Simplify the complexities of AEC for regional growth

MORE than three months have passed since the historic landmark agreement came into effect, where the 10 member countries of the Association of South-east Asian Nations (Asean) - consisting of Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Singapore, the Philippines, Thailand and Vietnam - signed their commitment to form the Asean Economic Community (AEC). With lower business restrictions and enhanced trade opportunities, this new economic bloc will make Asean more competitive. However, member countries will first have to resolve their local challenges before they can fully reap the benefits of this connected region.

As at 2014, Asean recorded a combined gross domestic product (GDP) of US$2.6 trillion, making it the seventh largest in the world and the third largest in Asia. Consider the potential and combined strengths of the 10 member countries - comprising 622 million people - if Asean operated as a regional entity rather than individual countries.

The beauty of Asean lies in its diversity. Yet this diversity also results in high barriers to entry for businesses. Across the region, businesses are operating on different regulatory frameworks and policies, and running on varying levels of infrastructure maturity.