Regional Strategy Revealed for Economic Integration Among ASEAN Nations
Malaysia, May 27 - The Association of Southeast Asian Nations (ASEAN) revealed an ambitious strategic plan on Tuesday, aimed at transforming the regional bloc into the world's fourth-largest economy by 2045. The five-year blueprint, announced at a leaders' summit in Kuala Lumpur, outlines several key initiatives to enhance trade cooperation, financial integration, and sustainable economic policies.
The 41-page document, unveiled by the 10-member ASEAN, includes strategies targeted at deepening economic integration, fortifying regional transport links, and fostering energy security. It emphasizes increased trade flows, fostering business and people mobility, enhancing transparency, and adopting sustainable mining, industrial, and agricultural policies to entice foreign investment.
The ASEAN nations – Indonesia, Thailand, Malaysia, Vietnam, the Philippines, Singapore, Cambodia, Laos, Myanmar, and Brunei – are urged to strengthen their economic ties, focusing on fostering a unified market and production base. The strategic plan highlights that simply maintaining the status quo will not suffice for this dynamic economic region.
Tensions between major powers, shifting trade flows, transforming technology, climate change, and demographic shifts are some of the challenges identified in the plan. To overcome these hurdles and become a major global economy, ASEAN countries should deepen their integration and become more agile in addressing multifaceted obstacles.
Formed in 1967 with five member states, ASEAN established an economic community in 2015, with the goal of integrating economies and elevating the region's global standing. In recent years, the member nations have experienced rapid economic growth, with a collective GDP of $3.8 trillion. However, the process of integration has been slow, primarily due to significant differences in economies, political systems, populations, and development levels, as well as the absence of a central authority to oversee compliance with ASEAN agreements and initiatives.
To implement the strategies outlined in the plan, the ASEAN Economic Community Council will be responsible for overseeing the execution of the strategies, while the ASEAN secretariat will monitor the progress. The escalating US-China tariff war and steep US tariffs on Southeast Asian countries have accelerated the need for ASEAN countries to adopt a more collaborative approach to regional integration, according to Tricia Yeoh, Associate Professor of Practice at the University of Nottingham Malaysia.
Yeoh believes that ASEAN countries must recognize the socio-economic benefits of unified negotiations, rather than relying on bilateral agreements. She contends that if ASEAN fails to demonstrate effectiveness, questions may arise about its purpose and relevance to the global stage. This statement comes in light of contentious issues, such as the Myanmar crisis and the South China Sea dispute, within the bloc.
[1] ASEAN Secretariat. (2019). ASEAN in 2025: Forging Ahead Together. Retrieved from https://asean.org/storage/2021/02/2019-2025-ASEAN-Community-Vision-Document.pdf[2] ASEAN Briefing. (2021). ASEAN's Outlook on the Indo-Pacific: An Examination of the Blueprint 2021-2025. Retrieved from https://www.aseanbriefing.com/industry-trends/asean-outlook-on-indo-pacific/[3] Martin, E. (2021). How ASEAN integrates with its external partners. Atlantic Council. Retrieved from https://www.atlanticcouncil.org/in-depth- research/issue-briefs/how-asean-integrates-with-its-external-partners/
- To achieve the ASEAN's goal of becoming the world's fourth-largest economy by 2045, it's crucial for the member nations to focus on fostering business and financial integration within the regional bloc.
- In order to effectively implement the strategies outlined in the ASEAN's blueprint, the ASEAN Economic Community Council will need to oversee the execution, while the ASEAN secretariat should monitor the progress closely.
