DOING BUSINESS IN

ASEAN
ASEAN ECONOMIC COMMUNITY

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Contents
Foreword	

5

Introduction to ASEAN	8• Aims and Purposes������������������������������������������������������������������������������������������������������������������������������������������������������������������������9• Fundamental Principles������������������������������������������������������������������������������������������������������������������������������������������������������������ 10• ASEAN Community 2015���������������������������������������������������������������������������������������������������������������������������������������������������������� 10
ŰŰ ASEAN Political-Security Community (APSC) Blueprint 2015
10
ŰŰ ASEAN Economic Community Blueprint 2015 (AEC Blueprint 2015)
11
ŰŰ ASEAN Socio-Cultural Community (ASCC) Blueprint 2015
11• ASEAN Community 2025���������������������������������������������������������������������������������������������������������������������������������������������������������� 12
ŰŰ ASEAN Political-Security Community Blueprint 2025 (APSC Blueprint 2025)
12
ŰŰ ASEAN Economic Community Blueprint 2025 (AEC Blueprint 2025)
13
ŰŰ ASEAN Socio-Cultural Community Blueprint 2025 (ASCC Blueprint 2025)
14• ASEAN Charter����������������������������������������������������������������������������������������������������������������������������������������������������������������������������� 14
ASEAN at a Glance	15• Region Profile: ASEAN��������������������������������������������������������������������������������������������������������������������������������������������������������������� 16• Country Profile: Brunei Darussalam�������������������������������������������������������������������������������������������������������������������������������������� 17• Country Profile: Cambodia ����������������������������������������������������������������������������������������������������������������������������������������������������� 18• Country Profile: Indonesia������������������������������������������������������������������������������������������������������������������������������������������������������� 19• Country Profile: Laos������������������������������������������������������������������������������������������������������������������������������������������������������������������ 20• Country Profile: Malaysia���������������������������������������������������������������������������������������������������������������������������������������������������������� 21• Country Profile: Myanmar�������������������������������������������������������������������������������������������������������������������������������������������������������� 22• Country Profile: Philippines����������������������������������������������������������������������������������������������������������������������������������������������������� 23• Country Profile: Singapore������������������������������������������������������������������������������������������������������������������������������������������������������� 24• Country Profile: Thailand���������������������������������������������������������������������������������������������������������������������������������������������������������� 25• Country Profile: Vietnam����������������������������������������������������������������������������������������������������������������������������������������������������������� 26
ASEAN Today: Socio-Political	27• Understanding ASEAN Demographics: Is there a Dividend?�������������������������������������������������������������������������������������� 28
ASEAN TODAY: KEY ACHIEVEMENTS UNDER AEC BLUEPRINT 2015 AND RECENT DEVELOPMENTS 30• ASEAN Economic Community Blueprint 2015 – Key Achievements������������������������������������������������������������������������ 31• Myanmar – An Unprecedented Year������������������������������������������������������������������������������������������������������������������������������������ 32• Thailand Economic Outlook���������������������������������������������������������������������������������������������������������������������������������������������������� 33• Indonesian Economic Outlook����������������������������������������������������������������������������������������������������������������������������������������������� 33• Vietnam Economic Outlook���������������������������������������������������������������������������������������������������������������������������������������������������� 34
Growing With ASEAN: AEC Blueprint 2025 – Forging Ahead Together	

35

E-Commerce in ASEAN 	40• Brunei Darussalam���������������������������������������������������������������������������������������������������������������������������������������������������������������������� 41• Cambodia��������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������� 43• Indonesia���������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������� 44• Laos�������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������� 46• Malaysia������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������ 46• Myanmar���������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������� 50• Philippines������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������� 52

Doing Business in ASEAN 2016

1

Contents• Singapore�������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������54• Thailand����������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������57• Vietnam����������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������60
Looking Beyond ASEAN	63• ASEAN and China����������������������������������������������������������������������������������������������������������������������������������������������������������������������������������64
ŰŰ Trade Relations in the Modern Era64ŰŰ The China Connection for ASEAN
65
ŰŰ Even Closer ASEAN-China Economic Ties: Not A Want, But A Need67ŰŰ A Bright Future for ASEAN and China
69ŰŰ The Asian Infrastructure Investment Bank
69
ŰŰ ASEAN and China’s One Belt One Road
69• ASEAN and Japan����������������������������������������������������������������������������������������������������������������������������������������������������������������������������������70
ŰŰ Relations between Southeast and East Asia
71• ASEAN and South Korea���������������������������������������������������������������������������������������������������������������������������������������������������������������������71
ŰŰ ASEAN-Korean Multilevel Cooperation
72• ASEAN and India������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������72
ŰŰ ASEAN-India Trade Relations
73• ASEAN and the Trans-Pacific Partnership�������������������������������������������������������������������������������������������������������������������������������������73• ASEAN and the European Union�����������������������������������������������������������������������������������������������������������������������������������������������������74• ASEAN, Australia and New Zealand������������������������������������������������������������������������������������������������������������������������������������������������74
Did You Know: Amazing Facts about ASEAN	

75

Glossary and Acronyms	

80

References and Acknowledgements	

81

Attribution and Credits	

83

Repository of Policies and Data	84
TablesTable 1: Paying Taxes in ASEAN (as at 31 December 2013)������������������������������������������������������������������������������������������������������������84
Table 2: Restrictions to Foreign Investment (as at 31 December 2014)�������������������������������������������������������������������������������������85
Table 3: Corporate Framework (as at 31 December 2014)�������������������������������������������������������������������������������������������������������������86
Table 4: Legal Systems and Dispute Resolution Environment (as at 31 December 2014)��������������������������������������������������93
Table 5: Competition (as at April 2016)�������������������������������������������������������������������������������������������������������������������������������������������������95
Table 6: ASEAN: Population, Territory and Economy (2014) ������������������������������������������������������������������������������������������������������ 100
Table 7: ASEAN and Selected Trading Partners: Population, Economy (2014)��������������������������������������������������������������������� 101
Table 8: Trade with Selected Dialogue Partner Countries (in US$ billion)����������������������������������������������������������������������������� 102
Table 9: ASEAN: Nominal Gross Domestic Product for periods indicated����������������������������������������������������������������������������� 103
Table 10: ASEAN6: Consumer Price Index for Food, Housing, Transport (2005-2014)������������������������������������������������������� 104
Table 11: ASEAN: Inflation Rate, end-of-period (in percent) for periods indicated������������������������������������������������������������ 105
Table 12: ASEAN Lending Rates (in percent) for periods indicated������������������������������������������������������������������������������������������ 105
Table 13: ASEAN: Exchange Rates, average-of-period (national currency / US$) for periods indicated��������������������� 106

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Contents
Table 14: ASEAN: Total Trade for periods indicated������������������������������������������������������������������������������������������������������������������������ 107
Table 15: ASEAN Member States: Trade Balance for periods indicated���������������������������������������������������������������������������������� 108
Table 16: ASEAN Member States: Total Trade with ASEAN+3 (2014)��������������������������������������������������������������������������������������� 109
Table 17: ASEAN Member States: Total Trades with Selected Trade Partners (2014)��������������������������������������������������������� 110
Table 18: ASEAN Member States: Percent Share of Total Trade with Selected Trade Partners (2014)������������������������� 111
Table 19: ASEAN: Top 20 Export Commodities1 (2014)����������������������������������������������������������������������������������������������������������������� 112
Table 20: ASEAN: Top 20 Import Commodities1 (2014)����������������������������������������������������������������������������������������������������������������� 114
Table 21: FDI Inflows into ASEAN, by Source Country (US$ million)���������������������������������������������������������������������������������������� 115
Table 22: ASEAN: Trends in Tourist Arrivals, by host country for periods indicated����������������������������������������������������������� 116
Table 23: ASEAN: Internet Subscribers / Users, per 1,000 persons for periods indicated������������������������������������������������� 117
Table 24: ASEAN: Distribution of Population, by age group (2013)����������������������������������������������������������������������������������������� 117
Table 25: ASEAN Member States: Population Living under PPP $1.25, in percent for periods indicated������������������ 118
Table 26: ASEAN Member States: Gini Coefficient in ASEAN Member States, in percent for periods indicated������ 118
Table 27: ASEAN Member States: Life Expectancy at Birth, in years for periods indicated��������������������������������������������� 119
Table 28: ASEAN Member States: Government Health Expenditure as Percentage of GDP for periods indicated� 119
Table 29: ASEAN Member States: Adult Literacy Rate 15 Years Old and Above, in percent for periods indicated� 120
Table 30: ASEAN Member States: Unemployment Rate by Gender, in percent for periods indicated������������������������ 121
About the Authors	
122• Special Mention���������������������������������������������������������������������������������������������������������������������������������������������������������������������������������� 128
FiguresFigure 1: Rising Trade between China and ASEAN����������������������������������������������������������������������������������������������������������������������������66
Figure 2: Share of China’s ODI (ex-HK) to the World�������������������������������������������������������������������������������������������������������������������������67
Figure 3: Figure 3: China’s ODI to ASEAN Economies�����������������������������������������������������������������������������������������������������������������������67
Figure 4: China’s Population Starts Shrinking in 2031����������������������������������������������������������������������������������������������������������������������68
Figure 5: Emerging ASEAN Economies Can Fill The Manufacturing Vacuum��������������������������������������������������������������������������68

Doing Business in ASEAN 2016

3

Contents
Disclaimer
This guide is designed to provide information on doing business in ASEAN only. This information is provided with
the intention that the authors do not offer any legal or other professional advice. In the case of a need for any such
expertise, please consult the appropriate professional. This is not an exhaustive guide on the subject and was notcreated to be specific to any individual’s or organisation’s circumstance or needs. 
Every effort has been made to make this guide as accurate as possible and it should serve only as a general guideor supporting material, not as the ultimate source of subject information. 
This guide contains information that might be dated and is intended only to be informative for publication purposeat the time of print. The authors shall bear no liability or responsibility to any person(s) or entity regarding any
loss or damage incurred, or alleged to have been incurred, directly or indirectly, by the reliance on information
contained in this guide, and shall not be responsible for any errors, inaccuracies or omissions.
Copyright Notice
No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by anymeans, electronic, mechanical, photocopying, recording, or otherwise without written permission of the authors
or a licence permitting restricted copying.
   
Copyright © United Overseas Bank Limited, RSM Chio Lim LLP and Rajah & Tann Singapore LLP 2016. 
   
All rights reserved.

4Foreword
United Overseas Bank Limited
Southeast Asia’s growth story has propelled forward in recent years. 
There are huge investment opportunities in Southeast Asia – from manufacturing
to infrastructure to energy and services. When the economic bloc of 10 nations
is taken as a whole, ASEAN ranks as the seventh largest global economy with acollective gross domestic product of US$2.6 trillion. 
It is therefore no surprise that robust regional growth forecasts suggest that the
combined economies of Southeast Asia will be a crucial, long-term driver of the
global economy. 
However, realising the region’s full potential is likely to be challenging.  The key challenge lies in trade liberalisation,
integration of capital markets and standardisation of legal and regulatory frameworks which will make it mucheasier to do business across the region.  
In spite of this, foreign direct investment (“FDI”) inflows into Southeast Asia have surged over the last four years,
growing from US$47.8 billion in 2009 to US$133 billion in 2014.  This trend is expected to gather even more
momentum in the coming years as the region works towards economic integration.
UOB understands that companies need to adopt a regional strategy to take advantage of the shifting investment
landscape. The Bank also has dedicated FDI Advisory teams in China, Hong Kong SAR, India, Indonesia, Malaysia,
Myanmar, Singapore, Thailand and Vietnam to address the diverse needs of companies expanding within theregion.
In light of this, we are pleased to partner RSM and Rajah & Tann Asia to produce the second edition of this guide aspart of our effort to help international and regional companies navigate their investments in the region.

Eric ThamManaging Director and Group Head of Commercial Banking
United Overseas Bank

Doing Business in ASEAN 20165

Foreword

RSM
Anyone who wishes to do business in ASEAN must first embrace its diversity anddynamism. As a regional network of 10 member nations governed by different
political systems, it has a population of more than 600 million people whopractise a multitude of religions and speak over 70 languages and dialects.
What are the risks to ASEAN? Can we continue forging ahead amid uncertainty
over global demand? The development gaps within and between the countries,
such as disparities in income, law, tax systems, financial systems, capital andexchange controls, will continue to be the key challenges as ASEAN forges ahead
towards ASEAN Community Vision 2025 adopted at the 27th ASEAN Summit inKuala Lumpur in November 2015.
ASEAN needs to foster deeper integration as a matter of priority. I am glad that the AEC 2025 Blueprint, which
is a component of ASEAN Community Vision 2025, has developed a comprehensive blueprint to make ASEAN
a dynamic, cohesive and inclusive community that is responsive to global trends and connected to the global
economy.   Specifically, the AEC 2025 Blueprint recognises the importance for ASEAN to (a) remain open andcohesive for free trade and investment flows, (b) enhance participation and integration in global value chains, (c)deploy information and communications technology to narrow the development gap and (d) strengthen the roleof micro, small and medium enterprises so that they remain resilient, innovative and productive.
Together with our network firms in ASEAN, we are well-positioned to help our clients ride the wave of opportunities
under the AEC 2025 Blueprint.  With that, we are pleased to bring to you the second edition of the guidebook on“Doing Business in ASEAN” in collaboration with our partners UOB and Rajah & Tann.

Chio Kian Huat
Chief Executive Officer
RSM Chio Lim LLP
May 20166

Foreword

Rajah & Tann Asia
With close to 9% of the world’s population, a growing middle class, a young
workforce, and a low-based upward trending gross domestic product of
US$2.6 trillion, trade and investment prospects for ASEAN remain promisingly
robust at a time when many of the world’s largest economic engines are facing
headwinds.  Regional integration within an Emerging Asia has also picked up
speed. A number of frameworks for greater integration, including the ASEAN+3(ASEAN, Japan, China and Korea) and ASEAN+6 (ASEAN+3, India, Australia
and New Zealand) initiatives, act as significant building blocks as the ASEAN
Economic Community established at the end of 2015 starts to become a reality.  
However, challenges in key policy areas remain and require detailed addressing— trade in goods and services, investment and capital market liberalisation, competition and consumer protection,
intellectual property, infrastructure, tourism, the development of the private sector SME economy in a fast changing
cross-border environment and improved regulatory coordination. The need for relevant and practical legal advice
could not be more timely. 
Rajah & Tann Asia was established in August 2014 with the vision to provide an ASEAN “home team” of lawyers. 
With 600 lawyers working across 11 offices in 9  countries across Asia and rooted in the know-how and diverse
cultures of the region, our clients have come to trust the unparalleled experience and on-the-ground insights that
we bring to transactions in the region and beyond. 
We trust that this publication will serve as a useful resource and tool for those seeking to learn more about ASEAN
and its member states, as well as about the regional initiatives, both implemented and planned.

Lee Eng Beng SC
ChairmanRajah & Tann Asia

Doing Business in ASEAN 20167

Introduction to ASEAN

8▪▪ To promote regional peace and stability throughabiding respect for justice and the rule of law inthe relationships among countries of the region
and adherence to the principles of the United
Nations (UN) Charter;▪▪ To promote active collaboration and mutual
assistance on matters of common interest in theeconomic, social, cultural, technical, scientificand administrative fields;

Such a commitment was of great importance forbuilding trust in a region divided by stark ethnic
differences and a scant history of inter-state
cooperation during the period of colonisation.  
The 1967 Bangkok Declaration was an initiative toensure peace and stability in the region, through acommitment to work together and deal peacefully
with mutual differences.  Member states hoped toforge an independent bloc in Southeast Asia thatwould not be dominated or exploited by external
powers.  
Today, the notions of sovereignty, equality,
territorial integrity and non-interference among
member states remain central tenets of ASEAN
unity and cooperation.

▪▪ To provide assistance to each other in theform of training and research facilities inthe educational, professional, technical andadministrative spheres;▪▪ To collaborate more effectively for the greater
utilisation of agriculture and other industries,
the expansion of trade (including the studyof problems of international commodity
trade), the improvement of transportation andcommunications facilities, and raising the living
standards of their peoples;▪▪ To promote Southeast Asian studies; and▪▪ To maintain close and beneficial cooperation
with existing international and regionalorganisations with similar aims and purposes,
and explore all avenues for even closer
cooperation among themselves.

Doing Business in ASEAN 2016

9

INTRODUCTION TO
ASEAN
ASEAN Today:
Socio-Political
ASEAN TODAY: KEY ACHIEVEMENTS UNDER AEC
BLUEPRINT 2015 AND RECENT DEVELOPMENTS

As set out in the ASEAN Declaration, the other aims
and purposes of ASEAN are:Growing With ASEAN: AEC Blueprint 2025 – Forging Ahead TogetherA

gainst a backdrop of the Cold War and thetumultuous transition to independence inmany Southeast Asian states, ASEAN’s objective at
its establishment was “to accelerate the economic
growth, social progress and cultural developmentin the region through joint endeavours in the spiritof equality and partnership in order to strengthen
the foundation for a prosperous and peacefulcommunity of South-East Asian Nations”.

E-Commerce in ASEANAims and Purposes

LOOKING BEYOND
ASEAN

he Association of Southeast Asian Nations, or
ASEAN, was established on 8 August 1967 in
Bangkok, Thailand, with the signing of the ASEAN
Declaration  (Bangkok Declaration) by the Founding
Fathers of ASEAN, namely Indonesia, Malaysia, thePhilippines, Singapore and Thailand. Subsequently,
Brunei Darussalam joined on 7 January 1984,
Vietnam on 28 July 1995, Laos and Myanmar on 23
July 1997, and Cambodia on 30 April 1999. Thesecomprise the 10 member states of ASEAN today.

DID YOU KNOW: AMAZINGFACTS ABOUT ASEAN

T

ASEAN AT A
GLANCE

Introduction to ASEAN

Introduction to ASEAN

Fundamental PrinciplesIn their relations with one another, the ASEAN
member states have adopted the following
fundamental principles, as contained in the Treatyof Amity and Cooperation in Southeast Asia (TAC)of 1976:▪▪ Mutual respect for the independence,sovereignty, equality, territorial integrity, andnational identity of all nations;▪▪ The right of every State to lead its national
existence free from external interference,
subversion or coercion;▪▪ Non-interference in the internal affairs of one
another;▪▪ Settlement of differences or disputes bypeaceful means;▪▪ Renunciation of the threat or use of force; and▪▪ Effective cooperation among member states.

ASEAN Community 2015T

he ASEAN Community 2015 is based on thevision of One Vision, One Identity, One
Community. The ASEAN leaders agreed on a sharedvision of ASEAN as a concert of Southeast Asian
nations that is outward looking, and living in peace,stability and prosperity as development partners
within a community of caring societies.
At the 9th ASEAN Summit in 2003, ASEAN leadersresolved that an ASEAN Community shall beestablished.  At the 12th ASEAN Summit in 2007,
the leaders subsequently affirmed their strong
commitment to accelerate the establishmentof an ASEAN Community by 2015 and signed
the Cebu Declaration on the Acceleration of theEstablishment of an ASEAN Community by 2015.
The ASEAN Community 2015 comprises three pillars,
namely, the ASEAN Political-Security Community

10(APSC), ASEAN Economic Community (AEC) and
ASEAN Socio-Cultural Community (ASCC). 
Each pillar has its own blueprint, and together with
the Initiative for ASEAN Integration (IAI) Strategic
Framework and IAI Work Plan Phase II (2009-2015),
forms the Roadmap for an ASEAN Community
2009-2015.

ASEAN Political-Security Community(APSC) Blueprint 2015T

he ASEAN Political-Security Community has
its origins in over four decades of close
cooperation and solidarity. 

At the 13th ASEAN Summit in Singapore, ASEAN
heads of states / governments signed the ASEAN
Charter, which marked ASEAN member states’commitment towards intensifying community
building through enhanced regional cooperationand integration. In line with this, they tasked theirministers and officials to draft the APSC Blueprint,
which would be adopted at the 14th ASEAN
Summit.
The APSC 2015 Blueprint is guided by the ASEAN
Charter and the principles and purposes contained
therein.  The APSC Blueprint builds on the ASEAN
Security Community Plan of Action, the Vientiane
Action Programme (VAP), as well as relevant
decisions by various ASEAN sectoral bodies. 
The ASEAN Security Community Plan of Action isa principled document that sets out the activities
needed to realise the objectives of the ASEAN
Political-Security Community, while the VAP sets out
the measures necessary for 2004-2010. These two
documents are important references in continued
political and security cooperation. 
The APSC 2015 Blueprint provides a roadmap
and timetable to establish the APSC by 2015. This
Blueprint would also have the flexibility to continue
programmes and activities beyond 2015 in order toretain its significance and have an enduring quality.

▪▪ a region fully integrated into the global economy.
The AEC Blueprint 2015 areas of cooperation include
human resources development and capacity
building, recognition of professional qualifications,closer consultation on macroeconomic and financial
policies, trade financing measures, enhanced
infrastructure and communications connectivity,
development of electronic transactions throughe-ASEAN, integrating industries across the region topromote regional sourcing, and enhancing private
sector involvement for developing the AEC. 
Enabling economic development throughout
ASEAN is also an important objective of the AEC
Blueprint 2015.  The enlarged membership of
ASEAN came with a new set of challenges.  The last
four members to join – Cambodia, Laos, Myanmar
and Vietnam – had significant development gaps
with the six founding members.  
Narrowing this “development gap” thus became an
additional priority of ASEAN.   Projects under theInitiative for ASEAN Integration are designed toenable new ASEAN members to accelerate the paceof economic growth, and enable them to participate
on a similar level with the first six members.
In short, the AEC Blueprint 2015 will transform
ASEAN into a region with free movement of goods,
services, investment, and skilled labour, as well as
freer flow of capital.

Areas of cooperation in this community include
culture, arts and information, disaster management,
education, environment, health, labour, ruraldevelopment and poverty eradication, social
welfare and development, youth and civil service
cooperation.
Embedded in the ASEAN Vision 2020, Declarationof ASEAN Concord I (1976), Declaration of ASEAN
Concord II (2003) and the Hanoi Plan of Action(HPA) is ASEAN’s goal of a community of cohesive,
equitable and harmonious societies, boundtogether in solidarity for deeper understanding andcooperation. Its key features are:▪▪ Equitable access to opportunities will beuniversal, rising above the barriers of religion,
race, language, gender and social and cultural
background;▪▪ Human potentials are nurtured to the fullest sothat all individuals can participate meaningfully
in a competitive world in a manner that gives
paramount importance to their welfare anddignity;▪▪ Norms of social and distributive justice areupheld by addressing issues of poverty andequity, and special care is given to vulnerable
groups – children, youth, women, the elderly,
and persons with disabilities – who could be thesubject of abuse, neglect and discrimination;

Doing Business in ASEAN 2016

11

INTRODUCTION TO
ASEAN
ASEAN Today:
Socio-Political
ASEAN TODAY: KEY ACHIEVEMENTS UNDER AEC
BLUEPRINT 2015 AND RECENT DEVELOPMENTS▪▪ a region of equitable economic development;
andGrowing With ASEAN: AEC Blueprint 2025 – Forging Ahead Together▪▪ a highly competitive economic region;

E-Commerce in ASEAN▪▪ a single market and production base;T

he ASCC Blueprint 2015 contributes to therealisation of an ASEAN Community that is“people-centred and socially responsible with aview to achieving enduring solidarity and unity
among the nations and peoples of ASEAN byforging a common identity and building a caring
and sharing society which is inclusive andharmonious where the well-being, livelihood, andwelfare of the peoples are enhanced.”LOOKING BEYOND
ASEAN

T

he AEC Blueprint 2015 envisages the following
key characteristics:

ASEAN Socio-Cultural Community(ASCC) Blueprint 2015

DID YOU KNOW: AMAZINGFACTS ABOUT ASEAN

ASEAN Economic Community
Blueprint 2015 (AEC Blueprint 2015)

ASEAN AT A
GLANCE

Introduction to ASEAN

Introduction to ASEAN▪▪ The environment and natural resources areprotected and managed to sustain development
and as a legacy for future generations;▪▪ Civil society is engaged in providing inputs forpolicy choices;▪▪ People are healthy in mind and body and living
in harmony in safe environments; and▪▪ ASEAN citizens interact in a community
conscious of its historical ties, aware of its
cultural heritage and bound by a common
regional identity.

ASEAN Community 2025

I

n November 2015, the Head of States/
Government representing the ten ASEAN
countries meet in Kuala Lumpur for the 27th ASEAN
Summittocelebrate
thesubstantive
implementation of the AEC 2015 Blueprint bystandardising economic regulations including
those on trade, capital market regulatory
frameworks and platforms, labour mobility andprotection of the intellectual property rights.  Theleaders also acknowledge the establishment of theASEAN Community is still a work in progress andthe collective leadership to strengthen the ASEAN
identity is critical and necessary. A strong political
will to strengthen ASEAN unity is needed and theKuala Lumpur Declaration on ASEAN 2025 by the
ASEAN leaders made plain the leaders’ continued
commitment towards deeper regional integration.  
The Asean Community Vision 2025 envision:(a) a peaceful, stable and resilient Community withenhanced capacity to respond effectively tochallenges, and ASEAN as an outward-looking
region with a global community of nations,while maintaining ASEAN centrality;(b) a vibrant, sustainable and highly integrated
economies, enhanced ASEAN Connectivity as
well as strengthened efforts in narrowing thedevelopment gap;

12(c) a Community empowered with capabilities, toseize opportunities and address challenges in
the coming decade; and(d) underline the complementarity of theUnited Nations 2030 Agenda for Sustainable
Development with ASEAN community building
efforts to uplift the standards of living of ourpeople.
The ASEAN Community 2025 charts out theBlueprints for (a) Asean Political-Security
Community 2025, (b) ASEAN Economic Community
2025 and (c) ASEAN Socio-Cultural Community
2025.   The details of each of these key pillars areprovided below

ASEAN Political-Security Community
Blueprint 2025 (APSC Blueprint 2025)

T

he APSC Blueprint 2025 envision ASEAN to bea united, inclusive and resilient community.  
ASEAN people shall live in a safe, harmonious andsecure environment, embrace the values oftolerance and moderation as well as uphold ASEAN
fundamental principles, shared values and norms.  
It envision ASEAN to remain cohesive, responsive
and relevant in addressing challenges to regional
peace and security as well as play a central role inshaping the evolving regional architecture, while
deepening our engagement with external parties
and contributing collectively to global peace,security and stability.  It sets out the following nine
key principles:1.

2.

A rules-based community that fully adheres to
ASEAN fundamental principles, shared values
and norms as well as principles of internationallaw governing the peaceful conduct of relations
among states;
An inclusive and responsive community that
ensures our peoples enjoy human rights andfundamental freedoms as well as thrive ina just, democratic, harmonious and gendersensitive environment in accordance with theprinciples of democracy, good governance andthe rule of law;

6.

7.

8.

9.

1.

2.

3.

4.

A highly integrated and cohesive regional
economy that supports sustained higheconomic growth by increasing trade,investment, and job creation; improving
regional capacity to respond to global
challenges and mega trends; advancing asingle market agenda through enhanced
commitments in trade in goods, and throughan effective resolution of non-tariff barriers;
deeper integration in trade in services; anda more seamless movement of investment,
skilled labour, business persons, and capital;
A competitive, innovative and dynamic
community which fosters robust productivity
growth including through the creation andpractical application of knowledge, supportive
policies
towards
innovation,sciencebased approach to green technology anddevelopment, and by embracing the evolving
digital technology; promotion of good
governance, transparency and responsive
regulations; effective dispute resolution; and aview towards enhanced participation in global
value chains;
Enhancedconnectivity
andsectoralcooperation with improvements in regionalframeworks, including strategic sectoral
policies vital to the effective operationalisationof the economic community;
A resilient, inclusive, people-oriented andpeople-centred community that engenders
equitable development and inclusive growth;
a community with enhanced micro, small andmedium enterprise development policies
and cooperation to narrow the development
gaps; and a community with effective businessand stakeholder engagement, subregional

Doing Business in ASEAN 2016

13

INTRODUCTION TO
ASEAN
ASEAN AT A
GLANCEASEAN Today:
Socio-Political
ASEAN TODAY: KEY ACHIEVEMENTS UNDER AEC
BLUEPRINT 2015 AND RECENT DEVELOPMENTS

T

he AEC Blueprint 2025 envision a highly
integrated and cohesive; competitive,
innovative and dynamic, with enhanced
connectivity and sectoral cooperation; and a more
resilient, inclusive, and people-oriented, peoplecentred community, integrated with the global
economy.   It sets out the following visions:-

Growing With ASEAN: AEC Blueprint 2025 – Forging Ahead Together

5.

ASEAN Economic Community
Blueprint 2025 (AEC Blueprint 2025)

E-Commerce in 
ASEAN

4.

A community that embraces tolerance andmoderation, fully respects the different
religions, cultures and languages of ourpeoples, upholds common values in the spiritof unity in diversity as well as addresses thethreat of violent extremism in all its forms andmanifestations;
A community that adopts a comprehensive
approach to security which enhances ourcapacity to address effectively and in a timely
manner existing and emerging challenges,
including non-traditional security issues,particularlytransnational
crimesandtransboundary challenges;
A region that resolves differences and disputes
by peaceful means, including refraining
from the threat or use of force and adopting
peaceful dispute settlement mechanisms whilestrengthening confidence-building measures,promoting preventive diplomacy activities andconflict resolution initiatives;
A region that remains free of nuclear weaponsand other weapons of mass destruction,
as well as contributes to global efforts on
disarmament, non-proliferation and peacefuluses of nuclear energy;
A community that enhances maritime security
and maritime cooperation for peace andstability in the region and beyond, through
ASEAN and ASEAN-led mechanisms and adopts
internationally-accepted maritime conventions
and principles;
A community that strengthens our unity,
cohesiveness and ASEAN centrality as well as
remains the primary driving force in shaping
the evolving regional architecture that is built
upon ASEAN-led mechanisms; andA community, in the interest of developing
friendly and mutually beneficial relations, thatdeepens cooperation with Dialogue Partners,
strengthens engagement with other external
parties, reaches out to potential partners, aswell as responds collectively and constructively
to global developments and issues of common
concern.

LOOKING BEYOND
ASEAN

3.

DID YOU KNOW: AMAZINGFACTS ABOUT ASEAN

Introduction to ASEAN

Introduction to ASEAN

5.

development cooperation and projects, andgreater economic opportunities that support
poverty eradication; andA global ASEAN that fosters a more systematicand coherent approach towards its external
economic relations; a central and foremost
facilitator and driver of regional economic
integration in East Asia; and a united ASEAN
with an enhanced role and voice in global
economic fora in addressing international
economic issues.

We address the AEC Blueprint 2025 in greater detailon page 36.

ASEAN Socio-Cultural Community
Blueprint 2025 (ASCC Blueprint 2025)

T

he ASCC Blueprint 2025 shall be one thatengages and benefits the people of ASEAN,
and is inclusive, sustainable, resilient and dynamic
and it sets out to realise the following vision:1.

2.

3.

4.

5.

14

A committed, participative and sociallyresponsible
community
throughanaccountable and inclusive mechanism forthe benefit of ASEAN people, upheld by theprinciples of good governance;
An inclusive community that promotes highquality of life, equitable access to opportunities
for all and promotes and protects humanrights of women children, youth, the elderly,
persons with disabilities, migrant workers andvulnerable and marginalised groups;
A sustainable community that promotes social
development and environmental protection
through effective mechanisms to meet thecurrent and future needs of ASEAN people;
A resilient community with enhanced capacity
and capability to adapt and respond to socialand economic vulnerabilities, disasters, climatechange as well as emerging threats andchallenges; andA dynamic and harmonious community thatis aware and proud of its identity, culture,and heritage with the strengthened ability toinnovate and proactively contribute to theglobal community.

ASEAN Charter

The ASEAN Charter serves as a firm foundationin achieving the ASEAN Community byproviding a legal status and an institutionalframework for ASEAN. It also codifies ASEAN norms,
rules and values, sets clear targets for ASEAN, andpromotes accountability and compliance.
The ASEAN Charter entered into force on 15
December 2008.  A gathering of ASEAN foreign
ministers was held at the ASEAN Secretariat in
Jakarta to mark this historic occasion.
With the entry into force of the ASEAN Charter,
ASEAN effectively operates under a new legal
framework and has established a number of neworgans to boost its community-building process.
In effect, the ASEAN Charter has become a legallybinding agreement among the 10 ASEAN member
states.

DID YOU KNOW: AMAZINGFACTS ABOUT ASEANLOOKING BEYOND
ASEAN

E-Commerce in ASEANDoing Business in ASEAN 2015
Growing With ASEAN: AEC Blueprint 2025 – Forging Ahead Together

ASEAN at a Glance

15
ASEAN TODAY: KEY ACHIEVEMENTS UNDER AEC
BLUEPRINT 2015 AND RECENT DEVELOPMENTS

ASEAN Today:
Socio-Political

ASEAN AT A
GLANCEINTRODUCTION TO
ASEANASEAN at a Glance

Region Profile: ASEAN

Flag

Introduction
ASEAN was formed on 8 August 1967 in Bangkok, Thailand, through thesigning of the ASEAN Declaration (Bangkok Declaration) by Indonesia,
Malaysia, the Philippines, Singapore and Thailand.  Brunei Darussalam
subsequently joined on 7 January 1984, Vietnam on 28 July 1995, Laosand Myanmar on 23 July 1997, and Cambodia on 30 April 1999.

