Presentation on theme: "Myanmar in ASEAN: Working Toward the ASEAN Economic Community"— Presentation transcript:
1Myanmar in ASEAN: Working Toward the ASEAN Economic Community Kyaw Soe TheinDirectorASEAN DivisionForeign Economic Relations DepartmentMinistry of National Planning and Economic DevelopmentGood Afternoon, Mr U win aungI would like to thank to RUMCCI, allow me to present about our Myanmar in ASEAN. As everybody have already known that ASEAN is establishing ASEAN Community supported by three pillars which are ASEAN Political & Security Community (APSC) Pillar, ASEAN Economic Community (AEC) Pillar and ASEAN Social-Cultural Community (ASCC) Pillar. It shaal be established by It is very closed to target date. Therefore, I would like to share Myanmar in ASEAN working toward the ASEAN Economic Community.
2Outline Introduction: Southeast Asia, Myanmar and ASEAN Myanmar in ASEANEstablishment of ASEAN Economic CommunityIssues and Challenges Relating Myanmar’s to Join AECConclusion
31. Introduction: Southeast Asia, Myanmar and ASEAN 1.1 What is Southeast AsiaThe term Southeast Asia was occasionally used by European, especially German writers, in the late 19th century.Myanmar, Thailand, Laos, Cambodia, Vietnam, Malaysia, Brunei, Singapore, and Indonesia, were considered as some kind of geographical unit.Ten NationsEach country has its individual style.Unity and diversity
4Cont1.2 Socio-economic characteristics of Southeast Asian Nations: A Brief OverviewASEAN member countries vary widely in size, population, and income.Total population of nearly 600 million and land area of 4,495 thousand sq.km.Indonesia is the largest, Brunei is the smallest.
5ContIn 2011, Singapore had the highest per capita GDP of US$ ( ) followed by Brunei with US$ ( ).Malaysia with US$ (9940.6), Thailand and the Philippines had US$ (5115.8) and US$ (2340.9) respectively.Cambodia had US$ (879.7) and Laos had US$ (1278.5).Myanmar’s per capita GDP was US$ (875.1), and Vietnam had US$ (1403.3).The average per capita income of ASEAN countries would be about US$ ( ).
6cont GDP growths also differ between countries. In 2011, the fastest growing economies were Myanmar and Lao PDR with rates of 10.4% and 8.0% respectively, closely followed by Cambodia with 7.1%.Thailand economic growth in 2011 was disappointing, with a rate of 0.1%.In term of social indicators, ASEAN 6 (Brunei, Singapore, Malaysia, Indonesia, Thailand, and the Philippines) generally perform better than the CLMV countries
7Table (1.1) Selected Economic Indicators (2011): ASEAN CountriesLand Area(‘000)(sq km)Pop (million)Pop Growth (%)Labor Force (Million)GDPAt current prices(US$ million)Real GDP Growth (%)GDP Per capita(US$)Export Growth Rate (%)Import Growth Rate (%)InflationBrunei5,7650.42.00.2116,3126.96.36.199.6Cambodia181,036188.8.131.52,775.07.1879.735.825.96.3Indonesia1,919,317241.61.7117.3846,821.36.5356329.030.85.4Laos236,8006.38n.a8,163.38.012184.108.40.206.6Malaysia329,75828.961.312.5287,922.35.199220.127.116.11.2Myanmar676,57760.41.030.110.4818.104.22.168The Philippines300,00094.240.0224,337.43.92340.9-22.214.171.124Singapore6485.182.1259,8126.96.36.199.2Thailand514,00067.638.8345,810.80.15115.811.719.13.8Vietnam330,95587.851.4123,266.95.91403.334.225.818.6Source: Asian Development Bank, Key Indicators for Asia and Pacific 2012, ASEAN Statistics
8Table (1.2) Selected Social Indicators (2011): ASEAN CountriesHDILife expectancy(yrs)Adult literacy(%)Education expenditure % of GDPHealth expenditure % of GDPInfant mortality rate(per 1000)Access toimproved water(% of pop)Brunei0.847797n.a6Cambodia0.5261855.675Indonesia0.616895262.63380Laos638213.24.55257Malaysia0.767318.94.4100Myanmar0.48642.071The Philippines0.647016.93.62991Singapore0.8710.34.03Thailand0.689622.33.91398Vietnam0.597219.86.81994Source: World Development Indicators, 2012, Asia Pacific Human Development Report, UNDP.
