Singapore seen gaining from Asean Economic Community

Singapore

SINGAPORE, whose growth has been hurt in part by slowing trade with the world's major economies as they continue to mount their recoveries, will stand to gain from the establishment of the Asean Economic Community (AEC), says a new study. The AEC, which Asean has pledged to complete by the end of 2015 as the next step in the long process of regional integration, aims in the long term to create free flow of goods, services, investment and skilled labour, and a freer flow of capital.

The community will present significant opportunities for stronger growth for Singapore, not just in the longer term but also in the more immediate future. The road to the AEC's fruition, however, is fraught with challenges, says Economic Insight: South East Asia, a report on the region's economic performance produced by independent consultancy Centre for Economics and Business Research (CEBR), and commissioned by professional chartered accountants membership body ICAEW.