A few days ago Channel
News Asia reported that Singaporean companies were relatively unfamiliar with
the ASEAN Economic Community (AEC):
A survey by the Institute of Southeast Asian Studies found
that 55 per cent of some 380 firms polled across the region were not aware of
the AEC. And Singapore companies had the highest level of ignorance - at 86 per
cent.
The numbers in a separate survey by the Singapore Business
Federation were less staggering. About 38 per cent out of some 1,000 of its
members polled were ignorant - with a higher percentage for small- and
medium-sized enterprises than bigger firms.
Singapore Business Federation chief executive Ho Meng Kit
said: "When you ask the small companies what it (AEC) is, even asking them
to identify the 10 ASEAN countries, they may have difficulty (doing it). "So
you need to educate (them). You need to put it in layman terms (such as) 'what
does it mean for you if you are a manufacturer of goods?' 'What does it mean
for you in terms of your market access in specific country?'"
The main reasons for the
relatively low awareness of the AEC in Singapore (as per the two surveys) are
related to the
AEC’s initial focus on creating a single production base first rather than the
single market. Most small and medium
sized businesses in Singapore are either involved in trading/distribution or
services. When the AEC more fully
develops the single market for consumers, these companies will benefit from
greater access in other ASEAN countries.
Until then, the AEC’s more developed integration in trade in goods is of
lesser relevance.
That is not to say that
companies in Singapore are not already participating in the AEC. Larger companies involved in global supply
chains, and those Singaporean companies still manufacturing in the city-state
are well aware of the AEC and participating in the formation of the single
production base. However, given their
smaller numbers (numerically), they are going to show up in lower percentages
in these surveys.
Irregardless, efforts to
increase awareness of the AEC in Singapore and other ASEAN members are vital to
spreading the benefits of the ASEAN Community to all aspects of society in
Southeast Asia. But what will be even
more important is actually forming the single market, a task that will require strengthening
the ASEAN institutions beyond their current state. Hopefully progress will be made on this issue
as Malaysia prepares to take over as ASEAN Chair.
