GIA surveys experts on AEC integration

THE white paper, “Gaining Competitive Advantage through AEC” puts together opinion from 32 industry specialists and thought leaders from South East Asia who said that companies need more business critical information about ASEAN Economic Community (AEC), such as its business impact, socio-economic impact, risks and benefit.

Released by Global Intelligence Alliance (GIA) Singapore, the market report notes Indonesia and Singapore as the top two countries that have the most potential to grow when AEC is set in motion.

(Photo courtesy of GIA Singapore)

Singapore’s efficiency when it comes to policies and regulations and transparent framework is its competitive edge. In contrast, Myanmar, Laos, Brunei and Indonesia have to develop their infrastructure and legislative framework, and rise above institutional challenges including corruption.

According to the survey,

- 84% of respondents see medium to very high impact of AEC on businesses. This is determined by quality of labour, investment potential and expansion capabilities.

- 50% said information on AEC is not enough

- 50% of respondents agree that their strategic goals are well aligned with the goals of AEC

- 45% agree that they have the proper internal infrastructure and capabilities in place to tackle the competition from AEC

-60% believe that they are prepared for the impact of AEC, saying that regular workforce training, knowledge sharing and exposure to the market will provide them the leverage they need over the competition. This will also allow companies to introduce new and enhanced services and products that give them an edge over others.

“With over 80% of respondents expecting a medium to very high impact from AEC on their businesses, companies need to monitor and strategically analyse the expected consequences of the AEC. They should be shaping their market strategies, human resourcing plans and business development ambitions in 2015, in order to make the most of AEC’s goal of having increased competition and a single market across the region beginning from 2016,” said Ms. Preetika Gupta, research consultant at GIA Singapore.

“Businesses and Member States of ASEAN will need to plan ahead and navigate a road map to maximise the opportunities to ensure competitiveness within the changing landscape. We advise companies to track AEC developments closely and ‘think regional,’ not just country by country,” said Duncan Falzon, managing director at GIA Singapore.

Download Gaining Competitive Advantage through AEC.