9Cont1.3 Myanmar: Geography, Demography, and Natural ResourcesMyanmar has a land area of more than 676,000 sq.km. occupied by more than (57) million people in 2011.135 nationalities, multi-ethnic, multi-cultural and multi- religious society.Myanmar, the largest ethnic group, comprises about 70% of the country’s total population followed by the Shan, with 8.5% of the country’s inhabitants.Other major ethnic group include the Kayin, 6.2% , Rakhine, 4.5%, and other indigenous races, 6.5%.rich in natural resources: forests, minerals and fish.an abundance of human resources- literate labors
102. Myanmar in ASEAN 2.1 Why Myanmar Decided to Join ASEAN In 1967, Myanmar was approached by friends in ASEAN to join the regional association.as a founding member of the Non-Aligned Movement, adhering to the five principles of peaceful co-existence and neutrality, and decided not to join ASEAN.In 1995, Myanmar decided to join the regional association and attained observer status, along with Laos and Cambodia, in July 1996.
11Cont Politically Economically At least two reasons which led to Myanmar’s decision to join ASEAN.(1) internal and external conditions had changed in the country(2) age of globalization and regionalismPoliticallypeace and stability in the regionbetter confidence among members of ASEANStrengthening of external securityEconomicallyincrease trade and investment links within the regionachieve greater developmentincreased efficiencyCulturallycontribute to ASEAN through promoting its own rich traditions
12Cont 2.2 Myanmar Participation in ASEAN the summits to ministerial meetings to officials meetings.Several committees and sub-committees were formed to assist the ASEAN Economic Ministersmall-and medium-enterprise activities, transport, and services.several committees at the national level such as the National Committee on Information and Culture, the National Committee on Science and Technology, and the National Committee on Social Development were formed to coordinate with relevant ASEAN committees and subcommittees.
13ContThe National Commission for Environmental Affairs, the Central Committee for Drug Abuse Control (CCDAC), and the Public Services Selection and Training Board (PSSTB) were established to be in line with existing ASEAN committees.Became a part of AFTAparticipating in ASEAN activities fully since its first day of entry into the regional association.
142.3 Myanmar - ASEAN Cooperation for Economic Development Table (2.1) Myanmar Exports to ASEAN (Kyat million)Value%(Total)Singapore845.828.6986.819.6737.35.81532.77.43690.98.9Malaysia40.871.4147.52.9471.13.7540.42.6832.22.0Indonesia-299.65.9221.61.7380.51.8205.30.5Philippines0.220.07188.8.131.523.20.4147.6Thailand387.913.1534.910.61831.314.47868.638.11743142.2Vietnam0.970.0229.5223.81.08299.80.7Lao PDR2.80.090.0004Cambodia1.1Brunei1.590.030.014.994.09Source: Statistical Yearbook 2010.
16Table (2.3) Foreign Direct Investment Flow into Myanmar from ASEAN CountryNumber of ProjectsAmount(US$ million)% of Total InvestmentBrunei-23.040.007Singapore701541.620.8832167.05.2Malaysia31151.12.0431031.32.5Indonesia11240.03.212241.50.6Thailand491290.217.4619568.122.9The Philippines184.108.40.206CambodiaLao PDRVietnam5361.80.9Source: Directorate of Company Administration and Investment, Ministry of National Planning and Economic Development.
