Skip to main content Accessibility help

We use cookies to distinguish you from other users and to provide you with a better experience on our websites. Close this message to accept cookies or find out how to manage your cookie settings.

Close cookie message
×
  1. Home
  2. Search

Refine search

Refine search

Access:
Content type:
Publication date:
Apply   From and To filters
Subject: Show more
Journals Show more
Publishers: Show more
Societies Show more
Series: Show more
Collections: Show more

Actions for selected content:

Select all | Deselect all
  • View selected items
  • Export citations
  • Download PDF (zip)
  • Save to Kindle
  • Save to Dropbox
  • Save to Google Drive

Save Search

You can save your searches here and later view and run them again in "My saved searches".

Please provide a title, maximum of 40 characters.
Cancel
×

71 results

Page 1 of 4

  • Economic Outlook for Southeast Asia: Living with COVID-19

  • Edited by Daljit Singh, ISEAS - Yusof Ishak Institute, Thi Ha Hoang, ISEAS - Yusof Ishak Institute
  • Book:
    Southeast Asian Affairs 2022
    Published by:
    ISEAS–Yusof Ishak Institute
    Published online:
    01 September 2023, pp 21-41

  • Summary

    The hope that the COVID-19 pandemic would be contained in 2021 did not materialize as the coronavirus continued to ravage the economies around the world, including Southeast Asia. Although there were important lessons learned from 2020, the pandemic was far from over in 2021 for most Southeast Asian economies. Uncertainty continued to prevail as the region once again struggled with managing the pandemic and juggling between health and economic needs. Living with COVID, rather than a “zero COVID” strategy, soon emerged as the new norm for some of the economies in Southeast Asia,

    This chapter assesses the key factors affecting economic growth and recovery in 2021 as well as the prospects for sustaining the recovery in 2022. There are four main sections in this chapter. The second year of the COVID-19 pandemic in Southeast Asia is reviewed in the first section. The second section examines the impact of COVID-19 on regional growth in 2021 and 2022. The third section discusses the main factors that can affect the prospects of achieving or deterring the achievement of the forecasted growth. The conclusion is given in the last section.

    Continued COVID-19 Disruptions

    Containing the COVID-19 Pandemic: The Race to Vaccinate in Southeast Asia

    One year of hard-earned lessons from managing the pandemic and the rollout of COVID-19 vaccines at the start of 2021 provided hope for global recovery. But the subsequent emergence and rapid transmission of the Delta variant, which became the dominant form of COVID-19, soon disrupted the fragile global recovery. Once again, countries all over the world continued to wage battle against the coronavirus through vaccinations as well as a transition towards managing COVID-19 as an endemic disease.

    In Southeast Asia, the number of COVID-19 cases started to surge upwards in the first quarter of 2021 (Figure 1). Daily COVID-19 cases per million shot up towards the second half of the year. This was due in part to the spread of the highly contagious Delta variant and the slow rates of vaccination as well as the easing of restrictions in the early part of the year. The number of new cases per million peaked in the third quarter for some economies, but the average daily caseload in Southeast Asia started to decline towards the end of October 2021.

  • 8 - Reassessing Malaysia’s Export Opportunities in the TPP and CPTPP

  • Edited by Cassey Lee, Pritish Bhattacharya
  • Book:
    The Comprehensive and Progressive Agreement for Trans-Pacific Partnership
    Published by:
    ISEAS–Yusof Ishak Institute
    Published online:
    08 October 2021
    Print publication:
    15 January 2021, pp 179-217

  • Summary

    Introduction

    Malaysia's dependence on trade can be attributed to its geographical location and the relatively small size of its domestic economy compared to most of its regional neighbours. The use of foreign direct investment (FDI) as a tool for industrial development has further strengthened this dependence, as a majority of such investments in Malaysia and the region have been used to forge regional production networks for enhancing their cost and efficiency of production. This gave rise to a flow of “back and forth” trade, especially in intermediate goods, leading to a progressive increase in the share of merchandise trade in GDP to a peak of 193 per cent in 2000, before falling steadily to 131 per cent in 2014 (ADB 2015).

    Accessing markets for exports is therefore a critical component of Malaysia's trade policy. For example, although the country's original motivation for joining the Association of Southeast Asian Nations (ASEAN) may have been geopolitical in nature, the economic rationales grew stronger over time, particularly in the wake of the 1973–75 recession in the United Kingdom and the United States. ASEAN's subsequent Free Trade Area, or the ASEAN Free Trade Area (AFTA), promulgated in 1992 was Malaysia's first venture into regional Free Trade Agreements (FTAs). The country is also a member of the ASEAN Economic Community (AEC) that evolved from the AFTA. The AEC was subsequently launched in 2015.

