Matthew Chan
Managing Director
Schott Singapore

A COMMON Asean market will help businesses to compete more effectively through a consolidated economy and allow optimal usage of resources. One of the critical success factors is the free flow of talent, which will enable knowledge and know-how to be transferred within the Asean region for mutual benefit of member countries. It is also crucial to build a unified infrastructure that will allow accessibility and promote economic development and growth of Asean members. A common and sound financial and legal system will ensure international acceptance of a unified Asean. The removal of trade barriers within Asean will provide economic opportunities and promote foreign investments.

Lindsay Mann
Regional Head, Asia
First State Investments

A COMMON Asean market for retail investment funds would enable fund managers to simplify their product ranges while offering a broad range of funds across multiple investment classes to investors throughout the Asean countries. This would be similar to the success of the "European passport" whereby European-domiciled investment funds can be sold across multiple countries subject to meeting a single set of criteria. A similar approach in Asean would mean greater efficiency for fund managers, leading to greater competition across countries where currently local regulations increase inefficiency and restrict competition. More choice and more competition - that's exactly what investors need.

Lim Soon Hock
Managing Director
Plan-B Icag

THERE has been a lot of talk and debate among the ministers of the various Asean nations and coverage in the media on how a common market will help Asean's businesses compete more effectively. Fundamentally it is on the basis that unity is strength; the many advantages and benefits accruing from this will allow the Asean Economic Community to compete more effectively and efficiently.

The common market is a must-have, given the meteoric rise of China and India. The establishment of the Asean Economic Community acts as an insurance to ensure the economic survival and growth of each of the  Asean members. It is a natural evolution, and Asean has no choice but to pursue it and make it successful.

The key is sustained political stability and order in every member country. Any political upheaval or rising in any member country can upset the economic balance and prosperity of the community. I see this as the biggest risk facing the group, given that every member is at a different stage of political maturity and stability.

Because each country is at a different stage of economic development, it may make sense for the common market to exploit the comparative advantages of one another for the overall wellbeing of the entire community. It would also be prudent to bring forward  the establishment of the Asean Economic Community as soon as every member is ready and not wait until 2015. The recently concluded Asean Charter is a step in the  right direction; it provides a framework to mitigate the risks, ensures long term success and perhaps gives the Asean Economic Community the necessary impetus to move forward at a faster pace.

Poul Lorentzen
VP
Dematic S-E Asia

A COMMON Asean market is no longer a luxury but a necessity for future growth and prosperity. Such a  market will create, among many things, scale, integration and cooperation among businesses and governments alike.

The daunting task of creating equal opportunity partnerships across markets at varying stages of development means it will be an arduous journey to 2015. Governments and major players in the region must lend weight and influence to make this vision happen. Businesses must begin to think of consolidating operations and creating centres of excellence around the region to gain the full benefits of a more integrated Asean economy.

This way, markets in Asean can reap the benefits of scale that is lacking in each market on its own. By establishing a united business and political entity, Asean would stand to yield a stronger influence in the world economy in the coming years leading up to and after 2015.

Liu Chunlin
Managing Director
K&C Protective Technologies

THE desire for an Asean common market is based on the need for greater economic development, prosperity and a moving away from competitive-cost manufacturing to higher value-added industries. However, a common market is a double-edged sword. Access to overseas market also means businesses will  have more competition at home. Theoretically, competition should spur all on to greater competitiveness, then thrust businesses on to the world market.

However, it will be easier said than done. A natural tendency would be for countries to expect open access  but possibly be slow in dismantling their own barriers or worse still put up new ones, even in subtle forms. Hence commitment by all to an agreed vision and  implementation plan is important.

Moreover, it is a mistaken notion that competition alone is good. There needs to be other things, like technology transfer through investments by MNCs and corresponding social-educational-healthcare development. This is to ensure balanced development and long-term stability.

Despite the challenges, if the goal is reached and benefits evenly spread out, a common market is indeed an attractive proposition.