Map

Motto
“One Vision, One Identity, One
Community”

ASEAN Day
8th August

Total Trade in 2014
US$2.53 trillion

Intra-ASEAN Trade in 2014
US$608.20 billion

Top 5 Trade Partners in 2014
China – US$366.50 billion
Japan – US$229.00 billion
EU – US$209.40 billion
USA – US$212.4 billion
South Korea – US$131.40 billion

Population
622.25 million (2014 estimate)

Population between 20 and 54 years of age
50.8%(2013 estimate)

Total Land Area
4.44 million square kilometres

GDP (Current Price) in 2014
US$2.57 trillion

GDP per capital (Current Price) in 2014
US$4,136

GDP per capital (PPP) in 2014
US$10,700

16

Flag

Population
0.413 million (2014 estimate)

Urbanisation
77% (2014 estimate)

EconomyBrunei has a small well-to-do economy that depends on revenue fromnatural resource extraction, and encompasses a mixture of foreign anddomestic entrepreneurship, government regulation, welfare measures,and village tradition. Crude oil and natural gas production account for
60% of GDP and more than 90% of exports.  Brunei’s GDP per capita
is among the highest in Asia, with substantial income from overseas
investment supplementing its income from domestic production. The
government provides Bruneian citizens with free medical services andeducation through the university level. The government of Brunei has
been emphasizing through policies and resource investments its strong
desire to diversify the economy into new sectors.

Central Bank and Currency
Brunei Currency and Monetary Board, Brunei Dollar (BND)

GDP per capital (Current Price)
US$41.424 (2014 estimate)

CapitalBandar Seri Begawan

Ethnic Groups (2011 estimate)
Malay 65.7%, Chinese 10.3%, Other
Indigenous 3.4%, Others 20.6%

Languages
Malay (official), English, Chinese

Religions (2011 estimate)
Muslim (official) 78.8%, Christian
8.7%, Buddhist 7.8%, Others(includes indigenous beliefs) 4.7%

Life Expectancy

US$82,850 (2014 estimate)

LOOKING BEYOND
ASEAN

77 years

GDP per capita (PPP)INTRODUCTION TO
ASEAN
ASEAN TODAY: KEY ACHIEVEMENTS UNDER AEC
BLUEPRINT 2015 AND RECENT DEVELOPMENTS

Map

Growing With ASEAN: AEC Blueprint 2025 – Forging Ahead Together

The Sultanate of Brunei’s influence peaked between the 15th and 17th
centuries when its control extended over coastal areas of northwest
Borneo and the southern Philippines.  Brunei’s ruling family provided
much needed stability over the 18th and 19th centuries as geopolitical
strife from European colonial expansion and global piracy threatened
the Sultanate.  In 1888, Brunei became a British protectorate andindependence was achieved in 1984.  Today Brunei benefits fromextensive petroleum and natural gas fields, and has one of the highest
per capita GDPs in Asia.

ASEAN Today:
Socio-Political

Introduction

E-Commerce in ASEANCountry Profile: Brunei Darussalam

ASEAN AT A
GLANCEASEAN at a Glance

Literacy
95.4%

Unemployment RateDID YOU KNOW: AMAZINGFACTS ABOUT ASEAN

3.8% (2014 estimate)

Inflation Rate
-0.2% (2014 estimate)

Doing Business in ASEAN 2016

17

ASEAN at a Glance

Country Profile: Cambodia

FlagIntroduction
Most Cambodians consider themselves as Khmers, descendants of the
Angkor Empire that extended over much of Southeast Asia and reachedits zenith between the 10th and 13th centuries.  Today, Cambodia isrecovering from decades of civil unrest during the Khmer Rouge regime
and subsequent foreign occupation.  This recovery has been aided by
Cambodia’s entry into ASEAN in 1999, foreign aid, as well as a boom intourism.

Map

Population
15.2 million (2014 estimate)

Urbanisation
21% (2014 estimate)

EconomySince 2004, Cambodia’s growth has been driven by industries ingarments, construction, agriculture and tourism. Its GDP climbed morethan 7% a year between 2010 and 2013. The Cambodian governmenthas been working with bilateral and multilateral donors such as the AsianDevelopment Bank (ADB), the World Bank (WB) and the International
Monetary Fund (IMF), to address the country’s most pressing needs. A
substantial part of the government budget comes from donor assistance,
and an economic challenge for Cambodia over the next decade will befashioning an economic environment in which the private sector cancreate enough jobs to handle Cambodia’s demographic imbalance.

Central Bank and Currency
National Bank of Cambodia, Cambodian Riel (KHR)

GDP per capital (Current Price)

CapitalPhnom Penh

Ethnic Groups
Khmer 90%, Vietnamese
Chinese 1%, Others 4%

5%,Languages (2008 estimate)
Khmer (official) 96.3%, Others 3.7%

US$1,105 (2014 estimate)

Religions (2008 estimate)

GDP per capita (PPP)

Buddhist (official) 96.9%, Muslim
1.9%, Christian 0.4%, Others 0.8%

US$3,334 (2014 estimate)

Unemployment Rate
0.4% (2014 estimate)

Inflation Rate
3.9% (2014 estimate)

18

Life Expectancy
64 years

Literacy
74.0%

Flag

Population
252.2 million (2014 estimate)

Urbanisation

Indonesia has had strong growth since 2010.  During the 2008 global
financial crisis, Indonesia outperformed its regional neighbours andjoined China and India as the only G20 members that posted growth. 
Fiscally conservative policies have resulted in a debt-to-GDP ratio of lessthan 25% and historically low rates of inflation. Indonesia is accelerating
policies aimed at dealing with poverty, unemployment, inadequate
infrastructure, corruption, a complex regulatory environment, unequal
resource distribution among regions, labour unrest and the thorny
subject of fuel subsidies.

Central Bank and Currency
Bank Indonesia, Indonesian Rupiah (IDR)

GDP per capital (Current Price)
US$3,901 (2014 estimate)

GDP per capita (PPP)
US$11,498 (2014 estimate)

Unemployment Rate
6.2% (2014 estimate)

Inflation Rate
6.4% (2014 estimate)

JakartaEthnic Groups
Javanese 40.1%, Sundanese 15.5%,
Malay 3.7%, Batak 3.6%, Madurese
3%, Betawi 2.9%, Minangkabau
2.7%, Buginese 2.7%, Bantenese
2%, Banjarese 1.7%, Balinese 1.7%,
Acehnese 1.4%, Dayak 1.4%, Sasak
1.3%, Chinese 1.2%, Others 15%

Languages
Bahasa Indonesia, English, Dutch,
over 700 local dialects

Religions (2010 estimate)
Muslim 87.2%, Christian 7%,
Roman Catholic 2.9%, Hindu 1.7%,
Other 0.9% (includes Buddhist andConfucianist), Unspecified 0.4%

LOOKING BEYOND
ASEAN

EconomyCapitalLife Expectancy
72 years

Literacy
93.0%

DID YOU KNOW: AMAZINGFACTS ABOUT ASEAN

53.0%(2014 estimate)

INTRODUCTION TO
ASEAN
ASEAN TODAY: KEY ACHIEVEMENTS UNDER AEC
BLUEPRINT 2015 AND RECENT DEVELOPMENTS

Map

Growing With ASEAN: AEC Blueprint 2025 – Forging Ahead Together

Following centuries of colonial rule followed by military strongmen
dictatorships, Indonesia has emerged strongly as a modern Muslim
nation in the 21st century despite some teething problems.  Today,Indonesia under President Joko Widodo is amongst the world’s mostpopulous democracies, the world’s largest archipelagic state, and theworld’s largest Muslim-majority nation. The country is an embodimentof unity in diversity and there remains a strong national consensus ondelivering economic growth accompanied by free elections.

ASEAN Today:
Socio-Political

Introduction

E-Commerce in ASEANCountry Profile: Indonesia

ASEAN AT A
GLANCEASEAN at a Glance

Doing Business in ASEAN 2016

19

ASEAN at a Glance

Country Profile: Laos

Flag

Introduction
Modern-day Laos has its roots in the ancient Lao kingdom of Lan Xang,established in the 14th century under King Fa Ngum. For 300 years, Lan
Xang’s influence extended to present-day Cambodia and Thailand, as well
as over all of what is now Laos. After centuries of gradual decline, Laoscame under the domination of Siam (Thailand) from late 18th century tolate 19th century, when it became part of French Indochina. The FrancoSiamese Treaty of 1907 defined Lao’s current border with Thailand.  In
1975, the communist Pathet Lao took control of the government, ending
a six-century-old monarchy and instituting a strict socialist regime
that was closely aligned with that of Vietnam.  From 1988, Laos saw aliberalisation of its foreign investment laws and a gradual, limited returnto private enterprise. Laos became a member of ASEAN in 1997 and theWorld Trade Organisation (WTO) in 2013.

Map

Population
6.81 million (2014 estimate)

Urbanisation
38% (2014 estimate)

EconomyCapitalThe government of Laos, one of the few remaining one-party communist
states, began decentralising control and encouraging private enterprisein 1986. The results were striking – growth averaged 6% a year from 1988
to 2008 except during the short-lived drop caused by the Asian financial
crisis that began in 1997.

Ethnic Groups (2005 estimate)

Central Bank and Currency

Vientiane

Lao 55%, Khmou 11%, Hmong
8%, Others (over 100 minor ethnic
groups) 26%

Bank of the Lao PDR, Lao Kip (LAK)

Languages

GDP per capital (Current Price)

Lao (official), French,various ethnic languages

US$1,730 (2014 estimate)

English,Religions (2005 estimate)

US$5,096 (2014 estimate)

Buddhist 67%, Christian 1.5%,
Others and Unspecified 31.5%

Unemployment Rate

Life Expectancy

GDP per capita (PPP)

1.3% (2014 estimate)63.5 years

Inflation Rate

Literacy

4.1% (2014 estimate)

20

73.0%

Flag

Population
30.26 million (2014 estimate)

Urbanisation

CapitalKuala Lumpur

74.0% (2014 estimate)

EconomyMalaysia has since the 1970s, transformed itself from a producer of raw
materials into an emerging multi-sector economy. As an exporter of oil
and gas, Malaysia has profited from higher world energy prices. Its central
bank, Bank Negara Malaysia (BNM), maintains healthy foreign exchange
reserves, and a well-developed regulatory regime has limited Malaysia’s
exposure to riskier financial instruments and the global financial crisis.

Ethnic Groups (2010 estimate)
Malay 50.1%, Chinese 22.6%,
Indigenous 11.8%, Indian 6.7%,
Others 0.7%, Non-citizens 8.2%

Languages

BNM, Malaysian Ringgit (MYR)

Bahasa Malaysia (official), English,
Chinese (Cantonese, Mandarin,
Hokkien, Hakka, Hainan, Foochow),
Tamil, Telugu, Malayalam, Panjabi,Thai

GDP per capital (Current Price)

Religions (2010 estimate)

US$10,784 (2014 estimate)

Muslim (official) 61.3%, Buddhist
19.8%, Christian 9.2%, Hindu 6.3%,
Others 3.5%

Central Bank and Currency

GDP per capita (PPP)
US$24,607 (2014 estimate)

Unemployment Rate

Life Expectancy

INTRODUCTION TO
ASEAN

75 years
LOOKING BEYOND
ASEAN

3.2% (2014 estimate)

Inflation RateASEAN TODAY: KEY ACHIEVEMENTS UNDER AEC
BLUEPRINT 2015 AND RECENT DEVELOPMENTS

Map

Growing With ASEAN: AEC Blueprint 2025 – Forging Ahead Together

During the late 18th and 19th centuries, Great Britain established colonies
and protectorates in Malaysia’s current area; these were occupied by theJapanese from 1942 to 1945. In 1948, the British-ruled territories on the
Malay Peninsula, except Singapore, formed the Federation of Malaya,which gained independence in 1957. During the 22-year term of Prime
Minister Mahathir bin Mohamad (1981-2003), Malaysia successfully
diversified its economy, from dependence on exports of raw materials tothe development of manufacturing, services and tourism. Prime Minister
Mohamed Najib bin Abdul Razak has continued these pro-business
policies and introduced some civil reforms.

ASEAN Today:
Socio-Political

Introduction

E-Commerce in ASEANCountry Profile: Malaysia

ASEAN AT A
GLANCEASEAN at a Glance

Literacy
93.1%

DID YOU KNOW: AMAZINGFACTS ABOUT ASEAN

3.1% (2014 estimate)

Doing Business in ASEAN 2016

21

ASEAN at a Glance

Country Profile: Myanmar

Flag

Introduction
Various ethnic Burmese and ethnic minority city-states or kingdoms
occupied the present borders through the 19th century. Over a periodof 62 years (1824-1886), Britain colonised Myanmar and administered
the country as part of its Indian Empire until Myanmar attained
independence in 1948. After a period of junta rule, the country begana series of political and economic reforms in the last decade. Myanmar
is beginning to reap the economic dividends of its policies with theincrease in FDI and trade flows.  In April 2016, the National League for
Democracy led by Aung San Suu Kyi,   who won the November 2015
election,  formed the new government, ending decades of military rule.

Map

Population
51.49 million (2014 estimate)

Urbanisation
34.0% (2014 estimate)

EconomySince Myanmar’s transition to a civilian government in 2011, it has begunan economic overhaul targeted at attracting foreign investment andintegration into the global economy. Reforms include the modernisationand opening up of the financial sector, an increase in budget allocations
for social services, and an acceleration of agricultural and land reforms.

Central Bank and Currency
Central Bank of Myanmar, Burmese Kyat (MMK)

GDP per capital (Current Price)
US$1,278 (2014 estimate)

GDP per capita (PPP)
US$4,923 (2014 estimate)

Unemployment Rate
3.3% (2014 estimate)

Inflation Rate
5.5% (2014 estimate)

CapitalNaypyidaw

Ethnic Groups
Burman 68%, Shan 9%, Karen 7%,
Rakhine 4%, Chinese 3%, Indian 2%,
Mon 2%, Others 5%

Languages
Burmese (official)

Religions
Buddhist 89%, Christian 4%, Muslim
4%, Others 3%

Life Expectancy
66 years

Literacy
93.0%

22

Flag

Population
101.17 million (2014 estimate)

Urbanisation
44.0% (2014 estimate)

EconomyCentral Bank and Currency
Bangko Sentral ng Pilipinas, Philippine Peso (PHP)

GDP per capital (Current Price)
US$2,816 (2014 estimate)

GDP per capita (PPP)
US$6,846 (2014 estimate)

Unemployment Rate
7.1% (2014 estimate)

Inflation Rate
4.1% (2014 estimate)

CapitalManilaEthnic Groups (2000 estimate)
Tagalog 28.1%, Cebuano 13.1%,
Ilocano 9%, Bisaya/Binisaya 7.6%,
Hiligaynon Ilonggo 7.5%, Bikol 6%,
Waray 3.4%, Others 25.3%

Languages
Tagalog (official) and English(official)

Religions
Catholic 82.9%, Muslim 5%, Others
12.1%

Life Expectancy
72 years

Literacy
95.4%

Doing Business in ASEAN 2016

INTRODUCTION TO
ASEANDID YOU KNOW: AMAZINGFACTS ABOUT ASEAN

The Philippine economy has weathered global economic and financial
downturns well due to lower dependence on exports, relatively resilient
domestic consumption, large remittances from overseas Philippine
workers, and a rapidly expanding business process outsourcing industry. 
Efforts to improve tax administration and expenditure management
have helped to ease the Philippines’ tight fiscal situation and reducehigh debt levels. Under the new administration of Rodrigo Duterte, early
indications suggest that the administration will continue to encourage
investments and support pro-business policies.

Growing With ASEAN: AEC Blueprint 2025 – Forging Ahead Together

ASEAN TODAY: KEY ACHIEVEMENTS UNDER AEC
BLUEPRINT 2015 AND RECENT DEVELOPMENTS

Map

E-Commerce in ASEAN

The Philippine islands became a Spanish colony during the 16th century;
they were ceded to the US in 1898 following the Spanish-American War. 
After World War II, the Republic of the Philippines gained independence
in 1946.  A 20-year rule by Ferdinand Marcos ended in 1986 when
Corazon Aquino was elected president. The previous president, Benigno
Aquino III, was elected to a six-year term in May 2010. On 9 May 2016,
the Philippines elected a new President, Rodrigo Duterte, to succeed
Benigno Aquino III.  The new President vows to clean up corruption andcrimes in the Philippines.

ASEAN Today:
Socio-Political

Introduction

LOOKING BEYOND
ASEANCountry Profile: Philippines

ASEAN AT A
GLANCEASEAN at a Glance

23

ASEAN at a Glance

Country Profile: Singapore

Flag

Introduction
Singapore was founded as a British trading colony in 1819. It joined the
Malaysian Federation in 1963 but separated two years later and gained
independence. Singapore went on to became one of the world’s mostprosperous countries with strong international trading links (its port isone of the world’s busiest in terms of tonnage handled) and has a GDP
per capita comparable with those of leading Western European nations.

PopulationMap

5.47 million (2014 estimate)

Urbanisation
100% (2011 estimate)

EconomySingapore has a highly developed and successful free-market economy. 
It has a remarkably open and corruption-free environment, stable prices,
and a high GDP per capita. The economy depends heavily on exports,
particularly in consumer electronics, information technology products,
pharmaceuticals, and on a growing financial services sector. In the longterm, the government hopes to establish a new growth path that focuses
on raising productivity.  Singapore has attracted major investments inpharmaceuticals and medical technology production, and has kept up
with efforts to establish the country as Southeast Asia’s financial andhigh-tech hub.

Central Bank and Currency
Monetary Authority of Singapore, Singapore Dollar (SGD)

GDP per capital (Current Price)
US$56,287 (2014 estimate)

GDP per capita (PPP)
US$82,714 (2014 estimate)

Unemployment Rate
2.0% (2014 estimate)

Inflation Rate
1.0% (2014 estimate)

CapitalSingapore (city state)

Ethnic Groups (2013 estimate)
Chinese 74.2%, Malay 13.3%, Indian
9.2%, Others 3.3%

Languages (2010 estimate)
Mandarin (official) 36.3%, English(official) 29.8%, Malay (official)
11.9%, Tamil (official) 4.4%, Hokkien
8.1%, Cantonese 4.1%, Teochew
3.2%, Others 3.4%

Religions (2010 estimate)
Buddhist 33.9%, Muslim 14.3%,
Taoist 11.3%, Catholic 7.1%, Hindu
5.2%, Christian 11%, Others 0.7%,
None 16.4%

Life Expectancy
84 years

Literacy
95.9%

24

Flag

Population
68.66 million (2014 estimate)

Urbanisation
49.0% (2014 estimate)

EconomyWith a well-developed infrastructure, a free-enterprise economy,
generally pro-investment policies, and strong export industries, Thailand
has achieved steady growth due largely to industrial and agricultural
exports – mostly electronics, agricultural commodities, automobiles andparts, and processed foods. Unemployment, at less than 1% of the labour
force, is one of the lowest in the world, which puts upward pressure on
wages in some industries.  

Central Bank and Currency
Bank of Thailand, Thai Baht (THB)

GDP per capital (Current Price)
US$5,436 (2014 estimate)

GDP per capita (PPP)

CapitalBangkokEthnic Groups (2010 estimate)
Thai 95.9%, Burmese 2%, Others
1.3%, Unspecified 0.9%

US$14,333 (2014 estimate)

Languages (2010 estimate)

Unemployment Rate

Thai (official) 90.7%, Burmese 1.3%,
Others 8%

1.9% (2014 estimate)

Religions (2010 estimate)

LOOKING BEYOND
ASEAN

Inflation Rate

Buddhist 93.6%, Muslim 4.9%,
Others 1.5%

Life Expectancy
74 years

DID YOU KNOW: AMAZINGFACTS ABOUT ASEAN

0.9% (2014 estimate)

INTRODUCTION TO
ASEAN
ASEAN TODAY: KEY ACHIEVEMENTS UNDER AEC
BLUEPRINT 2015 AND RECENT DEVELOPMENTS

Map

Literacy
93.5%

Doing Business in ASEAN 2016

Growing With ASEAN: AEC Blueprint 2025 – Forging Ahead Together

A unified Thai kingdom was established in the mid-14th century. Knownas Siam until 1939, Thailand is the only Southeast Asian country thathas never been controlled by a European power.  In 1932, a bloodlessrevolution occurred leading to the development of a constitutionalmonarchy. An ally of Japan during World War II, Thailand became a US
treaty ally in 1954 after sending its troops to Korea. Thailand later fought
alongside the US in the Vietnam war.

ASEAN Today:
Socio-Political

Introduction

E-Commerce in ASEANCountry Profile: Thailand

ASEAN AT A
GLANCEASEAN at a Glance

25

ASEAN at a Glance

Country Profile: Vietnam

Flag

Introduction
Vietnam declared independence from France after World War II in 1954
and was divided into the communist North and anti-communist South
under the Geneva Accords. US economic and military aid to South Vietnam
grew through the 1960s in an attempt to bolster the government, but US
armed forces were withdrawn following a ceasefire agreement in 1973. 
Two years later, North Vietnamese forces overran the South, unifying
the country under communist rule. Since 1986, Vietnamese authorities
have committed to increase economic liberalisation and introduced
structural reforms necessary to modernise the economy and produce
more competitive, export-driven industries. 

Map

Population
90.63 million (2014 estimate)

Urbanisation
33.0% (2014 estimate)

EconomyVietnam is a densely populated developing country that has beentransitioning from the rigidities of a centrally planned economy since1986.  In recent years, Vietnamese authorities have reaffirmed theircommitment to economic modernisation.  In January 2007, Vietnam
joined the WTO and became an official negotiating partner in theTrans-Pacific Partnership trade agreement in 2010. Poverty has declined
significantly, and Vietnam is working to create jobs to meet a growing
labour force that is expanding by more than a million people every year. 

Central Bank and Currency
State Bank of Vietnam, Vietnamese Dong

GDP per capital (Current Price)
US$2,055 (2014 estimate)

GDP per capita (PPP)
US$5,644 (2014 estimate)

Unemployment Rate
2.3% (2014 estimate)

Inflation Rate
4.1% (2014 estimate)

CapitalHanoi

Ethnic Groups (1999 estimate)
Kinh (Viet) 85.7%, Tay 1.9%, Thai
1.8%, Muong 1.5%, Khmer 1.5%,
Mong 1.2%, Nung 1.1%, Others 5.3%

Languages
Vietnamese(official),
English,French, Chinese, and Khmer

Religions (1999 estimate)
Buddhist 9.3%, Catholic 6.7%, None
80.8%, Others 3.2%

Life Expectancy
73 years

Literacy
93.4%
26

DID YOU KNOW: AMAZINGFACTS ABOUT ASEANLOOKING BEYOND
ASEAN

E-Commerce in ASEANDoing Business in ASEAN 2015
Growing With ASEAN: AEC Blueprint 2025 – Forging Ahead Together

ASEAN Today: Socio-Political

27
ASEAN TODAY: KEY ACHIEVEMENTS UNDER AEC
BLUEPRINT 2015 AND RECENT DEVELOPMENTS

ASEAN Today:
Socio-Political

ASEAN AT A
GLANCEINTRODUCTION TO
ASEANASEAN Today: Socio-PoliticalAnyone who wishes to do business in ASEAN
would do well to first understand just what adiverse region ASEAN is – a network of 10 member
nations, numbering more than 600 million, ruled bya plethora of different governmental styles,
practising a multitude of religions and speaking
over 70 languages and dialects.
In addition to such entrenched differences, thepopulation of ASEAN of 633 million people in 2015
is a relatively young one – 50.8% of the population
are between 20 and 54 years of age.
Despite the diversity of political styles and therelative youth of its peoples, ASEAN has remained
remarkably resilient and comparatively stable in thepolitical arena, weathering the global crises of 1997,
2001 and 2008, and finding itself largely on track forcontinued economic success in 2015 and beyond. 
Before embarking on any business ventures in
ASEAN, it would therefore make good sense tounderstand the socio-political forces that shape thisregion: its peoples, governments, cultures and thenature of societies formed therein.

A study by ADB and ILO “ASEAN Community 2015:
Managing integration for better jobs and sharedprosperity” in 2014 (herein known as ADB-ILO
2014 Report) shows that ASEAN as a whole will
experience lower birth rates and a rising share of
the working-age population, with 68 million new
entrants to the labour force until 2025, suggesting
a potential demographic dividend.   However, thesituation will vary by country.  In Indonesia andVietnam, for example, if appropriate social andeconomic policies are in place, lower birth rates
and decreasing dependency ratios could facilitate
accelerated growth and increase in per capita
income.   Conversely, in rapidly ageing societies
such as Thailand, this window of opportunity willslowly narrow.

ASEAN, 2010
90-94
75-79
60-64
45-49
30-34
15-19

Understanding ASEAN
Demographics: Is there a
Dividend?

S

Since 1980, ASEAN’s population has almost
doubled from 355 million in 1980 to 633
million in 2015 and is expected to reach 694 million
by 2025.   The ASEAN Statistical Yearbook 2014
recorded that 50.8% of its population are between
the ages 20-54 and 36.1% are below age 20.   
ASEAN’s relatively young demographic continues
to attract investors to invest heavily in the region,
while governments follow through on infrastructure
improvements to support increasing urbanisation. 
Between 1950 and 2011, the proportion of people
living in urban areas rose from 10% to 44.7% and by
2050, it is expected to reach 58.3%. With ASEAN’s
urban share set to grow, consumer spending poweris likely to grow and these bring opportunities forthe demand for consumer goods.

28

0-4
30

20

10

0

10

20

30

10

20

30

ASEAN, 2025
90-94
75-79
60-64
45-49
30-34
15-19
0-4
30

20

10

Men

Men ages 15-64

0
Women

Women ages 15-64

Source UN: World Population Prospects: The 2012 RevisionDatabase.

INTRODUCTION TO
ASEAN
ASEAN AT A
GLANCE

Latin America’s notoriously wasted demographic
dividend of the 1970s and 1980s – during which
weak governance and a lack of openness to tradestalled growth – should be kept in mind as ASEAN
looks to the future, and ASEAN governments
continue to contemplate how to best attract foreign
investments and grow their economies.

ASEAN Today:
Socio-Political

While some ASEAN countries, such as Indonesia,
have already begun to experience and capitaliseon their demographic dividends, others, such as
Vietnam and the Philippines,   are just beginningto experience their own demographic transitions. 
Indonesia exemplifies an ASEAN country that has
capitalised on its demographic transition throughrigorous institutional development and a shift to anexport-oriented manufacturing sector.  Reforming
its economy in the 1970s (pre-empting its
population dividend), Indonesia has experienced
GDP growth from 6% to 8% almost every year overthe past two decades since enacting its market
reforms.    Despite this success, Indonesia can domore to build on its investments in education andhealthcare: two possible avenues for creating amore highly skilled, healthy workforce to attract
FDI.

ASEAN TODAY: KEY ACHIEVEMENTS UNDER AEC
BLUEPRINT 2015 AND RECENT DEVELOPMENTS

towards capitalising on the nation’s growing
demographic dividend and falling dependency
ratio. Attracting record FDI in the past eight years,
Vietnam appears set to reap significant GDP growthfrom its demographic transition as it continues toliberalise trade and invest more in education andhealthcare.  Similarly, Malaysia’s fertility rate of 2%
will present it with a demographic dividend andreal GDP growth if the country is able to follow
through with infrastructure improvements andmore transparent trade policies needed to attract
FDI.  In the Philippines, its 3.1 fertility rate – thesecond highest in ASEAN after Loas PDR, will face
the largest challenge and opportunity relating to
its demographic dividend.  The Philippines has theopportunity to expand its GDP by about 7% a year if
it can successfully reform its trade policies and social
services to attract a 30% increase in investment. 
Conversely, if the appropriate policy environment is
not in place, health, educational and social welfare
systems will undergo a significant strain, andunemployment and instability may result.

LOOKING BEYOND
ASEAN

E-Commerce in ASEAN

The ADB ILO 2014 Report also found that ASEAN
is experiencing significant demographic change –at both ends of the age spectrum – with declining
proportions of young people aged 15 to 24 andincreasing proportions of elderly people aged 65
and above as shown in the diagram on the previous
page.  However, the profile differs from country tocountry.   In Indonesia, Laos and the Philippines
in 2025, youth will account for more than 17% of
the population, while in Singapore and Thailand,
their share will be less than 11.5%.  Between 2010
and 2025, the Philippines will see its working
age population expand by 35%.  In Myanmar andVietnam, over the same period, the working-age
population will increase by only 14% and 12.4%
respectively, while in Thailand, it will contract by
1.1%.   During this period, the proportion of theelderly in Thailand’s population will have risen from
8.9% to 16.1%, and in Singapore, from 9% to 17.3%. 
These varied ageing trends will affect the labour
supply and social protection expenditure, as well aslabour migration.  

Growing With ASEAN: AEC Blueprint 2025 – Forging Ahead Together

ASEAN Today: Socio-Political

DID YOU KNOW: AMAZINGFACTS ABOUT ASEAN

Along with Indonesia, three other ASEAN countries– Vietnam, Malaysia and the Philippines – areexpected to experience double-digit labour force
growth through 2020 and beyond.  In Vietnam,
market liberalisation and government reforms
initiated in 2011 will be among the first steps

Doing Business in ASEAN 2016

29

ASEAN TODAY: KEY ACHIEVEMENTS
UNDER AEC BLUEPRINT 2015 AND
RECENT DEVELOPMENTS

30

ASEAN Today:
Socio-Political

ASEAN Economic Community
Blueprint 2015 – Key
Achievements

Single Market andProduction Base

256

Competitive
Economic Region

154

21
92.4%

16
90.5%

Equitable Economic
Development

100%

Integration into the
Global Economy

100%
Not Implemented

Doing Business in ASEAN 2016

DID YOU KNOW: AMAZINGFACTS ABOUT ASEAN

Fully Implemented

E-Commerce in ASEAN

AEC Scorecard Measures,
Fully Implemented ASEAN-wide andhigh-priority measures, by AEC Pillar,
2008-2015 Number of Measures(as at 31 October 2015)

LOOKING BEYOND
ASEAN

Collectively, the intra-ASEAN market was thelargest for ASEAN trade at 24.1% in 2014. Likewise,
the region has become one of the world’s fastest
growing investment destinations, accounting for
11% of total global foreign direct investment (FDI)
inflows in 2014 compared with just 5% in 2007.  At
17.9%, ASEAN’s intra-regional FDI inflows is second
largest by partner, lagging behind only the EU-28. 

Growing With ASEAN: AEC Blueprint 2025 – Forging Ahead Together

ASEAN TODAY: KEY ACHIEVEMENTS UNDER AEC
BLUEPRINT 2015 AND RECENT DEVELOPMENTS

A

SEAN has made extraordinary progress since
it was founded in 1967.  It has beentransformed into an increasingly well regulated,
dynamic and creative platform across what many
regard as the world’s fastest-developing economic
region.   The year 2015 is a key milestone in the
ASEAN integration agenda following thesubstantive implementation of the ASEAN
Economic Community Blueprint 2015 (AEC
Blueprint 2015) that was adopted in 2007.  ASEAN’s
combined GDP nearly doubled from US$1.33 trillion
in 2007 to over US$2.5 trillion in 2014, while average
GDP per capita grew by almost 80% from US$2,343
in 2007 to US$4,135 in 2014.  Over the same period,
ASEAN has also become more influential, withwidening markets regionally and globally. By 2014,
it was Asia’s 3rd largest, the world’s 7th largest, andamong the most advanced integrated markets. 
With a combined population of over 622 million,
ASEAN has a vast consumer base, behind only China
and India globally.  Over 50% of ASEAN’s populationis under the age of 30, making up a large portion ofboth the current and future workforce.

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ASEAN
ASEAN AT A
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ASEAN TODAY: KEY ACHIEVEMENTS UNDER
AEC BLUEPRINT 2015 AND RECENT DEVELOPMENTS
A review undertaken by the ASEAN Secretariat
showed ASEAN has substantively implemented thehigh-priority measures under the AEC Blueprint
2015; notably, it achieved 100% implementation
for the Equitable Economic Development andIntegration into the Global Economy goals.   Ithas made significant progress in removing tariffbarriers and achieved a 92.5% implementation rate
under the AEC Blueprint 2015 Single Market andProduction Base goal. It scored an implementation
rate of 90.5% under the AEC Blueprint 2015
Competitive Economic Region goal.

Myanmar – An
Unprecedented YearA

ung San Suu Kyi and her government havetaken office since April 2016.  This scores as
the first democratically elected government after
many years of military rule.  The Myanmar people
have high hopes for this government who will haveto manage and deliver on some of the expectations
during its five-year term of governance.
The National League for Democracy’s (NLD) preelection economic goals were sketchy. Economists
close to the NLD have said the agriculture sector
will be a major priority.  Sound macroeconomic
policies, especially ‘fiscal discipline’, will be another. 
This means avoiding unsustainable budget deficits
and inflation.
There are key challenges looming over the
economic policy landscape that the NLD needs tohandle immediately: the peace process and state
capacity.  Without meeting these challenges withsome degree of success, Suu Kyi’s government will
have an arduous task of reforming the economy
and fulfilling the expectations and goals of the
Myanmar people.
The peace process is primarily a political issue,
but it also has key economic ramifications.  In theborderlands of Myanmar inhabited by ethnic
minorities, the extraction of natural resources funds
the armed groups still engaged in an almost 60-year
fight to preserve their ethnic identities. This battle

32

waged by the Myanmar armed forces is no longer
purely about stopping a takeover of the government
by communists and other forces. Instead the army
seeks control of the same resources. It is a state ofcivil war fuelled by the ‘resource curse’.
Another economic dimension of the peace
process is the irreconcilable views on economic
development projects in the ethnic states.  Ethnic
minority populations are justifiably concerned thatinvestments in infrastructure, special economic
zones and other such projects in their homelands
will become beachheads for expanding thedomination of the Bamar ethnic majority.
State capacity may turn out to be the Achilles heelof the incoming NLD-led government.  It is easy
for foreigners to fly into Myanmar, have a pleasantconversation in English with a government ministerand leave believing that what was agreed will be
done.  However, this didn’t work in the previous
government for the past five years.   The new
government led by Suu Kyi will have to implement aslew of integrated pro-business, infrastructure andmanpower development policies that can convince
the long-term investors of the new government’s
resolve to build an investor-friendly and probusiness environment in Myanmar.
In Myanmar, the answers to the following several
pressing questions will determine the success of
the NLD in implementing its economic goals. Will
Suu Kyi’s government be able to find and empowera strong team of technocrats to manage theeconomy? Will Myanmar’s newly elected membersof parliament act in the national interest instead of
their own and those of their wealthy supporters?
And will the foreign community give Myanmar’s
ministers and director generals the time andencouragement to address these tough issues?
The unity of the Myanmar people including its key
institutional stakeholders (including the military
and the wealthy families) is key to laying a solid
foundation for economic progress.   NLD has
focused on national reconciliation as its priority
and is certainly making steps in the right direction
to bring economic prosperity and harmony for
Myanmar.