    At the same time, Malaysia became a founding member of the World Trade Organization (WTO) in 1995. However, the protracted negotiations under the Doha Round of the WTO for further multilateral liberalization led to a flurry of bilateral and regional initiatives in Southeast Asia, including Malaysia, as alternative trade liberalization commitments to the WTO. To date, Malaysia has signed and ratified seven bilateral agreements, and is a party to the ASEAN+ agreements with China, Japan, Korea, India, and Australia and New Zealand. It is also in the process of negotiating another four FTAs.

    Malaysia joined the Trans-Pacific Partnership (TPP) in the third round of negotiations in October 2010, and signed the agreement in February 2016 with the other eleven founding members.

  • 7 - Development of E-commerce in Malaysia

  • from PART IV
    • By Tham Siew Yean, Senior Fellow, ISEAS – Yusof Ishak Institute, Singapore
  • Edited by Cassey Lee, Eileen Lee
  • Book:
    E-Commerce, Competition and ASEAN Economic Integration
    Published by:
    ISEAS–Yusof Ishak Institute
    Published online:
    31 January 2020
    Print publication:
    10 October 2019, pp 169-192

  • Summary

    Introduction

    According to OECD (undated), an e-commerce transaction is the sale or purchase of goods or services, conducted over computer networks by methods specifically designed for the purpose of receiving or placing of orders. The goods or services are ordered by those methods, but the payment and the ultimate delivery of the goods or services do not have to be conducted online. An e-commerce transaction can be between enterprises, households, individuals, governments, and other public or private organizations. This encompasses a broad range of commercial activities, including among others, business to business (B2B or e-commerce between companies), business to consumer (B2C, or between companies and consumers), consumer to consumer (C2C), or e-commerce between consumers. Transactions to be included are orders made over the web, extranet or electronic data interchange. The type of transaction is defined by the method of placing the order. Transactions to be excluded are orders made by telephone calls, facsimile or manually typed email.

    The development of e-commerce has attracted the attention of developing countries due to its potential to contribute towards sustainable development. Transaction costs can be reduced with e-commerce as it can be used to lower barriers to entry by eliminating certain costs related to having a physical storefront (WTO/OECD 2017). This provides more opportunities especially for small and medium enterprises (SMEs) to enhance their market access in domestic and foreign markets, thereby increasing the scalability prospects of these enterprises. When more inputs can be delivered digitally, it will also facilitate the management of fragmented production networks and the operation of global value chains (GVCs). Since it enhances productivity, more firms can also shift to exports. It also provides enhanced opportunities for women entrepreneurs and rural traders thereby empowering the disadvantaged. Consumers can also benefit through lower prices, greater convenience, and more varieties to choose from.

    Rillo and dela Cruz (2016) reported the findings from Qiang, Rossotto, and Kimura (2009), which showed that increased broadband access has accelerated economic growth due to the close link between information and communications technology (ICT) diffusion and firm level productivity. They further cited a McKinsey Global Institute study (2011) that found internet access has helped SMEs in eight developing countries to create 3.2 jobs for every job lost.

  • Exploring the Trade Potential of the DFTZ for Malaysian SMEs

  • Siew Yean Tham, Andrew Kam Jia Yi
  • Book:
    Exploring the Trade Potential of the DFTZ for Malaysian SMEs
    Published by:
    ISEAS–Yusof Ishak Institute
    Published online:
    31 January 2020
    Print publication:
    29 January 2019, pp vii-viii

  • Summary

    EXECUTIVE SUMMARY

  • • Malaysia established the Digital Free Trade Zone (DFTZ) to facilitate the development of e-commerce and the country's small and medium enterprises’ (SMEs’) exports. The data revealed thus far indicates an increasing number of SMEs coming on board the DFTZ e-commerce platforms.

  • • The publicly disclosed data focus on the value of exports achieved but do not show whether these are from new or existing exporters or whether they are re-exports. They also do not highlight Malaysia's imports through the zone.

  • • The overall trend signals that Malaysia is losing its bilateral revealed comparative advantage in exports to China, as well as an increasing use of imports for exporting to China.