Wee Piew
CEO
HG Metal Manufacturing

ASEAN has been around for the past 40 years but while there have been many attempts at fostering closer economic cooperation among the various countries, these attempts have mostly not been very successful. This is due to the grouping being a loose one, with each member country still working with its own best interests at heart. However, with the signing of the Charter in Singapore, I hope this will create more economic integration among the countries of Asean and eventually lead to a common market. With the rise of the Chinese dragon in the last couple of decades, Asean has not been as successful in attracting FDI. An Asean common market will encourage liberal flow of goods, capital and people within the member countries. A foreign investor will be able to tap skilled labour from one country, and raw materials from another country without having to be constrained by individual country's tariffs, duties, employment laws an so on. This will allow a foreign investor to look at Asean as a single market, making it more attractive for businesses to set up shop in the region. To achieve this vision will be a long and arduous road, as the governments in each country have to address their own electorates and different national interests.

Ng Kong Yeam
Group Executive Chairman
Sino-America Tours Corporation

THE Asean market is as big as that of China or India. Unfortunately, despite the fact that Asean has been formed for a long time, the common market has not taken place. If the Asean countries were as cohesive as the countries in the European Union, then the Asean common market will take place.

Singapore is the richest country in Asean, and many countries, even those with natural resources, are poorer. The difference in the economic development is entirely due to the management of the governments of Asean countries. For people in Asean, dreaming and hoping that the vision of a common market will materialise, the governments of every country in Asean must interact and integrate.

The poor countries will be assisted by the rich countries and the people in Asean will treat themselves as though they are members of the same country, Asean. If that happens, Asean will some day be identical to the European Union.

Leon Perera
Group Managing Director
Spire Research & Consulting

AT ROUGHLY US$1.05 trillion of GDP at market exchange rates according to 2006 International Monetary Fund data, an Asean common market today would be the world's seventh largest economy if the EU is considered a single economy - just surpassing Russia, India and Korea.

First, by creating a huge, relatively unified economic area, a common market will help Asean businesses compete with China and India for global inward Foreign Direct Investment (FDI), which tends to bring not only capital but also technology and other economic multiplier effects.

Secondly, reducing internal trade barriers will increase Asean's export competitiveness, by enabling Asean exporters to procure cheap materials, parts and components from within Asean - such as Thai automotive parts, Vietnamese agri-food and Indonesian palm oil, for example.

Beyond just a firm timetable for economic integration, what is needed is far greater investment in the Asean secretariat to enable it to engage in public diplomacy within Asean - not merely for public relations purposes but more importantly to collect feedback from NGOs, companies and the citizenry, so as to build awareness and popular support around the cause of Asean economic integration.

Douglas Foo
CEO
Apex-Pal International

WITH a common market, businesses including food and beverage companies like Apex-Pal International will benefit tremendously. It will be easier for us to expand into other member countries. And we will be able to do this at a lower cost too with a free flow of goods, skilled labour and investments. Common systems and regulatory frameworks will also mean shorter time to market. Ultimately, the standard and quality of life of people in member states will improve as cost savings are passed on to consumers.

While the leaders of each member state work to resolve issues to establish a single market, businesses on the ground must give their unanimous support. Perhaps, task forces for key industries involving business leaders could be formed to give feedback on issues and common regulatory frameworks which may affect their business.

Sam Yap
Group Executive Chairman
Cherie Hearts Child Development

FIRSTLY, a common market will facilitate the seamless sale of goods and services among Asean members, thus enabling businesses to obtain business inputs, such as raw material, more cheaply and easily.

In addition, if a common Asean securities market can be established, companies will be able to benefit  from greater ease and affordability in issuing securities, thus lowering the financing costs of their businesses.

Support and commitment from the governments and businesses, as well as acceptance from the general population are essential ingredients for this vision to become a reality and emerge a success. Heart-to-heart communication is the only way to achieve this.

Eugene Wong
Managing Director
Sirius Venture Consulting

I BELIEVE that a common Asean market will make this region a more economically vibrant and attractive  location for investments by foreigners. I believe that as China and India remain strong and with a common market of trade, people and currency, it would make Asean the third place for growth in Asia-Pacific as we enter the next decade. As for venture capital investment, that would mean we can invest in Indonesia and other Asean countries freely and can also list these investments in Singapore freely, thus providing the necessary basic platform for venture capital investments.

