ASEAN Integration

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China’s status as the global darling for foreign investment and trade is facing some competition these days from Southeast Asian nations that, while small, are forming an increasingly important economic bloc. Though the 10-member Association of Southeast Asian Nations, or ASEAN, comprises a market of 610 million people — less than half the size of China’s — the bloc’s more affluent consumers are looking increasingly attractive, especially to Japanese companies wary of risks stemming from escalating territorial disputes with Beijing.

While most Japanese companies remain committed to their investments in China, the proposed formation of the ASEAN Economic Community — an economic integration of the 10 member countries, similar to the European Union — by 2015 is especially tantalizing. From a demographic and production cost point of view, the ASEAN bloc – which includes Indonesia, Malaysia, the Philippines, Singapore, Thailand, Brunei, Burma (Myanmar), Cambodia, Laos and Vietnam — is nudging China aside as the Chinese labor force begins to shrink and wages rise. Thailand, Indonesia and Malaysia are attracting foreign manufacturers as well as financial and other service companies drawn by the region’s quickly growing, and relatively big spending, middle class.

Japan’s investment expansion into ASEAN is expected to persist for at least the next few years, as other countries, including China and the U.S., also pour resources into the region. For the time being, however, China remains ahead in terms of FDI: China’s incoming foreign investment from the world in 2012, totaling US$121.08 billion, was still bigger than ASEAN’s US$111.29 billion, according to the United Nations Conference on Trade and Development.
Will an Integrated ASEAN Region Challenge China? - Knowledge@Wharton

[dulasnom]

Too risky. Euro was threatened back in 2012, now there's another one. A shared monetary policy is just too rigid and it is usually too late to act when things go south.

Well if you want wealthier ASEAN members to prop up our economy then yes. But it is obvious our wealthier neighbors know our shenanigans they would rather opt not too.

Also if there was a common currency that would mean we would have to balance importing/exporting our inflation since there would be greater demand for the common currency overseas compared to domestic requirements. What this means is that the more money we export the less valuable it becomes.

yes, i somewhat agree that it is risky as what is currently happening to greece (eu).
however, greece already had economic problems even before they were accepted in the eu.
they only manipulated their accounting data to pass the requirements of the eu.
they were masking their national debt and falsified their budget deficit.

if a member state is under-performing, it could affect the entire bloc as what we had seen on the eu.
thus, cooperation among member states is necessary.

with regards to balancing the import/export, it is necessary even with the current set-up
wherein we have our own currency.

[M.A.D.]

yes, i somewhat agree that it is risky as what is currently happening to greece (eu).
however, greece already had economic problems even before they were accepted in the eu.
they only manipulated their accounting data to pass the requirements of the eu.
they were masking their national debt and falsified their budget deficit.

if a member state is under-performing, it could affect the entire bloc as what we had seen on the eu.
thus, cooperation among member states is necessary.

with regards to balancing the import/export, it is necessary even with the current set-up
wherein we have our own currency.

I am not talking about export/import of goods. I am talking about the flow of money. We have direct control of the flow of goods inside and outside of our country but we may no longer have control over monetary policy since it will be unanimous and it would be difficult and complex to sync since each member-state has different interests and at the same time different problems.

If we may, we could just do it like the British, who is a member of the EU but does not use the euro as a national currency. The result of that is they are able to contain the contagion that is happening there in Greece at the same time they enjoy better trade deals when trading with fellow EU member states.

Yes, the greeks cooked the books and hired GS(goldman sachs) to do it so they can join the EU despite failing the qualifications. However Greece was not supposed to be an economic powerhouse to begin with. They were merely allowed to join because of geopoliticics - namely because they did not want Greece to fall to the East(Russia, etc). This is also highlighted by the fact that Greece is a member of NATO where the US holds a base in the island of Crete.

Now if the Philippines, with its endemic corruption and red tape were to join the ASEAN with a common currency with creditor member states such as Singapore, Japan, Malaysia, etc allow it? I highly doubt it. We are in the same league if not worse than Indonesia.

[anggwaponi]

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Philippines not ready for Asean integration
NOTE: News link courtesy of philstar.com

[ULYTSE]

I am not talking about export/import of goods. I am talking about the flow of money. We have direct control of the flow of goods inside and outside of our country but we may no longer have control over monetary policy since it will be unanimous and it would be difficult and complex to sync since each member-state has different interests and at the same time different problems.

If we may, we could just do it like the British, who is a member of the EU but does not use the euro as a national currency. The result of that is they are able to contain the contagion that is happening there in Greece at the same time they enjoy better trade deals when trading with fellow EU member states.

Yes, the greeks cooked the books and hired GS(goldman sachs) to do it so they can join the EU despite failing the qualifications. However Greece was not supposed to be an economic powerhouse to begin with. They were merely allowed to join because of geopoliticics - namely because they did not want Greece to fall to the East(Russia, etc). This is also highlighted by the fact that Greece is a member of NATO where the US holds a base in the island of Crete.

Now if the Philippines, with its endemic corruption and red tape were to join the ASEAN with a common currency with creditor member states such as Singapore, Japan, Malaysia, etc allow it? I highly doubt it. We are in the same league if not worse than Indonesia.

we are worse than Indonesia

they have no tanim bala there

[Ekoydakoykoy]

I would love and dream to see a borderless ASEAN like Europe ! hahah not so soon though! Currency would be SEAC hahahah

[elderweiss]

LOl.. dili mana small businesses ang 7 eleven boss... hehe.. billion dollar company manang 7 eleven ^_^

sayop mo pagsabot sa iyang sentence mga tsong. akong butangan ug pang-pause iyang sentence ha..usahay mn gud masumpay ra ang words nya mausab na hinoon ang pasabot..

mao ni iyang post:
"
mao ni gtawag nilag open market?,.nah paksit mga small businesses nato ngari ana (period) like anang 7 eleven oh taka lng tukod luoy na kayo mga sari2 store mao mga naninda ky nibalik nlng silag hingut.anay... "

so ang pasabot niya ana, ang 7eleven(is the big player) ang nakapatay sa mga sari2 store (are the small businesses).

so ang sari2 store iyang pasabot sa small businesses.

so sa asean integration, i think mas dghn benefits economically kay it pushes every economy to be competitive. bisag dghn ug competensya, dghn mnsd ang mamalitay.

[M.A.D.]

If you are a minority there they can kill you and the police can't do anything about it.

we are worse than Indonesia

they have no tanim bala there

[anggwaponi]

--- updating ---





Mama Sita's president: We're strangers to the ASEAN market
NOTE: News link courtesy of MSN.com

[dulasnom]

mao ni update sa ASEAN Integration which shall be officially called the ASEAN Economic Community (AEC).

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Fundamentals

Unlike the European Union, the 10 members will maintain their economic and financial independence. There will be no central agencies such as a common central bank, parliament or court as in Europe, and no common currency. The AEC is based more on consensus than creating overarching institutions that take on some of the powers of member governments.
Changes will not be abrupt because many of the targets have been implemented gradually over the last five years. While tariff on most goods traded in the region have been largely eliminated, Asean still falls short on more politically sensitive areas of reform such as opening up protected sectors like agriculture, steel and motor vehicles. Intra-regional trade has remained at around 24 percent for the last decade, far lower than 60 percent in the EU.

In one key development, easing restrictions on work visas will make it easier for people from one country to seek employment in another, but so far it applies only to eight professions, including medical, accounting, engineering and tourism.


Read more: Economic union, sea row and terrorism top agenda in Asean summit | Inquirer Global Nation