  • • While the DFTZ facilitates both exports and imports, differing standards and customs processes in different export destinations, including China, will require Malaysian SMEs to know and understand the standards and customs processes governing imports in each export destination involved.

  • • Imports are also encouraged by the de minimis rule, which allows duty- and tax-free imports of up to RM800 into Malaysia. Overall, imports can help enhance the competitiveness of Malaysian SMEs, expand choices for Malaysian consumers, as well as facilitate re-exports.

  • • A clearer understanding of the role of DFTZ in facilitating trade will require more detailed data collection, and a closer investigation of the imports going through the zone, and their uses.

  • Foreword

  • Siew Yean Tham, Andrew Kam Jia Yi
  • Book:
    Exploring the Trade Potential of the DFTZ for Malaysian SMEs
    Published by:
    ISEAS–Yusof Ishak Institute
    Published online:
    31 January 2020
    Print publication:
    29 January 2019, pp v-vi

  • Summary

    The economic, political, strategic and cultural dynamism in Southeast Asia has gained added relevance in recent years with the spectacular rise of giant economies in East and South Asia. This has drawn greater attention to the region and to the enhanced role it now plays in international relations and global economics.

    The sustained effort made by Southeast Asian nations since 1967 towards a peaceful and gradual integration of their economies has had indubitable success, and perhaps as a consequence of this, most of these countries are undergoing deep political and social changes domestically and are constructing innovative solutions to meet new international challenges. Big Power tensions continue to be played out in the neighbourhood despite the tradition of neutrality exercised by the Association of Southeast Asian Nations (ASEAN).

    The Trends in Southeast Asia series acts as a platform for serious analyses by selected authors who are experts in their fields. It is aimed at encouraging policymakers and scholars to contemplate the diversity and dynamism of this exciting region.

    THE EDITORS

    Series Chairman:

    Choi Shing Kwok

    Series Editor:

    Ooi Kee Beng

    Editorial Committee:

    Su-Ann Oh

    Daljit Singh

    Francis E. Hutchinson

    Benjamin Loh

Exploring the Trade Potential of the DFTZ for Malaysian SMEs
  • Siew Yean Tham, Andrew Kam Jia Yi
  • Published by:
    ISEAS–Yusof Ishak Institute
    Published online:
    31 January 2020
    Print publication:
    29 January 2019
  • Malaysia established the Digital Free Trade Zone (DFTZ) to facilitate the development of e-commerce and the country's small and medium enterprises' (SMEs') exports. The data revealed thus far indicates an increasing number of SMEs coming on board the DFTZ e-commerce platforms. The publicly disclosed data focus on the value of exports achieved but do not show whether these are from new or existing exporters or whether they are re-exports. They also do not highlight Malaysia's imports through the zone. The overall trend signals that Malaysia is losing its bilateral revealed comparative advantage in exports to China, as well as an increasing use of imports for exporting to China. While the DFTZ facilitates both exports and imports, differing standards and customs processes in different export destinations, including China, will require Malaysian SMEs to know and understand the standards and customs processes governing imports in each export destination involved. Imports are also encouraged by the de minimis rule, which allows duty- and tax-free imports of up to RM800 into Malaysia. Overall, imports can help enhance the competitiveness of Malaysian SMEs, expand choices for Malaysian consumers, as well as facilitate re-exports. A clearer understanding of the role of DFTZ in facilitating trade will require more detailed data collection, and a closer investigation of the imports going through the zone, and their uses.

  • Exploring the Trade Potential of the DFTZ for Malaysian SMEs

  • Siew Yean Tham, Andrew Kam Jia Yi
  • Book:
    Exploring the Trade Potential of the DFTZ for Malaysian SMEs
    Published by:
    ISEAS–Yusof Ishak Institute
    Published online:
    31 January 2020
    Print publication:
    29 January 2019, pp 1-23

  • Summary

    INTRODUCTION

    In traditional international trade, geographical distance can affect trade negatively with trade declining as the distance between two markets increases. The concept of distance was later extended to cover subjective concepts, such as “cultural distance” as well common history, language, legal systems or even institutional dimensions such as trade agreements between trade partners. E-commerce on the other hand, differs from traditional trade in the distance dimension because the Internet is touted to have made the world flatter by reducing the time and transaction costs associated with distance. This has led to claims on the death of distance in international trade, while others deem that the role of distance has merely been reduced.

