This is because regional managers have incentives to optimize the economies of scale and scope through the use of regional factors of production to achieve competitiveness. Moreover, regional managers are likely to promote more regional-oriented investment, which means outward investment, direct as well as portfolio, from one local economy into other local economies within and outside ASEAN. Ladies and Gentlemen, Turning to the dimension of readiness, ASEAN labor mobility pertains only to skilled labor at present. Various country specific regulations continue to prevent completely free labor mobility. While greater mobility should yield substantial economic benefits especially for integration objectives, opponents of labor mobility tend to highlight the short term potential threats, particularly the “brain-drain” away from home countries. Mobility also raises fears relating to immigration and cultural impacts. What then can be done to improve readiness for labor mobility thereby strengthening ASEAN citizenship? For the benefit of further exploration, I would like to propose that we consider a threepronged strategy as part of a sustainable solution to this problem: First, we should try to reduce short and long-term obstacles to labor mobility. It is critical to recognize that greater labor mobility brings greater competition for local professionals. This means that, in the medium and longer term, the “brain drain” is usually offset by remittances and a “reverse brain drain”, which brings wealth, skills, experience, and their business and social networks back home. Therefore, actions are needed to further enhance the free flow of labor through increased use of mutual recognition of professional qualifications.

Naturally, we in Asia should see this regional citizenship linked to the economic opportunities available in our own region and to the degree of economic integration between Asia and the rest of the world. Thus, going forward, Thai and other ASEAN nationals need to put more emphasis on the growing ASEAN Economic Community or AEC, which will start officially in 2015 only a few years from now. Ladies and Gentlemen, As a major driving force of regional citizenship, the AEC is part of a larger plan for the ASEAN Community, which involves security, economic, and socio-cultural cooperation. It aims to transform ASEAN into a single market and production base, a highly competitive economic region, a region of equitable economic development, and a region fully integrated into the global economy. To this end, the AEC blueprint focuses on free flow of goods, services, investment, and skilled labor, and freer flows of capital, to help minimize transaction costs and maximize trade gains. On trade liberalization, the ultimate target is not only to reduce all tariffs to zero, but also to eliminate non-tariff barriers, including subsidies, restrictions, and sensitive industry classification. And as of 1 January 2010, ASEAN-6 applied zero tariffs to 99 percent of goods, while the CLMV countries plan to achieve the same goal by 2015. A unified trading region will facilitate development of production networks, bridge fragmented trade opportunities, and allow ASEAN to become central to global supply chains.