Regional integration: Opportunities and challenges of the AEC

ON NOV 22, 2015, Asean leaders established the Asean Economic Community (AEC), which came into effect on Dec 31. One of its aims is to promote freer movement of trade and capital in the region. In practice, this means that tariff barriers between the 10 Asean countries will be eliminated while non-tariff barriers will be phased out. Restrictions on cross-border investment and the movement of labour within the region will also be progressively lifted.

The impact on enterprises will be significant. Consumer businesses will gain access to a combined …