As long as the military remains united it should
continue to maintain a firm grip on power until theConstitutional Reform that will pave way for theelection of a civilian government is completed.  
In the meantime, it does appear it is business as
usual in Thailand as its focus is on stability andeconomic development.

Indonesian Economic
OutlookI

ndonesia stands at an economic cross-road
today as it balances the management of a statesponsored infrastructure boom against a labormarket beset by inertia and the pressing need forbroad-based structural reforms.  To that end theIndonesian Army (Tentara Nasional Indonesia or
TNI) has become an increasingly important player
in helping the government realise its economic
goals by allowing the latter to leverage on thebreadth and depth of the TNI’s organisational reachto implement government policies anddevelopment plans.
Amid an unfavourable investment climate,weakened consumer sentiment and low prices
for key export commodities, such as coal,metal minerals, rubber and crude palm oil, thegovernment has become more dependent on
government spending to drive economic growth. 

The Jokowi administration has made progress
in its economic reform by focusing on boosting
infrastructure spending and bravely identifying
what needs to be done in the labour market to
improve labour productivity and mobility.  It is
crucial that the government uses this momentum
and a cooperative military-industrial complex
to follow up on subsequent promised measuresand continue boosting investor confidence in its
economic reforms.
Since September 2015, the Indonesian Government
has announced multiple Economic Deregulation
Packages (“EDP”) with the aim of streamlining laws
and regulations, improving business infrastructure,facilitating international trade and attracting
greater foreign investments. 
In order to stimulate foreign direct investments,
the 10th EDP aims to increase maximum foreign
shareholding in various sectors as well as opening
up of sectors previously closed to foreign investors(e.g.  healthcare support services, movie and film
distribution and online marketplace organizer). Thissignals a shift in Indonesia’s economic policy andmay offer numerous new business opportunities
for investors around the region. 
While the proposed changes appear both extensive
and comprehensive, they have been met withcautious and guarded optimism.  While experts
generally agree that the reforms can provide theIndonesian economy with the needed stimulus, thetrue test is in the implementation of the changes. As
the many changes affect a multitude of ministries,
the decentralized government is faced with thechallenge of working together to pass the reforms
at both the regional and national level in a coherent
manner. 

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33

INTRODUCTION TO
ASEAN
ASEAN AT A
GLANCEASEAN Today:
Socio-Political
ASEAN TODAY: KEY ACHIEVEMENTS UNDER AEC
BLUEPRINT 2015 AND RECENT DEVELOPMENTS

While many Western observers are critical of this, themilitary junta government appears to enjoy a strong
populist appeal at the grass roots and continues tomaintain popular support as it prioritises stability
and pragmatic economic development.

Growing With ASEAN: AEC Blueprint 2025 – Forging Ahead Together

hailand is currently ruled by the National
Council for Peace and Order (NCPO) which iseffectively a military regime that will remain in
power for the foreseeable future. 

E-Commerce in 
ASEAN

T

Aside from rising infrastructure spending, the2016 budget stipulates a vast increase in public
expenditure on health, making this a particularfocus of state spending and another intriguing
sector for investment. For the first time in 2016, thegovernment plans to break through the mandated
health-spending threshold of 5% of GDP, comparedto just 3.7% in the revised 2015 budget.

LOOKING BEYOND
ASEANThailand Economic
Outlook

DID YOU KNOW: AMAZINGFACTS ABOUT ASEAN

ASEAN TODAY: KEY ACHIEVEMENTS UNDER
AEC BLUEPRINT 2015 AND RECENT DEVELOPMENTS

ASEAN TODAY: KEY ACHIEVEMENTS UNDER
AEC BLUEPRINT 2015 AND RECENT DEVELOPMENTS
While it is still too early to predict the effectsof the reforms, businesses in the ASEAN region
are presented with new possibilities as the
Negative Investment List is revised.  With a slewof accompanying changes to lower the barrier ofentry to foreign workers and investments, entering
the Indonesian market may be easier and more
attractive than it has been for the past decade.

Vietnam Economic OutlookIt has been a good 2015 for Vietnam.  Thecountry’s Q4 GDP rose by 7.0% - the highest in 5
years – which is well above the official government
target of 6.2% and the highest in ASEAN. 
This growth has largely come from a strong anddiversified exports base (aided by a measured
currency depreciation policy), a growing
attractiveness as an investment destination for FDI,
credit robustness and a canny government that has
proved itself highly versatile and pragmatic in its
participation in the various trade agreements thathave put ASEAN in the spotlight over the past few
years. 
While the market consensus shows that the Vietnam
growth story still has legs, the current administration
appears to be wisely managing expectations bysignalling through fiscal and monetary policies that
it would be comfortable if the economy maintains
its current trajectory in 2016.

34

DID YOU KNOW: AMAZINGFACTS ABOUT ASEANLOOKING BEYOND
ASEAN

E-Commerce in ASEANDoing Business in ASEAN 2016
Growing With ASEAN: AEC Blueprint 2025 – Forging Ahead Together

Growing With ASEAN: AEC Blueprint
2025 – Forging Ahead Together

35
ASEAN TODAY: KEY ACHIEVEMENTS UNDER AEC
BLUEPRINT 2015 AND RECENT DEVELOPMENTS

ASEAN Today:
Socio-Political

ASEAN AT A
GLANCEINTRODUCTION TO
ASEAN

Growing With ASEAN: AEC Blueprint 2025 – Forging Ahead TogetherT

he implementation of the ASEAN Economic
Community (AEC) Blueprint 2015 has
been substantively achieved in, among others,
eliminating tariffs and facilitating trade, advancing
the services trade liberalisation agenda, liberalisingand facilitating investment, streamlining andharmonising capital market regulatory frameworks
and platforms, facilitating skilled labour mobility,
promoting the development of regional frameworks
in competition policy, consumer protection andintellectual property rights, promoting connectivity,
narrowing the development gap, and strengthening
ASEAN’s relationship with its external parties.

ASEAN recognises that regional economic
integration is a dynamic, ongoing process as
economies as well as domestic and external
environments are constantly evolving.  In thiscontext, ASEAN has initiated two studies for the
AEC Blueprint 2025.  The AEC Blueprint 2025
has been developed, taking into account therecommendations of the two studies, namely, by
the Economic Research Institute for ASEAN and East
Asia (ERIA),  the S. Rajaratnam School of International
Studies (RSIS) and the Institute of Southeast
Asian Studies (ISEAS), as well as inputs from otherstakeholders.  The measures taken have to lead increating a networked, competitive, innovative, andhighly integrated and competitiveASEAN.
The overall vision articulated in the AEC Blueprint2015 remains relevant.  The AEC Blueprint 2025
will build on the AEC Blueprint 2015 consistingof five interrelated and mutually reinforcing
characteristics, namely: (i) A Highly Integrated andCohesive Economy; (ii) A Competitive, Innovative,and Dynamic ASEAN; (iii) Enhanced Connectivity
and Sectoral Cooperation; (iv) A Resilient, Inclusive,
People-oriented, and People-centred ASEAN; and(v) A Global ASEAN.
The immediate priority is to complete theimplementation of measures unfinished under the
AEC Blueprint 2015 by end-2016.  The continuingcommitments of Cambodia, Lao People’s
Democratic Republic, Myanmar and Vietnam(CLMV) under the AEC Blueprint 2015 up to 2018
are also incorporated under the AEC Blueprint 2025. 

36

In the next decade, ASEAN will also provide a newemphasis on the development and promotion of
micro, small and medium enterprises (MSMEs) in
its economic integration efforts. At the same time,
ASEAN will likewise embrace the evolving digitaltechnology as leverage to enhance trade andinvestments, provide an e-based business platform,
promote good governance, and facilitate the use of‘green’ technology.
The AEC 2025 is envisioned to:i.

Create a deeply integrated and highly cohesive
ASEAN economy that would support sustained
high economic growth and resilience evenin the face of global economic shocks andvolatilities;
ii. Engender more equitable and inclusive
economic growth in ASEAN that narrows thedevelopment gap, eliminates, if not reduces,
poverty significantly, sustains high growth
rates of per capita income, and maintains arising middle class;iii. Foster robust productivity growth throughinnovation, technology and human resource
development, and intensified regional
research and development that is designed
for commercial application to increase
ASEAN’s competitive edge in moving theregion up the global value chains (GVCs) intohigher technology and knowledge-intensive
manufacturing and services industries;
iv. Promote the principles of good governance,transparency, and responsive regulatory
regimes through active engagement with theprivate sector, community-based organisations,and other stakeholders of ASEAN;
v. Widen ASEAN people-to-people, institutional,
and infrastructure connectivity through ASEAN
and sub-regional cooperation projects thatfacilitate movement of capital as well as skilled
labour and talents;
vi. Create a more dynamic and resilient ASEAN,
capable of responding and adjusting toemerging challenges through robust nationaland regional mechanisms that address foodand energy security issues, natural disasters,
economic shocks, and other emerging traderelated issues as well as global mega trends;

The key characteristics and elements of the AEC 2025 and 2015 Blueprints are summarised in the table below.  The2025 Blueprint demonstrates the continued commitment of the ASEAN countries to work together towards an AEC
2025 that is highly integrated and cohesive, competitive, innovative and dynamic, with enhanced connectivity andsectoral cooperation and a more resilient, inclusive and people-oriented, people-centred community, integrated
with the global economy.

INTRODUCTION TO
ASEAN
ASEAN AT A
GLANCEDID YOU KNOW: AMAZINGFACTS ABOUT ASEANLOOKING BEYOND
ASEAN

E-Commerce in ASEAN

Growing With ASEAN: AEC Blueprint 2025 – Forging Ahead Together

Characteristics and Elements of AEC 2025 and 2015 Blueprints

ASEAN Today:
Socio-Politicalvii. Incorporate a sustainable growth agenda that promotes a science-based use of, and support for, ‘green’
technology and energy;viii. Promote the use of the ASEAN Protocol on Enhanced Dispute Settlement Mechanism (EDSM) and develop
other approaches to speed up economic dispute resolution;
ix. Reinforce ASEAN centrality in the emerging regional economic architecture by maintaining ASEAN’s role as thecentre and facilitator of economic integration in the East Asian region; andx. Work towards a common position and enhance ASEAN’s role and voice in global economic fora.

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Growing With ASEAN: AEC Blueprint 2025 – Forging Ahead Together

The table came from Sanchita Basu Das, who is a Fellow and Lead Researcher (Economic Afairs) at the ASEAN Studies Centre and Coordinator of theSingapore APEC Study Centre, both at the ISEAS-Yusof Ishak InstituteContinuing from the work on tariff elimination, AEC
2025 will have a stronger focus on trade facilitation
by effectively following through on existingregional commitments, as well as more robust
institutions and mechanisms.  Full implementationof key initiatives, such as the ASEAN Single Window,
ASEAN-wide Self-Certification and the ASEAN
Trade Repository, would be at the top of thepriority list.  In addition to these, a fully operationaland sustained mechanism for addressing nontariff barriers and the barrier effects of non-tariffmeasures will contribute to a more transparent andenabling business environment that   will further
help businesses, large and small, to cultivate theopportunities presented by AEC 2025.
To be a competitive participant in global value
chains, ASEAN will embrace and foster the potentialof its services sector, riding on the fact that services
have played an increasingly significant role in theregion’s growth and investment. No longer simply
ancillary to goods value chains, a competitive
services sector is now imperative for effective
participation in global value chains.  This requiresa more holistic approach to services integration
beyond liberalisation commitments.
As ASEAN becomes more familiar with its collective
identity as the world’s top investment destination,
the region needs to respond to increasing interestby firms to expand their regional presence andadopt an ‘ASEAN strategy’. Continued improvementin the region’s investment policy environment andregimes, complemented by a competitive market
and effective trade facilitation, will contribute
crucially to this effort.

38

ASEAN’s potential as a region will be even further
heightened by a stable, strong and effectivelyfunctioning financial market. Given the critical rolethat financial integration plays towards achieving
AEC goals, ASEAN should intensify dialogues among
Member States, and carry out capacity building andtechnical assistance so as to implement necessary
measures to harmonise the region’s regulatory
framework.
Good governance, transparency, and a responsive
regulatory regime will all be enhanced throughbetter engagement and consultation with theprivate sector and other ASEAN stakeholders. 
Efforts to minimise regulatory costs will be stepped
up, while ensuring that legitimate regulatory
objectives continue to be met.
In the coming decade, the benefits of the economic
community should be enjoyed more broadly,
not only by large corporations but also by othereconomic players, including micro-, small- andmedium-sized enterprises, start-ups, employees,
entrepreneurs and professionals. Efforts to narrow
the development gap will be strengthened, toensure that AEC 2025 delivers real benefits of job
creation and stability, welfare improvement, better
sustainability and future development.
The regional market will not only serve as a ‘steppingstone’ for participation in the global market but
also as a true source of comparative advantage
to achieve global competitiveness.  AEC 2025 will
see the region ascend the global value chains into
more sustainable production activities, higher
technology-intensive manufacturing industries andknowledge-intensive services.

INTRODUCTION TO
ASEAN
ASEAN AT A
GLANCE

Growing With ASEAN: AEC Blueprint 2025 – Forging Ahead Together

DID YOU KNOW: AMAZINGFACTS ABOUT ASEANLOOKING BEYOND
ASEAN

E-Commerce in ASEAN

Growing With ASEAN: AEC Blueprint 2025 – Forging Ahead Together

ASEAN TODAY: KEY ACHIEVEMENTS UNDER AEC
BLUEPRINT 2015 AND RECENT DEVELOPMENTS

ASEAN Today:
Socio-Political

AEC Blueprint 2025 will provide ASEAN witha new master plan for economic integration
for the coming 10 years.   Charting the region’s
trajectory over the next decade, institutions will bestrengthened, commitments followed through with
implementation, and monitoring and evaluation
enhanced.   Unique, dynamic and brimming withpotential, ASEAN will assume its aspiring role asa key driver for regional as well as international
growth.

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E-Commerce in ASEAN

40

FinTech
A wide range of laws and regulations could apply to
the E-Commerce and FinTech industries, dependingon the nature of the FinTech products and services
intended to be offered.  Businesses, particularly
financial institutions, should consult the relevant
authorities or legal counsels to ensure that they
comply with all such regulations and laws before
commencing their operations in the market.

Brunei Darussalam
Overview
E-Commerce
Although Brunei has high levels of internet
penetration, its E-Commerce industry currently has
not yet realised its full potential. 
This situation looks set to change as Brunei has
adopted a focused economic strategy targeting
specific sectors, which have been identified as valueadded activities, have a high potential for exports
and that are likely to create jobs in the country, as
candidates for investments.  The information andcommunication technology (“ICT”) sector has been
identified as such a sector.
To this end, the government of Brunei hasestablished a clear set of national long-term plans

Brunei’s financial system is made of two
components, the Islamic and conventional financial
sectors, which function concurrently. To realise its
aspirations of establishing itself as a global financial
hub in both these sectors, the government of Brunei
has taken steps to implement policies and initiatives
that are intended to create a regulatory regime andan ecosystem encouraging the development of askilled labour force to provide financial services thatmeet international and Islamic financial standards.
The oversight of such initiatives is largely held by
the Autoriti Monetari Brunei Darussalam (“AMBD”),
which is the central bank of Brunei and thegoverning authority regulating the financial sector. 
One such initiative implemented by the AMBD is the
National Payment and Settlement Systems Project,which was undertaken to modernise Brunei’s
national payment and settlement system to align itwith global standards and enhance stability in thefinancial sector.

Relevant Legislative Framework —E-Commerce
E-Commerce
Brunei does not have overarching legislation
governing E-Commerce activities.  Instead, arange of laws potentially apply to E-Commerce
operations, depending on the specific industry

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ASEAN AT A
GLANCEASEAN Today:
Socio-Political
ASEAN TODAY: KEY ACHIEVEMENTS UNDER AEC
BLUEPRINT 2015 AND RECENT DEVELOPMENTS▪▪ Outline of Strategies and Policies forDevelopment – consisting of eight main
strategies and supported by 50 Policy Directions
focusing on education, economics, security,
institutional development, local businessdevelopment, infrastructure development,social security and the environment.

Growing With ASEAN: AEC Blueprint 2025 – Forging Ahead Together

Given the ever-increasing number of internet users
and a growing middle class in many of the ASEAN
countries, the E-Commerce markets in the ASEAN
region offer attractive business opportunities. This
growth of electronic and online transactions has
also led to the rise of FinTech, which uses computer
programs and other technology to support andenable banking and financial services. 

▪▪ Wawasan Brunei 2035 or Brunei Vision 2035 –which outlines Brunei’s long-term economic
vision (for example, to achieve annual real GDP
growth rates of 5-6%); andE-Commerce in ASEAN

to enhance and develop the country’s economy. 
Such plans include the:LOOKING BEYOND
ASEAN

T

oday, internet and mobile penetration rates
have risen to unprecedented heights across
many countries, and Southeast Asia is no exception. 
This rise in internet and smartphone usage hashelped propel growth in the E-Commerce and
FinTech industries, whose future promises to be an
exciting one. 

DID YOU KNOW: AMAZINGFACTS ABOUT ASEAN

E-Commerce in ASEAN

E-Commerce in ASEAN
and nature of the business that is intended to be
conducted.  Legal advice should be obtained inorder to identify the specific laws that may apply toa particular business activity and ensure compliancewith the same. Other laws that may generally apply
to E-Commerce activities mainly deal with issues
relating to the validity of electronic transactions
and contract, consumer protection and cybersecurity. These laws include but are not limited to:▪▪ Computer Misuse Act, Chapter 194▪▪ Consumer Protection (Fair Trading) Order, 2011▪▪ Money-Changing and Remittance Businesses
Act, Chapter 174▪▪ Moneylenders Act, Chapter 62▪▪ Pawnbrokers Order, 2002▪▪ Securities Market Order, 2013▪▪ Takaful Order, 2008

Government Incentives for the
E-Commerce and FinTech Industry▪▪ Electronic Transactions Act, Chapter 196▪▪ Sale of Goods Act, Chapter 170

FinTechWhile there is no overarching law governing theprovision of FinTech products or services, a wide
range of laws regulating the provision of financial
services may apply depending on the nature of
the FinTech products or services that are intended
to be offered.  Businesses, particularly financial
institutions, should consult the relevant authorities
or legal counsels to ensure that they comply withall such regulations and laws before commencing
their operations in the market. These laws that arelikely to be relevant to FinTech companies include
but are not limited to:

The government of Brunei has budgeted 1% of
its GDP (B$200 million) to encourage R&D andinnovation with the aim of diversifying its economy
through the production of more innovative andvalue-added services and products. To this end, theBrunei Economic Development Board has identified
the ICT industry and specific activities therein as
having a large potential to fulfil this purpose andtherefore to focus on.  Such activities include, but
are not limited to:▪▪ Information Technology (“IT”)▪▪ Digital Media▪▪ Internet of Things (“IoT”)▪▪ Banking Order, 2006▪▪ Data Centres▪▪ Islamic Banking Order, 2008▪▪ Innovative Technology▪▪ International Banking Order, 2000

In light of the above, the Brunei government recently
established various grant schemes to support startups and innovation. These grant schemes include,
but are not limited to:▪▪ International Business Companies Order, 2000▪▪ Insurance Order, 2006▪▪ Finance Companies Act, Chapter 89▪▪ Hire Purchase Order, 200642▪▪ the AITI grant, which provides up to B$250,000
to encourage and enhance ICT productdevelopment, improvement, certification, andpackaging/marketing by local businesses.  This
grant was established by the Authority for Infocommunications Technology Industry (“AITI”)

Cambodia
Overview
E-Commerce
Unlike many other countries in the ASEAN region,
E-Commerce and online retail businesses have
yet to fully take off in Cambodia, which remains
primarily a cash-based society.  This is also
hampered in part by the lack of a proper legislative
framework governing electronic transactions, andthe relatively low internet penetration (standing at
approximately 32%)1 and low use of smartphones(standing at approximately 40%)2 in the country. 
However, this is expected to change as the useof the internet and smartphones by Cambodia’s
population increases with time.  In fact, 2014
and 2015 saw the emergence of a number of
E-Commerce platforms thriving in a market that

Relevant Legislative Framework
E-Commerce
There is presently no legislative framework for
E-Commerce in Cambodia, which also does nothave any laws governing electronic transactions. 
However, a draft E-Commerce law is in the pipeline
and widely expected to be issued within the year,
given the establishment of the ASEAN Economic
Community and the increasing pressure on
Cambodia to enact and harmonise its laws onelectronic transactions.

FinTechAs with E-Commerce in Cambodia, there is no
existing legislative framework governing FinTech inthe country.

Recent Developments
As stated above, a new E-Commerce law is
widely expected to be issued within the year.  Itis understood that this new E-Commerce law isintended to be consistent and aligned with theUnited Nations Commission on International Trade
Law (“UNCITRAL”) Model Law on E-Commerce. 

Internet World Stats, Cambodia (2016), Retrieved 14 April 2016 from http://www.internetworldstats.com/asia.htm
Sola., J., and Phong., K., (2015) “Mobile Phones and Internet in Cambodia 2015”, The Asia Foundation. Accessible at: https://asiafoundation.org/
resources/pdfs/MobilePhonesinCB2015.pdf

1
2

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INTRODUCTION TO
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ASEAN AT A
GLANCEASEAN Today:
Socio-Political
ASEAN TODAY: KEY ACHIEVEMENTS UNDER AEC
BLUEPRINT 2015 AND RECENT DEVELOPMENTS

The state of the FinTech industry in Cambodia issimilar to that of the E-Commerce industry, in that
there is a relatively low rate of adoption of FinTech
services and products in the country.  This is also
largely attributed to the cash-based society of thecountry, with a relatively low proportion of the
population utilising the banking system comparedwith other ASEAN countries.  However, as with thesituation with E-Commerce, this is expected tochange as Cambodia’s population becomes moretech-savvy and the banking sector grows alongwith the country’s rising middle class.

Growing With ASEAN: AEC Blueprint 2025 – Forging Ahead Together▪▪ the Start-Up Brunei grant, which seeks to draw
entrepreneurs and innovative businesses, both
local and foreign, to establish or relocate theirstart-ups to Brunei by offering a monetary
incentive of B$50,000.  The grant is available
to both local and foreign businesses.  Foreignbusinesses can also avail themselves of anadditional relocation grant of up to B$30,000.

FinTech

E-Commerce in ASEAN▪▪ the Local Enterprise Application and Productgrant, which offsets the costs of up to B$150,000
for R&D projects of local small and medium
enterprises (“SMEs”) and researchers (whether
students or faculty) from institutes of higher
learning aiming to develop and create innovative
products and services with commercial andexport potential in the ICT cluster (particularlyin the activities mentioned above); andwas previously thought to be inhospitable to suchactivities, with more expected to follow.

LOOKING BEYOND
ASEAN

to cultivate Brunei’s ICT and digital media
industries and encourage local companies toinnovate and develop ICT and digital productsthat are “home-grown”;

DID YOU KNOW: AMAZINGFACTS ABOUT ASEAN

E-Commerce in ASEAN

E-Commerce in ASEAN
Based on the existing draft legislation, it appears
that the E-Commerce law will deal with certain issues
relevant to both E-Commerce and FinTech, such as
consumer protection, transfers of electronic funds,
the regulation of intermediaries and E-Commerce
service providers and data confidentiality.

Indonesia
Overview
E-Commerce
An ever-increasing number of internet users anda growing middle class make Indonesia one of themost attractive E-Commerce markets in the ASEAN
region. However, despite Indonesia’s rapid growth,
the current regulatory framework surrounding thecountry’s E-Commerce sector remains sparse andscattered across a number of laws and regulations.

FinTechIndonesia is still developing a comprehensive
regulatory framework for financial technology inthe country. The key regulators, i.e. the Indonesianfinancial services authority (Otoritas Jasa Keuanganor “OJK”) and the Indonesian central bank (BankIndonesia or “BI”), have given their commitment tocooperate with financial technology associations,such as FinTech Indonesia and the Indonesian
Payment System Association, to jointly develop andestablish a relevant regulatory framework that could
address evolving technologies in financial services,
and advance a technology-centric financial services
ecosystem in Indonesia.

Relevant Legislative Framework
E-Commerce
The Indonesian government has yet to issue
an umbrella regulation to govern E-Commercebusiness in Indonesia.  Nevertheless, the following
laws and regulations are relevant and would need
to be taken into consideration by businesses
intending to operate an E-Commerce business inIndonesia:

44▪▪ Indonesian Civil Code;▪▪ Law No.  8 of 1999 on Consumer Protection(“Consumers Law”);▪▪ Law No.  11 of 2008 on Electronic Information
and Transactions (“EIT Law”);▪▪ Law No. 7 of 2014 on Trade (“Trade Law”);▪▪ Government Regulation No.  82 of 2012 on
the Implementation of Electronic Information
and Transactions (“EIT Regulation”), as theimplementing regulation of the EIT Law; and▪▪ Presidential Regulation No.  39 of 2014 on
Negative Investment List (“Negative List”).
Starting up an E-Commerce business is generally
the same as incorporating any other businessand there are no specific registration or licensing
requirements that one must fulfil or obtain toengage in the E-Commerce sector, so long as all theother regulatory and licensing requirements of thespecific business activity are complied with.  
When carrying out their business operation inIndonesia, E-Commerce players must adhere to
the foregoing list of laws and regulations which
are relevant to E-Commerce business. In particular,
the Trade Law deals with all general aspects
related to commercial trade.  Article 4 of the Trade
Law recognises E-Commerce as one of the tradeactivities regulated under such law, but it stillleaves uncertain some of the core issues facing
the e-commerce sector.  The law does, however,stipulate that E-Commerce will be further regulated
by regulations that will address the gaps in the
sector and provide guidelines for E-Commerce
activities (further discussion on this topic below).
Besides the above, an additional requirement isapplicable to an E-Commerce seller that owns a
website.   Under the EIT Law and the Minister ofCommunications and Information Regulation No. 
23 of 2013 on Domain Name Management, any
E-Commerce website must obtain a reliability

In particular, banks implementing FinTech
services which fall within the scope of electronicbanking (services which enable bank customers
to obtain information, and communicate andconduct banking transactions electronically) are
required to comply with a certain level of risk
management requirements.  For instance, Bank
Indonesia Regulation No.  9/15/PBI/2007 on the
Implementation of Risk Management in the Useof Technology by Commercial Banks requires thatthe bank’s data centre and/or disaster recovery
centre be placed in Indonesia.   Any data centre
and/or disaster recovery centre placed outside ofIndonesia must obtain approval from the OJK. It isalso worth noting that service providers providing
electronic banking support to commercial banks
must also comply with the requirements set out
under this regulation.

Concurrently, the Indonesian government isalso in the process of preparing an ‘E-Commerce
Road Map’, which covers seven strategic issues,
namely logistics, funding, consumer protection,communications infrastructure, taxes, educationand human resources, and cyber security. 
On top of the draft implementing regulation on
E-Commerce activities, the Indonesian government
also intends to introduce a new regulation on
foreign direct investment in the E-Commerce sector.

FinTechBased on media reports, Bank Indonesia is currently
working on establishing an integrated national
payment gateway for electronic payments.  Thenational payment gateway scheme will focus onbuilding interoperability between principal andswitching companies in Indonesia to enhance

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INTRODUCTION TO
ASEAN
ASEAN Today:
Socio-Political
ASEAN TODAY: KEY ACHIEVEMENTS UNDER AEC
BLUEPRINT 2015 AND RECENT DEVELOPMENTS

The latest draft of the e-commerce regulation
contains several additional requirements that will
be introduced for E-Commerce activities, such as
the requirement for a seller to obtain a businesslicense on an E-Commerce activity, provide a
helpline for customer complaints, and complying
with the technical requirements stipulated therein.  
In addition, the draft also adds that an E-Commerce
seller will have to be properly registered and obtaina certificate on reliability for its electronic system. 
Other than additional requirements, the draft
further sets out specific guidelines on tax, shipping/logistic, exchange & refund, and the new disputesettlement mechanism in the form of online dispute
resolution.

Growing With ASEAN: AEC Blueprint 2025 – Forging Ahead Together

The current regulatory framework on financial
technology regulates how companies utilisingtechnologies for financial services should manage
the implementation of such technologies as wellas the necessary licensing requirements fromthe authorised government institution(s) forthe provision of specific financial services.  Theframework currently covers, among others: (i) cardbased payment instrument, (ii) electronic money,and (iii) electronic banking. 

Indonesia is currently implementing regulationin the E-Commerce sector as mandated by theTrade Law.  The Ministry of Trade, in collaboration
with the Ministry of Information and Technology,
the Ministry of Industry and other ministries andgovernmental bodies, are currently preparing thedraft implementing regulation for E-Commerce
activities in the form of a Government Regulation(Peraturan Pemerintah).  

E-Commerce in ASEANFinTech

E-Commerce

LOOKING BEYOND
ASEAN

It should be noted that there are presently norestrictions for offshore E-Commerce players (i.e. nolegal presence in Indonesia) to make available theirservices to customers located in Indonesia. However,they are still bound to comply with some of theforegoing list of laws and regulations, such as the EIT
Law and the Consumers Law. Furthermore, certain
businesses as established in the Negative List haverestrictions imposed on foreign investments. Such
restrictions do pose a certain number of obstacles
to encouraging the establishment of E-Commercebusinesses by foreign companies in Indonesia.

Recent Developments

DID YOU KNOW: AMAZINGFACTS ABOUT ASEAN

certificate from the Minister.   This certification isrequired to provide consumers protection fromfraud. 

ASEAN AT A
GLANCE

E-Commerce in ASEAN

E-Commerce in ASEAN
the security of electronic payments, and create acomprehensive and reliable electronic payment
ecosystem in Indonesia.

Laos
Overview
E-Commerce
E-Commerce has yet to realise its full potential
in Laos, mainly due to the low levels of internet
accessibility in the country, as well as the lack ofboth physical and legal infrastructures that are
conducive for E-Commerce activities. Nonetheless,it should be noted the Laos Government is eager topromote and enable E-Commerce activities in Laosand to that end, has established an E-Policy and
E-Government national plan to facilitate the same.

FinTechAlthough the country is undergoing modernization,
the adoption of FinTech services and products
remain relatively low in the Laotian financial sector. 
Nonetheless, some efforts have been undertaken
by financial institutions to modernise their banking
system.  It is also worth noting that the Laotian
government has adopted a policy, the Financial
Institution Development Strategy, with the primary
goal of diversifying and modernising, through the
adoption of technological means, the products andservices offered by the financial sector, and to allow
available funds to be utilised and apportioned
efficiently for the development of the country’s
economy.

Relevant Legislative Frameworkadoption or provision of FinTech services andproducts in Laos.  However, the basic licensing
requirements as well as informal performanceobligations for the provision of financial services
may be applicable in some cases, depending on thenature of the FinTech services or products offered.

Recent Developments
Although there are no specific developments in the
E-Commerce and FinTech sectors in Laos, this area
still remains worth watching given that, as withother developing countries, the situation is likely
to improve with time given better infrastructure,
increasing modernisation and   the growing
economy of the country.

Malaysia
Overview
E-Commerce
The E-Commerce industry continues to thrive in
the Malaysian market.  The proliferation of theinternet, the wider broadband penetration, thegrowing prevalence of smartphones as well as theconvenience of online shopping are among thedriving forces behind the growth of E-Commerce. 
While online shopping has yet to take over brickand-mortar retail businesses, it remains a fastgrowing industry in Malaysia with enormous
upside. Moreover, with each succeeding generation
becoming more connected to the online world
via their numerous devices, it is increasingly likelythat they will use the online medium to help makedecisions on what to buy, and more frequently, tomake online purchases as well. 

E-Commerce
There is no overarching law that regulates
e-commerce activities in Laos.  Nonetheless,
Laos does have a baseline legislation governing
electronic transactions (the Law on Electronic
Transaction No.20/NA).

FinTechThere is no overarching law that regulates the46

The growth of E-Commerce in Malaysia has had
many drivers including the establishment ofinternet banking in the late 90s, followed by the firstfew E-Commerce sites such as lelong.my, a homegrown online auction and shopping store. This wasfollowed by the launch of AirAsia’s flight booking
website in 2001, which served to make Malaysian
consumers more comfortable with the idea of usingMobile E-Commerce sites have also enjoyed aboom in popularity due to the growing usage ofsmartphones and higher broadband penetration
rates.  Mobile-centric E-Commerce players suchas Shopee, Snapsell, Carousell and Duriana also
entered the Malaysian market in 2015.  The entry
of so many players is not surprising, given thatonline retail spend constitutes only 5% of the total
retail spend in Malaysia and there are still plenty ofopportunities for E-Commerce players to grow andexpand their business in Malaysia.  
Separately, big data and analytics is now beginningto play a greater role in E-Commerce and likely tobe the next big thing notwithstanding privacy
concerns of consumers.

FinTechFinTech has had the positive effect of driving
the financial sector to participate in the FinTech
revolution and offer access to market-based
financing through the application of technology
solutions. 

In this regard, the Governor of Bank Negara Malaysia,
Datuk Muhammad Ibrahim, recognises the difficultbalance that needs to be struck between regulationand innovation as reflected in his recent statement:“The good about FinTech is that it injects competition
into the traditional financial services providers,
including service providers … Technology is the way
for us to be more competitive and innovative. Whatis important is for the regulator to set a frameworkso that FinTech will operate in a safe, efficient andtransparent manner”.

