THE Chairman’s Statement during the last Asean Summit (April 2017) drew a bright picture of future Asean economic growth prospects. “Asean’s combined GDP stood at $2.55 trillion in the first half of 2016, with a robust year-on-year real GDP growth rate of 4.7 percent despite the challenging global environment
In 2015, the ASEAN Economic Community (AEC) was officially fully established. In some ways similar to the economic unity of the EU, the broad aims of the AEC are to develop (1) a single market and production base, (2) a region of more equitable economic development, and (3) a globally integrated economic region. To achieve these, trade barriers will be removed or reduced and standards across a number of sectors (i.e. cosmetics, pharmaceuticals, agricultural products, and medical devices) will be harmonized.
An integrated and efficient transport system will enhance regional connectivity and facilitate free flow of goods and movement of people, which is one of the critical elements for the realisation of a single market and production base under AEC.
Building infrastructure networks that connects ASEAN by land would support greater intra- and inter-regional trade with more efficient and greater accessibility for goods and services.
The aviation industry in ASEAN has recorded significant growth over the past few years. The total seat capacity of ASEAN airlines experienced double-digit growth in the four-year period of 2009-2013, and the share of low-cost carriers (LCC) in the region increased significantly from 13.2 per cent in 2003 to 57 per cent in 20141 .
Travel and tourism sector plays an important role in ASEAN with more than 98 million visitors to the region in 20141. It is estimated that tourism directly accounts for 4.6% of ASEAN GDP or 10.9% when all indirect contributions are taken into account2, The sector also directly employs 9.3 people or 3.2% of total employment.
With the rapid growth of air travels and rising middle class in the region, tourism has become an important source of employment and income for countries in the region. The number of tourist arrivals in the region has increased by 8.1% between 2006 and 2013 to reach 98 million in 20131 . However, such rapid expansions in the tourism industry may lead to problems such as exploitation of natural resources and local community members.
The establishment of the AEC by the end of 2015 will provide a lot of opportunities to the SMEs in ASEAN. However, in order for them to gain benefits from the AEC ASEAN, there is a need for the SMEs to be better connected, better resourced and better engaged.