    Measuring the impact of e-commerce on exports requires a working definition of e-commerce that is quantifiable, and different proxies have been used in different studies and over time. The earlier literature focused mainly on the impact of Internet usage on international trade at the aggregate level. Clarke's cross-country study4 indicates that enterprises that are connected to the Internet, export more than similar enterprises that are not connected. Similarly, at the aggregate level, Freund and Weinhold found that increases in company's websites in a country help to explain export growth in the following year for the fifty-six developed and developing countries that were pooled together in their study. In another study, ICT infrastructure is found to be relevant for the export performance of developing countries, and its impact on exports seems to be more important as a country becomes wealthier.

    At the firm level, the relationship between the Internet and exports may not be so straightforward as it may be conditional. Lu and Julian, in a study covering a sample of 133 Australian firms found that using the Internet can help firms reduce the cost of doing international business besides giving them a competitive advantage over firms without Internet usage. The international experience of a firm is a significant factor in discriminating between high and low export-marketing performance.

    Firm-level studies focusing specifically on SMEs in developed countries indicate that the eBay platform has opened up export markets to SMEs at lower costs for some EU countries. A study of SMEs in the United Kingdom shows that ICT users are 15 per cent more likely to export, ceteris paribus.

Accidental and Intentional Exporters
  • Comparing Indonesian and Malaysian MSMEs
  • Siew Yean Tham, Tulus Tambunan
  • Published by:
    ISEAS–Yusof Ishak Institute
    Published online:
    12 February 2019
    Print publication:
    06 March 2018
  • Regardless of the size of the domestic economy, there are ample reasons for firms to extend their markets beyond home shores. These include increasing sales, improving profits, diversifying risks, reaping economies of scale, matching the moves of competitors, enhancing competitiveness or accessing government incentives. Both Indonesia and Malaysia seek to enhance the competitiveness of their micro, small and medium enterprises (MSMEs) by including internationalization goals in their respective national development plans for these enterprises. Findings from fourteen case studies in the two countries indicate that exporting may be a serendipitous discovery, as few of these cases were born global in intent. Shifting to intentional exporting will require entrepreneurs to tap into government and/or private networks and thus connect with international buyers. Indonesian MSMEs are more inclined to depend more on government than private networks as they perceive the former to be more credible. Malaysian cases indicate some firms prefer private to government networks. This is attributed to the differences in the political economy of the two countries. Going forward, both countries need to consolidate their government-run programmes and reduce the fiscal burden. MSMEs should tap more into private networks to bridge the information gap that hinders their access to external markets. ASEAN can facilitate the entry of MSMEs into the ASEAN market by implementing resolutely current plans to reduce technical barriers to trade.

  • Accidental and Intentional Exporters: Comparing Indonesian and Malaysian MSMEs

  • Siew Yean Tham, Tulus Tambunan
  • Book:
    Accidental and Intentional Exporters
    Published by:
    ISEAS–Yusof Ishak Institute
    Published online:
    12 February 2019
    Print publication:
    06 March 2018, pp vii-viii

  • Summary

    EXECUTIVE SUMMARY

  • • Regardless of the size of the domestic economy, there are ample reasons for firms to extend their markets beyond home shores. These include increasing sales, improving profits, diversifying risks, reaping economies of scale, matching the moves of competitors, enhancing competitiveness or accessing government incentives.

  • • Both Indonesia and Malaysia seek to enhance the competitiveness of their micro, small and medium enterprises (MSMEs) by including internationalization goals in their respective national development plans for these enterprises.

  • • Findings from fourteen case studies in the two countries indicate that exporting may be a serendipitous discovery, as few of these cases were born global in intent. Shifting to intentional exporting will require entrepreneurs to tap into government and/or private networks and thus connect with international buyers.

  • • Indonesian MSMEs are more inclined to depend more on government than private networks as they perceive the former to be more credible. Malaysian cases indicate some firms prefer private to government networks. This is attributed to the differences in the political economy of the two countries.

  • • Going forward, both countries need to consolidate their government-run programmes and reduce the fiscal burden. MSMEs should tap more into private networks to bridge the information gap that hinders their access to external markets.

  • • ASEAN can facilitate the entry of MSMEs into the ASEAN market by implementing resolutely current plans to reduce technical barriers to trade.