ECF Platforms
Malaysia is the first country in the ASEAN region
to introduce a progressive ECF framework.  In thisregard, in February 2015, the Securities Commissionof Malaysia (“SC”) released Guidelines to facilitate
ECF platforms and following the issuance of the
Guidelines, the SC announced in June 2015 theapproval of 6 registered ECF platform operators(Alix Global, Ata Plus, Crowdonomic, Eureeca,
pitchIN and Propellar Crowd+).
The SC describes the ECF platform as “a new formof fundraising platform that allows start-ups or othersmall and medium-sized enterprises to obtain funding
through small equity investments from a relatively
large number of investors, using online portals to

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ASEAN AT A
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Socio-Political
ASEAN TODAY: KEY ACHIEVEMENTS UNDER AEC
BLUEPRINT 2015 AND RECENT DEVELOPMENTS

For instance, the Capital Markets and Services
Act 2007 was amended by Parliament in 2015 tolegally recognise and regulate equity crowdfunding(“ECF”) and peer-to-peer (“P2P”) platforms.

Growing With ASEAN: AEC Blueprint 2025 – Forging Ahead Together

Despite the economic downturn, 2015 marked
an interesting year for the E-Commerce industry
in Malaysia, which witnessed the launch of new
E-Commerce sites backed by heavyweight players,
namely, 11street by Celcom Axiata and South
Korea’s SK Planet, GoShop by Astro Malaysia andSouth Korea’s GS Home Shopping, Gemfive by
Hong Leong Group and Shoppu by AEON. 

As such, the governments and regulatory
authorities in Malaysia, like many others aroundthe world, have started recognising the growing
importance of FinTech and the need to providea policy and regulatory framework to grow andaccelerate innovation in the FinTech industry. 

E-Commerce in ASEANThe next major milestone came almost 10 years
later via the influx of group buying deal sites suchas Groupon, Mydeal, LivingSocial and specialty
online stores such as Rocket Internet’s Lazada
and Zalora and Japan’s Rakuten (Rakuten closed
its marketplaces in Malaysia since February 2016,as part of its corporate overhaul exercise).  Many
conventional retailers and companies have also set
up their E-Commerce arm as an alternative sales
channel. 

Some notable categories of FinTech include global
payments (e.g.  forex, remittance and wire transfer
services), personal finance management (e.g. 
financial advisory, portfolio management andbrokerage), marketplace lending (e.g.  peer-topeer lending and equity crowdfunding) and digitalcurrencies (e.g. Bitcoin and block-chain technology).

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ASEAN

their credit cards to purchase goods and services
over the internet. 

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E-Commerce in ASEAN

E-Commerce in ASEAN
publicise and facilitate such offers to investors”. 
Investors receive shares or stocks in return for theirinvestments and can expect a return in the form of
dividends if the company performs well. 
A person who wishes to operate, provide or maintainan ECF platform must register the platform with
the SC and exhibit to the SC that it will be able tooperate an orderly, fair and transparent market. In
this regard, the SC requires the operator to carry out
a due diligence exercise on prospective issuers, tomonitor the conduct of issuers, investment limits ofinvestors and any possibility of money launderingand to carry out investor education programmes
as well as protect personal data of individuals inaccordance with the Personal Data Protection Act
2010.
A person who wishes to list his project on an ECF
platform must first incorporate a local privatecompany. An issuer can raise up to a maximum of
RM3 million within a 12-month period. Anyone canbecome an investor subject to certain restrictions. 
There is no limit to the investment amount for a
sophisticated investor (i.e.  accredited investor,
high-net worth entity or high-net worth individual). 
An angel investor (i.e. an investor accredited by the
Malaysian Business Angels Network) can invest up
to RM500,000 within a 12-month period, while a
retail investor can invest up to RM5,000 per issuer
with a total amount not exceeding RM50,000 within
a 12-month period. 
Investors are given a 6-day cooling off period, during
which they may opt to withdraw the full amountof investments. Furthermore, any material adversechanges relating to the offer during the offer period
must be communicated to the investors and they
are given an option to withdraw their investments
within 14 days after such notification. The operator
may only release the funds to the issuer after thetargeted amount sought to be raised has been met.

P2P Lending Platforms
As part of the SC’s continued effort to nurture andfacilitate market-based innovation in FinTech under
the aFINity@SC initiative, the SC recently released

48

another set of guidelines to facilitate P2P lending. 
P2P lending facilitates the raising of funds bybusinesses or companies from both retail andsophisticated investors through an online platform. 
Individuals are not allowed to seek personal
financing via a P2P lending platform. 
Investors may now use P2P lending platforms tobuy securities in the form of an investment noteor Islamic investment note, which are issued bybusinesses or companies.  Once purchased, theissuer of the investment note or Islamic investment
note will be obliged to pay the investors over a
period of time, with interest or profits. 
Unlike the framework for ECF, there is no limit
imposed by the SC in relation to the amountof funds an issuer may raise on a P2P lending
platform. There is also no investment limit imposedon sophisticated and angel investors.  For retailinvestors, P2P lending operators have an obligation
to advise retail investors to limit their investments
to a maximum of RM50,000 so as to manage the risk
exposure of retail investors. 
Operators interested in operating a P2P platform
may submit their application to the SC from 2
May 2016 to 1 July 2016 and meet the following
requirements.  All P2P lending operators must be
locally incorporated and have a minimum paidup capital of RM5 million.  A P2P lending operator
must carry out a due diligence and risk assessment
exercise on the issuer and ensure that there is anefficient and transparent risk scoring system inplace.  A P2P lending operator must also monitor
and ensure compliance with its rules and ensurethat the issuer’s disclosure document lodged with
the P2P lending operator is verified for accuracy
and made available to investors.  Finally, the P2P
lending operator must have processes in place tomonitor anti-money laundering requirements,
manage any default by issuers including using its
best endeavours to recover amounts outstanding
to investors as well as carry out investor education
programmes. The rate of financing must not exceed
18% per annum. 

Relevant Legislative Framework
In terms of legislative frameworks, there is no
overarching law or regulation that governs
E-Commerce or FinTech activities.  Instead, various
aspects of E-Commerce or FinTech activities aregoverned by multiple pieces of legislation.
For instance, contracts formed through electronicmeans (such as over the internet) are recognised
as valid and enforceable contracts in Malaysia
pursuant to the Electronic Commerce Act 2006. 
Contracts made online are also subject to the samelaws as contracts made offline.  Contracts that are
unenforceable offline, for example, certain typesof contracts with children below the age of 18, or
contracts that are illegal, immoral or against public
policy, will similarly be unenforceable online. Digitaland electronic signatures are both recognised andaccepted as valid signatures under the Digital
Signature Act 1997 and Electronic Commerce Act
2006.
The terms and conditions on which the parties arecontracting must be agreed by both parties andincorporated into the contract.  The Consumer

Last but not least, a website operator/online seller
will invariably collect personal data in the courseof transactions.  Such collection of personal data
must be in line with the Personal Data Protection
Act 2010 and the various regulations and standards
issued by the Privacy Commissioner.  Obtaining thecustomer’s consent, setting out a privacy notice,ensuring that the customer’s personal data meetsthe standards set by the Commissioner on security,
data integrity and retention, and making available
information in relation to the personal data being
stored, are some of the key measures that will need
to be put into place by website operators/online
sellers. It would also be prudent to include a choiceof law and jurisdiction clause into the contract so as
to give certainty as to the law that will apply in theevent of a dispute.

Recent Developments
It is clear that there is ample scope for growth in
the areas of FinTech and E-Commerce in Malaysia. 

Doing Business in ASEAN 2016

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INTRODUCTION TO
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Socio-Political
ASEAN TODAY: KEY ACHIEVEMENTS UNDER AEC
BLUEPRINT 2015 AND RECENT DEVELOPMENTS

All online businesses have to comply with therequirements set out in the Consumer Protection(Electronic Trade Transactions) Regulation
2012.  The Regulation requires online sellers
and marketplace operators to disclose certain
information about themselves and their goods orservices. The objective of the said Regulation is tomake it easier for buyers to track down the identityof the online sellers in the event of fraud. This will
also serve to increase the confidence of consumers
to shop and trade online, which will further spur thegrowth of E-Commerce in Malaysia. 

Growing With ASEAN: AEC Blueprint 2025 – Forging Ahead Together

In order to protect the investors, it is mandatory
for P2P lending operators to ensure that the funds
raised from investors are first placed into a trust
account until such time as the minimum target of
80% is met. Any repayments by an issuer will also
be placed into the trust account. Furthermore, P2P
lending operators must provide investors with all
relevant information to enable investors to make an
informed investment decision and understand therisks of their investment.

E-Commerce in ASEANIn addition, an issuer may list on a P2P lending
platform and ECF platform concurrently provided
that such information is disclosed to the platform
operators.

Protection Act 1999 protects consumers against
a range of unfair practices and imposes minimum
product standards.  It was amended in 2007 towiden its scope to protect consumers’ rights whencarrying out E-Commerce transactions. In addition,
the terms and conditions in a standard form ofcontract must not be procedurally or substantially
unfair and the advertisement must not be false or
misleading.  Otherwise, the terms and conditions
may be declared as unenforceable or void under
the Consumer Protection Act 1999. 

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ASEAN

An issuer is allowed to keep the funds raised
provided that it must have at least raised 80% of its
targeted amount. However, the issuer may not keep
any amount that exceeds the targeted amount. 

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E-Commerce in ASEAN

E-Commerce in ASEAN
This potential has been recognised and supportedby the Malaysian government by the passing of therequired laws and regulations, for instance, in orderto materialise the ECP and P2P lending platforms
described above. 
Although there are no specific highlights tomention, there is no doubt that there are moreregulations in the works in order to prepare forthe impact of FinTech (which is yet at a nascentstage), and to balance the rights of consumers visà-vis businesses when it comes to E-Commerce(which can be considered to be a relatively matureindustry).

MyanmarOverview
E-Commerce
While still in the stage of infancy, E-Commerce has
been growing at a steady rate in Myanmar.   Such
growth may be attributed to friendly government
policies, reforms in political, social and economic
aspects of the country, as well as rapid economic
development in the country.
Since liberalising its economy, Myanmar’s
population has been embracing mobile andinternet connectivity. According to the Ministry ofCommunication and Information Technology, themobile penetration rate in Myanmar reached 54.6%
by the end of March 2015. As for internet penetration
in Myanmar, the International Telecommunication
Union reported that the internet penetration rateincreased exponentially, from 0.25% in 2010 to
12.6% in 2015. 
Furthermore, the demographics of Myanmar’s
population are ideal for an E-Commerce market,
with 28% of Myanmar’s population comprisingtech-savvy youths under the age of 24. This, coupledwith the rising internet and mobile penetration
rates in Myanmar, provides ideal conditions for the
E-Commerce market to grow and thrive.

50

However, the biggest challenge to the developmentof E-Commerce is the prevailing attitudes of the
Burmese towards electronic transactions. Myanmar
remains very much a cash-based society.  People
generally prefer making physical purchases where
they can be assured of the quality and nature of the
products. 
Furthermore, there is still a lack of infrastructure
conducive for ICT development and E-Commerce
activities in Myanmar.  For instance, there remains
a lack of secure, electronic payment systems
in Myanmar (a key ingredient for E-Commerce
success). Nevertheless, it should be noted that thecountry recently welcomed its first E-Commerce
payment platform, jointly developed by 2C2P, aSingapore-based payment company, and Myanmar
Payment Union (“MPU”), the country’s national
payment network, which is experiencing steadily
increasing take-up rates and wider acceptancefrom the population.  Furthermore, as discussed
below, Myanmar is experiencing wider adoption ofmobile payment systems, though the intermediary
costs remain prohibitive.

FinTechThe adoption of FinTech products and services
has met with mixed success in Myanmar, whererelatively low accessibility to formal financial
services (the Consultative Group to Assist the Poor
revealed that less than 20% of the population
had access to formal financial services in 2013)
has resulted in an exponential growth in demand
for mobile payment services, given that a higher
proportion of Burmese have access to mobile
phones compared with financial services.
This has resulted in a number of major mobile
payment providers setting up operations in
Myanmar.  Such mobile payment providers act
as conduits for people to transfer, deposit andwithdraw funds from various banks in Myanmar. 
However, as Myanmar is still in the midst ofdeveloping its infrastructure to facilitate payment
for goods and services by electronic means, theuse of mobile payment systems, especially wheremultiple operators or banks are involved, often
results in very high intermediary costs.

▪▪ The Central Bank of Myanmar Law No.16/2013(“CBML”);▪▪ Financial Institutions Law No.20/2016 (“FIL”);▪▪ Mobile Banking Directive;▪▪ The Electronic Transactions Law No.5/2004(“ETL”);▪▪ Mobile Financial Services Regulation No.3/2016(“MFSR”); and▪▪ The Computer Science Development Law
No.10/96 (“CSDL”);▪▪ The Consumer Protection Law No.10/2014.

▪▪ The Myanmar Citizens Investment Law
No.18/2013 or The Foreign Investment Law
No.21/2012 (to be consolidated and replaced by
The Investment Law, draft under review);▪▪ The Consumer Protection Law No.10/2014;▪▪ Wide Area Network
No.3/2002); andOrder(Notification▪▪ The Telecommunications Law No.31/2013.
One particular point to note is that under Section
29 of the CSDL, a person who wishes to set up
a computer network or to connect a link inside
a computer network must obtain prior sanction
from the Ministry of Communications, Posts
and Telegraphs.  Failure to comply with thesaid requirement is an offence punishable byimprisonment and a fine under Section 33 of the
CSDL.

The MFSR applies to mobile financial services
providers, which is defined as “a mobile network
operator or a non-bank financial institution thatis granted Registration Certificate by the Central
Bank under [the MFSR] to provide mobile financial
services”. Section 4 of the MFSR provides that only acompany set up solely for the purposes of carryingout mobile financial services may apply to theCentral Bank of Myanmar (“CBM”) for a registration
certificate to provide such services. Section 5 states
the prerequisites for an application under the MFSR,
which include having a minimum capital of threebillion kyat and submitting certain documents to
the CBM. The MFSR also sets out permitted mobile
financial services transactions, transaction limits,
as well as customer protection provisions.  This isa key piece of legislation that businesses seeking
to provide mobile financial services in Myanmar
should pay attention to.

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There is presently no overarching E-Commerce
legislation in Myanmar.  Instead, businesses that
intend to conduct E-Commerce operations in
the country would need to comply with various
regulations and requirements that are generally
relevant to the nature of an E-Commerce business. 
Such laws include:

While there is no single legislation regulating
FinTech in Myanmar, businesses that wish toprovide FinTech services in Myanmar may want totake into account the following legislation to ensurethat they comply with all legal requirements before
commencing operations:

Growing With ASEAN: AEC Blueprint 2025 – Forging Ahead Together

E-Commerce

FinTech

E-Commerce in ASEAN

Relevant Legislative Framework

Apart from the above, businesses should takenote of any regulations or requirements specific to
the nature of their business, and ensure that any
relevant licences, permits or sanctions are obtained
prior to the commencement of business.

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ASEAN

Given the current state of affairs, such as theliberalisation of Myanmar’s economy, establishmentof an independent central bank in 2013 and a prodemocracy government, the potential for FinTech
growth is high in Myanmar, with many opportunities
to be taken.  Nonetheless, businesses should be
mindful of the significant structural obstacles thatremain.

DID YOU KNOW: AMAZINGFACTS ABOUT ASEAN

E-Commerce in ASEAN

E-Commerce in ASEAN
Financial institutions that use FinTech to provide
financial services will need to get a licence fromthe CBM before they may commence operations in
Myanmar. The FIL contains specific provisions that
regulate the issuance of e-money and the provisionof e-banking services by banks and financial
institutions.  In particular, a key focus appears tobe the protection of consumers, with a number ofprovisions in the FIL providing for the same.

Recent Developments
E-Commerce
The Myanmar government recently developedand established an e-Governance Information andCommunication Technologies (“ICT”) Master Plan
2015 (“ICT Master Plan”), and according to the
Final Report produced by the Asian Development
Bank, in coming up with initiatives under the
ICT Master Plan, a study had been undertaken
to derive learning points from e-Governanceleaders around the world and to assess the current
state of e-Governance in Myanmar.  Some key
recommendations on amendments to the ICT laws
in Myanmar that provide a glimpse of the future
direction that the Myanmar government intends totake, are as follows:▪▪ To come up with a comprehensive ICT legislation
addressing different aspects of e-Governance,with new institutions created to implement
such legislation effectively;▪▪ To establish an ICT Council, which will havedepartments overseeing the following areas:
e-governance, cyber security and investigation,
research and development, and national ICT
capacity building;▪▪ To encourage private sector participation in
the ICT industry, the study recommends thatstructured consultations be held with the
Myanmar Computer Federation and the ICT
Council; and52▪▪ To amend the ICT laws to address, among others,
the protection of intellectual property rights,
cyber security of ICT infrastructure, cybercrime,
legal and ethical ways of social media usage,
E-Commerce including electronic payments,
privacy and data protection and dispute
resolution modes in a virtual world.
With the ICT Master Plan in place, it is likely that
Myanmar will become a market with a clear andsimple regulatory framework that promotes, andis conducive for, the establishment and growth of
E-Commerce activities.

FinTechAs stated above, Myanmar recently welcomed its
first E-Commerce payments platform, which was
jointly developed by 2C2P, a Singapore-based
payment company, and the MPU, which is part of
the CBM. This is a significant development that will
boost the E-Commerce industry because a growing
number of Burmese citizens who hold MPU cards
will be able to buy goods and services from othercountries online, which was not possible in the past.
The Myanmar government also recently enacted anumber of laws, such as the FIL and the MFSR, which
provide regulations on certain FinTech activities
that were previously not dealt with specifically in
any legislation.  This is demonstrative of a greaterawareness and focus by the Myanmar government
to establish a regulatory framework, in line with
its ICT Master Plan, to encourage the adoption of
FinTech products and services, while ensuring that
consumers remain adequately protected.

Philippines
Overview
In recent years, E-Commerce and FinTech havebeen slowly gaining ground in the Philippines,
which is now one of the world’s largest providersof business process outsourcing (“BPO”) services
and consumers of social media.   Given the rightconditions, the potential exists for the Philippines toposition itself as a leader in the global E-Commercemarket.

FinTech
The Philippines has demonstrated great potential
in the FinTech sector, particularly in the mobile
payment, banking and financial sector.   ThePhilippines ranked 13th (ahead of Hong Kong,
Germany, France, and Malaysia) in MasterCard’s
Mobile Payments Readiness Index, which is adata driven survey of global readiness to accept
mobile payments.   In this regard, it is noted thatthe local traditional banks in the country havealready created their respective mobile banking
applications allowing users to execute certaintransactions (e.g., bank transfers) online or througha smartphone, in apparent recognition of the needto adapt with the increasing reliance on technology
for the provision of services of all types.
Crowdsourcing and crowdfunding are also gaining
traction in the Philippines, with a growing numberof new start-ups specifically formed for these
purposes.

The Philippine BPO industry’s growth is expected
to continue in the coming years.  Notably, there
appears to be a significant shift from the provisionof low-end voice-based BPO services to moresophisticated knowledge process outsourcing(“KPO”) services in fields such as web development,
information technology, actuarial engineering,
medical transcription, banking and finance,accounting and law.   In recognition of this, thePhilippine government has begun to take steps toenhance its technology infrastructure and build its
capacity to accommodate growth in companies
engaged in KPO.

Relevant Legislative Framework
The primary legislation relating to E-Commerceand FinTech-related activities is the Republic Act
No.(“RA”) 8792, or the E-Commerce Act, which wasenacted on 14 June 2000. The E-Commerce Act isbased on the UNCITRAL Model Law on Electronic
Commerce.
The E-Commerce Act was passed in recognitionof, inter alia, the vital role of information andcommunications technology in nation-building
and the need to create an information-friendly
environment that supports and ensures theavailability, diversity and affordability of ICT
products and services. In this regard, the provisionsof the E-Commerce Act are intended to facilitate3
Jeandie O. Galolo, Low credit card penetration, lack of trust constrain PH e-commerce, THE SUN STAR available at http://www.sunstar.com.ph/cebu/
business/2015/10/16/low-credit-card-penetration-lack-trust-constrain-ph-e-commerce-436207
4
See Internet Live Stats available at http://www.internetlivestats.com/internet-users/philippines
5
Jeandie O. Galolo, Low credit card penetration, lack of trust constrain PH e-commerce, THE SUN STAR available at http://www.sunstar.com.ph/cebu/
business/2015/10/16/low-credit-card-penetration-lack-trust-constrain-ph-e-commerce-436207

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INTRODUCTION TO
ASEAN
ASEAN AT A
GLANCEASEAN Today:
Socio-Political
ASEAN TODAY: KEY ACHIEVEMENTS UNDER AEC
BLUEPRINT 2015 AND RECENT DEVELOPMENTS

That said, it should be noted that online retail sales
in the Philippines account for only 1% of the total
retail sales in the country (compared with about
10% in the US and Western Europe)3. It appears thata relatively low internet and credit card penetration(which currently stands at 43.5%4 and 7%5,
respectively), coupled with fragmented geography
and inadequate infrastructure in certain far-flungareas, poses the biggest obstacle to the growth of
online retail and shopping in the Philippines. 

Growing With ASEAN: AEC Blueprint 2025 – Forging Ahead Together

A key and related industry that should behighlighted is the Philippines’ provision of BPO
services, which has grown exponentially in thepast decade and resulted in the establishment of
the Philippines as a global outsourcing hub.  With
almost a million employees in the sector, the BPO
industry substantially contributes to the Philippine
national economy.

E-Commerce in ASEAN

BPO Services

The Philippines has a young, vibrant and social
media-savvy population and an ingrained
shopping mall culture (the country is home tothree of the world’s biggest shopping malls).  Assuch, there is a huge potential for E-Commerce
activities such as online shopping and retail in the
country, a trend that is evidenced by the growing
number of E-Commerce sites, both internationaland homegrown, setting up shop in the Philippines.  

LOOKING BEYOND
ASEAN

E-Commerce

DID YOU KNOW: AMAZINGFACTS ABOUT ASEAN

E-Commerce in ASEAN

E-Commerce in ASEAN
electronic contracts and transactions, with theaim of ensuring a legal regime that is equipped
to manage domestic and international dealings,
transactions, and storage of information utilising
ICT means. 
Highlights of the E-Commerce Act include:▪▪ Recognition of the authenticity and reliabilityof electronic data messages and electronic
documents.   Thus, electronic documents havethe legal effect, validity or enforceability of any
other document or legal writing.
▪▪ Subject to certain requirements, an electronic
document shall be the functional equivalent ofa written document for evidentiary purposes. 
▪▪ Recognition that information that is merely
incorporated by reference in an electronic
message, document or communication should
not be denied validity or enforceability solely onthat fact.
To ensure a safe and secure infrastructure for
E-Commerce and FinTech services to operate in, thePhilippines has also enacted the RA 10175 or the
Cybercrime Prevention Act, which seeks to protect
and safeguard the integrity of computer andcommunication systems, networks, and databases,
and the confidentiality, integrity, and availability of
information and data stored therein by criminalizes
all forms of conducts which involves the misuse,abuse, and illegal access of the same.
As a corollary to the above, the Philippines has
also established the Office of Cybercrime (“OOC”)
within the Department of Justice, which serves
as the central authority in all matters related tocross-border cybercrimes, and the Cybercrime
Investigation and Coordinating Centre, which is
responsible for the formulation and enforcement of
the country’s cybersecurity plan. 

54

Government Incentives for the
E-Commerce and FinTech Industry
To encourage growth in the E-Commerce and
FinTech sector, certain ICT-related activities are
given incentives in the Philippines.   For example,
businesses may apply to the Philippine Economic
Zone Authority (the “PEZA”) for the “IT Enterprise”
status (for companies that operate or offer IT-related
services), which if obtained, will allow the businessto benefit from certain incentives if the businessis located in a PEZA-registered IT park, building or
special economic zone.   Such incentives include:(a) an income tax holiday, (b) special 5% tax ongross income earned in lieu of all national and local
taxes, except real property taxes; and (c) additional
deduction of 50% on training expenses.
Separately, the Philippine government’s 2014
Investment Priorities Plan has a number of incentive
schemes that are targeted specifically at start-ups
and small, newly incorporated local companies.

Singapore
Overview
E-Commerce
E-Commerce has seen significant adoption in
Singapore, as shown by the proliferation of
E-Commerce start-ups and increasing monetary
value of online transactions. This has resulted in awide range of E-Commerce platforms available,from platforms for transactions from businesses to
consumers (“B2C”) and between businesses (“B2B”)
to even those that allow consumers to transact witheach other (“C2C”).
In addition, government agencies, such as SPRING
Singapore, have been actively encouraging local
businesses to retool their business models throughthe adoption of technology and the expansionof their E-Commerce activities to help boost
productivity and increase sales.

▪▪ Computer Misuse and Cybersecurity Act  ▪▪ Consumer Protection (Fair Trading) Act (Cap. 
52A) (which includes Lemon Law provisions)▪▪ Electronic Transactions Act (Cap. 88)▪▪ Personal Data Protection Act 2012 (Act 26 of
2012)

To this end, the Monetary Authority of Singapore(“MAS”), which is the central bank and primary
regulator for all financial institutions in Singapore,is actively seeking to engage with FinTechrelated companies, and recently initiated several
developments relating to FinTech. In 2015, the MAS
formed a new FinTech & Innovation Group (“FTIG”),
and established the Financial Sector Technology &Innovation (“FSTI”) funding scheme.  In May 2016,
the MAS and the National Research Foundation(“NRF”) established a FinTech Office in conjunction
with representatives from various government
agencies. 

Similarly, most of the laws that apply to the FinTech
industry deal primarily with the provision of thefinancial services, the legitimacy of electronictransactions and/or the protection of personal
data as opposed to the technology itself. Such laws
include but are not limited to:

In light of the above, Singapore is well poised to bea key driver of FinTech in the ASEAN region.

▪▪ Electronic Transactions Act (Cap. 88)▪▪ Sale of Goods Act (Cap. 393)

FinTech▪▪ Currency Act (Cap. 69)

7
PayPal, (2011), Online and mobile shopping in Singapore. See summary at http://www.mediabuzz.com.sg/asian-emarketing-latest-issue/1247paypals-first-comprehensive-study-on-online-and-mobile-shopping-in-singapore
8
A.T. Kearney and CIMB ASEAN research institute (2015), Lifting the Barriers to e-Commerce in ASEAN
9eMarketer, (2014), Information retrieved on 14 April 2016 from http://www.emarketer.com/Article/Retail-Sales-Worldwide-Will-Top-22-Trillion-ThisYear/1011765

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INTRODUCTION TO
ASEAN
ASEAN Today:
Socio-Political
LOOKING BEYOND
ASEAN▪▪ Banking Act (Cap. 19)

ASEAN TODAY: KEY ACHIEVEMENTS UNDER AEC
BLUEPRINT 2015 AND RECENT DEVELOPMENTS

Singapore is home to a FinTech-friendly ecosystem,
in which both the private and public sectors areencouraging and promoting innovation and theadoption of FinTech, with the view of creating a
Smart Financial Centre in Singapore (as part of thecountry’s aim of becoming a Smart Nation).

Although there is no overarching law that regulates
E-Commerce activities in Singapore, a range of laws
may apply to E-Commerce operators, dependingon their industry and business activity, such as thenature of goods or services that they offer.  Legal
advice should be obtained in order to identify the
specific laws that may apply to a particular businessactivity.  The laws that may generally apply to
E-Commerce activities generally govern consumer
protection issues (including data protection) as
well as the validity of electronic contracts andtransactions. These laws include but are not limited
to:Growing With ASEAN: AEC Blueprint 2025 – Forging Ahead Together

FinTech

E-Commerce

E-Commerce in ASEANWith its clear and business-friendly regulatory
framework, collaborative regulators and governing
authorities, and an established E-Commerce market,
Singapore continues to be in a prime position tolead the ASEAN region in E-Commerce.

Relevant Legislative Framework

55

DID YOU KNOW: AMAZINGFACTS ABOUT ASEAN

Analysts predicted that Singapore’s online retailmarket would amount to S$4.4 billion by the endof 20157, quadruple that of what it was in 2010. It
is also envisaged that this amount will continue togrow, given that presently, online expenditure in
Singapore only amounts to 4% of the total retailrevenue in Singapore.8 This sits behind the global
average of 6%, and behind countries with moredeveloped online retail markets such as China, theUnited Kingdom and the United States of America,
where online expenditures amount to 10%, 13%
and 6.5% of total retail sales respectively.9

ASEAN AT A
GLANCE

E-Commerce in ASEAN

E-Commerce in ASEAN▪▪ Financial Advisers Act (Cap. 110)▪▪ Finance Companies Act (Cap. 108)▪▪ Money-changing and Remittance Businesses
Act (Cap. 187)▪▪ Moneylenders Act (Cap. 188)▪▪ Monetary Authority of Singapore Act (Cap. 186)▪▪ Payment Systems (Oversight) Act (Cap. 222A)▪▪ Personal Data Protection Act 2012 (Act 26 of2012)▪▪ Securities and Futures Act (Cap. 289)
Further, it should be noted that the MAS has issued
notices and guidelines relating to the adoption
and implementation of technology by financial
institutions, such as the Notice on Technology
Risk Management, and all financial institutions
seeking to implement FinTech capabilities would
need to comply with the same. While these notices
and guidelines do not apply directly to providersof the technology itself (such as software service
providers), they remain relevant as financial
institutions are expected to pass through some ofthese obligations to their service providers.
Businesses, especially those providing financial
services, should seek advice on whether any of theabove laws and regulations would be applicable tothem.

Recent Developments in Singapore
E-Commerce
In 2015, SPRING Singapore (“SPRING”), in
conjunction with Singapore Post, developed andestablished “ezyCommerce”, an online platformto help SMEs carry out E-Commerce activities(e.g.  warehousing, managing inventories andorder fulfilment online) across various online
marketplaces.  To further support SMEs, SPRING
offers them a subsidised rate (up to 70 per centfunding) for the use of ezyCommerce.
56

More recently, it was announced that the Singapore
government would be launching more initiatives
to promote the innovation and commercialisationof new technologies in Singapore.  Such initiatives
include the creation of a new entity, SG-Innovate,
which will serve to connect and match start-ups,
researchers and innovators with potential investors
and mentors and facilitate access to resources
and new markets, with the hope of helping themtransform their ideas into successful businesses,
and establishment of the Jurong Innovation District,which will serve as a technology park and incubator
for the development of innovative products andservices.

FinTechOn 1 August 2015, the FTIG was established as partof the office of the MAS.  Under its portfolio, the
FTIG will manage regulatory policies and strategies
to increase the efficiency and competitivenessof Singapore’s financial sector through thedevelopment and adoption of FinTech, while
ensuring that the corresponding risks related to thesame are properly managed. 
The MAS and  NRF established a FinTech Office on
3 May 2016 to promote Singapore as a FinTech
Hub.  Businesses can consult the FinTech Office
for all FinTech related matters, including on thevarious incentive and grant schemes offered by thegovernment for the development and adoption of
FinTech capabilities.
Separately, the MAS has also stated that it intends
to introduce a regulatory sandbox approach to theprovision of FinTech services and products, similar
to that offered in the UK by the Financial Conduct
Authority. Such a regulatory sandbox approach willserve as a test bed for financial institutions to test
and introduce their innovative products or services
within controlled boundaries and the establishedregulatory framework (although exceptions may beprovided), while ensuring that the consequencesof failure can be contained and managed andthat consumers remain adequately protected. The
MAS has also indicated that it will work closely
together with the FIs during this testing phase tohelp facilitate the successful introduction of such
FinTech services and products.

Businesses are therefore encouraged to maximise
their potential by making use of such incentives
and grants that may be available to them. 

FinTechMany of the grants specified above are equallyapplicable to businesses seeking to adopt, develop
or offer FinTech-related products and/or services.

E-Commerce
The E-Commerce market in Thailand is projected to
grow significantly in the next few years and open up
increasing opportunities for businesses to tap into a
growing market. The market is estimated to triple
from about US$1.4 billion in 2015 to US$4 billion in
2020. Central to such expectations is the high levelof mobile penetration in Thailand (at over 130%),
and the population’s increasing access to highspeed internet connections (the government aims
to make high speed internet available to 95% of its
population by 2020 and has committed significant
funding to do so). 
The Thai government has also established the
National Digital Economy Master Plan in which it
will facilitate and promote E-Commerce activities. 

FinTechAlthough the FinTech industry is still in its infancy
stage in Thailand, it is another area that theThai government has shown a keen interest in
developing, with policies introduced to support
FinTech-related businesses and innovation. 
For instance, the Bank of Thailand (“BOT”), Thailand’s
Central Bank, recently introduced the Financial
Sector Master Plan Phase III, for the period of 20162020.  One key initiative of the Master Plan is topromote electronic financial and payment services(under the National E-Payment Master Plan) as wellas enhance the financial system’s efficiency throughtechnology. 

Separately, on 29 June 2015, MAS announced that
it would commit S$225 million over the following
five years under the Financial Sector Technology

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ASEAN AT A
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Socio-Political
ASEAN TODAY: KEY ACHIEVEMENTS UNDER AEC
BLUEPRINT 2015 AND RECENT DEVELOPMENTS

The Singapore government has established various
policies, incentives and grant schemes to encourage
the adoption and usage of E-Commerce bybusinesses. Such incentives and grants, offered byvarious government agencies such as SPRING andInternational Enterprise Singapore (“IE Singapore”),
provide support to start-ups and SMEs targeted atvarious aspects of an E-Commerce business, suchas the purchase, acquisition and managementof intellectual property (“IP”) (e.g.  tax deductible
allowances for the purchase of IP, the Innovation
and Capability Voucher), the automation ofbusiness activities (e.g.  the Automation Support
Package and the Capability Development Grant)
and specified activities relating to the international
expansion of a business (e.g.  Market Readiness
Assistance Grant).  Such grants can even be used
to offset legal costs incurred in conducting the
aforementioned activities.

