When we think of the developed world, our mind immediately goes to the West. We think of the big buildings in New York and London, how commerce has grown from these hotspots and how these metropolises have become models for many emerging cities. In the East, powerhouses like Tokyo and Seoul probably come to mind.
Yet while we think of the developed world as the pinnacle of business, there is a lot to look forward to in the rest of the world. This is especially true for one of the fastest-rising economic blocs – Southeast Asia. That’s right, the Association of Southeast Asian Nations (ASEAN) has been making big strides over the past few decades, since its founding as an inter-governmental organisation in 1967.
The network of countries, composed of Singapore, Malaysia, Indonesia, Thailand, Vietnam, Laos, Brunei, Myanmar, Cambodia, and the Philippines, is becoming a force to be reckoned with in global business, and in fact has a plan in place to grow the ASEAN Economic Community (AEC) into one that is highly integrated and cohesive, competitive, innovative and dynamic by 2025.
But to make it a little more digestible, here are my four key takeaways from the AEC Blueprint 2025 – all reasons why you should keep an eye out for the region:
1) An Integrated Economy
ASEAN looks to have more fluidity and interconnectedness with regard to things that build an economy. This includes easy transfers of not just goods and services, but also investments, capital, and of course, labour.
ASEAN nations look to work with each other to improve an already booming economy, which is estimated to be the world’s fourth biggest by 2030, behind just the United States, China, and the European Union.
And the entity is on track to achieving its goals – as it is, 99 percent of intra-ASEAN trade tariffs have been eliminated, and efforts continue to go into facilitating easier flow of data in trade and commerce. This integration of economic services makes the region a prime location for new businesses, serving as a springboard for those looking to expand into as many ASEAN countries as possible.
2) A Competitive and Innovative Region
ASEAN doesn’t just want to make sure countries benefit from better integration, but it wants to set an equal playing field for all nations when it comes to competitiveness and innovation, where everyone is able to leverage the new technologies that come with the Fourth Industrial Revolution. This is why the bloc has been working on developing an effective and efficient set of policies to increase competition and protect its interests.
These regulatory frameworks and practices will ensure that each of the ASEAN members have something to contribute, and that money isn’t simply being wasted. It’s proof that the Southeast Asian mindset of growing as one really does extend to things bigger than just families and individuals, but entire economies as well.
This means that no matter which Southeast Asian country you decide to set up in, ASEAN is doing its best to make sure that there’s an equal opportunity for growth across all the nations. This provides the region with a real potential for business growth, whatever national market you decide to tap into.
3) Enhanced Sectoral Cooperation
ASEAN also wants to be able to enhance cooperation when it comes to public services. Transportation, telecommunications, e-commerce, food, agriculture, tourism, healthcare, and science, are all areas that it wants to develop and make equal for all member countries. On a larger scale, concerted action aims to eradicate poverty, improve infrastructure and connectivity, and encourage sustainable production and consumption. The goal is to deliver multiple benefits to members and their people through cooperation and collaboration, with the understanding that when each member thrives, so will the region as a whole.
What this means for your business is increased access to areas within the region where inequalities are reduced and instability is no longer a factor. They’re building a region where basic services are made more accessible, and used to lift citizens up, and this translates into a much more secure environment for you to grow your business in.
4) A Global ASEAN
While ASEAN’s goals are mainly to increase its competitiveness while lifting each other up, the ultimate vision is to continue integrating and shaping itself as a key player on the global stage.
The lofty expectations that ASEAN sets for itself isn’t just lip service; it’s conscientiously working on facilitating growth within the region, creating a conducive environment for foreign direct investments and new businesses to succeed, and bringing more of its innovations and solutions to the rest of the world. And this makes it all the more important for you to invest now.
Starting to love ASEAN? Well, here’s a great video for you to learn more (probably best with a fresh bowl of laksa): How Are You Leveraging the Magic of ASEAN?
To your success,
Mario
[Visit www.mariosingh.com now to enjoy a FREE e-book of my latest “37 Essential Principles for Massive Success” when you subscribe!]