Teng Yeow Heng Michael
Managing Director
TR Formac

IT SEEMS that the time has finally come for Asean to put its money where its mouth is. Economic integration has been discussed for some time now, and perhaps its slow pace of progress reflects the cautious approach that characterises Asean in its 40-years history. My view is that 2015, the target year, will only be the beginning of along and sometimes acrimonious process that hopefully will lead to economic integration in the distant future.

An overarching set of rules and regulations for economic integration has to be accepted and complied  with to overcome or at least reduce the prevailing preference of non-interference in each country's internal matters.

There are two perspectives that a common Asean market can help businesses:

The first is the huge intra-Asean market with 550 million people and third only to India and China in Asia. Asean has great natural wealth and an  economic ethos in all member states that aspire for continual economic growth. With a common market, each member state will be more assured of markets for its products and services behind the walls of the Asean economic bloc.

Asean members are at different stages of economic growth and complementarity: Singapore at the highest  end, Laos, Cambodia and Myanmar at the other end, with Malaysia, Thailand, Brunei, Vietnam, Philippines and Indonesia in the middle in different degrees of economic growth; other good measures are GNP/GDP per capita and level of industrialisation. This is good as it increases the degree of complementarity. Notwithstanding, continuing competition is obviously critical if Asean wants to be more competitive. Competition will drive each country towards greater economic sophistication, though changing the nature of complementarity.

Secondly, in dealing with the global market outside of Asean, the Asean Economic Community is a much better answer to the ongoing challenge of attracting foreign investments and a counterweight to India and China. Each  country on its own in Asean will not have the same traction and power to attract foreign investments as compared to an economic bloc. The Asean Economic Community can attract investments, tourism and talent into Asean that will benefit the businesses here.

Thus the Asean common market is long overdue, given the continuing trend towards economic bloc  formation by countries geographically close to each other such as Nafta and the EU.

Charles Reed
CEO
interTouch

A COMMON market in the region will create mutual benefits for Asean businesses, as countries are able to leverage each other's resources such as technology know-how, as well as share best practices.

Such cooperation generates a more seamless flow of goods, services and investments in the region, and, in turn, creates greater business opportunities. This helps Asean to become more economically self-reliant, enjoy a greater share of voice on the world stage and ultimately, achieve recognition as a sustainable economic region.

This is an extremely critical goal for the region to achieve, in the face of growing globalisation and competition posed by emerging giants China and India.

Asean countries have demonstrated resilient commitment towards the formation of a common market. While challenges abound, continued political will and cooperation, led by the more developed countries in the region, will help Asean to achieve this vision.

Lars Ronning
President, Asia-Pacific (Ex-China and Japan)
Tandberg

IF THE European Union is anything to go by, a common market will bolster GDP and productivity growth. More importantly, Asean's businesses will be able to compete more effectively through the liberalisation of product and labour markets. And we might see, for a change, flexible economies, which are better able to cope with shocks.

The bar for a common market is set high, but not unachievable. Structural reforms and foreign policies need to be set in place - as should infrastructure and regulations for industrial disputes - to address the disparity between Asean economies.

Alfred Wong
Managing Director/Architect
Alfred Wong Partnership

I THINK business is being done between Singapore and Malaysia, and similarly with Indonesia and I think it is as good as it gets.

Until our Asean partners adopt international standards in business practice, the common market concept remains a dream.

As a Singaporean, I am disenchanted with the treatment we get from our Asean neighbours, who conveniently use Singapore as a scapegoat for their own misguided policies.

Ong Chee Beng
Managing Director, Singapore
Sun Microsystems, Asia South

A COMMON market benefits the countries in Asean as increased opportunities and channels for trade serve to create more avenues for wealth creation and the bridging of social and economic inequalities.

Interestingly, the adoption of the Internet has already demonstrated the benefits of communities that transcend geographies and borders and has enabled greater exchange of goods and services within the global community. Therefore, achieving the goal of a common market for Asean will also allow the peoples of Asean to do more business within the region as well as with the rest of the world for it to grow and compete more effectively.

Dora Hoan
Group CEO
Best World International

A COMMON market is supposed to allow the free flow of the factors of production - land, capital and labour - product regulation, and freedom of movement of all the three factors of production and the free flow of goods and services.