Overview

Growing With ASEAN: AEC Blueprint 2025 – Forging Ahead Together

E-Commerce

Thailand

E-Commerce in ASEANGovernment Grants to Facilitate
E-Commerce in Singapore& Innovation or “FSTI” scheme to provide support
for the creation of a vibrant ecosystem for FinTech
innovation.  FSTI funds can be used for innovation
centres, institution-level projects, and industrywide projects. 

LOOKING BEYOND
ASEAN

As a corollary to the above, the MAS announced
that it would be holding its first FinTech festival
in November 2016, in conjunction with the
Association of Banks in Singapore.  The festival isunderstood to comprise three segments — theGlobal FinTech Hackcelerator, in which interested
parties in the FinTech industry will be invited topropose and develop solutions to problems facedby the financial industry, the MAS FinTech Awards
and various other conferences and events.

DID YOU KNOW: AMAZINGFACTS ABOUT ASEAN

E-Commerce in ASEAN

E-Commerce in ASEAN
Separately, the Securities and Exchange Commission(“SEC”) has also stated that it recognises therevolutionary impact of FinTech and is keen to
engage with the industry in order to harness its
potential.

Relevant Legislative Framework
E-Commerce
Thailand does not have an overarching law
governing E-Commerce activities.  Nonetheless, a
range of laws may apply to E-Commerce operators,
depending on the nature of the business involvedin the E-Commerce activity. Legal advice should beobtained in order to identify the specific laws that
may apply to a particular business activity.  Other
laws that may generally apply to E-Commerce
activities include but are not limited to:▪▪ Act on Commission of an Offence relating toComputer (known as “Computer Crime Act”)▪▪ Civil and Commercial Code▪▪ Consumer Protection Act▪▪ Direct Sales and Direct Marketing Act▪▪ Electronic Transactions Act▪▪ Foreign Business Act

Finally, it should be noted that while Thailand’s Boardof Investment (“BOI”) promotes foreign investment,
and provides for incentives (such as tax incentives)in the E-Commerce sector (classified under section
5.8 of the List of Activities eligible for promotion),
it has set policies relating to and restricting foreign
ownership of E-Commerce businesses. 

FinTechThailand does not have an umbrella legislation
governing the provision or adoption of FinTech
products and services. Instead, the laws relating to
the provision of financial services and products will
generally apply if the FinTech services and products
fall within the activities regulated by such laws. 
These laws that may generally apply to FinTech
companies include but are not limited to:▪▪ Bank of Thailand Act▪▪ Currency Act▪▪ Deposit Protection Agency Act▪▪ Electronic Transactions Act▪▪ Exchange Control Act▪▪ Financial Institutions Businesses Act▪▪ Foreign Business Act▪▪ Office of Insurance Commission Act

The Electronic Transactions Act has been
complemented by Subordinated Laws (Royal
Decrees) and other government notifications,
including a regulation for e-payment service
providers.
Separately, the Draft Personal Data Protection Billhas been under development for several years. 
Although Thailand does not currently have an
overarching data protection law, the principles ofprivacy and data protection are fundamental toseveral other laws, including but not limited to The
Constitution of Thailand and Telecommunications
Business Act.

58▪▪ Royal Decree Regulating Electronic Payment
Services▪▪ Securities and Exchange Act▪▪ Trust for Transactions in Capital Market Act
Businesses are advised to ensure that the relevant
legal advisors and industry experts are consulted
prior to the adoption or provision of FinTech
products and services in Thailand.

▪▪ facilitating
activities

andpromoting

E-Commerce▪▪ providing a regulatory framework of privacy,
data protection and cybersecurity laws▪▪ establishingstandards

e-payment

ande-transaction▪▪ applying e-logistics to facilitate trade and supply
chain management▪▪ providing SMEs with lowtechnology for E-Commerce

costenabler

FinTechFinancial Sector Master Plan
Under the Financial Sector Master Plan, which
outlines the plan for the financial sector up to2020, the government aims to enhance thecompetitiveness, sustainability and inclusiveness ofthe financial sector. To this end, the BOT will support
the government’s initiatives to promote a national
electronic payment system, through the National
E-Payment Master Plan.  The National E-Payment
Committee has the objective of leveraging payment

In addition, the government has proposed a new
Payment Systems Act that is anticipated to unify
payment regulations, which are currently under
different laws and enforced by various agencies.

SEC’s FinTech Initiatives and Proposed
Crowdfunding Regulations
The SEC recognises that FinTech can enhance theefficiency of financial services and transform thefinancial sector, allowing client-centric products
and services to be offered based on innovativetechnologies. The SEC also appreciates how FinTech
can allow underserved sectors of the economy andpopulation to access financial services at affordable
prices.
As such, the SEC has set about organising various
forums and seminars that focus on educating anddiscussing various FinTech-related issues, allowinginterested parties and stakeholders to consult with
the SEC on an informal basis, while learning frominternational best practices. 
Separately, the SEC issued a public consultation in
January to seek feedback on additional proposed
rules and guidelines for supervising crowdfunding
portals.  This follows on from the crowdfunding
rules governing equity-based crowdfunding (where
investors hold shares in return for their investments). 
The crowdfunding rules were introduced by the
SEC in 2015 in connection with the joint promotion,by the SEC and the Department of Business
Development of the Ministry of Commerce, ofDoing Business in ASEAN 2016

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INTRODUCTION TO
ASEAN
ASEAN AT A
GLANCEASEAN Today:
Socio-Political
ASEAN TODAY: KEY ACHIEVEMENTS UNDER AEC
BLUEPRINT 2015 AND RECENT DEVELOPMENTS

The government has identified several key strategies
in order to develop the digital economy.  Thosestrategies relating to E-Commerce are highlighted
below:

Furthermore, the BOT will encourage and facilitate
the digitisation of both the front-end and backend operations of financial institutions, while
focusing at the same time on ensuring that there
is no compromise on consumer protection andsecurity, and that systems remain compatible andinteroperable.

Growing With ASEAN: AEC Blueprint 2025 – Forging Ahead Together

In February 2016, the National Digital Economy
Committee approved in principle the National
Digital Economy Master Plan sponsored by the
Ministry of Information and Communications
Technology.  The Master Plan has the objectivesof building a nationwide broadband network,
promoting a technology-based economy andsociety, creating public e-services, developing skills
and competency in technology, and enhancing
public confidence in technology. The government
has set a target of promoting the opening of at least
10,000 small and medium-sized online shops.

E-Commerce in ASEAN

E-Commerce

technology, so as to reduce reliance on cash usage. 
It is envisioned that the first stage of developmentof the National E-Payment Master Plan  will involve“Any ID” payment infrastructure, which could relyon the user’s mobile phone number, bank accountor other ID number.

LOOKING BEYOND
ASEAN

Recent Developments

DID YOU KNOW: AMAZINGFACTS ABOUT ASEAN

E-Commerce in ASEAN

E-Commerce in ASEAN
crowdfunding as a fundraising channel for SMEs
and start-ups.

Vietnam
Overview
E-Commerce
E-Commerce has seen rapid expansion in Vietnam
in recent years, which has spurred the developmentof a large number of domestic and foreign players
in this field. A growing middle class, coupled with ayoung and technology-savvy population, has madeVietnam a popular choice for investors in this field.

FinTech
In Vietnam, FinTech is still a relatively new field,
drawing a very limited number of participants. 
However, there is an optimistic outlook for growthin this industry.
The FinTech industry in Vietnam is primarily madeup of domestic players.  This may be attributed
to the fact that foreign investors that wish to
directly invest in the FinTech market face legislative
challenges – either due to express restrictions orlack of clear guidelines or procedures.

laws have the effect of improving the confidence ofVietnamese consumers to  engage in E-Commerce. 
However, currently, the preferred method of
payment for E-Commerce is cash on delivery andonly a few users of E-Commerce platforms use
credit cards, mobile payments or other cashless
payment methods due to potential security/safetyconcerns by users.

Foreign Investment in E-Commerce
In contrast to setting up brick-and-mortar retailestablishments, the conditions for foreign investors
to access the E-Commerce market are less stringent. 
However, to date, the actual number of foreign
E-Commerce companies with an active presencein Vietnam is limited, with the market primarily
dominated by domestic players.
Decree No.  52/2013/ND-CP expressly stipulates
that foreign individuals residing in Vietnam andforeign traders with a presence in Vietnam may
engage in E-Commerce services.  Under the WTO
Commitments, for trading, 100% foreign ownershipis permitted. 

E-Commerce

While additional layers of government approval
may be required as E-Commerce is a regulated
activity, the process through which foreign
investors can set up an E-Commerce company isrelatively straightforward. Foreign investors will be
subject to the same sub-license requirements as
domestic players.

Vietnam currently has a legislative framework inplace to govern the E-Commerce sector. 

FinTechRelevant Legislative Framework

This is detailed under the government’s Decree No. 
52/2013/ND-CP on E-Commerce, which elaborates
on the limited E-Commerce provisions in theCommercial Law (2005). Other guiding instruments
set out detailed regulations on registration,
management and operation of E-Commerce
websites.
Other relevant laws, such as the Law on Consumer
Rights Protection and Law on E-Transaction, aid in
the development of the E-Commerce sector. These60

Uncertainty of Legal Treatment for
Innovative Businesses
While Vietnamese law has recognised more
“popular” FinTech models (e.g., payment
intermediary services or “e-wallets”), there are somefields in which treatment is currently unclear.
One example is peer-to-peer online lending, which
is a grey area – particularly as to whether it is to betreated as (i) an E-Commerce website or (ii) a websiteused for finance and credit.  Foreign investors
wishing to engage in a business that currently lacks

Foreign Ownership Restrictions
For businesses that have a clear legal framework,foreign ownership restrictions generally apply. 
This is because the nature of FinTech often seesparticipation in telecommunications and dataprocessing services, which are highly regulated in
Vietnam.
According to Vietnam’s WTO Commitments,   suchbusinesses have a foreign ownership cap of 65%(for non-facilities-based services) and 50% (forfacilities-based services).  Therefore, foreign direct
investors may only carry out such businesses via a
joint venture with a local party.
Notwithstanding such restrictions, the business lineof software development is currently unrestricted
and does not require any specific sublicence.

Licensing Requirements
Depending on the type of FinTech development,
both local and foreign players are required toobtain sublicences to carry out their business. 
Currently, the requirements for certain licences may
be considered prohibitive for smaller or new playersthat may not have significant funding.
For example, to provide payment intermediaryservices (such as a non-banking organisation or“e-wallets” defined in the law), organisations mustobtain approval from the State Bank of Vietnam. Suchapproval will only be granted if the organisation,
among other requirements, satisfies technical and

The government’s investment promotion in thisfield has been successful and today, Vietnam
is home to a large number of foreign softwaredevelopers that have seen Vietnam as a “cost centre”
due to relatively lower labour costs and competitive
skill sets in this field.

Recent Developments
E-Commerce
The Vietnamese government has been very active in
keeping up with E-Commerce trends in the country,
by way of enacting key laws governing this field. 
At the time Decree No. 52/2013/ND-CP was passed,
E-Commerce primarily took the form of goods andservices trading via websites, including trading
floors.  Limited recognition was given for otherforms – most notably, mobile.  In December 2015,
the Ministry of Industry and Trade passed CircularNo.  59/2015/TT-BCT stipulating regulations on
E-Commerce via mobile apps in recognition of therate that mobile commerce was growing.
Accordingly, there is now a legal regime in place
for mandatory registration and operation of mobile
apps carrying out E-Commerce functions. 

Doing Business in ASEAN 2016

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INTRODUCTION TO
ASEAN
ASEAN AT A
GLANCEASEAN Today:
Socio-Political
ASEAN TODAY: KEY ACHIEVEMENTS UNDER AEC
BLUEPRINT 2015 AND RECENT DEVELOPMENTS

For more “traditional” FinTech forms, such assoftware development, the government maintains
a receptive approach towards investors engaged inor making an entrance in this area. This has remained
unchanged over the past decade and today, foreign
investors are eligible to enjoy tax incentives if
engaged in the development of software, including
financial software. 

Growing With ASEAN: AEC Blueprint 2025 – Forging Ahead Together

Investors that wish to engage in such fields are
generally advised to make an official request to
the authorities, with a description of their intended
business, to obtain guidance on how to proceedwith such investments.  However, this is a timeconsuming process — often taking months.

Traditional FinTech Forms – Software

E-Commerce in ASEANSuch authorities may include the State Bank ofVietnam, the Ministry of Finance, the Ministryof Industry and Trade, and/or the Ministry ofInformation and Communication.

professional conditions for its infrastructure andfacilities and has a paid-up charter capital of at least
VND 50 billion (approx. USD 2,250,000). For foreign
players, this is in addition to the foreign ownershipcaps to which they may be subject.

LOOKING BEYOND
ASEAN

a clear legal framework will be subject to special
permission from the relevant authorities.

DID YOU KNOW: AMAZINGFACTS ABOUT ASEAN

E-Commerce in ASEAN

E-Commerce in ASEAN
FinTechIn terms of law reform, there have been limited
developments in FinTech in Vietnam.  However,
over the past year, the government has become
increasingly receptive of new technologies.
For example, from March 2015, the State Bank ofVietnam has opened itself towards granting licences
for payment intermediary service providers outsideof select companies in the pilot scheme. 
For the model of crowdfunding, there have been
recent policy discussions over the past year todevelop a legal framework or legislation for suchservices. While not concluded, it is hoped that sucha framework will be delivered in 2016.
In January 2015, the Prime Minister’s Decision No. 
66/2014QD-TTg came into force, which approved alist of high technologies that have been prioritisedfor investment development.  With this list, it isforeshadowed that the Vietnamese government willcontinue to play an active role for the foreseeable
future in promoting the use of FinTech in thefinancial services industry.

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DID YOU KNOW: AMAZINGFACTS ABOUT ASEANLOOKING BEYOND
ASEAN

E-Commerce in ASEANDoing Business in ASEAN 2016
Growing With ASEAN: AEC Blueprint 2025 – Forging Ahead Together

Looking Beyond ASEAN

63
ASEAN TODAY: KEY ACHIEVEMENTS UNDER AEC
BLUEPRINT 2015 AND RECENT DEVELOPMENTS

ASEAN Today:
Socio-Political

ASEAN AT A
GLANCEINTRODUCTION TO
ASEAN

Looking Beyond ASEAN

A

s the global economy continues to recoverfrom the deep financial and economic crisisof 2008, ASEAN’s regional integration agenda has
become more important than ever.  It is clear thatas the world economy recovers, the high-income
economies of North America and Western Europe
will need to undergo significant fiscal and structuralchanges, including lowering consumption andimport growth. 
As a result, these traditional economic powerhouse
regions will not be the same robust destination
markets for manufacturing exports as they werein the past.  Emerging and developing economies
will have to rely more on China, Japan, South Korea,
India and other Asia-Pacific partners for regional
trade flows. 
Beyond the need to sustain trade in goods, it is also
clear that the richer ASEAN economies and otherparts of the developing world will now need tofocus more on boosting their productivity throughdiversification into high-end manufacturing andservices. 
In this part of the book, we discuss how ASEAN must
look beyond its border to the global behemoths ofChina and India, as well as the East Asian “Tiger”
economies of Japan and South Korea, to maximise
its growth potential.

ASEAN and China

auspices of the “Middle Kingdom” andcorresponding tributary systems.  The peace,
however, was enforced with the threat of punitive
economic and/or military counter-measures shoulda tributary state step out of line. One could argue
that even today, the historical perceptions of China
remain a powerful force in shaping the modern
policies of many ASEAN countries towards their
giant neighbour.

Trade Relations in the Modern Era

In the decades after the fall of the Berlin Wall,
China has stepped up its economic development
and no longer intends to rely on its exports to drive
economic growth and prosperity.  Chinese policy
now focuses on transforming the economy into one
based on domestic consumption, services andinnovation. Consequently China has become one of
the biggest trade and investment destinations for
ASEAN nations.
This means that Chinese-ASEAN trade flows are
now two-way as both economic blocs become
important exporters and importers of goods andservices.  Such growing trade relations open up
a number of opportunities for ASEAN countries,  such as Indonesia, the Philippines, Vietnam andCambodia, that have large pools of labour andare competitive low-cost production locations formainland Chinese companies.
Inter-bloc trade between ASEAN and China stood at
US$366.5 billion in 2014 while annual bilateral tradeis projected to reach US$1 trillion by 2020. Two-way
investments are estimated at US$150 billion withinthese eight years with Malaysia, Singapore andThailand spearheading these trade flows.

H

istorically, Chinese culture has played an
important role in relations between China
and Southeast Asian countries for more than 2,000
years. Confucianism was at the heart of the dynastic
Chinese state and underpinned all of its strategic
engagements and regional projections of power. 
Consequently, China and Southeast Asian countries
shared a long period of peaceful relations under the64

China has historically sought to maintain aharmonious balance with its ASEAN trading
partners.  In Malaysia, for example, two-way tradewith China reached an unprecedented US$94.8
billion in 2013 and measures such as synergistic
industrial parks have been taken to increase that by
60% to US$160 billion by 2017.

The objectives of this agreement are to:▪▪ strengthen and enhance economic, trade andinvestment cooperation between the parties;▪▪ progressively liberalise and promote tradein goods and services as well as create atransparent, liberal and facilitative investment
regime;▪▪ explore new areas and develop appropriate
measures for closer economic cooperation
between the parties; and▪▪ facilitate more effective economic integrationof newer ASEAN member states and bridge thedevelopment gap between the parties.
The Agreement on Trade in Goods was signed in
2004. It was implemented by the ASEAN countries
and China on 1 July 2005 and 20 July 2005
respectively. Under this agreement, the six original
ASEAN members and China had to eliminate tariffs
on 90% of their products by 2010, while Cambodia,
Laos, Myanmar and Vietnam have until 2015 to doso.
The Trade in Services Agreement entered into force
in July 2007.  Under this agreement, services andservices suppliers / providers in the region will enjoy
improved market access and national treatment

In 2012 alone, China invested US$4.42 billion in
ASEAN economies.  By the end of 2012, Singapore
had become the top investment destination
for Chinese companies, followed by Cambodia,
Myanmar, Indonesia and Laos, according to the
China-ASEAN Business Council.
The world expects Beijing to continue laying
economic roots in ASEAN with a focus on direct
investments and infrastructure.  Planned railway
lines between China, Laos, Vietnam, Cambodia,
Myanmar, Thailand, Malaysia and Singapore are
proof that China is committed to building a longterm and mutually beneficial relationship with
ASEAN.
From a Chinese perspective, ASEAN offers a diversemix of natural resources, agriculture, electronics,
large consumer markets and rapidly developing
infrastructure projects.  The use of the Chinese
renminbi as an alternative trading currency will
help grease the wheels of commerce – evidenceof this is seen today in the Indonesian, Malaysian,Philippines, Singaporean and Thailand currencies
which track the renminbi more closely than the US
dollar.

The China Connection for ASEAN

T

rade is not a zero-sum game for China and
ASEAN. The AEC will be crucial in facilitating
the freer movement of goods and services for its
10-member countries, and thus enlarging theDoing Business in ASEAN 2016

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INTRODUCTION TO
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ASEAN AT A
GLANCEASEAN Today:
Socio-Political
ASEAN TODAY: KEY ACHIEVEMENTS UNDER AEC
BLUEPRINT 2015 AND RECENT DEVELOPMENTS

ASEAN has overtaken Australia, the US and Russia
to become the fourth-largest destination for China’s
outward investments and has become China’s thirdlargest source of foreign direct investment. 

Growing With ASEAN: AEC Blueprint 2025 – Forging Ahead Together

In November 2001, ASEAN and China agreed tolaunch negotiations for an ASEAN-China Free
Trade Area (ACFTA).  In the following year, ASEAN
and China signed the Framework Agreement on
Comprehensive Economic Cooperation between
both parties.

The Investment Agreement was implemented on 15
February 2010. This agreement will help to create amore transparent and facilitative environment, andgive companies from ASEAN a competitive edge totap on thriving opportunities in China.

E-Commerce in ASEANin sectors / subsectors where commitments havebeen made.

LOOKING BEYOND
ASEAN

The evolving drivers of Asia’s economic growth are inline with this Chinese strategy of balanced trading. 
The estimated 1.75 billion middle-class consumers
in Asia by 2020 are set to be a huge engine for
Chinese growth.  With accelerating urbanisationand more middle-class families, Chinese consumers
will expect more imports of quality as well as luxury
products and services – directly benefitting ASEAN.

DID YOU KNOW: AMAZINGFACTS ABOUT ASEAN

Looking Beyond ASEAN

Looking Beyond ASEAN
trading sphere of ASEAN (and generating more
intra-regional trade).  However, one must not havethe misconception that this implies a return to theold ages of mercantilism, where ASEAN is now
deemed to be a single large cartel that aims toaccumulate monetary reserves through a positive
trade balance and the concept that trade is a zerosum game is worshipped.
In fact, there are more worries that the AEC could
potentially cannibalise trade/investment flows
to another nearby, competing economy such as
China. We suggest for such worries to be put aside. 
Since the time when the benefits of free tradewere posited by Adam Smith and David Ricardo,
economists have mostly come to accept that
trade is not a zero-sum game, but can be a winwin situation. That is, since the stages of economic
development and factor endowments are different
between China and the 10 ASEAN countries, there
are more reasons for the economies to increase
trade/investment between one another.
Even before the AEC was mooted, China has
been playing an active role in building tradeand investment relations with ASEAN in the past
decade, extending the historical relationship that
dates back thousands of years. 
To illustrate the very close relationship andinterdependence, China today is the largest trading
partner for 7 out of 10 ASEAN members, while
ASEAN as a region is China’s 3rd largest trading
partner.  Since China’s ascension into the WTO in
2001, ASEAN’s total trade with China has increased
tenfold.  This has resulted in jobs creation, higher
incomes and better living standards, benefiting
millions of people in both regions.

From China’s perspective, reaching out to ASEAN
and other regional countries is not a want, but aneed.  As China faces its domestic “growing pains”
of rising labour costs, land costs, and slowing
economic growth, it is increasingly seeking new
production and market bases overseas.  ASEAN isa natural destination given the geographic andhistorical ties. In fact, several new initiatives such as
the upgrading of the ASEAN-China FTA, the setting
up of the Asian Infrastructure Investment Bank(AIIB), and the mooting of the One-Belt, One-Road(OBOR) strategy will further promote cooperation
between both regions.
Nothing could be more telling about the strong
economic ties between China and ASEAN thana quick look at how trade between the two had
grown over the years.  Figure 1 shows that total
trade between China and ASEAN has risen tenfold
from US$41 billion in 2000 to US$492 billion in2015 (estimated).  China accounted for 5.1% of
ASEAN’s total trade with the world in 2000 and thismore than tripled to 17.2% in 2015.  Based on our
projections, China’s share of ASEAN’s total trade
could reach 25%, or US$1.85 trillion, by 2030.

Figure 1: Rising Trade between China
and ASEAN
US$ trillion

2.0
1.8

66

ASEAN’s Total Trade with China

1.847% of Trade with China

25.0%

1.6

19.5%

1.4

17.2%

1.2

14.4%

1.0

0.764

0.8
0.6
0.4

In 2013, China’s President Xi Jinping mooted theidea of the New Silk Road, or the Maritime Silk
Road that starts from Fujian province and links all
the littoral countries of the region.  This Maritime
Silk Road concept will further deepen China’s
connection with ASEAN, with the AEC serving as amajor catalyst.

% China Trade

0.2
0.0

0.492
5.1%

0.290

30%
25%
20%
15%
10%
5%

0.041

0%
2015

On the investment front, China’s push in recent
years to investment overseas (in order to balanceout investment inflows and also partly to reduce
appreciation pressure on the RMB), has seen ASEAN
as a main beneficiary.  China’s overseas direct

Brunei

8

Philippines

7

Myanmar

6

Vietnam

5

Cambodia
Malaysia

4

0.6

3

1.6

8
% of ODI (ex HK)

1

45

0

42.3
2014

40

Average (03-14)

-1

1.3

3.3
1.6

1.4

1.1

Laos

1.4
1.5

2.0

Thailand

2.8

Indonesia
Singapore2008 2009 2010 2011 2012 2013 2014

35
25

27.0

24.6

22.1

20.7

20
15

Even Closer ASEAN-China Economic
Ties: Not A Want, But A Need

17.6
12.8

10

6.1

5

9.3

0
ASIA

Africa

7.4

8.3

6.4

North
EuropeLatAm Oceania
America

Of China’s US$14.1 billion ODI into Asia (ex-HK) in
2014, 55% was directed into ASEAN economies,
at US$7.8 billion.  In fact, over the 2003-14 period,
ASEAN accounted for about 48% of ODI into Asia
(ex-HK) on average, thereby highlighting theopportunities and importance of ASEAN to Chinese
corporates and investors.
A breakdown of the ODI into ASEAN shows that thelargest chunks traditionally came into Singapore(at 33% on average during 2003-2014), Indonesia(15%), Thailand (11%), and Laos (9%).

In the years ahead, we postulate that there will
be an even greater degree of intra-ASEAN trade,
as well as ASEAN-China trade. 
The key reason is due to the structural shift in
China’s demographic trend, which will result ina shift in the existing industry mix, where lessefficient/productive operations will move out andbe situated in selected ASEAN countries.
As of 2015, it is estimated that 9% of the Chinese
population (132 million pax) is above the age of 65
years old (and thus assumed to be not economically
active). By 2030, this is expected to reach  14% (235
million pax). 
In fact, China’s population is estimated to start
shrinking from 2031, while ASEAN’s population isestimated to reach a maximum of nearly 800 million
pax before shrinking from 2064 onwards (Figure 4).

INTRODUCTION TO
ASEAN
ASEAN AT A
GLANCEDID YOU KNOW: AMAZINGFACTS ABOUT ASEAN

30

ASEAN Today:
Socio-Political

9

ASEAN TODAY: KEY ACHIEVEMENTS UNDER AEC
BLUEPRINT 2015 AND RECENT DEVELOPMENTS

US$ billion

Growing With ASEAN: AEC Blueprint 2025 – Forging Ahead Together

Figure 2: Share of China’s ODI (ex-HK)
to the World

Figure 3: Figure 3: China’s ODI to ASEAN
Economies

E-Commerce in ASEANinvestment (ODI) to the world-ex Hong Kong grew
very strongly at 37% p.a. from 2003 to 2014. During
this period, Asia was the number two region for
China’s overseas investment (ex-HK), averaging
22% of total ODI to the world.  In 2014, the shareof ODI to Asia (ex-HK) was 27%, at US$14.1 billion(Figure 2). 

LOOKING BEYOND
ASEAN

Looking Beyond ASEAN

Doing Business in ASEAN 201667

Looking Beyond ASEAN
Figure 4: China’s Population Starts
Shrinking in 2031
Bil Pax

Figure 5: Emerging ASEAN Economies Can
Fill The Manufacturing Vacuum
Value-Added/Unit

1.8

Manufacturing Smile Curve

2064

1.6
1.4

China
ASEAN
India

2031

1.2

Population Starts to Shrink

2064

0.6

Sales/Services

Design

1.0
0.8

R&D

CONCEPT

Marketing

Procurement

Distribution

Logistics

Production

0.4
2010 2020 2030 2040 2050 2060 2070 2080 2090 2100

Source: World Population Prospects 2014, UOB Global Economics &Markets Research Estimate

With China’s population greying rapidly, future
economic growth strategies will be concentrated
in capital-intensive, high labour-productivity
manufacturing as well as services industries. Lowervalue added manufacturing activities will move outof China as the higher labour costs no longer justify
the production of such goods. 
As such, trade flows in goods/services between
China and ASEAN countries will only increase further
as the former outsources the labour-intensive andlower-value added activities.
Even within the manufacturing sector, firms in
China will move up the value chain towards having
a higher ratio of manufacturing ‘services’ in their
total output, as they try to  shed off labour-intensive
production (where value-added per unit produced
is lowest). This is where emerging ASEAN economies
can potentially enter to fill the manufacturing
vacuum (Figure 5).

68

Global Competition

Area CompetitionTime

Source: Stan Shih, Former Chairman of Acer Group, 1992

In conclusion, the economic opportunities fromthe economic agglomeration of ASEAN nations
will be immense.  The rise of China, coupled withthe establishment of the AEC from 2015 onwards,
is expected to provide new catalysts for growth in
ASEAN. 
Even with the use of fairly conservative assumptions
in our economic projections (i.e.  in most of theforecasts in this report, we assumed just half of thecompounded growth rates seen in the previous
period), the future of ASEAN is indeed promising.
Domestic factors such as population growth, ruralurban migration and the rise in the middle income
class in ASEAN will pave the way for the AEC’s
promise of an integrated production platform andan enlarged consumption base. The resultant trade,financial, and social integration will be beneficial totrade, tourism and investment in the region. 
At the same time, the shift in domestic conditions in
China is propelling an outward orientation mindset. 
Initiatives such as the AEC will be complementary
to and further enhanced by other programmessuch as the AIIB, Maritime Silk Road, and upgradingof the ASEAN-China FTA.

At the same time, the shift in domestic conditionsin China is propelling further outward orientation,
which will result in closer integration and relations
with ASEAN through trade and investment. These
two channels could see ASEAN’s total trade with
China rising to US$1.5 trillion and investment
inflows from China rising to US$185 billion, from
US$405 billion and US$36 billion, respectively.

ASEAN and China’s One Belt One RoadC

hina President Xi Jinping first mooted the “Beltand Road” initiative in Sep/Oct 2013.  This
ambitious strategy, based on the two ancient traderoutes, aims to develop a land-based Silk Road
Economic Belt through western China starting from
Xian, and the 21st Century Maritime Silk Road,
which begins from Fuzhou via the maritime route. 
In addition to historical context, this project should
be seen as an extension of China’s plans to develop
the western, land-locked part of the country, whichis lagging far behind the coastal provinces.

he China-led Asian Infrastructure Investment
Bank (AIIB) is expected to launch in late 2015
with an initial subscribed capital of US$50 billion
and focus on financing infrastructure projects
across Asia – including energy, transport andtelecommunications infrastructure, urban and ruraldevelopment, and the environment.

The “Belt and Road” project envisages a seamlessconnectivity between China and Asia, Africa, andEurope, via land-based or maritime routes, withincreased integration and cooperation with the
Asian, African and European continents.  The planfits with China’s economic, security, military, anddiplomatic strategy.  The Silk Road Economic Belt
focuses on bringing together China, Central Asia,
Russia and Europe (the Baltic); linking China with
the Persian Gulf and the Mediterranean Sea throughCentral Asia and West Asia; and connecting China
with Southeast Asia, South Asia and the Indian
Ocean.  The 21st-Century Maritime Silk Road goesfrom China’s coastal region to Europe through theSouth China Sea and the Indian Ocean in one route,and from China’s coast through the South China Sea
to the South Pacific in the other.

The AIIB recognises the need to complement theexisting infrastructure financing provided by the
WB and ADB. For Asia to improve the quality of life

Specifically for the maritime segment, “Belt andRoad” will focus on jointly building smooth, secureand efficient transport routes connecting major sea

The Asian Infrastructure Investment
Bank

T

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INTRODUCTION TO
ASEAN
ASEAN AT A
GLANCEASEAN Today:
Socio-Political
ASEAN TODAY: KEY ACHIEVEMENTS UNDER AEC
BLUEPRINT 2015 AND RECENT DEVELOPMENTS

For instance, after 2020, ASEAN’s economy would belarger than that of the UK, and would overtake that ofJapan by 2025. Domestic factors such as population
growth and the rise in the middle income class in
ASEAN will pave the way for AEC’s promise of an
integrated production platform and market size,
and to leverage on a region that is already outward
oriented in its trade and investment. This will see
ASEAN’s share of global total trade to rise from 6.7%
in 2013 to nearly 8% by 2030, which is no small featgiven that other larger trading groups such as EU
will be seeing a dwindling share of global trade. 

The setting up of AIIB is a timely move tohelp accelerate the economic developmentof the poorer nations in Asia to foster greater
economic integration and ensure lasting peacefuldevelopment for all nations in Asia.  

Growing With ASEAN: AEC Blueprint 2025 – Forging Ahead Together

he rise of China, coupled with theestablishment AEC from 2015, is expected toprovide new catalysts for growth in ASEAN.  Even
with the use of fairly conservative assumptions in
our economic projections (i.e.  in most of ourforecasts in this report, we assumed just half of thecompounded growth rates seen in the previous
period), the future of ASEAN is indeed promising. 

E-Commerce in 
ASEAN

T

of its people there is an urgent need to accelerate
the infrastructure development of basic necessities
such as clean water, hospitals and schools and tocreate mobility by having more roads, railways andother form of transportation modes.  

LOOKING BEYOND
ASEAN

A Bright Future for ASEAN and China

DID YOU KNOW: AMAZINGFACTS ABOUT ASEAN

Looking Beyond ASEAN

Looking Beyond ASEAN
ports along the route, and will involve the ChinaPakistan Economic Corridor and the BangladeshChina-India-Myanmar Economic Corridor.

Forbes review in Jun 2015 based on a composite
score of revenues, profits, assets and market value.

