1. ASEAN ECONOMIC COMMUNITY 2015
ASEAN Business & Investment Summit
20 November 2015, Kuala Lumpur, Malaysia 1

2. OUTLINE OF PRESENTATION2
OUTLINE OF PRESENTATION
I. ASEAN Economic Integration – An Overview
II. AEC - what we set out to do
III. AEC - where are we now
IV. AEC Scorecard Report & ASEAN Integration Report 2

3. ASEAN ECONOMIC INTEGRATION – AN OVERVIEW3
ASEAN ECONOMIC INTEGRATION – AN OVERVIEW
1992
Framework Agreement on Enhancing ASEAN Economic Cooperation
1997
ASEAN Vision 2020
1998
Hanoi
Plan of Action
2003
Declaration of ASEAN Concord II
2007
ASEAN Economic Community
Blueprint
AEC 2015
and
Beyond

4. AEC - WHAT WE SET OUT TO DO4
AEC - WHAT WE SET OUT TO DO
ASEAN ECONOMIC COMMUNITY
STRATEGIC SCHEDULE OF THE AEC BLUEPRINT ( )
Pillar 1
Single Market
& Production Base
Free flow of goods
Free flow of services
Free flow of investment
Freer flow of capital
Free flow of skilled labor
Priority Integration Sectors
Food, agriculture and forestry
Pillar 2
Competitive Economic Region
Competition policy
Consumer protection
Intellectual property rights
Infrastructure development
Taxation
E-Commerce
Pillar 3
Equitable Economic Development
SME development
Initiative for ASEAN Integration
Pillar 4
Integration into
the Global Economy
Coherent approach towards external economic relations
Enhanced participation in global supply networks 4 4
HUMAN RESOURCE DEVELOPMENT RESEARCH AND DEVELOPMENT

5. AEC - WHERE ARE WE NOW IMPLEMENTATION RATE5
2007
AEC Blueprint Launched
* 316 measures
* Regular review to ensure measures are relevant
* Addition/deletion of measures
2015
* 506 measures
* As of end Oct, 469 out of 506 measures implemented (92.7%)
AEC - WHERE ARE WE NOW
IMPLEMENTATION RATE

6. AEC - WHERE ARE WE NOW LOW HANGING FRUITS6
AEC - WHERE ARE WE NOW
LOW HANGING FRUITS
Tariff Elimination
Rules of Origin
ASEAN Single Window
Self Certification
ASEAN %
CLMV 90.86%
40% local content
Change in tariff subheading
Scale down pilot project concluded
Full-fledged pilot project commenced
Certified manufacturer and trader to decide
2 pilot projects in place

7. AEC - WHERE ARE WE NOW LOW HANGING FRUITS7
AEC - WHERE ARE WE NOW
LOW HANGING FRUITS
One Standard, One Test, Accepted Everywhere
Harmonization of Standards & Technical Requirements
EEE (121)
AU (15) PF (5)
TMHS (17)
PM (7) MD (15) RB (46)
Accreditation & Conformity Assessment
EEE
16 Testing Laboratories & 5 Certification Bodies GP
4 inspection services
Mutual Recognition Arrangement
Implemented
EEE / GP
Development
Auto Products / Food Hygiene
Building & Construction
Harmonization of Regulatory Regime
EEE / CS / MD
PF / TMHS
AU – Automotive CS – Cosmetic EEE – Electrical & Electronic Equipment
GP – GMP Inspection of Manufacturers of Medicinal Products MD – Medical Device PF – Prepared Foodstuff
PM – Pharmaceuticals RB – Rubber Based TMHS – Traditional Medicine & Health Supplement

8. Financial Integration Movement of Natural Person8
AEC - WHERE ARE WE NOW
LOW HANGING FRUITS .C
National
Trade Repository
Tariff /MFN
Preferential (FTA/CEP)
ROO / NTMs
Trade & Customs Law/Rule
Services
8 packages concluded (WTO Plus)
9th package being finalized
10th package being negotiated
Financial Integration
6 packages of financial services concluded (WTO Plus)
ASEAN Banking Integration Framework
ASEAN Exchanges
Movement of Natural Person
MRA Concluded
Architecture, Accountant, Engineer, Dental, Medical, Nursing, Surveyor, Tourism Professional
Operationalized
Architect / Engineer