Experts have long acknowledged the need to accelerate plans to create a common Asean market so that we can run well with China and India. This is a definitive step towards full economic integration whereby foreign investments would increase if internal trade barriers were eliminated within this grouping that accounts for a market of some 500 million people.

The central benefit of a common market is increased productivity. With the elimination of trade barriers, the factors of production also become more efficiently allocated, thereby raising productivity. A common market, however, is a very competitive environment, wherein inefficient companies will suffer a loss of market share and eventually fold up, thus resulting in unemployment. But this is the way the world is going and there is no turning back.

The upside is that efficient firms stand to benefit from economies of scale, increased competitiveness and lower costs and, therefore, can expect profitability. Consumers are benefited by the single market in the sense that the intense competition brings about cheaper products, more efficient service providers and allows for the innovation of new and better products.

I believe that strengthening the attractiveness of Asean as a destination rather than as individual member-countries, increases its competitiveness and propels it to the vision of a single market by 2020. Singapore has been among the proponents to accelerate this to 2015. However, what stands to slow down realisation of this vision is the fact that there remains very wide gaps between developed and developing countries in the region.

While countries like Singapore, Malaysia, Indonesia, Brunei have made progress, there are those who still lag behind. For instance, Vietnam, Cambodia, Laos and Burma will take some time on the road to trade liberalisation.

For a steady inroad into the vision of an Asean common market, we need to ease trade barriers through policies that make it easy for goods and services to flow among member countries, formulate common economic policies conducive to doing business and raise standards for products and services so that businesses in the region may be able to stand well against any competition.

Derek Goh
Executive Chairman/Group CEO
Serial System

I CONGRATULATE the heads of government of Asean for their visionary action to sign the Asean Charter in conjunction with the 40th anniversary of the founding of Asean. It is indeed a great honour for Singapore to chair and host this momentous occasion here. The charter spells out the Asean Economic Community as a common market for the region.

As a single economic bloc, the community will be highly competitive and economically integrated and have free flow of goods, services and investment, with facilitated movement of labour and freer flow of capital. Asean as the gateway to the economic giants - ie India and China - is well-poised to compete with other economic blocs, such as the EU and the US. The immediate step all Asean governments need to implement is an Asean Free Trade Area, with the abolition of trade tariffs for intra-Asean trade. Businesses can procure from within Asean and export to one another.

Manufacturers should adopt and promote "made in Asean" products/brands globally. As consumers, Asean nationals should tour scenic places inside Asean countries and shop more within the bloc.

Annie Yap
CEO
The GMP Group

ASEAN integration is crucial for the long-term survival and prosperity of our economies. A common market would liberalise the movement of goods, services, capital and labour, ultimately acting as the first step towards a barrier-free region. With that kind of fluidity, our otherwise fragmented nations can lean on each other's strengths and resources, raising Asean's holistic production levels to become more viable in the international arena.

Subsequently, the common market will help to level the currently diverse standards of living. With greater affluence, wealth will be better distributed throughout South-east Asia, opening up more avenues for businesses to flourish from within. It's a well-connected cycle and a common market is the catalyst.

But we are already seeing signs of hurdles that need to be overcome immediately. As we have witnessed, differences in beliefs may send unfavourable concerns regarding the solidarity of our grouping. For tight cohesion to be forged, the leaders of member nations must be able to reach common agreements in political and socio-economic issues, so that our transition into a single Asean market will be smooth and fruitful.

Eric Khua
CEO
Freight Links Group

A COMMON market facilitates the transfer of materials and skills throughout the region with ease by the removal of both tariff and non-tariff barriers. This reduces compliance costs and allows  both human resources and capital to move rapidly to where they add the most value. With  greater returns and efficiency, Asean will be poised to attract more FDI and this, in turn, will contribute significantly to greater economic growth.

To make this happen, Asean leaders must develop a common understanding and work as a cohesive team, removing tariff and non-tariff barriers that impede regional trade. Each member must render unconditional support to implement policies and programmes that benefit the grouping even though the benefits are unevenly distributed. In particular, skilled labour of Asean countries should be able to move freely and work in any Asean country with minimum restrictions or none at all.