Conclusion
Motivation For “Belt And Road”
Why would China commit the resources for such abold project? We believe that there are three main
considerations:Long term strategic requirements: As the world’s
top trading nation, China needs to ensure that it has
timely, efficient, and secure access to markets andresources, and therefore facilitation of trade andinvestment is one key focus.  In addition, it should
not be surprising that securing conventional andrenewal energy and resources is another focus
for China.  Once completed, “Belt and Road” will
provide land-based and sea-based alternatives notjust for China accessing to the continents, but also
access for other countries to China. Transport link isa critical consideration for China, as it is vulnerable
to choke points along its sea route.  Such threats
would be mitigated once land based alternatives
including railroads, highways, and communication
links are in place.
Near term economic reasons: More immediately,“Belt and Road” also provides new markets andbusiness opportunities for the country to deal
with its excess industrial capacity especially for its
debt-laden state-owned companies.  In addition,
after three decades of breakneck economic
development, Chinese companies are now morecapable of competing for businesses with its
overseas competitors, given the rise in technologicalsophistication and maturity. Note that countries inthe “Belt and Road” initiative account for 63% of theworld’s population and 29% of global GDP.  Tradebetween these countries and China reached morethan US$1tn in 2014, or 26% of China’s total tradevalue.
Financial capability: China’s financial capability has
also increased significantly to fund such a venture,
given that its stock of foreign exchange reserves
at USD3.73tn (~32% share of world’s total) is thelargest in the world, and its four largest domestic
Chinese banks (ICBC, CCB, ABC, and BOC) are also
the world’s top four largest in 2015, according to a70

China has embarked on an ambitious undertaking ina bid to integrate further with the global economy,
and to secure access to markets and resources. 
This connectivity is reflective of its rising role as apolitical and economic power in the next decades. 
Cooperation is needed, and not guaranteed,from countries along the “Belt and Road”, though
investment in infrastructure is likely to bring
benefits to those involved.  Business opportunities
are also likely to arise, as incomes and livelihoods
improve.  ASEAN economy and businesses should
benefit directly, being part of the maritime silk road,which will accelerate the already close trade andinvestment linkages between the two sides.
The probability of success for this initiative looks
to be high as long as China’s political support
continues.  Financing is falling in place with theestablishment of Silk Road Fund and the AIIB which
saw 16 of the world’s 20 largest economies asfounding members, and backed by China’s foreignexchange reserves.
However the initiative will be subject to challenges
along the way including domestic factors,
opposition/resistance from countries along theroutes, geopolitical developments, technologicaladvancements, among others.

ASEAN and JapanI

n 2013, the administration of Abe Shinzo tried
to make an impression with its pro-ASEAN
policies. During the course of last year, Abe visited
all ten ASEAN countries while Kishida Fumio, theMinister for Foreign Affairs, and other senior

Relations between Southeast and EastAsia

O

ne of the major changes in the global
economic order has been the transformationof the whole of East Asia (including Japan) and
ASEAN into inter-linked growth centres.  Economic
development in both China and ASEAN countries
has contributed much to this change. 
Since the Plaza Accord in the mid-1980s, thedeepening of interdependence and economic
development in East Asia (including the Asian NIEs)
and parts of ASEAN have been remarkable witha World Bank report praising it as the East Asian
miracle in 1993. 
Even though some ridicule was directed at themiracle during the meltdown caused by the Asian

Today the relationship between Japan and ASEAN
countries is no longer a matter of unilateral support
from Japan to ASEAN countries as it was at the timeof the Fukuda doctrine, but rather one where Japanand ASEAN have joined hands to foster politicalsecurity and stable economic growth in a broader
Southeast and East Asia region.

ASEAN and South Korea

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ASEAN TODAY: KEY ACHIEVEMENTS UNDER AEC
BLUEPRINT 2015 AND RECENT DEVELOPMENTS

ASEAN-Japan trade reached $229 billion in 2014 or
9.1% total ASEAN trade. Japan was the association’s
third-largest trading partner after China andthe European Union (EU).  Meanwhile Japanese
investments in ASEAN reached $22.9 billion US
dollars in 2013, making it the second-largest sourceof FDI for ASEAN.

E-Commerce in ASEANJapan’s pro-ASEAN policies have been continued
under the Abe administration and increasingly
positioned as the centrepiece of Japanese foreign
policy toward Asia even as Japan continues toremain the chief banker in the Asian DevelopmentBank.

ASEAN and Japan signed the ASEAN-Japan
Comprehensive Economic Partnership (AJCEP) on 14
April 2008. The AJCEP Agreement is comprehensive
in scope, covering trade in goods, trade in services,
investment and economic cooperation. 

A

SEAN and the Republic of Korea (South Korea)
recently celebrated the 25th anniversary of
their partnership. The convening of the International
Conference on the prospect of ASEAN-South Korea
relations in Seoul in February 2014 marked the startof commemorative activities organised throughout
2014 in ASEAN and South Korea, ending with theSpecial Summit in South Korea at the end of 2014.

Doing Business in ASEAN 2016

71

LOOKING BEYOND
ASEAN

In
December
2013,
theASEAN-Japan
Commemorative Summit Meeting was held tocommemorate the 40th anniversary of ASEANJapan.  In addition to the joint ASEAN-Japan
statement entitled “Hand in hand, facing regionaland global challenges,” the summit meeting
adopted various documents including the Vision
Statement on ASEAN-Japan Friendship andCooperation, and the Implementation Plan for the
Vision Statement to emphasise the importance ofrelations between Japan and ASEAN.

Financial Crisis in 1997, the rebound in ASEAN
countries has been brilliant and the pace of therecovery beyond expectations. Although the region
received an economic battering in the 2008 Global
Financial Crisis, it quickly recovered and together
with China demonstrated its resilience as a global
growth centre.

DID YOU KNOW: AMAZINGFACTS ABOUT ASEAN

government officials also made frequent visits tothe countries in Southeast Asia. 

Growing With ASEAN: AEC Blueprint 2025 – Forging Ahead Together

Looking Beyond ASEAN

Looking Beyond ASEAN
The ASEAN-Korea Dialogue Partnership has been
expanded and deepened over the past 25 years
since the conferment of sectoral partnership status
in 1989 and the full Dialogue Partnership status in1991.  The partnership was further strengthened
with the annual interaction at the leaders’ level since1997, the status of comprehensive partnershipin November 2004 and strategic partnership in
October 2010.
Interactions have also been enriched through all
ASEAN initiated mechanisms, namely, the ASEAN
Regional Forum, ASEAN Plus Three, East Asia Summit
and the ASEAN Defense Ministerial Meeting Plus.

Low-Carbon Green Growth and the East Asia Climate
Partnership are examples of such cooperation.
The ASEAN-Korea Centre in Seoul was opened in2009 and continues to promote closer interactions
with the appointment of the first resident Koreanambassador to ASEAN and the establishment of
its diplomatic mission in Jakarta in 2012.  Suchappointments lay the groundwork for moremeaningful interactions with strategic partnerships
at a higher level.

ASEAN and India

ASEAN-Korean Multilevel CooperationP

olitical-security
cooperation
onthe                        Korean peninsula is wide-ranging – coveringtransnational crime, terrorism, human rights,
governance, rule of law and nuclear nonproliferation (and disarmament) with the ultimate
goal of promoting peace and stability. 
Economic cooperation is embodied in the full
implementation of the ASEAN-Korea Free Trade
Agreement covering the trade of goods, services
and investment with South Korea’s second-largest
trading partner.  South Korea is also part of thenegotiation of the Regional Comprehensive
Economic Partnership.  ASEAN and Korea are on
track to hit an estimated US$150 billion in bilateral
trade by 2015 given that bilateral trade was US$131
billion in 2012.
South Korea was ASEAN’s fifth-largest source of FDI
in 2012 and this trend looks set to grow ahead of
the AEC. Tourism between ASEAN and South Korea
is growing fast with ASEAN becoming the second
most popular destination for South Korean tourists. 
Socio-cultural
cooperationencompasses
environmental protection, climate change, disastermanagement, sustainable forest management,
energy and food security as well as education,
health and culture. The South Korean initiative on

72

T

he India-ASEAN relationship has entered into
its third decade.  India became a sectoral
partner of ASEAN in 1992, a dialogue partner of
ASEAN in 1996 and a summit level partner of ASEAN
in Phnom Penh in 2002. In 2003, India and ASEAN
signed the Instrument of Accession to the TAC in
Southeast Asia at the Bali Summit, which outlines aframeworkonComprehensive
Economic
Cooperation and contains a joint declaration forcooperation to combat international terrorism.
The Vientiane Summit of 2004 marked a significant
milestone in India-ASEAN relations.  The ASEANIndia Partnership for Peace, Progress and Shared
Prosperity and the Plan of Action to implement
it were concluded.  The first plan of action was
implemented from 2004 to 2010. The second planof action for 2010 to 2015 has been adopted and isbeing implemented.
New Delhi hosted the India-ASEAN Commemorative
Summit in December 2012 to mark 20 years of
its association with ASEAN and 10 years of its
summit level partnership. This Summit also marked
two decades of India’s ‘Look East Policy’ and its
economic liberalisation process.  At the 2012

On 21 June 2013, the ASEAN-India Centre wasinaugurated in New Delhi.  It serves as a resource
centre for the India-ASEAN strategic partnership. A
separate ASEAN-India Trade and Investment Centre
will also be set up by the External Affairs Ministry.
Another area of focus is improving land, sea andair connectivity.  In June 2014, New Delhi started
the annual ASEAN Connectivity Coordinating
Committee.  The India-Myanmar-Thailand trilateralhighway is expected to be completed by 2016 andis expected to bolster growth in India’s northeast
region.

ASEAN-India Trade Relations

Formal negotiations for the ASEAN-India Free
Trade Agreement (AIFTA) in Services andInvestment were concluded under India’s thenruling United Progressive Alliance government in
2012, and endorsed by ASEAN economic ministers
in 2013.  The agreement has faced considerable

Post implementation of the AIFTA in Goods, total
trade between the nations has increased by morethan 35% to US$79 billion in 2012, surpassing theinitial trade target of US$70 billion.  India and theASEAN nations have responded by adjusting theirbilateral trade targets to US$100 billion by 2015,
and US$200 billion by 2022.

ASEAN and the Trans-PacificPartnershipT

he Trans-Pacific Partnership (TPP) is a
proposed regional FTA amongst Australia,
Brunei, Canada, Chile, Japan, Malaysia, Mexico, New
Zealand, Peru, Singapore, the United States andVietnam.
Ongoing negotiations cover areas such as
market access, trade barriers, sanitation, rules oforigin, customs clearing, customs cooperation,
investment, services, legal and institutional
protocols, government procurement and laws
surrounding competition and intellectual property
amongst others. The objective is to achieve a bodyof legislation prescribing rules and disciplines on
the above areas.

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ASEAN AT A
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ASEAN TODAY: KEY ACHIEVEMENTS UNDER AEC
BLUEPRINT 2015 AND RECENT DEVELOPMENTS

The ASEAN-India Services and Investment
Agreement is built on the foundation of the AIFTA
in Goods, which came into effect in 2010 andliberalised tariffs on over 90% of items. The services
and investment agreement is envisioned as a means
to bolster cross-border investments and facilitate
the flow of professionals and highly skilled workers
between India and ASEAN.

Growing With ASEAN: AEC Blueprint 2025 – Forging Ahead Together

India’s 20-year old engagement of the ASEAN
countries is in line with the words of India’s first
Prime Minister Jawaharlal Nehru in the Discovery
of India in 1944. Nehru wrote: “The Pacific is likely
to take the place of the Atlantic in the future as
the nerve centre of the world. Though not directlya Pacific state, India will inevitably exercise animportant influence there. India will also develop as
the centre of economic and strategic importance ina part of the world which is going to develop in the
future.”The sticking point with these countries was the
stipulation that Indian companies be allowed tohold at least a 51% majority stake in multi-brandretail foreign direct investment projects involving
ASEAN member nations.  This number has since
been reduced to 49% in hopes of re-engaging theholdout nations.

E-Commerce in ASEANThe last two decades of India-ASEAN dialogue
has resulted in a strengthening of cooperation
across the three pillars of their relationship –politico-military, economic and socio-cultural. 
The India-ASEAN dialogue currently has 26 intergovernmental mechanisms that cover an extensive
spectrum of areas.

opposition within ASEAN with Thailand, Indonesia
and the Philippines yet to individually ratify thedeal.

LOOKING BEYOND
ASEAN

Summit, the India-ASEAN relationship was elevatedto a strategic partnership. The leaders also adopted
a vision statement or a blueprint for India-ASEAN
cooperation in the future.

DID YOU KNOW: AMAZINGFACTS ABOUT ASEAN

Looking Beyond ASEAN

Looking Beyond ASEAN
The TPP in its current draft will include only fourASEAN members, thus missing the largest ASEAN
economy (Indonesia), the two U.S.  treaty allies(Thailand and the Philippines), and three of thefour newest ASEAN members (Cambodia, Laosand Myanmar). Together, these countries make up
three-quarters of the region’s population and twothirds of its GDP. As a result of these considerations,
it is likely that the TPP will continue to take sometime before coming to fruition.

ASEAN and the European
Union

I

n 2012, Singapore became the first ASEAN
country to conclude FTA negotiations with the
EU. The FTA, which has yet to be ratified, will allow
duty-free access on all EU imports into Singapore aswell as gradually abolishes tariffs on all Singaporean
products imported into the EU by 2017.
Growing trade relations over time has placed ASEAN
as the EU’s third largest trading partner while the
EU is ASEAN’s fifth largest. The EU is also ASEAN’s
largest foreign investor. 
Negotiations are currently underway for proposed
FTAs between the EU and Malaysia, Vietnam andThailand and might form the basis of a rejuvenated
ASEAN-EU FTA in the future especially since EU has
lifted the last of its individual, trade and economic
sanctions against Myanmar. 

74

ASEAN, Australia and New
ZealandA

SEAN is Australia’s second largest trading
partner after China.  The AANZFTA has set
multiple precedents – Australia’s first multi-country
FTA, the first joint FTA negotiations between
Australia and New Zealand and the mostcomprehensive trade agreement that ASEAN hasever negotiated.
The First Protocol surrounding the AANZFTA wassigned by Ministers on 26 August 2014.  Member
countries have agreed that this Protocol that will
amend the Agreement Establishing the AANZFTA
to make it more business-friendly, transparent andefficient by introducing new procedures to expedite
administrative revisions, removing extraneous
information requirements and streamlining thepresentation of rules of origin.

DID YOU KNOW: AMAZINGFACTS ABOUT ASEANLOOKING BEYOND
ASEAN

E-Commerce in ASEANDoing Business in ASEAN 2016
Growing With ASEAN: AEC Blueprint 2025 – Forging Ahead Together

Did You Know:
Amazing Facts about ASEAN

75
ASEAN TODAY: KEY ACHIEVEMENTS UNDER AEC
BLUEPRINT 2015 AND RECENT DEVELOPMENTS

ASEAN Today:
Socio-Political

ASEAN AT A
GLANCEINTRODUCTION TO
ASEAN

Did You Know: Amazing Facts about ASEAN
Palm Oil Kings
Indonesia, Malaysia and Thailand are theworld’s top three palm oil producers. 
Indonesia and Malaysia alone account for
85% of palm oil in the world.  More than
4.5 million people earn a living from palm
oil production in these two countries.

City of Temples
Angkor Wat, or ‘City of Temples’, is oneof the largest archaeological sites inoperation in the world.  Built at the
beginning of the 12th century by Khmer
king, Suryavarman II, it was originallymeant for Hindu worship as the state
temple.  Now, it is a Buddhist temple
complex and a major tourist destination.

Most Visited City
Bangkok, Thailand, was identified as themost visited city in the world by Forbes in
2013. Tourism directly contributed about
9.0% of Thailand’s GDP in 2013.

76

Landlocked Country with Waterfalls

INTRODUCTION TO
ASEANDID YOU KNOW: AMAZINGFACTS ABOUT ASEAN

In contrast to Indonesia, Laos finds itself
the odd one out as the only landlocked
country in ASEAN.  It is unsurprisingthat the country does not have a navy. 
However, Laos does have the Khone
Papeng waterfall which is the largest
waterfall in Southeast Asia.

ASEAN TODAY: KEY ACHIEVEMENTS UNDER AEC
BLUEPRINT 2015 AND RECENT DEVELOPMENTS

According to a 2002 survey by theIndonesian
National
InstituteofAeronautics and Space (LAPAN), thecountry has 18,307 islands. If tidal islands(periodically submerged) are taken into
account, this could be up to double theisland figure (no precise figures). 

Growing With ASEAN: AEC Blueprint 2025 – Forging Ahead Together

Island Hop

E-Commerce in ASEANThe Istana Nurul Iman is the official
residence of the Sultan of Brunei.  Itis currently the world’s largest palace
according to the Guinness World Records
and also the world’s largest private
residence.  It cost approximately US$1.4
billion to build in 1984. 

LOOKING BEYOND
ASEAN

Grandest Royal Residence

ASEAN Today:
Socio-Political

ASEAN AT A
GLANCE

Did You Know: Amazing Facts about ASEAN

Doing Business in ASEAN 201677

Did You Know: Amazing Facts about ASEAN
Most Expensive Building
Built at a cost of S$8 billion dollars in
2010, the Marina Bay Sands integrated
resort in Singapore remains the world’s
most expensive standalone property as ofMarch 2015.

Double Duty
The Philippines’ flag is the only one in theworld that can indicate whether thecountry is in a state of war. If the red colour
is shown on top, it means that the country
is at war.  Similarly, if it is blue, then the
country is in a state of peace.

Largest Cave Chamber
The largest cave chamber in the world by
area is the Sarawak Chamber in Malaysia’s
Gunung Mulu National Park, which caneasily accommodate forty Boeing 747
aircrafts.

78

DID YOU KNOW: AMAZINGFACTS ABOUT ASEANLOOKING BEYOND
ASEAN

E-Commerce in ASEAN

Growing With ASEAN: AEC Blueprint 2025 – Forging Ahead Together

ASEAN TODAY: KEY ACHIEVEMENTS UNDER AEC
BLUEPRINT 2015 AND RECENT DEVELOPMENTS

ASEAN AT A
GLANCE

Ruby Rich
Myanmar is rich in resources such as
rubies, oil, and valuable timber. 

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ASEAN Today:
Socio-Political

INTRODUCTION TO
ASEAN

Did You Know: Amazing Facts about ASEAN

Glossary and Acronyms
AANZFTA: ASEAN-Australia-New Zealand Free Trade
Area
ACPMS: ASEAN Community Progress Monitoring System
ACWC: ASEAN Commission on the Promotion andProtection of the Rights of Women and Children
ADB: Asian Development Bank
AEC: ASEAN Economic Community
AEGC: ASEAN Experts Group on Competition
AFTA: ASEAN Free Trade Area
AIA: ASEAN Investment Area
AICHR: ASEAN Intergovernmental Commission on
Human Rights

EU-28: Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech
Republic, Denmark, Estonia, Finland, France, Germany,
Greece, Hungary, Ireland, Italy, Latvia, Lithuania,
Luxembourg, Malta, Netherlands, Poland, Portugal,
Romania, Slovak Republic, Slovenia, Spain, Sweden,
United Kingdom
FDI: Foreign Direct Investments
FOI: Freedom of Information
FTA: Free Trade Agreement
GDP: Gross Domestic Product
GST: Goods and Services Tax
HLTF: High Level Task Force
IAI: Initiative for ASEAN Integration

AIFTA: ASEAN-India Free Trade Agreement

ICT: Information and Communications Technology

AIIB: Asian Infrastructure Investment Bank

IGA: Investment Guarantee Agreement

AIPP: Asia Indigenous Peoples Pact

IMF: International Monetary Fund

AJCEP: ASEAN-Japan Comprehensive Economic
Partnership

IMF-WEO: IMF-World Economic Outlook

AMC: ASEAN Member Country
APSC: ASEAN Political-Security Community
ASCC: ASEAN Socio-Cultural Community
ASEAN: Association of Southeast Asian Nations
ASEAN6: Brunei Darussalam, Indonesia, Malaysia,
Philippines, Singapore and Thailand

IP: Intellectual property
IPR: IP Rights
MDG: Millennium Development Goal
ODI: Overseas direct investment
PPP: Purchasing Power Parity
SL: Sensitive Lists

ASEAN+3: ASEAN, PRC, Japan and the Republic of Korea

SME: Small-Medium Enterprise

ASETUC: ASEAN Services Employees Trade Union
Council

TAC: Treaty of Amity and Cooperation in Southeast Asia

BKPM: Investment Coordinating Board
BNM: Bank Negara Malaysia
CEIC: CEIC Data, a Euromoney Institutional Investor
Company
CEP: Comprehensive Economic Partnership
CLMV: Cambodia, Laos, Myanmar and Vietnam
CSO: Civil Service Organisation
DPIAP: Disabled Peoples’ International Asia-Pacific

TEL: Temporary Exclusion Lists
TPP: Trans-Pacific Partnership
UN: United Nations
UNDRIP: UN Declaration on the Rights of Indigenous
Peoples
VAP: Vientiane Action Programme
VAT: Value-added tax
WB: World Bank
WDI: World Development Indicators
WTO: World Trade Organisation

80References and Acknowledgements
Information Source

Organisation

WebsiteVariousThe ASEAN Secretariat, Association ofSoutheast Asian Nations

www.asean.org

ASEAN 2025: Forging Ahead Together

The ASEAN Secretariat, Public Outreachand Civil Society Division, Associationof Southeast Asian Nations

www.asean.org

A Blueprint for Growth, ASEAN
Economic Community 2015: Progress
and Key Achievements

The ASEAN Secretariat, Public Outreachand Civil Society Division, Associationof Southeast Asian Nations

www.asean.org

ASEAN Integration Report 2015

www.asean.org
The ASEAN Secretariat, ASEAN
Integration Monitoring Office (AIMO)
and Public Outreach and Civil Society
Division, Association of Southeast Asian
Nations

2015 ASEAN Socio-Cultural Community(ASCC) Scorecard – March 2016

The ASEAN Secretariat, Public Outreachand Civil Society Division, Associationof Southeast Asian Nations

www.asean.org

ASEANFocus – Special Issue on ASEAN
2025: Forging Ahead Together

ASEAN Studies Centre at ISEAS-Yusof
Ishak Institutehttps://www.iseas.edu.sg

A BRIEF ON THE “SILK ROAD ECONOMIC
BELT AND 21ST  CENTURY MARITIMESILK ROAD" - Quarterly Global Outlook
3Q 2015UOB Global Economics and Market
Research

An ASEAN Community for All: Exploring Friedrich-Ebert-Stiftung Office for
the Scope for Civil Society Engagement Regional Cooperation in Asia

www.fes-asia.org

ASEAN: AEC and China the Key Drivers
in Trade and Investment into the Next
Decades (26 September 2014)

www.uob.com.sg

UOB Global Economics and Markets
Research Flash Notes

Dezan Shira & Associates
ASEAN Briefing: “ASEAN Japan
Comprehensive Economic Partnership”
and “Foreign Ministers Rekindle Interestin EU-ASEAN FTA”

www.aseanbriefing.com

ASEAN Integration Monitoring Report
2013

The World Bank

www.worldbank.org

ASEAN-India services and investment
FTA inches closer to implementation

Bilaterals.org

www.bilaterals.org/?asean-indiaservices-and

ASEAN, Korea for common security,prosperity

Ngurah Swajaya for The Jakarta Post

www.thejakartapost.com/
news/2014/03/06/asean-koreacommon-security-prosperity.html

ASEAN Tax Guide November 2013
(published 1 May 2014)

KPMG Asia Pacific Tax Centre, KPMGInternational

www.kpmg.com

Challenges to the New ASEAN-Japan
Partnership in the Changing Regional
Circumstances

Oba Mie, Associate Professor, Tokyo
University of Science and the Japan
Foreign Policy Forum

www.tus.ac.jp/enwww.japanpolicyforum.jp

China’s Place in the New World
Economic Order

Bloomberg View

www.bloombergview.com/
articles/2015-03-19/making-china-snew-infrastructure-bank-work

China and ASEAN relations

Bruce Alter as an individual writer for
The Malaysian Insider

The Malaysian Insider

Doing Business in ASEAN 201681

References and Acknowledgements
Information Source
Compare Economic Data for over 120
countries

Organisation
CEIC

Websitehttps://www.ceicdata.com/en

The Staying Power of Thailand’s Military The Diplomat

thediplomat.com

CSOS’ Engagement with ASEAN:
Perspectives and Learnings

www.isn.ethz.ch/Digital-Library/
Publications/Detail/?ots591=0c54e3b31e9c-be1e-2c24a6a8c7060233&lng=en&id=165245

Development Research Group of theWorld BankWorld Bank

http://econ.worldbank.org/research

Can the NLD reform Myanmar’s
economy?

East Asia Forumwww.eastasiaforum.org

Economic Outlook for Southeast Asia,
China and India 2014: Beyond the
Middle-Income Trap

Organisation for Economic Cooperation www.oecd-ilibrary.org
and Development (OECD) iLibraryIndonesia Economic Outlook 2016 —Economy not at the Mercy of Global
Markets

Global Business Guide Indonesia

www.gbgindonesia.com

Guide to AANZFTANew Zealand Ministry of Foreign Affairs& Tradewww.asean.fta.govt.nz

History of ASEAN

ASEAN University Network

www.aunsec.org

IMF-World Economic Outlook for April
2013, October 2014

International Monetary Fund

www.imf.org/external/pubs/ft/
weo/2013/01/weodata/index.aspx
https://www.imf.org/external/pubs/
cat/longres.aspx?sk=41632.0

India and the ASEAN: A Pivotal
RelationshipArchis Mohan, Ministry of External
Affairs, Government of India

mea.gov.in

Investing in ASEAN 2013-2014

ASEAN and Allurentis Limited

www.usasean.org

Narrowing the Development Divide in
ASEAN: The Role of Policy

Jayant Menon, Office for Regional
Economic Integration, AsianDevelopment Bank

www.adb.org

Overview of ASEAN-China FTA

Government of the Republic ofSingapore

www.iesingapore.gov.sg/Trade-FromSingapore/International-Agreements/
free-trade-agreements/ACFTAOpen Knowledge Repository

World Bank

www.doingbusiness.org/data/
exploretopics/paying-taxes

The World Fact Book

Central Intelligence Agency (CIA),
United States Government

https://www.cia.gov/library/publications/the-world-factbook

United Nations Millennium
Development Goals (MDG) indicators

United Nations

http://mdgs.un.org

US-ASEAN Business Council

US-ASEAN Business Council

https://www.usasean.org/

Various

China-ASEAN Business Council

www.china-aseanbusiness.org.cn

WB-World Development indicators

World Bank

databank.worldbank.org

World BankWorld Bank

www.worldbank.org

World Trade Organisation

World Trade Organisationwww.wto.org

World Travel & Tourism Council

World Travel & Tourism Council

www.wttc.org

82

Attribution and Credits
All of the information reflected in Table 1 of this guide has been collected from The World Bank website. The WorldBank authorises the use of this material subject to the terms and conditions on its website: http://www.worldbank.
org/terms-of-use-datasets and http://www.worldbank.org/terms-of-use-okr.
All flags and maps depicted in the Country Profiles section of this guide have been reproduced from the Central
Intelligence Agency website (http://www.cia.gov), which is credited as the source of these images and graphics.

Doing Business in ASEAN 201683

Repository of Policies and Data
Please note that the following information on data and policies are not exhaustive and based on the current
representation of each country’s laws, practices and statistical releases.  You should consult with your own
professional advisors or lawyers who are familiar with your specific situation for advice before making any
investment decisions.

Table 1: Paying Taxes in ASEAN (as at 31 December 2013)

Country

Payingtaxes rank

Payments(number
per year)Time(hours per
year)

Profit tax(%)

Labourtax andcontributions(%)

Other taxes(%)

Total tax
rate(% profit)

Brunei

30

27

93

7.9

7.9

0

15.8

Cambodia

90

40

173

19.5

0.5

1

21

Indonesia

160

65

253.5

16.7

11.3

3.4

31.4

Lao PDR

129

35

362

16.5

5.6

3.7

25.8

Malaysia

32

13

133

21.7

16.4

1.1

39.2

Myanmar

116

31

154.5

25.4

0

22.3

47.7

Philippines

127

36

193

20.5

8

14

42.5

Singapore

5

5

82

2.2

15.1

1.1

18.4

Thailand

62

22

264

19.9

4.3

2.7

26.9

Vietnam

173

32

872

17

23.7

0.1

40.8

Notes:
Payments (number per year): The total number of payments per year. The indicator reflects the total number of taxes and contributions paid, themethod of payment, the frequency of payment, the frequency of filing and the number of agencies involved for the standardised case study company
during the second year of operation.
Time (hours per year): The time it takes to prepare, file and pay (or withhold) the corporate income tax, value added or sales tax, and labour taxes,
including payroll taxes and social contributions (in hours per year).
Profit tax (%): The amount of taxes on profits paid by the business as a percentage of commercial profit.
Labour tax and contributions (%): The amount of taxes and mandatory contributions on labour paid by the business as a percentage of commercial
profits.
Other taxes (%): The amount of taxes and mandatory contributions paid by the business as a percentage of commercial profit that are not alreadyincluded in the categories of profit or labour taxes.
Total tax rate (% profit): The total tax rate measures the amount of taxes and mandatory contributions payable by the business in the second year ofoperation, expressed as a share of commercial profits.
Source: The World Bank: Djankov and others. July 2010. The Effect of Corporate Taxes on Investment and Entrepreneurship, American Economic
Journal: Macroeconomics. © World Bank, www.doingbusiness.org/data/exploretopics/paying-taxes License: Creative Commons Attribution licence(CC by 3.0 IGO) (http://creativecommons.org/licenses/by/3.0/igo/)

84

Repository of Policies and Data
Table 2: Restrictions to Foreign Investment (as at 31 December 2014)
Country

Foreign ownership restrictions

Brunei

Generally no foreign ownership restrictions save for certain prescribed industries involving natural
resources and national food security.

Cambodia

Generally no foreign ownership restrictions save for certain prescribed sectors such as cigarettemanufacturing, movie production, gemstone mining and traditional media industries.

Indonesia• Foreign ownership restrictions in various sectors are governed by the Negative Investment List, thelatest version of which has been enacted as Presidential Decree No. 39/2014.
• Unless a particular business sector is specifically subject to foreign ownership restrictions under
the Negative Investment List, that business sector should not be subject to any foreign ownership
restrictions. However, BKPM may nevertheless impose foreign ownership restrictions at theirdiscretion.

Laos

Generally no foreign ownership restrictions save for certain prescribed industries in which are deemed by
the Philippine government to be detrimental to national security, health or traditions, or have a negative
impact on the natural environment.

Malaysia

Generally no foreign ownership restrictions save for certain regulated industries including the financial
services, broadcasting, electricity, oil and gas, insurance, and maritime and logistics industries.

Myanmar• Certain prescribed industries are reserved for the government under the State-Owned Economic
Enterprises Law and no foreign ownership is allowed.
• Exceptions are available for joint ventures with the government in these industries and sectors.
• Under the Foreign Investment Law, there are 3 further categories of restricted activities:        1.   wholly prohibited activities;        2.   restricted activities permitted only with joint venture with Myanmar nationals; and        3.   restricted activities permitted where specific conditions are satisfied. 
• Generally, save for the above, there are no foreign ownership restrictions. However, foreign ownership
restrictions may be administered as a matter of policy; for example, trading activities cannot be
undertaken by foreign companies in Myanmar.

Philippines

Generally no foreign ownership restrictions save for certain prescribed industries where foreign
ownership is prohibited such as mass media and private security, and other prescribed industries whichhave foreign ownership caps of 0% to 60% such as recruitment, advertising, education, and financing
companies.

Singapore

Generally no foreign ownership restrictions save for the certain prescribed sectors such as thebroadcasting industry.

Thailand

Generally no foreign ownership restrictions save for three prescribed categories of restricted activities
under the Foreign Business Act B.E. 2542:• wholly prohibited activities (no foreign ownership allowed);• activities permitted with license from the Ministry of Commerce and at least 40% Thai-owned (may be
reduced to 25%) and two-fifths of its directors must be Thai nationals; and• activities permitted with license from the Ministry of Commerce (Director General) and approval fromthe Foreign Business Committee.

VietnamGenerally no foreign investment restrictions save for certain prescribed industries such as banking,telecommunication, civil aviation, publishing and news media industries.

