1. Myanmar in ASEAN: Working Toward the ASEAN Economic Community
Kyaw Soe Thein
Director
ASEAN Division
Foreign Economic Relations Department
Ministry of National Planning and Economic Development
Good Afternoon, Mr U win aung
I 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.

2. Outline Introduction: Southeast Asia, Myanmar and ASEAN
Myanmar in ASEAN
Establishment of ASEAN Economic Community
Issues and Challenges Relating Myanmar’s to Join AEC
Conclusion

3. 1. Introduction: Southeast Asia, Myanmar and ASEAN
1.1 What is Southeast Asia
The 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 Nations
Each country has its individual style.
Unity and diversity

4. Cont
1.2 Socio-economic characteristics of Southeast Asian Nations: A Brief Overview
ASEAN 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.

5. Cont
In 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$ ( ).

6. cont 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

7. Table (1.1) Selected Economic Indicators (2011): ASEAN
Countries
Land Area
(‘000)
(sq km)
Pop (million)
Pop Growth (%)
Labor Force (Million)
GDP
At current prices
(US$ million)
Real GDP Growth (%)
GDP Per capita
(US$)
Export Growth Rate (%)
Import Growth Rate (%)
Inflation
Brunei
5,765
0.4
2.0
0.21
16,359.6
2.2
33.1
19.6
Cambodia
181,036
14.5
1.5
7.2
12,775.0
7.1
879.7
35.8
25.9
6.3
Indonesia
1,919,317
241.6
1.7
117.3
846,821.3
6.5
3563
29.0
30.8
5.4
Laos
236,800
6.38
n.a
8,163.3
8.0
1278.5
6.1
17.6
7.6
Malaysia
329,758
28.96
1.3
12.5
287,922.3
5.1
9940.6
8.7
8.6
3.2
Myanmar
676,577
60.4
1.0
30.1
10.4
875.1
37.3
5.0
The Philippines
300,000
94.2
40.0
224,337.4
3.9
2340.9
-6.7
9.5
4.6
Singapore
648
5.18
2.1
259,858.4
4.9
7.5
5.2
Thailand
514,000
67.6
38.8
345,810.8
0.1
5115.8
11.7
19.1
3.8
Vietnam
330,955
87.8
51.4
123,266.9
5.9
1403.3
34.2
25.8
18.6
Source: Asian Development Bank, Key Indicators for Asia and Pacific 2012, ASEAN Statistics

8. Table (1.2) Selected Social Indicators (2011): ASEAN
Countries
HDI
Life expectancy
(yrs)
Adult literacy
(%)
Education expenditure % of GDP
Health expenditure % of GDP
Infant mortality rate
(per 1000)
Access to
improved water
(% of pop)
Brunei
0.84 77 97
n.a 6
Cambodia
0.52 61 85
5.6 75
Indonesia
0.61 68 95 26
2.6 33 80
Laos 63 82
13.2
4.5 52 57
Malaysia
0.76 73
18.9
4.4
100
Myanmar
0.48 64
2.0 71
The Philippines
0.64 70
16.9
3.6 29 91
Singapore
0.87
10.3
4.0 3
Thailand
0.68 96
22.3
3.9 13 98
Vietnam
0.59 72
19.8
6.8 19 94
Source: World Development Indicators, 2012, Asia Pacific Human Development Report, UNDP.

9. Cont
1.3 Myanmar: Geography, Demography, and Natural Resources
Myanmar 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

10. 2. 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.

11. Cont 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 regionalism
Politically
peace and stability in the region
better confidence among members of ASEAN
Strengthening of external security
Economically
increase trade and investment links within the region
achieve greater development
increased efficiency
Culturally
contribute to ASEAN through promoting its own rich traditions

12. Cont 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 Minister
small-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.

13. Cont
The 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 AFTA
participating in ASEAN activities fully since its first day of entry into the regional association.