  • Accidental and Intentional Exporters: Comparing Indonesian and Malaysian MSMEs

  • Siew Yean Tham, Tulus Tambunan
  • Book:
    Accidental and Intentional Exporters
    Published by:
    ISEAS–Yusof Ishak Institute
    Published online:
    12 February 2019
    Print publication:
    06 March 2018, pp 1-34

  • Summary

    INTRODUCTION

    Small and medium enterprises, including micro enterprises (or MSMEs), play an important role in Southeast Asia as they contribute between 88.8 per cent and 99.9 per cent of total establishments in all sectors in the region and between 51.7 per cent and 97.2 per cent of total employment in the region. Approximately 30–53 per cent of the region's Gross Domestic Product (GDP) and 10–30 per cent of its total exports are accounted for by them as well. There are, however, considerable differences in the performance of MSMEs in the region. For example, Thailand's MSMEs contribute about 25.5 per cent of Thailand's total exports, while those in Indonesia and Malaysia contribute about 19 per cent and 15.7 per cent, respectively, to the total exports in these two economies. Likewise the policy environment for nurturing MSMEs in each of these countries differ substantially from each other, as indicated by the SME Policy Index developed by Economic Research for ASEAN and East Asia (ERIA) in 2014. The results reveal that Singapore's score is the highest, followed by Malaysia, with Indonesia and Thailand tying in third position with the same score, and lastly the Philippines for the ASEAN-5. The rest of ASEAN's member countries score at or below the ASEAN average score.

    The ASEAN Economic Community (AEC), established in 2015, aims to create a highly integrated and cohesive economy that provides an expanded market for its ten member countries. In principle, this initiative should create opportunities for MSMEs in the region to grow regionally before entering the global market. However, studies have shown that MSMEs are in general not aware of the AEC and the opportunities accorded by the AEC initiatives. They remain inward-looking, as indicated by their relatively low share of total exports in their respective countries.

    Most research projects focus on the challenges faced by the MSMEs, including the problems encountered in internationalizing their operations, particularly in finance, research and innovation. Thus the questions asked frequently pertain to the factors that determine MSMEs’ exports or the drivers of their internationalization, be it at the firm or country level. The proliferation of Free Trade Agreements (FTAs) has also spurred research interest in another dimension, namely, the participation of MSMEs in regional integration.

  • Foreword

  • Siew Yean Tham, Tulus Tambunan
  • Book:
    Accidental and Intentional Exporters
    Published by:
    ISEAS–Yusof Ishak Institute
    Published online:
    12 February 2019
    Print publication:
    06 March 2018, pp v-vi

  • Summary

    The economic, political, strategic and cultural dynamism in Southeast Asia has gained added relevance in recent years with the spectacular rise of giant economies in East and South Asia. This has drawn greater attention to the region and to the enhanced role it now plays in international relations and global economics.

    The sustained effort made by Southeast Asian nations since 1967 towards a peaceful and gradual integration of their economies has had indubitable success, and perhaps as a consequence of this, most of these countries are undergoing deep political and social changes domestically and are constructing innovative solutions to meet new international challenges. Big Power tensions continue to be played out in the neighbourhood despite the tradition of neutrality exercised by the Association of Southeast Asian Nations (ASEAN).

    The Trends in Southeast Asia series acts as a platform for serious analyses by selected authors who are experts in their fields. It is aimed at encouraging policymakers and scholars to contemplate the diversity and dynamism of this exciting region.

  • Logistics Development in ASEAN: Complex Challenges Ahead

  • Siew Yean Tham, Sanchita Basu Das
  • Book:
    Logistics Development in ASEAN
    Published by:
    ISEAS–Yusof Ishak Institute
    Published online:
    12 February 2019
    Print publication:
    16 January 2018, pp 1-36

  • Summary

    INTRODUCTION

    Logistics is a key enabler for economic growth and development. It enhances efficiencies in supply chain activities and lowers transaction cost and time between producers or between producers and consumers. A seamless logistics system improves connectivity both within and across countries. It links a country's centre of business activities to the peripheries and helps to distribute the benefits of economic growth regionally.

    According to a market research report, the global logistics industry is valued at US$8.2 trillion in 2015, representing around 11 per cent of global Gross Domestic Product (GDP). This is expected to go up to US$15.5 trillion by 2023 at a compound annual growth rate of 7.5 per cent. Globally, road is the most widely used transport network due to its flexibility in operation and availability of door-to-door services. It accounted for 45 per cent of share in total worldwide logistics revenue in 2015. The Asia-Pacific countries, especially China, India, Singapore, Indonesia, Japan and Malaysia, led the global logistics market with 47 per cent of global share in 2015, though the market size of the United States, the United Kingdom, Germany and France cannot be ignored. The global

    logistics market is highly fragmented with the top four players, Deutsche Post DHL, Ceva Logistics, UPS and FedEx, accounting for less than 15 per cent of the total market.