Doing Business in ASEAN 201685

Repository of Policies and Data
Table 3: Corporate Framework (as at 31 December 2014)

Country

BruneiTypes ofcompanies
and otherbusiness
entities

Relevant
legislation

Time required
to set up acompany

Regulating
body

Directorrequirements
for companies

Share capitalrequirements
for companies• Minimum of
two shareholders

Companies• Private
company
limited byshares• Companies 14-21 days
Act (Cap. 39)• Registrar ofCompanies• At least two
directors• Investment
Incentive
Order 2001

• Economic
Development Board• Private
company
limited byguarantee• Income
Tax (As
Amended)Order 2001

• Ministry ofIndustryand Primary
Resources• Where two
directors atleast one
directormust bea Brunei
resident• Public
company
Otherbusiness
entities• Branchoffice• Ministryof Foreign
Affairs andTrade• Where morethan two
directors atleast two
directors
must beBruneiresidents  

• Ministry ofCommerce• At least one
director• General
Department
of Taxation• No
requirement
as tonationality
or residency• Minimum
authorised
and paid
up capital is
BND$2.00
unless parvalue ofshare isless than
BND$1.00
each share• Sole proprietorship• Partnership• Joint
ventureCambodia

Companies• Private
limitedcompany• Public
limitedcompany• Single
memberprivatelimitedcompany
Otherbusiness
entities• Branchoffice• Representative office• Sole proprietorship• Partnership86• Law onCommercial
Enterprise• Law onCommercial
Registration
Rules andCommercial
Register
1995 (asamended in1999)• Law onInvestment(asamended in
2003)• Civil Code70 to 120 days

• Council for
the Development of
Cambodia• Minimum
share capitalof KHR 4
millionRepository of Policies and Data
Table 3: Corporate Framework (as at 31 December 2014)

Country

Indonesia

Types ofcompanies
and otherbusiness
entities
Companies• Limited
liability
company
Otherbusiness
entities• ForeignCompany
Representative office• ForeignTradingCompany
Representative Office(companies
owned bythe government)

Laos

Companies• Limited
liability
company• Sole limited
liability
company• Public
company
Otherbusiness
entities• BranchofficeRelevant
legislation• Company
Law No. 
40/2007• Foreign
Investment
Law No. 
25/2007

Time required
to set up acompany
30 to 45 days
(assumingno industryspecificlicenses are
required)• Presidential
Decree No. 
39/2014• BKPM
Regulation
No. 12/2013• Law No. 
02/NA onInvestment
Promotion

Directorrequirements
for companies

Share capitalrequirements
for companies• Ministry of
Law and
Human
Rights• At least one
director andone commissioner• Investment
Coordinating Board(BKPM)• No
requirement
as tonationality
but must
be natural
persons• Issued andpaid-up
capital of
no less than
IDR3 billion
and aninvestment
plan to besubmitted
to BKPM fora quantumof no lessthan IDR11
billion• At least on
directormust hold a
tax identity
number• Presidential
Decree No. 
90 Year 2000
on Representative
Offices ofForeignCompanies• Law No. 
11/NA onEnterprises

Regulatingbody• A higher
number
may berequired forcompanies
in certain
sectors
92 days

At least one• Ministry ofIndustry and director unlesscompany
Commerce
assets are• Ministry ofgreater than
Planning
LAK 50 billion,andInvestment then at least
two directors• Secretariat
are required
to the Laoat least two
National
directors is
Committee
requiredon Special
Economic
Zones• Minimum
registeredcapital of
LAK 1 billion
is required
for a foreign
investor• Representative office• Sole proprietorship• Partnership

Doing Business in ASEAN 201687

Repository of Policies and Data
Table 3: Corporate Framework (as at 31 December 2014)

Country

Malaysia

Types ofcompanies
and otherbusiness
entities
Companies• Company
limited byshares• Company
limited byguarantee• Unlimited
company• Public
company
Otherbusiness
entities• Branch office• Representative office

Relevant
legislation

Time required
to set up acompany

6 to 7 days
after approvalof company’s• Promotion
proposedof
Investments name. 
Approval of
Act 1986
name can• Limited
be obtained
Liability
within 3
Partnerships
days fromAct 2012
submission if• Registration no issueofBusinesses
Act 1956• Companies
Act 1965

Regulating
body

Directorrequirements
for companies• Companies At least two
Commission directors
principallyof Malaysia
residing in• Malaysian
Investment Malaysia
Development Authority• Economic
Planning
Unit• Industrial
Coordination Act
1975

Share capitalrequirements
for companies• There is no
minimumshare capitalrequirement
but twosubscribers
are requiredfor incorporation. However, minimum sharecapital requirements
may apply
to certain
regulatedsectors orindustries.

• Sole proprietorship• Partnership• Limited liability partnership
MyanmarCompanies• Public
limitedcompany• Limited
liability
privatecompany
Otherbusiness
entities• Branch office• Representative office*• Sole proprietorship• Partnership* Limited
to financial
institutions
and insurancecompanies

88• Companies
Act 1914• SpecialCompany
Act 1950• StateOwned
Economic
Enterprises
Law 1989• Foreign
Investment
Law 2012• Special
Economic
Zone 2014

75 to 150 days

• Company
Registration
Office• Directorateof Investment andCompany
Administration• Myanmar
Investment
Commission• Special Economic Zone
Management Committees• At least
three
directors
for publiccompanies
andsubsidiaries
of public
companies• No
requirement
as tonationality
or residency• Minimum
share capital
ranges from
US$50,000
toUS$500,000
dependingon thetype ofactivities thecompany
undertakes

Repository of Policies and Data
Table 3: Corporate Framework (as at 31 December 2014)

Country

Philippines

Types ofcompanies
and otherbusiness
entities
Companies• Domestic
stock
corporation
which may
have up
to 100%
foreignownership
Otherbusiness
entities• Branchoffice• Representative office• Sole proprietorship• Partnership

Directorrequirements
for companies

Share capitalrequirements
for companies• Minimum
paid-upsharecapital of acorporationis PHP 5,000• Foreign
Investments
Act of 1991

At least 5 but
not more than
15 members,
a majority of• Department whom mustof Trade and be Philippine
residents
Industry(Board of Investments)• Omnibus
Investments
Code of1987• Philippine
Economic
Zone
Authority

Relevant
legislation• Corporation
Code of thePhilippines• Securities
Regulation
Code• Special
Economic
Zone Act of
1995

Time required
to set up acompany
34 days

Regulating
body• Securities
andExchange
Commission• A corporation withforeignequity inexcess of
40% must
have a paid
up capitalof at least
US$100,000
or
US$200,000
dependingon certain
conditions.

• Regional
headquarters• Regional
operatingarea headquarters

Doing Business in ASEAN 201689

Repository of Policies and Data
Table 3: Corporate Framework (as at 31 December 2014)

Country

Singapore

Types ofcompanies
and otherbusiness
entities
Companies• Private
company
limited byshares• Public
company
limited byshares• Company
limited byguarantee
Otherbusiness
entities• Branchoffice• Representative office• Sole proprietorship• Partnership• Limited
liability
partnership• Limitedpartnership

90

Relevant
legislation

Companies Act(Cap.50)

Time required
to set up acompany

Regulating
body

Directorrequirements
for companies

Share capitalrequirements
for companies

1 to 3 days
(assuming no
regulatory
approvals are
required)• Accounting
andCorporate
Regulatory
Authority

At least 1
directorordinarily
resident in
Singapore• No
minimumshare capital• Economic
Development Board• At least one
share mustbe issued

Repository of Policies and Data
Table 3: Corporate Framework (as at 31 December 2014)

Country

ThailandTypes ofcompanies
and otherbusiness
entities
Companies• Public
limitedcompany• Private
limitedcompany
Otherbusiness
entities• Branchoffice• Representative office• Distributorship• Regional
office• Partnership• Unregistered ordinary partnership• Registeredordinary
partnership• Limitedpartnership• Sole proprietorship• Joint
ventureRelevant
legislation• Civil andCommercial
Code• Public
LimitedCompanies
Act B.E. 
2535• Foreign
Business Act
B.E. 2542• Investment
Promotion
Act B.E. 
2520• Securities
andExchange
Act B.E. 
2535

Time required
to set up acompany
28 days

Regulating
body• Ministry ofCommerce• Board of
Investment• Foreign
Business
Committee• Securities
andExchange
Commission

Directorrequirements
for companies

Share capitalrequirements
for companies• At least 1
director fora private
limitedcompany
with norequirement
as tonationality
or residency• At least
three shareholders
holding
one share
each, withminimumpar value of
THB5• There are
more stringent requirements
for a public
limitedcompany. 

• Anyregistrationof initial
capitalexceeding
THB5 million
or increaseof registeredcapital toan amountexceeding
THB5 million
will require
additional
compliance.
• Minimum
capitalrequirement
for aforeigner
operatingbusiness inThailandmust notbe less than
THB2 million

Doing Business in ASEAN 201691

Repository of Policies and Data
Table 3: Corporate Framework (as at 31 December 2014)

Country

VietnamTypes ofcompanies
and otherbusiness
entities
Companies• Singlemember
limitedliability
company• Limited
liability
company
with twoor moremembers• Joint stockcompany
Otherbusiness
entities• Branchoffice• Representative office• Private enterprise (likea sole proprietorship)• Partnership

92

Relevant
legislation

Time required
to set up acompany

Regulatingbody

45 working• Law ondays
Enterprises
No.60/2005/
QH11• Department
of Planningand Investment• Law onInvestment
No.59/2005/
QH11• Management Boardof Industrial
Zones• Department
of Industry
and Trade

Directorrequirements
for companies

Share capitalrequirements
for companies• Legal representative
resident in
Vietnam(limited liability companies andjoint stockcompanies)• No minimum capital
contributions except
for certain
sectors• Typically atleast one director but ahigher number may berequireddepending on theshareholding structure of thecompany• At least
three shareholders forjoint stockcompanies

Repository of Policies and Data
Table 4: Legal Systems and Dispute Resolution Environment (as at 31 December 2014)

Country

BruneiNo. oflawyers
incountry

Population
Foreign/ Lawyerslaw
Apex Court
per 1,000
firms?
peopleCommonLaw /Civil Law
Tradition

CommonCourt oflaw andAppeal;Shariah law
Privy
Council of
the UK (onlycivil cases)

Unknown, 422,675 /N.A.
33 law
firms
listed on
BruneiLaw
Society
websiteNo

Cambodia

641 (cir. 
2012)

15.46
million /0.04

Restrict- Supremeed
Court of
Cambodia

Indonesia

34,000(cir. 2014)

253.61
million /
0.13

No

Laos

144 (cir. 
2011)

6.8 million / Yes
0.02

Malaysia

15,763MyanmarPhilippines

New York
Convention
Signatory(Accession
Date)

ADR Law

ADR
Institution

Arbitration
Act(Chapter173, Rev. 
1999)

Arbitration Yes (25 Jul
Association 1996)
of Brunei
Darussalam

Civil law

Yes (5 Jan
1960)

Civil law
SupremeCourt of the
Republic ofIndonesia

Arbitration
andDisputeResolution
Act (Law
No. 30 of
1999)

People’sSupremeCourt

Socialist
legalityaw on
ResolutionofEconomic
Disputes(No. 06/
NA, 17
December
2010)

30.07
million /0.52

Restrict- Federaled
Court of
Malaysia

Commonlaw

Arbitration
Act 2005(No. 646)

49,000(cir. 2014)55.75
million /
0.87

Yes

SupremeCommonCourt of the law
Union

50,000(cir. 2012)107.67
million /0.46

NoSupremeBlend –
Court of the aspects ofPhilippines civil law(Roman),commonlaw (AngloAmerican),Muslim(Islamic)
law andindigenouslaw

Indonesian
National
Board ofArbitration(BANI)Yes (7 Oct
1981)

Yes (17 Jun
1998)

Kuala
LumpurRegional
Centre for
Arbitration

Yes (5 Nov
1985)

Yes (16 Apr
2013)
Alternative
DisputeResolution
Act of 2004

Philippine
DisputeResolution
Centre, Inc.

Yes (6 Jul
1967 –
Ratification)

Doing Business in ASEAN 201693

Repository of Policies and Data
Table 4: Legal Systems and Dispute Resolution Environment (as at 31 December 2014)
Population
Foreign/ Lawyerslaw
Apex Court
per 1,000
firms?
peopleCommonLaw /Civil Law
Tradition

Singapore

4,432 (cir. 
2013)

5,312,400 /0.83

Restrict- Court ofed
AppealCommonlaw

Arbitration
Act (Chapter 10); International
Arbitration
Act (Chapter 143A)

Singapore
International
Arbitration
Centre;SingaporeMediation
Centre;Singapore
International
Mediation
CentreYes (21 Aug
1986)

Thailand

54,000(cir. 2008)

Restrict- Supreme
67.74
Court ofmillion / 0.9 ed
Thailand(cir. 2008,
based onpopulationof 60
million)Civil law(withstrongcommonlaw
influences)

Arbitration
Act B.E. 
2545(2002)

Thai
Arbitration
Institute(TAI)

Yes (21 Dec
1959)

Vietnam

9,000 (cir. 
2014)

93.42
million /0.10

Socialist
legality

Ordinance
on Commercial
Arbitration
2003

Vietnam In- Yes (12 Sep
ternational 1995)
Arbitration
CentreCountry94

New York
Convention
Signatory(Accession
Date)

No. oflawyers
incountry

Yes

SupremePeople’s
Court ofVietnam

ADR Law

ADR
Institution

Merger
Provisions
in GenericCompetition
Law

Yes

NA

Yes

Yes

No

Country

Brunei

Cambodia

Indonesia

Laos

Malaysia

Yes(MyCC)

Not yetestablished

Yes(KPPU)x

Not yet established

Dedicated
Enforcement
Agency(ies)xMerger,acquisitions ofshares/assets or
joint ventures

Mergers, amalgamations
through acquisitions ofsharesx

Mergers, amalgamations,acquisitions ofshares/assets,or joint ventures

Transactions
coveredb) Combined sales value(turnover) in Indonesiaof the merged entity >IDR 5 trilliona) Combined value of Indonesian assets of themerged entity > IDR 2.5
trillion [IDR 20 trillion forbanking and financial
institutions]; orxNANotification ThresholdsxxCompany Size
Compulsory(pre-merger
for large
enterprises andpost-merger for
SMEs)

Voluntary
pre-merger andcompulsory
post-mergerxVoluntary(pre or postmerger)

Notification(Voluntary /Compulsory)

Mergers

Table 5: Competition (as at April 2016)

x

Yes

No

x

No

Standstill
Periodx

Up to
30 days,
may beextendedforadditional
30 days

30 days forpreliminary
investigation andadditional
60 daysfor further
investigationsx

NA

Review
Timelines

x

NA

Yes

x

Yes

Availability
To Offer
Commitmentsx• Others?

• Imposefinancialpenalties• Open aformal investigation→ financial
penalties/
directions• Imposefinancialpenalties
for failure tonotifyx• Imposefinancialpenalties• Issue
directions

Directions /Sanctions /Penalties

Repository of Policies and Data

Doing Business in ASEAN 2016

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96

Yes
(Entering
into force
2017)

Yes

Yes

MyanmarPhilippines

SingaporeCountry

Merger
Provisions
in GenericCompetition
Law

Yes
(CCS)

Yes
(PCC)

Not yetestablished

Dedicated
Enforcement
Agency(ies)

Mergers, amalgamations,acquisitions of
all orparts of shares/
assets, joint
ventures

Mergers, amalgamations or
acquisitions ofshares/assets

Mergers, amalgamations,acquisitions ofshares/assets,
joint ventures
or mutual business co-operations

Transactions
coveredVoluntaryCompulsory(pre-merger)

Not provided

Notification(Voluntary /Compulsory)• Market share of merged
entity 20% to 40% andCR3 is 70% or more

• Market share of merged
entity 40% or more; orValue of transaction
exceeds PHP 1 billion andturnover or assets of at least
1 party in or into Philippines> PHP 1 billion

Market Share

Notification Thresholds

Mergers

Table 5: Competition (as at April 2016)

No

Yes

NA

Standstill
PeriodPhase 1 –Up to 30
workingdays
Phase
2 – Up to
additional
120
workingdays

Up to 90
days

NA

Review
Timelines

Yes

Yes

NA

Availability
To Offer
Commitments• Imposefinancialpenalties• Issue directions
to remedy
competition
concerns,
includingdivestment• Issue
directions/ imposefinancialpenalties• Imposefinancialpenalties
for failure tonotify• Impose financial penalties and/or imprisonment (up to
2 years)• Suspend or
terminatebusiness
operations

Directions /Sanctions /Penalties

Repository of Policies and Data

Merger
Provisions
in GenericCompetition
Law

Yes

Yes

Country

Thailand

Vietnam

Yes(VCA and VCC)

Yes
(TCC)

Dedicated
Enforcement
Agency(ies)

Mergers, consolidations,acquisitions,joint ventures

Mergers, amalgamations
or acquisitionsof all orparts of shares/
assetsTransactions
coveredCompulsory(pre-merger)

Not statedNotification(Voluntary /Compulsory)

Notification is required
if the merger results in a
combined market share of
30% to 50% in the relevantmarket. Mergers resulting
in combined market sharein the relevant market of
50% or more are prohibited
unless exempted. 

To be provided in guidelines

Notification Thresholds

Mergers

Table 5: Competition (as at April 2016)

Yes

NA

Standstill
Period45 daysfrom dateof notification,with extension of
up to two
tranchesof 30 dayseach

90 dayswithextensionof not morethan 15
days

Review
Timelines

Yes

NA

Availability
To Offer
Commitments• Issue
directions
to remedy
competition
concerns,
includingdivestment• Imposefinancialpenalties
for failure tonotify• Imposefinancialpenalties• Issue directions

Directions /Sanctions /Penalties

Repository of Policies and Data

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98

No
(Draft underreview)

Yes

Yes

Yes

Yes
(Entering into
force 2017)

Cambodia

Indonesia

Laos

Malaysia

MyanmarNot yetestablished

Yes(MyCC)

Not yetestablished

Yes(KPPU)x

Not yetestablished

Imprisonment not exceeding 3 years or fine of
not more than KHR 15 million or both.

Up to 10% of the worldwide turnover of theenterprise over the period of infringement

Financial penalties to be specified in regulations;compensation for damages; and/or suspension
or withdrawal of Enterprise Registration
Certificate.

• Criminal fine: Min IDR 25 billion, Max IDR 100
billion, or imprisonment of 3 to 6 months.

• Administrative sanction: Min IDR 1 billion,
Max IDR 25 billion;x

Up to 10% of the undertaking’s relevant
turnover in Brunei for each year of infringement,
up to 3 years.

Yes

No

Yes

Yes, subject toconditions.

xNo

Sanctions On
Individuals
For Personal
Involvementin the Cartel*

Yes

Yes

Yes

Yes

x

Yes

Request for
Information, Documents,
Interviews

Miscellaneous

No

Yes

Yes

No

x

Yes

NA

Yes,
subject tospecific
conditions.

NA

Yes, subject tospecific
conditions.

xYes,subject tospecific
conditions.

Yes

Yes

Yes

No

x

Yes

Yes

Yes

Yes

Yes

x

Yes

Search &Protection
Leniency Private
Seizure,Of LegalPolicyActions
Dawn
Privilege
Raids

Investigation Powers*Note: In most countries, individuals face fines and/or imprisonment if they hamper the investigation, provide false information, misrepresent information or destroy information during an investigation

Yes

BruneiCountry

Generic
Dedicated
Max Sanctions On Undertakings / Enterprises
Competition Enforcement
For Their Participation In The Cartel
Law
Agency(ies)

The Cartel Prohibition

Table 5: Competition (as at April 2016)

Repository of Policies and Data

Yes

Yes

Yes

Singapore

Thailand

Vietnam

Yes(VCA and
VCC)

Yes
(TCC)

Yes
(CCS)

Yes
(PCC)

Up to 10% of the total turnover of the enterprisein the fiscal year preceding the year in which thebreach was committed.

Up to THB 6 million and/or up to 3-year jailterm. Penalty may be doubled for repeatedcommission.

Up to 10% of the undertaking’s relevant
turnover in Singapore for each year of
infringement, up to 3 years.

• Criminal penalties: imprisonment 2 to 7 years
and/or fine from PHP 50 million up to 250
million.

• Administrative fines (i) Max PHP 100 million
for first offence and (ii) between PHP 100
million and PHP 250 million for second
offence;

No

Yes

No

Yes

Sanctions On
Individuals
For Personal
Involvementin the Cartel*

Yes

Yes

Yes

Yes

Request for
Information, Documents,
Interviews

Miscellaneous

Yes

Yes

Yes

Yes

No

No

Yes,
subject tospecific
conditions.

NA

No

No

Yes

Yes

No

Yes

Yes

Yes

Search &Protection
Leniency Private
Seizure,Of LegalPolicyActions
Dawn
Privilege
Raids

Investigation Powers*Note: In most countries, individuals face fines and/or imprisonment if they hamper the investigation, provide false information, misrepresent information or destroy information during an investigation

Yes

Philippines

Country

Generic
Dedicated
Max Sanctions On Undertakings / Enterprises
Competition Enforcement
For Their Participation In The Cartel
Law
Agency(ies)

The Cartel Prohibition

Table 5: Competition (as at April 2016)

Repository of Policies and Data

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Repository of Policies and Data
Table 6: ASEAN: Population, Territory and Economy (2014)
Total LandArea
(sq km)Total
Population(thousand)Brunei
Darussalam

5,769

CambodiaCountry

1GDP
per capita(US$)(PPP$)2

413.0

41,42482,850

181,035

15,184.1

1,105

3,334

Indonesia

1,860,360

252,164.8

3,901

11,498Lao PDR

236,800

6,809.0

1,730

5,096

Malaysia

330,290

30,261.7

10,78424,607

Myanmar1

676,577

51,486.0

1,278

4,923

Philippines

300,000

101,174.9

2,816

6,846

Singapore

716

5,469.7

56,28782,714Thailand

513,120

68,657.0

5,436

14,333

Vietnam

330,951

90,630.0

2,055

5,644

ASEAN

4,435,618

622,250.2

4,136

10,700

Myanmar: US$-MMK exchange rate is based on the parallel rate used in International Monetary Fund-World Economic Outlook (IMF-WEO) April 2013.

2
GDP per capita in PPP$ is GDP converted to international dollars using purchasing power parity (PPP) rates. PPP dollar takes into account thedifferences in the purchasing power of the US dollar in the countries. PPP $1 in a country, say Cambodia, has the same purchasing power as PPP $1 in
all other countries in the world.

Sources: ASEAN Macroeconomic Database and IMF-WEO April 2015100

Repository of Policies and Data
Table 7: ASEAN and Selected Trading Partners: Population, Economy (2014)
Country / Region

Population
(mn)

GDP
(at current prices)
US$ billion

ASEAN

622

2,574

China

1,368

10,357

Japan

127

4,602

Republic of Korea

50.4

1,410

India

1,276

2,051

Australia

23.5

1,455

New Zealand

4.5

199

USA

319

17,348EU-281508

18,510

Canada

35.5

1,785

Russia146

1,861

Pakistan

186

244

Ratio of ASEAN to Trading Partners
ASEAN

1.00

1.00

China

0.45

0.25

Japan

4.90

0.56

Republic of Korea

12.34

1.83

India

0.49

1.25

Australia

26.47

1.77

New Zealand138.22

12.93

USA

1.95

0.15

EU-2811.22

0.14

Canada

17.52

1.44

Russia4.26

1.38

Pakistan

3.34

10.55

EU-28 includes: Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland,
Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovak Republic, Slovenia, Spain, Sweden, United Kingdom.

1

Sources: ASEAN Secretariat Database and IMF World Economic Outlook Database April 2015

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Table 8: Trade with Selected Dialogue Partner Countries (in US$ billion)
Countries

1993

2000

2005

2011

2012

2013

2014

Intra-ASEAN

82.4

166.8

304.8

598.4

602

608.6

608.2

Australia

9.1

17.6

31.2

59.7

69.5

68

70

Canada

3.5

4.8

6

10.8

12.3

13.5

13.2

China

8.9

32.3

113.3

280.1

319.5

350.5

366.5

EU-28

63.2

102.8

140.7

234.6

242.6

246.2

209.4

India

2.9

9.7

23

68.2

71.8

67.9

67.7

Japan

86.7

116.2

153.8

273.9

262.9

240.9

229.0

Republic of Korea

13.3

29.6

48

124.4

131

135

131.4

New Zealand

1.3

2.2

4.1

8.2

9.2

9.8

10.7

Pakistan

1

3.5

2.3

6.8

6.3

6.1

6.6

Russia

0.4

1.4

4.7

13.9

18.2

19.9

22.5

USA

75.7

122.2

153.9

198.8

200

206.9

212.4

Rest of the World

81.5

149.9

238.7

510.7

531

538.1

581

Total ASEAN

429.9

759.1

1,224.6

2,388.4

2,476.4

2,511.5

2,528.6

ASEAN + 3

191.2

345

620

1,276.8

1,315.4

1,335

1,332

ASEAN + 6

204.5

374.5

678.3

1,412.9

1,466

1,480.7

1,482.4

Source: ASEAN Trade Statistics Database, as of 24 July 2015

102

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Table 9: ASEAN: Nominal Gross Domestic Product for periods indicatedCountries

2005

2009

2010

2011

2012

2013

2014

In US$ mn
ASEAN

915,801

1,526,846

1,884,068

2,184,845

2,311,315

2,395,253

2,459,381

CLMV

73,064

144,858

166,841

197,022217,688

251,675

294,842ASEAN6

842,736

1,381,988

1,717,227

1,987,823

2,093,626

2,143,578

2,317,714

In percent share to total (%)
ASEAN

100.0

100.0

100.0

100.0

100.0

100.0

100.0

CLMV

8.0

9.5

8.9

9.0

9.4

10.5

11.9

ASEAN6

92.0

90.5

91.1

91.0

90.6

89.6

94.2

In annual growth rates (%)
Brunei
Darussalam

0.4

-1.8

2.6

3.4

1.0

-1.8

-6.2

Cambodia

13.6

0.1

6.0

7.1

7.0

7.0

7.9

Indonesia

5.7

4.5

6.3

6.5

6.2

5.8

-2.5

Lao PDR

7.3

7.5

8.1

8.0

7.9

8.2

8.8

Malaysia

5.3

-1.5

7.4

5.1

5.6

4.7

4.1

Myanmar

13.6

10.3

10.6

9.6

5.6

7.5

10.7

Philippines

4.8

1.1

7.6

3.6

6.8

7.2

4.7

Singapore

7.4

-0.8

14.8

5.2

1.3

3.9

1.9

Thailand

4.6

-2.3

7.8

0.1

6.5

2.9

-3.3

Vietnam

8.4

5.3

6.8

6.0

5.0

5.4

8.8

ASEAN

5.9

1.7

7.8

4.7

5.7

5.2

2.6

CLMV

9.8

6.0

7.5

6.8

5.4

6.0

17.2

ASEAN6

5.4

1.1

7.9

4.4

5.7

5.1

8.1

Notes:
a. Breakdown may not add up to total due to rounding.
b. GDP growth is calculated based on GDP at constant prices; ASEAN, ASEAN6 and CLMV figures are estimated using weighted average share of GDP(PPP$) to world total, as in the IMF-WEO Database of April 2013.
Sources: ASEAN Macroeconomic Database and IMF-WEO April 2015

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Table 10: ASEAN6: Consumer Price Index for Food, Housing, Transport (2005-2014)

Note: Base year: Brunei Darussalam: 2005 = 100; Indonesia: 2007 = 100; Malaysia: 2005 = 100; Philippines: 2000 = 100; Singapore: 2009 = 100; andThailand: 2007 = 100
Source: ASEAN Economic Community Chartbook 2015

104

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Table 11: ASEAN: Inflation Rate, end-of-period (in percent) for periods indicatedCountry

2000

2005

2009

2010

2011

2012

2013

Brunei
Darussalam

1.6

0.7

1.2

-2.1

1.8

0.4

0.2

Cambodia

0.3

6.7

5.3

3.1

4.9

2.5

4.6

Indonesia

9.3

17.1

2.8

7.0

3.8

4.3

8.4

Lao PDR

10.6

8.8

3.9

5.8

7.7

4.7

6.9

Malaysia

2.1

3.5

1.1

2.2

3.0

1.2

3.2

Myanmar

-

-

-

-

-

-

-

Philippines

6.5

6.7

4.5

3.6

4.2

3.0

4.1

Singapore

2.1

1.3

-0.6

4.6

5.5

4.3

1.5

Thailand

1.5

5.8

3.5

3.0

3.6

3.6

1.7

Vietnam

-0.6

8.9

6.9

7.9

18.1

6.8

6.0

Notes:
a. Base year : Brunei Darussalam, Malaysia and Vietnam (2005 = 100); Cambodia and Philippines (2000 = 100); Indonesia and Thailand (2007 = 100);
Lao PDR and Myanmar (2006 = 100); Singapore (2009 = 100).
b. “-” no data available
Source: ASEAN Macroeconomic Database

Table 12: ASEAN Lending Rates (in percent) for periods indicatedCountry

2000

2005

2009

2010

2011

2012

2013

Brunei
Darussalam

5.5

5.5

5.5

5.5

5.5

5.5

5.5

Cambodia

17.4

18.6

23.1

22.5

19.4

20.4

15.8

Indonesia

17.7

16.2

13.7

12.8

12.2

11.5

12.1

Lao PDR

15.5

21.5

14.4

14.5

12.3

13.3

12.9

Malaysia

7.2

6.2

5.5

6.3

6.5

6.5

6.5

Myanmar

15.0

15.0

17.0

17.0

15.0

13.0

10.0 - 13.0

Philippines

12.0

10.3

7.1

6.7

6.0

5.5

5.7

Singapore

5.8

5.3

5.4

5.4

5.4

5.4

5.4

Thailand

7.50 - 8.25

6.50 - 6.75

5.85 - 6.25

6.12 - 6.50

7.25 - 7.63

7.00 - 7.50

6.25 - 6.75

Vietnam

10.2

10.2

11.7

14.5

18.7

13.5

-

Note:
a. 2012 figures of Myanmar and Vietnam were from CEIC Data, a Euromoney Institutional Investor Company (CEIC).
b. “-” no data available
Sources: ASEAN Macroeconomic Database and CEIC

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Table 13: ASEAN: Exchange Rates, average-of-period (national currency / US$)for periods indicated1

Country

2000

2005

2009

2010

2011

2012

2013

Brunei
Darussalam

1.7

1.7

1.5

1.4

1.3

1.2

1.3

Cambodia

3,894

4,119

4,159

4,190

4,076

4,038

3,995

Indonesia

8,422

9,733

10,370

9,086

8,775

9,384

10,586

Lao PDR

7,888

10,654

8,501

8,249

8,030

8,007

8,224

Malaysia

3.8

3.8

3.5

3.3

3.1

3.1

3.2

Myanmar1

287

1,025

918

803

767

820

938

Philippines

44.2

55.1

47.6

45.1

43.3

42.2

42.3

Singapore

1.7

1.7

1.5

1.4

1.3

1.2

1.25

Thailand

40.1

40.2

34.3

31.7

30.5

31.1

30.7

Vietnam

14,16815,817

17,065

18,554

20,51020,82820,934Myanmar US$-MMK exchange rate is based on the parallel rate used in IMF-WEO April 2014.

