A Summary of “ASEAN Connectivity and The ASEAN Economic Community”

by: Syera Anggreini Buntara

The article “ASEAN Connectivity and The ASEAN Economic Community” written
by S. Pushpanathan on ASEAN website, states the importance of increasing
ASEAN internal connectivity. It explains that ASEAN has strategic location that is
potential to be centre of growth and development as well as to be prominent in
global trade and investment. In order to turn this potential into benefit, ASEAN
could use the ASEAN Economic Community (AEC) as a steeping stone towards
competitive trading.

The connectivity, which consists of physical, institutional, and people-to-people

linkages, would help ASEAN in reaching its ASEAN Community goals. It would
advance transport infrastructure, technology, energy, and trade. Moreover, the
connectivity supports community building that the ASEAN people will feel the
togetherness and the unity as ASEAN member that will directly improve their
integration.

Physical connectivity in the region plays an important role towards integration.

Transportations, which encompass land, maritime, and air transport, have their
own objectives. Land transport will connect all countries inside and beyond ASEAN
through the flagship projects of ASEAN Highway Network (AHN) and the
Singapore-Kunming Rail Link (SKRL). Yet the fact that the AHN in some countries
is still below Class III, which is called missing link, leads to the delay of routes
realisation. The SKRL is aimed to complete the missing link.

Maritime transport is crucial for economic trading activity since it has minimum cost
to run compared to other mode of transport. However, the maritime transport
infrastructure and service is still poor and need improvement.

The airport infrastructure facility in ASEAN capital cities is adequate, even though
it still needs advancement in some facilities. In addition to air transport
infrastructure, its services are also improved by the implementation of Open Skies
policy. This policy permits regional air operator to have unlimited flight within
ASEAN countries and expand air services.

Several frameworks and roadmaps have been made in order to ease the
realisation of connectivity. Nevertheless, some framework agreements have not
been ratified which hamper advancement on transport. The main point of air
transport is to create ASEAN Single Aviation Market (ASAM). The ASAM can be
reached if liberalisation and basic agreement exist.

The roadmap for maritime transport is intended to create more efficient and
competitive maritime transport system. It demands for application of Single ASEAN
Shipping Market. Whilst, the Roadmap for Integration of Logistics Services Sector
aims to fortify ASEAN economic integration, support establishment, and boost
competitiveness.

Physical connectivity not only connects ASEAN member countries, but also
connecting ASEAN countries with non-ASEAN countries. Thus, it provides broader
impact for ASEAN in economic development. Distance is not a problem as high-
quality infrastructure and good mechanism exist. With good connectivity, ASEAN
can become a hub for transport, commerce, culture, and tourism, which later will
influence its cross border.

Realising those scheme needs large funding and major software agreements.
Although several institutions, such as Asian Development Bank and ASEAN
Dialogue Partners, have funded the program, funding is still difficult considering
the the requirement that is needed to be fulfilled.

Despite the difficulty in funding, the ASEAN connectivity gives economic

advantages for the region. It recovers economic slowdown, maintains growth
through investment in infrastructure, reduces economic distance to market inside
and outside ASEAN that facilitates trading activity. Moreover, it also diminishes
development gap within ASEAN member countries.

To conclude, ASEAN still ought to do hard work towards better connectivity.

Setting priorities and actualising the Master Plan are fundamental to achieve that
goals. When reached, the strengthening connectivity leads to reinforcement in
pillars of ASEAN Community and creates regional and world stability.