Friday 23 January 2015

Some Resources on ASEAN - Part 1

Here's a snapshot of some of the publications that I often draw on to enhance my understanding on various ASEAN economies and their inter-relationships with the world.




This is obviously not exhaustive.  I will over time post information on more books, websites and other resources that I've found useful. In addition to this, if opportunity avails, visits to individual countries as well as interviews and meetings with ASEAN leaders is a key part of knowledge building.

Saturday 10 January 2015

A Little ASEAN History

The Association of Southeast Asian Nations (ASEAN) was formally inaugurated in Bangkok on 8th August 1967 by the governments of Indonesia, Malaysia, Philippines, Singapore and Thailand. ASEAN as a regional cooperative grouping superceded two more limited regional associations - the Association of Southeast Asia (ASA) and "Maphilindo" (an acronym formed from the first letters of the names of member countries). 

The Bangkok Declaration broadly spelt out the goals and purpose of ASEAN, which were primarily social, cultural and economic in nature. It is significant to note that in 1967 there was no mention that the ASEAN states would cooperate on political matters. Nor was ASEAN meant to be a military alliance, although cooperation in security matters among ASEAN countries were carried out outside the ASEAN framework. Initially ASEAN didn't even have as an objective the formation of a free trade area. All these areas were gradually included as ASEAN evolved over the years.



Fig 1: Signing of the ASEAN Declaration, 8th Aug 1967
L to R are Foreign Ministers Mr Narciso Ramos (Philippines), Mr Adam Malik (Indonesia),
Mr Thanat Khoman (Thailand), Tun Abdul Razak (Malaysia) and Mr S Rajaratnam (Singapore)


The first year of ASEAN was hardly smooth. Two serious issues arose - firstly a squabble resurfaced over the possession of Sabah between the Philippines and Malaysia, and secondly the Singapore government went ahead with the execution of two Indonesian marines, which drew strong reaction from Indonesian nationalists. Fortunately both issues were managed and the fledgling ASEAN survived with its original purpose intact.

Today ASEAN comprises ten member countries, but for its first sixteen years of existence, it was only the five founding countries. It wasn't until January 1984 that the sixth country, Brunei Darussalam, joined. Next came Vietnam in July 1995, followed by Laos and Myanmar in July 1997, and Cambodia in April 1999.



Fig 2: ASEAN logo
(when there were 10 member countries)


On the surface, ASEAN seems to resemble that of the EU. However, the inter-country differences within ASEAN are significantly wider than those found within the EU (especially in the 1980s). Country growth levels ranged between 1 and 8 percent. There was also stark differences in economic structure and financial development of the economies. In short, the level of diversity within ASEAN is considerable.

Over the years, ASEAN members debated various issues through a series of ASEAN Summits (attended by heads of states) as well as at other meetings of foreign ministers, economic ministers, etc. 

The first ASEAN Summit was held in February 1976 in Bali, Indonesia. From this Summit came the Treaty of Amity and Cooperation in Southeast Asia, the Declaration of ASEAN Concord and the Agreement for the Establishment of the ASEAN Secretariat.

The second ASEAN Summit, held in Kuala Lumpur, Malaysia in 1977, revalidated the mandates and reviewed the progress of the implementation of the Bali programme.

The Third ASEAN Summit, held in Manila, Philippines in December 1987, led to the Protocol amending the Treaty of Amity and Cooperation in South-East Asian Nations.

The Fourth ASEAN Summit in Jan 1992 in Singapore ended in a pledge to establish an ASEAN Free Trade Area (AFTA) with a Common Effective Preferential Tariff scheme.

And this has continued for the past two decades. In recent years, the ASEAN Summits have been held almost annually.




Fig 3: The most recent ASEAN Summit in Myanmar


There have been critics who question the relevance or effectiveness of ASEAN. I will go into more detail on this in a future posting, but on a personal level, ASEAN has afforded some benefits and conveniences. As a frequent traveller, my trips in Southeast Asia are usually unencumbered by visa requirements (except for Myanmar currently) and at some airport immigration, there are special ASEAN counters that facilitate faster processing. I look forward to the creation of the ASEAN Economic Community (AEC) which should make intra-regional trade easier.

Thursday 1 January 2015

Welcome to ASEAN Insights

On this first day of 2015,  let me launch a new series of blogposts and articles based on my observations and experiences in the ASEAN countries, a geographical region that I have been traversing over the past two decades.

I am Malaysian by nationality, born in the state of Sarawak on Borneo island, but I've also been based out of Singapore for three decades. My jobs with various multinational companies over the past fifteen years have required me to engage with governments and companies in various countries in this region, and given me the opportunity to learn about the culture, history, economics and politics of many of these countries.

I've also been privileged to have researched and published two editions of a book titled "E-Government in Asia: Public Service Innovation in the 21st Century" (Times, 2003 and Marshall-Cavendish 2005), as well as numerous papers on different aspects of technology innovations in government. I have consulted to and been on various national advisory sub-committees in several ASEAN countries.

For those unfamiliar with the region, ASEAN represents the Association for South East Asian Nations. It presently comprises ten countries: Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam.




There have been many excellent published papers and articles expounding on ASEAN, so I shall not reinvent the wheel. But for those new to ASEAN, I would recommend the Mckinsey paper entitled "Understanding ASEAN: Seven things you need to know" (by Vinayak, Thompson and Tonby, published in May 2014) which I think gives an sterling summary of why ASEAN is so important, not only to Asia but globally. Here are their key points.

(1)  Together, ASEAN's ten member states form an economic powerhouse. If ASEAN were a single country, it would already be the 7th largest economy in the world, with a combined GDP of some US$ 2.4 trillion.

(2)  ASEAN is not a monolithic market. Its diversity extends to economy, culture, language and religion.

(3)  Macroeconomic stability has provided a platform for growth.

(4)  ASEAN is a growing hub of consumer demand. The consumer base is expected to double from 67 million (in 2010) to 125 million (in 2025).

(5)  ASEAN is well-positioned in global trade flows.

(6)  Intraregional trade could significantly deepen with the implementation of the ASEAN Economic Community (AEC), planned for the end of 2015 though there could be some delays.

(7)  ASEAN is home to many globally competitive companies.


I will pause here for today, and dwell in more detail in subsequent entries. I look forward to feedback or suggestions. I hope over time, I'll be able to engage some of you in a conversation on the past, present and future of ASEAN.

You can post your comments on this blog, or on the website of my company JYGLOBAL Associates or  by contacting me directly on jslyong@gmail.com.

Welcome to ASEAN Insights.