9. Intellectual Property Right9
AEC - WHERE ARE WE NOW
LOW HANGING FRUITS
9 AMS have consumer protection law in place
Complaint and redress mechanism
ASEAN Patent Examination Cooperation
ASEAN TM View
8 AMS have competition law in place
Strategy and Tools for regional competition advocacy
Liberalization
Facilitation
Promotion
Protection
Annual Peer Review
Investment Policy Review
Investment
Consumer Protection
Competition
Intellectual Property Right

10. Agriculture, Fishery and Forestry10
AEC - WHERE ARE WE NOW
LOW HANGING FRUITS
Agriculture, Fishery and Forestry
Energy
Minerals
ICT
Best practices – GAP, GAqP,
GAHP, ASOA
Regional reference framework on phased approach tp forest certification
8.5% reduction in energy intensity
25% renewable energy share in installed power generation
Reduction of International Mobile Roaming Rate
ICT skill standard and certification framework developed
ASEAN Minerals Database
ASEAN Minerals Trust Fund

11. AEC - WHERE ARE WE NOW LOW HANGING FRUITS11
AEC - WHERE ARE WE NOW
LOW HANGING FRUITS
Air Transport
ASEAN Open Sky for both cargo and passenger services
Greater air connectivity with China
Land Transport
Designated roads and highways linking ASEAN Highway Network physically connected
Regional Road Safety Strategy put in place
Sea Transport
Implementing Strategy for ASEAN Single Shipping Market formulated
Prioritized routes for ASEAN RO-RO Shipping Network and Short Sea Shipping identified
Tourism
MRA on Tourism Professional Concluded
ASEAN Community-Based Tourism Standard Established

12. AEC - WHERE ARE WE NOW LOW HANGING FRUITS12
AEC - WHERE ARE WE NOW
LOW HANGING FRUITS
Entry
Into Force
Size of Market
Size of Economy ($)
Total Trade ($)
ASEAN
1992
0.622 B
2.57 T
608 B
ACFTA (China)
2005
1.990 B
12.93 T
366.5 B
AKFTA (Korea)
2007
0.673 B
3.98 T
131.5 B
AJCEP (Japan)
2008
0.749 B
7.17 T
229.1 B
AANZFTA (Aus-Nzl)
2010
0.651 B
4.22 T
81.1 B
AIFTA (India)
1.898 B
4.63 T
67.7 B
AHKFTA (Hong Kong)
Jul 2014*
0.630 B
2.89 T
99.4 B
RCEP
May 2013*
3.472 B
22.63 T
1,484 B 12 12
* Commencement of Negotiations
US$ 2.53 T

13. AEC - WHERE ARE WE NOW UNFINISHED AGENDA13
AEC - WHERE ARE WE NOW
UNFINISHED AGENDA
eLimination of non-tariff barriers
integration of SME inTO regional production networks and global supply chain
enhancement and development of existing/new infrastructure to
support sustainable growth
narrowing
development gaps
within and between
ASEAN Member States
conclusion
Of ON-GOING FTA negotiations
to serve as a building block
to region-wide FTA

14. IMPACT ON ASEAN ECONOMIC PERFORMANCE14
AEC – WHERE ARE WE NOW
IMPACT ON ASEAN ECONOMIC PERFORMANCE
THIRD LARGEST ECONOMY IN ASIA
SEVENTH LARGEST ECONOMY IN THE WORLD
622 MILLION PEOPLE (53% BELOW 30 YRS OLD)
2007
2014
GDP
US$ T
US$ T
GDP PER CAPITA
US$ 2,343
US$ 4,135
TRADE
US$ 1.61 T
US$ 2.53 T
INVESTMENT
US$ 85 B
(5% OF WORLD FDI)
US$ 136 B
(11% OF WORLD FDI)

15. Accessible through www.asean.org15
Accessible through