region. According to a report from ILO and ADB, the integration will make the following possible for the employment sector across the region:
- Increase in demand for skilled workers by 41% (will create 14M jobs)
- Increase in demand for medium skilled workers by 22% (will create 38M jobs)
- Increase in demand for low skilled workers by 24% (will create 12M jobs)
EVERYBODY-WINS Situation?
The same report from ILO and ADB cited that unless decisively managed, this integration can increase inequality and worsen existing market deficits – such as vulnerable and informal employment and working poverty.
Then there’s the issue of Philippine’s foreign restrictions that can put us at a disadvantage.
Also, small and medium enterprises, particularly those in the agricultural and the services sector are concerned how this integration will impact their plight.
Positive Expectations
But the figures remain strong. The ASEAN region has 600 million population and an aggregate GDP of US$2.2, trading at US$2.4. We’re a very sizable market ready for disruption. These are the things that make the ASEAN integration very exciting for investors and consumers alike.
If you want to know more about the issues, challenges and how best to take advantage of the ASEAN integration, you can attend the 12th MAP International CEO Conference. Hosted by the Management Association of the Philippines (MAP), this is the culminating event of the first phase of their three-year program to bring awareness and prepare Philippine companies and business leaders for this major economic integration. With the theme “THE INTEGRATION MOMENTUM: Waves of Change, Oceans of Opportunities“, it’s designed to equip organizations with knowledge and networking opportunities. The conference will be held on Sept 09 at Makati Shangri-la. You can find the list of speakers and topics right here.
Featured Photo Credit: theglobalpanorama via photopin cc
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