173. Establishment of ASEAN Economic Community 3.1 Why ASEAN decided to establish AEC9th ASEAN Summit agreed to establish the ASEAN Economic Community (AEC) as the end goal of economic integration as outlined in the ASEAN Vision 2020.As a single market and production baseTo make the ASEAN region a more dynamic and stronger segment of the global supply chainthe integration of its Member Countries and enhancing the region’s economic competitiveness.
18ContTo strengthen the implementation of its existing economic initiatives.ASEAN Free Trade Area (AFTA), ASEAN Framework Agreement on Services (AFAS) and ASEAN Investment Area (AIA)accelerate regional integration in the priority sectors facilitate movement of business persons, skilled labor and talentsstrengthen the institutional mechanisms of ASEAN,Dispute Settlement Mechanism to ensure expeditious and legally binding resolution of any economic dispute.
19Contgoals are being pursued through the Initiative for ASEAN Integration (IAI) and the Roadmap for the Integration of ASEAN (RIA).deepening and broadening of integration of ASEAN shall be accompanied by technical and development cooperation in order to address the development divide and accelerate the economic integration of Cambodia, Laos, Myanmar and Vietnam so that the benefits of economic integration are shared
20Cont3.2 Economic Implications of Myanmar to Join AECexpects general regional trade area (RTA) advantages from joining ASEAN and AECgreater trade, service, and investment links within the region increased attractiveness to foreign direct investment (FDI) from outside the region, more secure access to the greater ASEAN market,improved resource allocation from specialization according to comparative advantage,economies of scale in an enlarged regional market,enhanced industrialization prospects of small and medium enterprises,spill-over effects, and infant industry learning effects with improved quality control, design, and marketing and thus improved competitiveness in the world market .
21Cont 3.3 How Ready was Myanmar to Join AEC Myanmar has made a commitment to establish an ASEAN Economic Community (AEC) and actively participating and coordinating with other member countries.Chair of ASEAN in 2014To develop a viable stock exchange by 2015To develop the capital market, and the Capital Market Development Committee and its sub-committee are now endeavoring to implement the road map for the development of capital market in Myanmar, which is drawn up in accordance with time frame of ASEAN Capital Market Forum (ACMF).
22ContCustom modernization preparedness, measures for rationalization, simplification, and harmonization are trying to be consistent with ASEAN Singe Window (ASW)Custom clearance time which usually takes two days for containerized cargo of import and one day for containerized cargo of export is targeted to reduce to 30 minutes.the aim of facilitating investment procedures and getting opportunities in doing business, government issues two notifications relating to land used and foreign currencyOne Stop Service in company registration is finished one day if the documents are completed.the standard and conformance areasperformance and factors of IPR in line with AEC measures
234. Issues and Challenges Relating Myanmar’s to Join AEC Development of capital market in Myanmarneed to improve legal and regulatory frameworkneed to the development of issuing systemprivate sector participationSMEs developmentpoor infrastructure with regards to power, communication, transportation,access to world market,higher cost of materials and inputs,outdated technology,insufficient R&D, limited knowledge and poor management skill.
24Cont financial sector Development difficult to develop the correspondent arrangement account with foreign hard currency in EU nations and US.depends on Singapore and China currency to operate international transactionbarrier to attract investment which is a key factor for economic development in financial sector from EU and US
25Cont Implementation in standard and conformance lack of initiator, lack of public awarenesslack of technical infrastructurelack of laboratory equipmentsIn ASEAN region, harmonization of standard and conformance help to build credibility and reputation for domestic producers and traders
26Cont Implementation of AEC lack of awareness on the program areas and implementation progress even among the main beneficiary groups and responsible department and agenciesthe target areas of some projects are mismatch with the specific requirement of respective sectorthe priority areas of some programs do not satisfy the needs and development priority of individual country
27Conclusion Myanmar’s Implementation in AEC Phase I : 95% Phase II : 80%Phase III : 77%