    With globalization, the logistics industry has come to play an increasing role in each country's economic activities. Multinational corporations (MNCs) are no longer producing their goods in one single country. Instead, they are slicing their production process across several countries based on the comparative advantages of each country. Some MNCs are outsourcing business activities such as logistics and distribution to other firms (or third party), freeing them to focus more on their core business. This functional fragmentation is making the logistics sector an integral part of the overall economic activities in a country.

    However, the logistics sector suffers from the lack of a common definition across countries. The U.S. Coalition of Services Industries defines logistics services sector as “the process of planning, implementing, managing and controlling the flow and storage of goods, services and related information from the point of origin to the point of consumption.”

  • Foreword

  • Siew Yean Tham, Sanchita Basu Das
  • Book:
    Logistics Development in ASEAN
    Published by:
    ISEAS–Yusof Ishak Institute
    Published online:
    12 February 2019
    Print publication:
    16 January 2018, pp v-vi

  • Summary

    The economic, political, strategic and cultural dynamism in Southeast Asia has gained added relevance in recent years with the spectacular rise of giant economies in East and South Asia. This has drawn greater attention to the region and to the enhanced role it now plays in international relations and global economics.

    The sustained effort made by Southeast Asian nations since 1967 towards a peaceful and gradual integration of their economies has had indubitable success, and perhaps as a consequence of this, most of these countries are undergoing deep political and social changes domestically and are constructing innovative solutions to meet new international challenges. Big Power tensions continue to be played out in the neighbourhood despite the tradition of neutrality exercised by the Association of Southeast Asian Nations (ASEAN).

    The Trends in Southeast Asia series acts as a platform for serious analyses by selected authors who are experts in their fields. It is aimed at encouraging policymakers and scholars to contemplate the diversity and dynamism of this exciting region.

Logistics Development in ASEAN
  • Complex Challenges Ahead
  • Siew Yean Tham, Sanchita Basu Das
  • Published by:
    ISEAS–Yusof Ishak Institute
    Published online:
    12 February 2019
    Print publication:
    16 January 2018
  • Growing urbanization, increasing trade and investment due to integration, and emerging new business models like e-commerce are accelerating the demand for efficient logistics in each ASEAN country. The logistics sector is inherently complex due to its scope, ranging from physical infrastructure covering four modes of transport, customs, and services. Each of these sub-sectors is regulated by different government agencies, leading to complex challenges in each country's logistics sector. Policymaking has a tendency to be done piecemeal rather than integratively, while a more or less fragmented governance structure impedes implementation. ASEAN liberalization commitments focusses on raising the cap on foreign equity, while regulatory reform remains untouched. Also, flexibility offered in these commitments allows for non-compliance. Going forward, developing seamless logistics requires ASEAN countries to first overcome their domestic challenges. Each country needs to develop comprehensive plans, and effective implementation of these is essential. Liberalization commitments should complement domestic reforms in each country.

  • Logistics Development in ASEAN: Complex Challenges Ahead

  • Siew Yean Tham, Sanchita Basu Das
  • Book:
    Logistics Development in ASEAN
    Published by:
    ISEAS–Yusof Ishak Institute
    Published online:
    12 February 2019
    Print publication:
    16 January 2018, pp vii-viii

  • Summary

    EXECUTIVE SUMMARY

  • • Growing urbanization, increasing trade and investment due to integration, and emerging new business models like e-commerce are accelerating the demand for efficient logistics in each ASEAN country.

  • • The logistics sector is inherently complex due to its scope, ranging from physical infrastructure covering four modes of transport, customs, and services. Each of these sub-sectors is regulated by different government agencies, leading to complex challenges in each country's logistics sector.

  • • Policymaking has a tendency to be done piecemeal rather than integratively, while a more or less fragmented governance structure impedes implementation. ASEAN liberalization commitments focusses on raising the cap on foreign equity, while regulatory reform remains untouched. Also, flexibility offered in these commitments allows for non-compliance.

  • • Going forward, developing seamless logistics requires ASEAN countries to first overcome their domestic challenges. Each country needs to develop comprehensive plans, and effective implementation of these is essential. Liberalization commitments should complement domestic reforms in each country.

Page 1 of 4