14. 2.3 Myanmar - ASEAN Cooperation for Economic Development
Table (2.1) Myanmar Exports to ASEAN (Kyat million)
Value %
(Total)
Singapore
845.8
28.6
986.8
19.6
737.3
5.8
1532.7
7.4
3690.9
8.9
Malaysia
40.87
1.4
147.5
2.9
471.1
3.7
540.4
2.6
832.2
2.0
Indonesia -
299.6
5.9
221.6
1.7
380.5
1.8
205.3
0.5
Philippines
0.22
0.07
133.1
37.8
0.2
73.2
0.4
147.6
Thailand
387.9
13.1
534.9
10.6
1831.3
14.4
7868.6
38.1
17431
42.2
Vietnam
0.97
0.02
29.5
223.8
1.08
299.8
0.7
Lao PDR
2.8
0.09
0.0004
Cambodia
1.1
Brunei
1.59
0.03
0.01
4.99
4.09
Source: Statistical Yearbook 2010.

15. Table (2.2) Myanmar Imports from ASEAN (Kyat million)
Value %
(Total)
Singapore
532.4
9.6
1819.7
17.7
3646.4
24.2
3240.2
28.1
6593
28.9
Malaysia
383.5
6.9
615.9
5.9
794.0
5.3
810.8
7.01
871.3
3.8
Indonesia
17.17
0.3
350.3
3.4
534.3
3.5
336.1
2.9
760.4
3.3
Philippines
1.06
0.02
4.85
0.04
75.1
0.5
32.4 77
Thailand
554.8
10.1
1318.8
12.8
1970.7
13.1
1376.2
11.9
2069.6
9.1
Vietnam
10.6
0.1
42.7
57.1
148.4
0.6
Lao PDR -
1.1
0.01
Cambodia
Brunei
0.0007
Source: Statistical Yearbook 2010.

16. Table (2.3) Foreign Direct Investment Flow into Myanmar from ASEAN
Country
Number of Projects
Amount
(US$ million)
% of Total Investment
Brunei - 2
3.04
0.007
Singapore 70
1541.6
20.8 83
2167.0
5.2
Malaysia 31
151.1
2.0 43
1031.3
2.5
Indonesia 11
240.0
3.2 12
241.5
0.6
Thailand 49
1290.2
17.4 61
9568.1
22.9
The Philippines
146.7
1.9
0.4
Cambodia
Lao PDR
Vietnam 5
361.8
0.9
Source: Directorate of Company Administration and Investment, Ministry of National Planning and Economic Development.

17. 3. Establishment of ASEAN Economic Community
3.1 Why ASEAN decided to establish AEC
9th 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 base
To make the ASEAN region a more dynamic and stronger segment of the global supply chain
the integration of its Member Countries and enhancing the region’s economic competitiveness.

18. Cont
To 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 talents
strengthen the institutional mechanisms of ASEAN,
Dispute Settlement Mechanism to ensure expeditious and legally binding resolution of any economic dispute.

19. Cont
goals 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

20. Cont
3.2 Economic Implications of Myanmar to Join AEC
expects general regional trade area (RTA) advantages from joining ASEAN and AEC
greater 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 .

21. Cont 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 2014
To develop a viable stock exchange by 2015
To 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).

22. Cont
Custom 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 currency
One Stop Service in company registration is finished one day if the documents are completed.
the standard and conformance areas
performance and factors of IPR in line with AEC measures

23. 4. Issues and Challenges Relating Myanmar’s to Join AEC
Development of capital market in Myanmar
need to improve legal and regulatory framework
need to the development of issuing system
private sector participation
SMEs development
poor 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.

24. Cont 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 transaction
barrier to attract investment which is a key factor for economic development in financial sector from EU and US

25. Cont Implementation in standard and conformance
lack of initiator, lack of public awareness
lack of technical infrastructure
lack of laboratory equipments
In ASEAN region, harmonization of standard and conformance help to build credibility and reputation for domestic producers and traders

26. Cont Implementation of AEC
lack of awareness on the program areas and implementation progress even among the main beneficiary groups and responsible department and agencies
the target areas of some projects are mismatch with the specific requirement of respective sector
the priority areas of some programs do not satisfy the needs and development priority of individual country

27. Conclusion Myanmar’s Implementation in AEC Phase I : 95%
Phase II : 80%
Phase III : 77%

28. Thank You