Source: ASEAN Macroeconomic Database106

Repository of Policies and Data
Table 14: ASEAN: Total Trade for periods indicatedIndicator
Total
Trade

IntraASEAN
Trade

ExtraASEAN
Trade

Ratio
to GDP

Trade
Balance

Unit/Scale

2000

2005

2009

2010

2011

2012

2013

Value
(US$ mn)

759,101

1,224,578

1,536,877

2,009,116

2,388,444

2,476,427

2,511,516

Growth (%)

21.8

14.2

-19.0

30.7

18.9

3.7

1.42

Value
(US$ mn)

166,846

304,825

376,213511,020

598,377

602,048

608,558

Growth (%)

25.8

16.8

-20.0

35.8

17.1

0.6

1.08

Share tototal trade
(%)

22.0

24.9

24.5

25.4

25.1

24.3

24.2

Value
(US$ mn)

592,255

919,753

1,160,664

1,498,096

1,790,067

1,874,379

1,902,958

Growth (%)

20.7

13.4

-18.7

29.1

19.5

4.7

1.52

Share tototal trade
(%)

78.0

75.1

75.5

74.6

74.9

75.7

75.8

Share oftrade toGDP (%)

125.2

133.7

100.7

106.6

109.3

107.1

97.6

Exports to
GDP (%)

67.6

70.8

53.1

55.8

56.9

54.3

49.4

Imports to
GDP (%)

57.5

63.0

47.6

50.8

52.5

52.9

48.2

Value
(US$ mn)

61,18071,362

84,068

94,112

95,95432,73430,740Share toexports (%)

14.9

11.0

10.4

8.9

7.7

2.6

2.4

Source: ASEAN Trade Statistics Database, as of 4 December 2014

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Table 15: ASEAN Member States: Trade Balance for periods indicatedCountry

2000

2005

2009

2010

2011

2012

2013

In US$ mn
Brunei
Darussalam

1,102

4,866

4,701

6,232

9,902

9,508

7,834

Cambodia

-37

267

1,085

687

577

-3,794-27.8

Indonesia

28,60927,95919,681

22,116

26,061-1,658-4,077

Lao PDR

-

-528

-488

356

-463

-848

-699

Malaysia

18,507

26,25733,56034,06740,61331,14522,434Myanmar-1,026

1,491

2,492

3,401

1,313

127

-573

Philippines

3,587-6,163-7,199-6,797-15,667-13,391-11,152

Singapore

3,672

29,59924,04841,07643,731

28,67037,234Thailand

6,766-8,36818,7285,584-1,263-18,254-20,787

Vietnam--4,017-12,540-12,609-8,851

1,228

554

Note: “-” means no data available.
Source: ASEAN Trade Statistics Database, as of 4 December 2014108

Repository of Policies and Data
Table 16: ASEAN Member States: Total Trade with ASEAN+3 (2014)
Country

IntraASEAN

China

Japan

Republic of
Korea

Total
ASEAN+3

In US$ billion
Brunei
Darussalam

4.5

0.56

4.76

1.99

11.81

Cambodia

4.12

3.27

0.50

0.47

8,35

Indonesia

94.7

52.5

46.4

23.02

216.5

Lao PDR

3.73

0.87

0.12

0.09

4.82

Malaysia

119.0

64.4

43.0

18.0

244.5

Myanmar

9.9

6.72

2.4

1.7

20.7

Philippines

22.8

15.1

17.0

9.0

62.9

Singapore

206.7

92.0

38.0

40.7

377.4

Thailand

103.7

65.0

63.3

13.7

245.6

Vietnam

39.5

50.1

25.3

27.4

142.2

ASEAN

609.0

351.0

240.8

135.0

1335.8In percent share to ASEAN total trade
Brunei
Darussalam

0.74

0.16

1.98

1.47

0.88

Cambodia

0.68

0.93

0.21

0.35

0.63

Indonesia

15.55

14.96

19.27

17.05

16.21

Lao PDR

0.61

0.25

0.05

0.07

0.36

Malaysia

19.54

18.35

17.86

13.33

18.30

Myanmar

1.63

1.91

1.00

1.26

1.55

Philippines

3.74

4.30

7.06

6.67

4.71

Singapore

33.94

26.21

15.78

30.15

28.25

Thailand

17.03

18.52

26.29

10.15

18.39

Vietnam

6.49

14.27

10.51

20.30

10.65

ASEAN

100.0

100.0

100.0

100.0

100.0

Source: ASEAN Trade Statistics Database, as of 4 December 2014

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Table 17: ASEAN Member States: Total Trades with Selected Trade Partners (2014)
Country

Australia

Canada

EU-28

India

New
ZealandPakistan

RussiaUSA

In US$ billion
Brunei
Darussalam

0.85

0.28

0.71

1.01

0.38

0.00

0.00

0.35

Cambodia

0.13

0.53

3.18

0.28

0.01

0.08

0.05

2.48

Indonesia

10.68

2.62

29.62

16.20

1.32

2.20

2.64

24.7

Lao PDR

0.11

0.01

0.28

0.01

0.00

0.01

0.00

0.04

Malaysia

16.28

1.73

44.01

13.84

2.50

1.45

2.80

35.69

Myanmar

0.10

0.01

0.56

1.50

0.01

0.03

0.04

0.53

Philippines

1.67

0.95

14.61

1.31

0.57

0.12

1.07

14.71

Singapore

20.18

2.16

75.69

19.40

3.12

1.36

8.49

60.50

Thailand

14.71

2.40

42.91

8.65

2.00

1.02

4.91

38.47

Vietnam

5.66

2.47

36.74

5.51

0.79

0.43

2.54

34.96

ASEAN

70.37

13.16

248.31

67.71

10.71

6.70

22.54

212.43

In percent share to ASEAN total trade
Brunei
Darussalam

1.208

2.128

0.286

1.492

3.548

0.000

0.000

0.165

Cambodia

0.185

4.027

1.281

0.414

0.093

1.194

0.222

1.167

Indonesia

15.17719.90911.92923.92612.32532.836

11.713

11.627

Lao PDR

0.156

0.076

0.113

0.015

0.000

0.149

0.000

0.019

Malaysia

23.13513.14617.72420.44023.34321.64212.42216.801

Myanmar

0.142

0.076

0.226

2.215

0.093

0.448

0.177

0.249

Philippines

2.373

7.219

5.884

1.935

5.322

1.791

4.747

6.925

Singapore

28.677

16.41330.48228.65229.13220.29937.66628.480Thailand

20.90418.23717.28112.77518.67415.22421.78318.109Vietnam

8.043

18.76914.796

8.138

7.376

6.418

11.26916.457

ASEAN

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

Source: ASEAN Trade Statistics Database, as of 4 December 2014110

Repository of Policies and Data
Table 18: ASEAN Member States: Percent Share of Total Trade with Selected
Trade Partners (2014)
Country

ASEAN

China

Japan

Republicof Korea

Australia

CanadaEU-28

Brunei
Darussalam

19.8

0.9

37.2

11.0

7.6

2.3

2.8

Cambodia

19.1

3.3

3.2

1.2

0.7

4.8

24.0

Indonesia

22.6

10.0

13.1

6.0

2.9

0.4

9.6

Lao PDR

55.0

26.9

2.0

0.3

3.9

0.5

8.8

Malaysia

27.9

12.0

10.8

3.6

4.3

0.3

9.5

Myanmar

39.5

36.5

4.7

3.3

0.1

0.00

2.5

Philippines

14.9

13.0

22.5

4.1

1.3

1.0

10.9

Singapore

31.2

12.6

4.1

4.1

3.8

0.2

7.8

Thailand

26.1

11.0

9.6

2.0

4.1

0.6

10.3

Vietnam

12.3

10.0

9.8

4.8

2.4

1.4

18.8

ASEAN

25.5

11.6

9.3

4.0

3.5

0.6

10.3

Country

India

New
ZealandPakistan

RussiaUSA

Rest ofthe World

Total

Brunei
Darussalam

9.1

3.5

0.00

0.00

0.2

5.6

100.0

Cambodia

0.1

0.00

0.00

0.4

18.7

24.4

100.0

Indonesia

6.9

0.3

1.2

0.6

9.4

17.0

100.0

Lao PDR

0.1

0.00

0.00

0.00

1.0

1.5

100.0

Malaysia

4.2

0.7

0.5

0.3

8.4

17.4

100.0

Myanmar

7.6

0.00

0.2

0.2

0.4

4.9

100.0

Philippines

0.5

0.2

0.1

0.1

14.1

17.3

100.0

Singapore

2.7

0.5

0.3

0.1

5.6

27.0

100.0

Thailand

2.5

0.5

0.4

0.5

10.5

21.8

100.0

Vietnam

1.7

0.2

0.2

1.2

19.4

17.8

100.0

ASEAN

3.4

0.5

0.4

0.4

9.5

21.0

100.0

Source: ASEAN Trade Statistics Database, as of 4 December 2014

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Table 19: ASEAN: Top 20 Export Commodities1 (2014)
HS
Codes

1

Commodities

Share inexport(%)

8542

Electronic integrated circuits

135,098

10.5

2710

Petroleum oils and oils obtained from bituminous minerals, other thancrude, preparations not elsewhere specified or included, containing by
weight 70% or more of petroleum oils or of oils obtained from bituminous
minerals, these oils being the basic

97,2577.5

2711

Petroleum gases and other gaseous hydrocarbons

47,995

3.7

8517

Telephone sets, including telephones for cellular networks or for otherwireless networks; other apparatus for the transmission or reception ofvoice, images or other data including apparatus for communication in a
wired or wireless networks

39,787

3.1

8471

Automatic data processing machines & units thereof; magnetic or opticalreaders, machines for transcribing data onto data media in coded form &machines for processing such data, not elsewhere specified or included

37,9302.9

2709

Crude oil from petroleum and bituminous minerals

31,8072.51511

Palm oil & its fractions, whether or not refined, but not chemically modified

29,8582.38541

Diodes, transistors and similar semiconductor devices; photosensitive
semiconductor devices, including photovoltaic cells whether or notassembled in modules or made up into panels, light emitting diodes;
mounted piezo-electric crystals

19,9611.5

2701

Coal; briquettes, ovoids & similar solid fuels manufactured from coal

19,5791.5

8443

Printing machinery; machines used for printing by means of plates,cylinders and other printing components of heading 84.42; other printers,
copying machines and facsimile machines, whether or not combined, parts
and accessories thereof

16,406

1.3

8473

Parts and accessories (other than covers, carrying cases and the like)suitable for use solely or principally with the machines of headings 84.69 to
84.72

15,3891.2

4001

Natural rubber, balata, gutta-percha, guayule, chicle and similar naturalgums, in primary forms or in plates, sheets or strip

14,2001.1

8708

Parts and accessories for tractors, motor vehicles for the transport of ten or
more persons, motor cars and other motor vehicles principally designed forthe transport of persons, motor vehicles

13,742

1.1

3901

Polymers of ethylene, in primary forms

11,4670.9

7113

Articles of jewellery and parts thereof, of precious metal or of metal cladwith precious metal (excl. articles > 100 years old)

11,4430.98704Motor vehicles for the transport of goods, incl. chassis with engine and cab

10,8010.8

8703

Motor cars and other motor vehicles principally designed for the transportof persons, incl. station wagons and racing cars (excl. motor vehicles ofheading 8702)

9,933

0.8

1006

Rice

9,050

0.7

8544

Insulated incl. enamelled or anodised wire, cable incl. coaxial cable andother insulated electric conductors, whether or not fitted with connectors;
optical fibre cables

8,699

0.7

Based on 4-digit code Harmonised System

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Table 19: ASEAN: Top 20 Export Commodities1 (2013)

1

HS
Codes

Commodities

Value(US$ mn)

Share inexport(%)

4907

Unused postage, revenue or similar stamps of current or new issue in the
country in which they have, or will have, a recognised face value; stampimpressed paper; banknotes; cheque forms; stock

8,504

0.7

Top 20 export commodities

588,905

45.6

Others703,495

54.4

Total

1,292,400

100.0

Based on 4-digit code Harmonised System

Source: ASEAN Trade Statistics Database, as of 19 May 2016

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Table 20: ASEAN: Top 20 Import Commodities1 (2014)
HS
Codes

1

Commodities

Share
(%)

2710

Oil (not crude) from petrol & bituminous minerals etc. 

144,667

11.7

8542

Electronic integrated circuits & microassemblies; parts thereof

116,6829.4

2709

Petroleum oils and oils obtained from bituminous minerals, crude

95,211

7.7

8517

Electric apparatus for line telephony or telegraphy telephone sets,
teleprinters, modems, facsimile machines

32,931

2.7

2711

Petroleum gases & other gaseous hydrocarbons propane, butane, ethylene

20,0601.6

8471

Automatic data processing machines & units thereof; magnetic or opticalreaders, machines for transcribing data onto data media in coded form &machines for processing such data, including keyboard, printer, scanners,
disk drives, power supply

16,2441.3

8708

Parts & accessories of the motor vehicles of headings 8701 to 8705

14,254

1.2

8473

Parts and accessories (not covers, carrying cases) for office

12,9801.0

7108

machines & typewriters of 8469 to 8472

12,336

1.08541

Gold (including gold plated with platinum), unwrought or

12,2481.0

8802

semi-manufactured or powder

10,2330.8

8411

Semiconductor devices; light-emitting diodes; mounted piezo-electric
crystals; parts thereof diodes, transistors, photosensitive semiconductor
devices, photovoltaic cells

9,887

0.8

8443

Aircraft, powered; spacecraft & launch vehicles, including helicopters,
satellites

9,886

0.8

8703

Turbojets, turbopropellers and other gas turbines

9,689

0.8

8536

Printing machinery; machines for ancillary uses to printing; parts thereof

8,686

0.7

3901

Motor cars & vehicles for transporting persons (not 8702)

8,238

0.7

2304

Electrical apparatus for switching or protecting electrical circuit andelectrical connection that are not over 1,000 volts, switches, relays, fuses,
surge suppressors, plugs, junction boxes, lamp-holders

7,588

0.6

3004

Polymers of ethylene, in primary forms

7,578

0.6

8431

Oilcake and other solid residues, whether or not ground or in the form ofpellets, resulting from the extraction of soya-bean oil

7,337

0.6

8803

Medicaments consisting of mixed or unmixed products for therapeuticor prophylactic uses, put up in measured doses incl. those in the form oftransdermal

7,207

0.6

Parts for machinery of 8425 to 8430

563,94245.6

Parts of aircraft and spacecraft of heading 8801 or 8802, n.e.s.

672,275

54.4

Total

1,236,216

100.0

Based on 4-digit code Harmonised System

Source: ASEAN Trade Statistics Database, as of 19 May 2016

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Value
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Table 21: FDI Inflows into ASEAN, by Source Country (US$ million)
SourceCountry

2000

2009

2010

2011

2012

2013

2014

Intra-ASEAN

1,219

6,672

15,20014,56020,54919,40024,377Australia

-325

994

4,001

5,076

3,219

3,489

5,703

Canada

-98

753

1,298

956

1,048

1,030

1,264

China

20

1,965

4,052

7,860

5,718

6,779

8,869

European
Union

9,210

8,598

19,01830,167

6,542

22,25629,268

India

59

553

3,474

-1,732

4,299

1,331

820

Japan

968

3,919

11,171

8,790

21,206

21,766

13,381New Zealand

24

-157

22

57

-142

388

320

Pakistan

1

15

30

12

1

-2

3

Republic of
Korea

-191

1,799

4,299

1,557

1,577

3,652

4,469

Russia

-

140

60

68

184

542

-28

USA

6,913

5,215

12,285

9,375

14,396

4,913

13,042Others4,007

17,461

225,451

19,09136,85532,143

34,692

Total

21,80947,927

100,360

95,838

115,453

117,687

136,181Note: “-” means no data available.
Source: ASEAN Investment Statistics Database based on Member States’ submission, as of 19 May 2016

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Table 22: ASEAN: Trends in Tourist Arrivals, by host country for periods indicatedHost Country

2010

2011

2012

2013

2014

In thousands
Brunei
Darussalam

214

242

209

3,279

3,886

Cambodia

2,508

2,882

3,584

4,210

4,503

Indonesia

7,003

7,650

8,044

8,802

9,435

Lao PDR

2,513

2,724

3,330

3,780

4,159

Malaysia

24,577

24,71425,03325,71627,437

Myanmar

792

816

1,059

2,044

3,081

Philippines

3,520

3,917

4,273

4,681

4,833

Singapore

11,63913,171

14,491

15,56815,095Thailand

15,936

19,09822,35426,547

24,780Vietnam

5,050

6,014

6,848

7,572

7,874

ASEAN

73,753

81,22989,225102,199

105,084

ASEAN662,89068,79374,404

84,59385,467

CLMV

10,863

12,436

14,821

17,606

19,617

In percent share to total
ASEAN

100.0

100.0

100.0

100.0

100.0

ASEAN6

85.3

84.7

83.4

82.8

81.3

CLMV

14.7

15.3

16.6

17.2

18.7

Notes:
a. CLMV includes Cambodia, Lao PDR, Myanmar and Vietnam
b. ASEAN6 consists of Brunei Darussalam, Indonesia, Malaysia, Philippines, Singapore and Thailand
Source: ASEAN Tourism Statistics Database (compiled from AMS data submissions, publications/reports, and/or websites of national tourism
organisations/agencies, and/or national statistical offices), as of 19 May 2016

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Table 23: ASEAN: Internet Subscribers / Users, per 1,000 persons for periods indicatedCountry

2007

2008

2009

2010

2011

2012

2013

Brunei
Darussalam

55.0

63.0

84.9

125.9

128.0

131.3

130.0

Cambodia

0.8

1.5

20.7

22.4

31.0

49.4

-

Indonesia

57.9

79.2

87.0

109.2

122.8

153.6

162.9

Lao PDR

16.4

35.5

60.0

70.0

90.0

107.5

-

Malaysia

557.0

558.0

559.0

563.0

610.0

217.0

226.0

Myanmar

0.7

0.2

0.7

0.7

0.8

1.0

-

Philippines

28.2

33.2

39.0

46.0

54.1

63.7

-

Singapore

430.4

479.8

477.7

488.9

482.0

NA

-

Thailand

15.5

18.2

20.1

22.4

23.7

26.5

-

Vietnam

15.2

24.1

34.5

41.9

46.5

53.8

57.6

ASEAN

61.1

72.8

79.5

91.4

101.6

-

-

Note: ‘-’ - not available at the time of publication
Sources: ASEAN Statistical Yearbook 2014, compiled based on AMSs’ data submission; latest country websites; and other Database

Table 24: ASEAN: Distribution of Population, by age group (2013)
Country

0-4

5-19

20-54

55-64

> 65

Total

Brunei
Darussalam

7.9

25.3

56.5

6.5

3.8

100.0

Cambodia

10.6

30.9

48.4

5.7

4.4

100.0

Indonesia

9.6

27.0

51.3

6.9

5.2

100.0

Lao PDR

14.3

33.9

43.3

4.8

3.7

100.0

Malaysia

8.6

26.9

51.8

7.1

5.5

100.0

Myanmar

9.3

28.9

49.1

6.7

5.9

100.0

Philippines

11.3

30.7

47.2

6.1

4.7

100.0

Singapore1

4.8

17.9

53.8

13.1

10.5

100.0

Thailand

5.7

20.9

54.3

10.4

8.7

100.0

Vietnam

8.5

23.8

52.5

8.1

7.1

100.0

ASEAN

9.3

26.8

50.8

7.3

5.8

100.0

2

1
2

Age Group, in percent

Total Singapore residence only
Total ASEAN excludes Singapore’s non-residents population

Source: ASEAN Statistical Yearbook 2014, ASEAN Member States’ data submission

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Table 25: ASEAN Member States: Population Living under PPP $1.25, in percent
for periods indicatedCountry

2005

20101

Brunei Darussalam

NA

NA

Cambodia36

28

Indonesia

21

16

Lao PDR

39

31

Malaysia--

Myanmar--Philippines

22

23

Singapore

NA

NA

Thailand00Vietnam23

14

2010 figures were computed by ASEANstats for the few missing years of ASEAN member states’ data. Brunei Darussalam and Singapore do not havea national poverty line. Meanwhile, Myanmar and Malaysia have no available data.

1

Notes:
a. “-” means no data available
b. NA – not applicable
Sources: PovcalNet: the online tool for poverty measurement developed by the Development Research Group of the WB, and ASEAN Statistical Reporton the MDGs 2012

Table 26: ASEAN Member States: Gini Coefficient in ASEAN Member States, inpercent for periods indicated1

Country

2007

2008

2009

2010

2011

2012

2013

Brunei
Darussalam

-

-

-

-

-

-

-

Cambodia

0.444

0.379

0.360

-

-

-

-

Indonesia

0.360

0.350

0.370

0.380

0.410

0.410

0.413

Lao PDR

-

0.367

-

-

-

-

-

Malaysia

0.441

-

0.462

-

-

-

-

Myanmar

-

-

-

-

-

-

-

Philippines

-

-

0.464

-

-

-

-

Singapore1

0.482

0.474

0.471

0.472

0.473

-

-

Thailand

0.397

0.401

0.396

0.394

-

-

-

Vietnam

-

0.434

-

0.433

-

-

-

Measures the degree of inequality in monthly income from work per household member among employed households

Note: “-” means no data available
Sources: ASEAN Statistical Yearbook 2014, Country submission for yearbook and country websites; ASEAN in Figures 2003; ASEAN Community Progress
Monitoring System (ACPMS) 2012 Data Submission; UNESCAP Yearbook 2008; ADB Key Indicators 2005-2014

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Table 27: ASEAN Member States: Life Expectancy at Birth, in years for periods indicatedCountry

FemaleMale

Both Sexes

2012

2013

2014

2012

2013

2014

2012

2013

2014

Brunei
Darussalam

80.1

80.5

80.7

76.5

76.7

77.0

78.3

78.5

78.8

Cambodia

69.5

69.9

70.3

65.3

65.8

66.2

67.3

67.8

68.2

Indonesia

70.6

70.8

71.0

66.5

66.7

66.9

68.5

68.7

68.9

Lao PDR

66.6

67.1

67.5

63.9

64.4

64.8

65.2

65.7

66.1

Malaysia

76.8

77.0

77.1

72.2

72.3

72.4

74.4

74.6

74.7

Myanmar

67.5

67.8

68.0

63.4

63.7

63.9

65.4

65.7

65.9

Philippines

71.5

71.6

71.8

64.7

64.8

64.9

68.0

68.1

68.3

Singapore

84.3

84.5

84.9

79.8

80.1

80.5

82.0

82.2

82.6

Thailand

77.5

77.7

77.9

70.8

71.0

71.1

74.1

74.2

74.4

Vietnam

80.3

80.4

80.5

70.6

70.8

71.0

75.3

75.5

75.6

Notes:
Italic means data revised from previous publication
Source: http://databank.worldbank.org/data/reports.aspx?source=health-nutrition-and-population-statistics#

Table 28: ASEAN Member States: Government Health Expenditure as Percentage ofGDP for periods indicatedCountry

2010

2011

2012

2013

2014

Brunei
Darussalam

2.7

2.2

2.3

2.6

2.6

Cambodia

6.0

5.6

6.2

5.9

5.7

Indonesia

2.7

2.7

2.9

2.9

2.8

Lao PDR

2.7

2.2

2.1

2.0

1.9

Malaysia

4.0

3.9

4.0

4.0

4.2

Myanmar

1.9

1.9

2.2

2.2

2.3

Philippines

4.4

4.3

4.5

4.6

4.7

Singapore

4.0

3.9

4.2

4.5

4.9

Thailand

5.4

5.9

6.2

6.2

6.5

Vietnam

6.4

6.2

7.0

7.2

7.1

Source: WB, WDI at http://databank.worldbank.org/data/reports.aspx?source=health-nutrition-and-population-statistics#

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Repository of Policies and Data
Table 29: ASEAN Member States: Adult Literacy Rate 15 Years Old and Above, in percent forperiods indicatedCountry

1

Female

Male

Total

2011

2012

2013

2011

2012

2013

2011

2012

2013

Brunei
Darussalam

95.2

95.8

96.3

97.6

97.8

98.1

96.4

96.8

97.2

Cambodia

72.6

73.2

74.4

87.8

86.9

87.7

79.9

79.7

80.7

Indonesia

90.6

90.6

91.4

95.7

95.9

96.5

93.0

93.3

94.1

Lao PDR

-

-

74.0

-

-

83.0

-

-

79.0

Malaysia

91.8

92.1

92.1

95.9

96.0

96.1

93.9

94.1

94.2

Myanmar

95.3

95.1

95.4

94.4

94.8

94.8

95.0

95.6

95.1

Philippines

-

-

-

-

-

-

-

-

-

Singapore1

94.1

94.4

94.6

98.4

98.5

98.5

96.2

96.4

96.5

Thailand

-

-

-

-

-

-

-

-

-

Vietnam

92.2

92.9

93.1

96.2

96.6

96.6

94.2

94.7

94.8

Refers to residents’ population, comprising Singapore Citizens and Permanent Residents

Notes:
a. “-” means no data available
b. italic means data revised from previous publication
Sources: ASEAN Statistical Yearbook 2014, Yearbook of AMSs (Brunei Darussalam, Cambodia, Indonesia, Malaysia, Myanmar, Philippines, Singapore,
Thailand and VietNam) AMSs’ data submission for ASEAN Statistical Yearbook, ASEAN Community Progress Monitoring System (ACPMS) and ASEAN
Statistical Report on the MDGs ADB Key Indicators, 2001-2012

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Table 30: ASEAN Member States: Unemployment Rate by Gender, in percent for periods
indicated
Country

FemaleMale

Both Sexes

2012

2013

2014

2012

2013

2014

2012

2013

2014

Brunei
Darussalam

4.0

4.1

4.0

3.6

3.6

3.6

3.8

3.8

3.8

Cambodia

0.2

0.3

0.4

0.2

0.3

0.4

0.2

0.3

0.4

Indonesia

7.2

7.3

7.2

5.4

5.6

5.6

6.1

6.3

6.2

Lao PDR

1.1

1.1

1.2

1.6

1.6

1.6

1.4

1.3

1.4

Malaysia

3.2

3.6

2.2

2.9

2.9

1.8

3.0

3.2

2.0

Myanmar

3.6

3.6

3.6

3.0

2.9

3.0

3.3

3.3

3.3

Philippines

6.9

7.1

7.0

7.0

7.1

7.1

7.0

7.1

7.1

Singapore

3.1

3.1

3.3

2.6

2.5

2.7

2.8

2.8

3.0

Thailand

0.7

0.7

0.9

0.7

0.7

0.9

0.7

0.7

0.9

Vietnam

2.0

2.5

2.5

1.6

1.9

2.0

1.8

2.2

2.3

Note: italic means data revised from previous publication
Source: http://databank.worldbank.org/data/reports.aspx?source=health-nutrition-and-population-statistics#

Doing Business in ASEAN 2016121

About the Authors

United Overseas Bank Limited (UOB) is a leading bank in Asia with a global network of more than 500 offices in
19 countries and territories in Asia Pacific, Western Europe and North America.  Since its incorporation in 1935,
UOB has grown organically and through a series of strategic acquisitions. In Asia, UOB operates through its head
office in Singapore and banking subsidiaries in China, Indonesia, Malaysia and Thailand, as well as branches andrepresentative offices.
UOB is rated among the world’s top banks: Aa1 by Moody’s and AA- by Standard & Poor’s and Fitch Ratings
respectively.
UOB provides a full suite of banking services through our regional banking network to meet your diverse personaland corporate requirements, including:Corporate and Commercial Banking Services▪▪ Factoring▪▪ Hire-Purchase Financing▪▪ Commercial and Industrial Property Financing▪▪ Working Capital Financing▪▪ Structured Trade and Commodity Financing▪▪ Project and Specialised Financing

Investment Banking and Treasury Services▪▪ Investment Banking (Merger and Acquisition, Privatisation, IPO Listing, etc.)▪▪ Treasury, Bullion and Futures Services

Transaction Banking Services▪▪ Cash Management▪▪ Trade Finance Services▪▪ Financial Supply Chain Management

Personal Wealth Management▪▪ Wealth Advisory Services and Products▪▪ Advanced Financial and Portfolio Planning

About UOB FDI Advisory UnitUOB’s well-established banking network across Asia allows us to better serve your company’s expansion needs. We
have a dedicated team of FDI Advisers in major markets to help you in your banking requirements. We are able toeffectively connect you with our business partners, including legal firms, accounting firms and local government
investment agencies that can assist you in executing your regionalisation plans. We provide a seamlessly-packaged
business solution to ensure your company’s growth and expansion take place smoothly and efficiently.
Please visit our website www.uob.com.sg/FDI or email us at FDI@uobgroup.com

122About the Authors

RSM in Singapore is a member of the RSM International network of independent public accounting firms providing
assurance, tax and business advisory services.
Stone Forest represents the group under which our business solutions operate.
Together, the two entities form the largest accounting, business advisory and solutions group outside the Big 4
in Singapore, with a total staff strength of over 950 in Singapore and 320 in Shanghai, Beijing, Suzhou, Shenzhen,
Chengdu and Hangzhou. As a member of RSM International, the world’s 6th largest accounting and consulting
network, the firm has a global reach of over 760 offices in 120 countries.
We also work closely with government agencies, key institutions and trade chambers to support the business
community in Singapore.
For over 30 years, we have been helping internationally active businesses and companies aspiring to go global to
overcome various ‘growing pains’ and chart their growth strategies, including profit & cash flow management andcross-border expansion.

Some quick facts about us:▪▪ ISO 9001:2008 certified▪▪ Ranked as a leading tax firm in Singapore by “World Tax” (a Euromoney publication) since 2006▪▪ Strategic partner of Singapore Business Federation’s AccessAsia@Singapore Programme▪▪ Public accounting arm registered with the Public Company Accounting Oversight Board in the USA▪▪ Accounting and payroll outsourcing units are SSAE 16 (Type II) Compliant

Our expertise covers the following areas:
RSM
Audit
▪▪ Financial Due Diligence▪▪ Reporting Accountants▪▪ Special Reviews▪▪ Statutory Audit▪▪ Regulatory Compliance Reporting▪▪ Certifications▪▪ Other Non-statutory Audits

Tax▪▪ Corporate Tax – Compliance & Advisory▪▪ Funds Practice▪▪ GST – Compliance & Advisory▪▪ International Tax Advisory▪▪ Personal Tax – Compliance & Advisory▪▪ Transfer Pricing
Doing Business in ASEAN 2016123

About the Authors
Corporate Advisory▪▪ Business Advisory▪▪ CFO2SME™
▪▪ Corporate Recovery & Insolvency▪▪ Crisis Management▪▪ Forensic & Litigation Support▪▪ Fund Raising▪▪ M&A Advisory▪▪ Transaction Support▪▪ Valuation

Risk Advisory▪▪ Corporate Governance & Risk Management▪▪ Cyber Security▪▪ Digital Forensics▪▪ eDiscovery▪▪ Internal Audit▪▪ IT Governance & Oversight▪▪ Probity Advisory & Assurance▪▪ Regulatory Compliance▪▪ Technology Assurance & Advisory▪▪ Technology Risk Management

Country & Industry Specialisations▪▪ China Practice▪▪ Financial Services▪▪ F & B▪▪ Healthcare▪▪ Industrial Practice▪▪ Logistics & Transportation▪▪ Minerals, Oil & Gas▪▪ NPO Practice▪▪ Private Equity Group▪▪ Professional & Business Services▪▪ Real Estate & Construction▪▪ Retail▪▪ Indonesia Desk▪▪ Japan Desk
For more information, please visit:
www.RSMSingapore.sg

124About the Authors
Stone Forest group of companies
Through our sister company, the Stone Forest group, our specialist Business Units provide business solutions andoutsourcing services to support clients in their non-core yet important areas so that they can focus on their corebusiness to generate more revenue.

Business Solutions▪▪ Accounting & Advisory▪▪ Business Process Outsourcing▪▪ Executive Search & Placement▪▪ Formation, Compliance & Advisory▪▪ IT Solutions & Technology Consulting▪▪ Payroll Outsourcing & HR Advisory
For more information, please visit:
www.StoneForest.com.sg

For China
RSM and the Stone Forest group help businesses enter China, as well as help Chinese enterprises venture abroad. 
Our China Practice based in Singapore and our subsidiaries in Shanghai, Beijing, Suzhou, Shenzhen, Chengdu andHangzhou are staffed by both Singapore and China-trained accountants and professionals who are effectively
bilingual and familiar with the accounting and investment regulations of Singapore and China, as well asinternational financial reporting developments.

Contact us:
Tel: +65 6533 7600 | Fax: +65 6538 7600
Email: Info@RSMSingapore.sg

Doing Business in ASEAN 2016125

About the Authors

Rajah & Tann Singapore is one of the largest full-service law firms in Singapore and Southeast Asia. Over the years,
the firm has been at the leading edge of law in Asia, having worked on many of the biggest and highest profile
cases in the region. The firm has a vast pool of talented and well regarded lawyers dedicated to delivering the very
highest standards of service across all the firm’s practice areas.
In the last few years, the firm has formed or signed strategic alliances with leading local firms across Southeast
Asia and this led to the launch in 2014 of Rajah & Tann Asia, a network of more than 600 lawyers. Through Rajah& Tann Asia, the firm has the reach and the resources to deliver excellent service to clients in the region including
China, Lao PDR, Vietnam, Thailand, Malaysia, Indonesia, Cambodia and Myanmar. The firm’s geographical reachalso includes Singapore based regional desks focusing on Japan and South Asia. Further, as the Singapore member
firm of the Lex Mundi Network, the firm is able to offer its clients access to excellent legal support in more than 100
countries around the globe.

Our Practice Areas include:
Corporate Services▪▪ Setting up of Business Entities▪▪ Corporate Secretarial▪▪ Employment & Executive Compensation▪▪ Real Estate▪▪ Integrated Regulatory Advice▪▪ Intellectual Property▪▪ Tax & Transfer Pricing

Investments & Acquisitions▪▪ Foreign Direct Investments▪▪ Mergers & Acquisitions▪▪ Private Equity & Funds▪▪ Competition & Antitrust

Financial Services▪▪ Corporate Banking▪▪ Capital Markets▪▪ Financial Regulation▪▪ Islamic Banking▪▪ Trade Finance▪▪ Debt Restructuring

126About the Authors
Dispute Resolution▪▪ Commercial Litigation▪▪ Insolvency & Fraud Investigation▪▪ International Trade Disputes▪▪ International Arbitration▪▪ Medical Disputes▪▪ White Collar Crime

Projects & Infrastructure▪▪ Construction▪▪ Ports, Airports, Rail and Transport Infrastructure▪▪ Energy & Resources▪▪ Life Sciences▪▪ Technology, Media & Telecommunications

Specialised Practices▪▪ Admiralty & Shipping▪▪ Entertainment & Media▪▪ Family, Probate & Trusts▪▪ Gaming▪▪ Hospitality & Tourism▪▪ Insurance & Reinsurance▪▪ Private Wealth Management▪▪ Sports

Contact us:Singapore
Rajah & Tann Singapore LLP
Address: 9 Battery Road, #25-01 Straits Trading Building, Singapore 049910
Tel: +65 6535 3600 | Fax: +65 6225 9630
Email: info@rajahtannasia.com | Website: http://sg.rajahtannasia.com

Doing Business in ASEAN 2016127

About the Authors

Special Mention
We would like to thank Sam Cheong and Stanley Teo from the UOB Foreign Direct Investment Advisory Unit, Tay
Woon Teck and Daniel Lim from the risk advisory unit of RSM in Singapore, as well as Chia Kim Huat, Andrew CL
Ong, Mark Wong and Benjamin Cheong from Rajah & Tann Singapore LLP for their invaluable contributions andinsights that drove the conceptualisation and subsequent development of this publication.

The UOB Foreign Direct Investment (FDI) Advisory Unit provides dedicated services across major markets
in Asia to facilitate the business expansion of companies throughout the region.  Established in 2011,
the UOB FDI Advisory Unit provides companies looking to set up regional operations in Asia withcustomised banking consultancy services.  UOB works with government agencies, business associations,and professional service providers to provide these seamless and integrated services.

RSM in Singapore is a member of the RSM International network of independent public accounting firms
providing assurance, tax and business advisory services. 
Our Risk Advisory team adopts an insightful and customised approach with in-depth industry experience
to help companies define their risk governance and risk management framework.  We aim to provide ourclients with a structure to proactively manage risks as their organisations pursue business growth andopportunities.
We are committed to providing solutions that promote organisational improvements that are aligned withstrategic goals and business objectives. C-Suite executives and Boards of Directors rely on us for advice on
corporate governance, internal controls, enterprise risk assessment and technology as well as fraud risks
and regulatory compliance.

Rajah & Tann Asia is the region’s new “home team”. With offices spread across nine countries in Asia,
Rajah & Tann Asia offers the first unified and authentically Asian legal service, giving clients the homeadvantage. Each of its local law firms offers the highest standards of service to local clients. Collectively,
Rajah & Tann Asia has the capacity to handle the most complex regional and cross border transactions
and provide seamless legal counsel in the region.

128

About the Authors
We would also like to thank the following partners for their support of this publication:▪▪ Reyes Tacandong & Co., Philippines▪▪ RSM AAJ Associates, Indonesia▪▪ RSM Advisory (Thailand) Limited, Thailand▪▪ RSM DTL Auditing, Vietnam▪▪ RSM Premier Consulting Co., Ltd, Cambodia▪▪ RSM RKT Tax Consultants Sdn Bhd, Malaysia▪▪ Tin Win (U) Group Audit Firm, Myanmar▪▪ WKA & Associates, Brunei Darussalam▪▪ Assegaf Hamzah & Partners▪▪ Christopher & Lee Ong▪▪ Rajah & Tann (Laos) Sole Co., Ltd. 
▪▪ Rajah & Tann LCT Lawyers▪▪ Rajah & Tann NK Legal Myanmar Company Limited▪▪ Rajah & Tann Singapore LLP Shanghai Representative Office▪▪ Rajah & Tann (Thailand) Limited▪▪ R&T Sok & Heng Law Office

Doing Business in ASEAN 2016129

United Overseas Bank Limited

RSM

Rajah & Tann Singapore LLP

Head office:
80 Raffles Place, UOB Plaza,
Singapore 048624

8 Wilkie Road,#03-08 Wilkie Edge,
Singapore 228095

9 Battery Road #25-01,
Straits Trading Building,Singapore 049910

www.UOBGroup.com

www.RSMSingapore.sg

www.RajahTannAsia.com

0516