As the deadline for the ASEAN Econo

As the deadline for the ASEAN Economic Community (AEC) nears, large corporate companies seem ready to take advantage of the coming changes. Yet, with small and medium-sized businesses less prepared, is ASEAN ready for the AEC and who will benefit most from its implementation?

The leaders of the Association of Southeast Asian Nations (ASEAN) adopted the ASEAN Economic Blueprint on 20 November 2007 to serve as a plan to guide the establishment of the AEC, due for implementation by the end of 2015.

The Association’s goal is regional economic integration, defined by four characteristics: a single market and production base, a competitive economic region, a region of equitable economic development, and a region fully integrated into the global economy.

The purpose of the AEC is to transform ASEAN into a region with the free movement of goods, services and skilled labour as well capital and investment. Initially forecast for 2020, the deadline was moved forward to the beginning of 2015 before being pushed back again to the end of this year.

However, some debate still exists as to whether this timeline is achievable. According to Singapore’s Minister for Trade and Industry, Lim Hng Kiang, ASEAN is unlikely to fully achieve the AEC blueprint as progress remains slow in reducing non-tariff barriers and increasing the liberalization of trade in services.

Despite slow progress, the Minister still maintains that local businesses will benefit from reduced production costs and be able to participate in previously restricted sectors. Yet, is this really the case?

SMEs are not ready for the AEC

While larger companies seem ready for the AEC, small and medium-sized enterprises (SMEs) are less prepared. According to a survey by the Asian Development Bank, less than one-fifth of ASEAN businesses are ready for the transition. This is despite the fact that small to and medium-sized businesses generate approximately 90 percent of ASEAN jobs and 30 to 50 percent of GDP.

Some commentators highlight a lack of awareness and understanding among SMEs regarding the AEC. According to a 2013 survey conducted by the ASEAN secretariat, three out of every four ASEAN citizens questioned had no real understanding of what the AEC entails.

ASEAN has taken some steps to promote awareness of the AEC for SMEs. A seminar held in Bangkok from the 15th to 16th of June 2015 aimed to promote awareness of the AEC for businesses.

Mr. Syed Nabil, Secretary-General of the ASEAN-Business Advisory Council, raised some of the issues faced by SME’s. These include limited access to finance, markets and improved technology, as well as challenges in facilitating the free movement of goods. To overcome these challenges, much more will need to be done in order for SMEs to be prepared for the AEC’s implementation.

How does the AEC affect workers?

A recent policy brief from Ibon International, a Philippine-based think-tank, indicates that SME awareness is not the only problem the AEC faces. According to the Ibon brief, the AEC will increase corporate profits at the expense of workers’ rights.

There are continued fears that the AEC will increase barriers to social services due to privatisation and deregulation as well as worsen inequalities between and within ASEAN countries, with poorer countries experiencing distorted development as they continue to be the primary source of raw materials and cheap labour.

Further criticism of the AEC rests on the perpetuation of skewed labour mobility from poorer countries to more developed ones and increased land and other resource grabs as capital flows and investment become liberalised. The entry of cheap agricultural goods may also serve to undermine local, smallholder farmers.

According to the Ibon brief, AEC integration “must transform ASEAN into a region that is truly people-centred.” The goal of integration should not based on “becoming an economic superpower that would benefit local elites and transnational corporations at the expense of people.

ผลลัพธ์ (คลิงออน) 1:

Hoch Sum asean Economic Community ((aec)) deadline, yIteb wey vIghurmeH law' qatoy' 'utmo' Dujvam Ha' choH nge'. 'ach malja' mach je medium-sized je qeq, vaj asean SuH aec 'ej HochHom vo' implementation chepmoH 'Iv qup?20 november 2007 qo'vaD nab aec, establishment Dev due implementation pong bertlham 2015 asean Economic Blueprint puS adopted ra'wI' DIvI' southeast asian nation ((asean)).DIvI' ngoQ regional economic integration, defined characteristics loS: fully integrated malja''e' Vas production waw', competitive Sep economic, Sep equitable economic development, 'ej Sep vaj global economy.[ngoQ aec asean transform vaj ghaH tlhab movement goods, chavmoH po' 'e' mon je toH 'ej investment Sep. ghaHDaq BERNARDO. initially forecast 2020, tlhetlhbe'lu'taHvIS deadline bI'reS 2015 pa' yuv wItI'nISmo' jatlhqa' DIS megh'an.'ach reH nIv'e' 'op ngach pe'vIl Heghbogh vajpu''e' ghaH chaq timeline achievable. according to singapore vIDa mech Industry, lim hng Kiang, 'ej asean fully aec blueprint chav Hoch Ser ratlh slow je QI'yaH-tariff barriers reducing 'ej liberalization chavmoH mech ghur ghaytanHa'.qeqlI'ghach, Ser slow 'e' chepmoH vo' reduce production costs 'ej nobmeH jeS qaStaHvIS previously restrict mIch lutu'lu'bej malja' reH leH vIDa. 'ach qar case?sme 'oHbe' SuH aecwa'vatlh weghbogh wey law' SuH aec, qup qaSmoHlu' mach je medium-sized 'entepray' (sme). according to survey pong asian Development beyIl'e', qup HoS wa'-fifth asean malja' SuH transition. ghu'vam lubotbe' ngoD approximately 90 vatlhvI' generate malja' mach 'ej medium-sized asean jobs 30 50 vatlhvI' gdp je.Hutlh awareness vumnIS yabraj jawbe' quv, vIchID aec sme 'ej highlight 'op commentators. according to 2013 survey qach asean secretariat, pagh real vumnIS yabraj nuq entails aec chaq wej Hoch loS asean rewbe' yu'.awareness aec num sme mIw 'op SuD asean. Qeq seminar 'uch neH bangkok vo' 15th 16th june 2015 awareness malja' aec num.'op qab sme wanI'vammo' tlha' pep mr. syed Nabil, Secretary-General asean-malja' Advisory yejquv. vuS naw' finance, malja''e' je Dub cham, Hoch law' qaD DaH nobvam roD neH tlhab movement goods facilitating. qaD overcome, vay' Data'nISbogh qech sme qaSmoHlu' implementation aec tlham nIS mamej latlh.chay' workers Sov wIHutlh aec? 'e' sme awareness 'a bul wej neH aec nitlhDaj lo'taHvIS boQwI'vaD tu'moH recent ngoch qaS vo' ibon international, philippine-waw' think-tank, qab. according to qaS ibon, vIghurmeH profits workers nIH at the expense of ghur aec.taH jISuvvIpbe' 'e' barriers social services muHIvtaHbogh privatisation ghur 'ej deregulation law' law' aec inequalities SabtaHbogh 'ej asean Sep, poorer Sep, distort development SIQpu'bogh Hoch 'e' primary tlhol materials je Hal qutlh 'e' taH chaH 'emvo' 'argh tu'lu'.grabs Hoch perpetuation skew 'e' mobility vo' poorer Sep Hach vI'Iprup wa' 'ej ghur puH 'ej latlh jo vISangchu'Qo'chugh criticism aec Hoch moj liberalised mon flows 'ej investment. chaq je toy' qutlh goods agricultural entry lutu'lu'bej, smallholder farmers undermine.according to qaS ibon, "asean ghob'e' transform aec integration 'e' teH nuvpu'-centred Sep qar vaj." vaj not waw' integration 'oHba' "moj economic superpower lutu'lu'bej elites 'ej transnational ghom at the expense of nuvpu' chepmoH 'e'.