Singapore’s challenges
with ASEAN
Aiding the economic integration of CLMV
Class Discussion
September 2009
Daniel Leong

5a Singapore as a small state has been playing a
prominent role in regional affairs. Discuss the
challenges that Singapore faces with ASEAN.

Preamble
• The scope of today’s presentation will focus on
Singapore’s prominent role in the economic
integration of ASEAN
• ASEAN’s biggest challenges to economic
integration lie with the CLMV countries –
Cambodia, Laos, Myanmar and Vietnam
• This presentation will discuss one of
Singapore’s initiatives in this area, and some of
it’s challenges
Aiding the economic integration of CLMV

ASEAN’s total trade volume is dwarfed by that of
China
Total Trade by Country, 2008
Amounts in US$ billions 1.5x 2560
Singapore alone
contributes 28% of
11 9 3 1710
ASEAN’s total trade 141
105 12
266
338
The CLMV countries form
353
40% of ASEAN’s
membership but yet
contribute only 10% of
472
total trade
S’pore Thai M’sia Indo Phil Brunei Viet Myan Camb Laos ASEAN China
Source: ASEAN Secretariat, CEIC Database Aiding the economic integration of CLMV

In order to stay competitive, ASEAN is taking steps
to pursue economic integration
ASEAN Charter ASEAN Economic Community Blueprint
Signed in Nov 2007, it is a formalized An initiative to establish ASEAN as a
framework which serves as ASEAN’s single market and production base by
constitution. It will: 2015. Objectives include:
1. Make ASEAN a more rules-based 1. Free movement of goods, services,
organization investment skilled labor and free flow of
2. Grow a culture of taking obligations capital
seriously; The charter will help to put in 2. A highly competitive economic region
place a dispute-settlement system for all relative to the rest of the world
agreements 3. Equitable economic development across
3. Streamline ASEAN’s cumbersome ASEAN
organizational structure and decision- 4. A region fully integrated into the global
making process economy
4. Facilitate the economic integration of
ASEAN
Source: ASEAN Secretariat Aiding the economic integration of CLMV

Economic integration is hampered by restrictive
conditions in the CLMV countries
GDP per capita, 2008 Human Development Index 2008,
Amounts in US$ ‘000 Maximum value = 1
Measures Life Expectancy, Literacy and Standard of Living
Singapore 38.0 Singapore 0.918
Brunei 35.6 Brunei 0.919
Malaysia 7.9 Malaysia 0.823
Thailand 4.1 Thailand 0.786
Indonesia 2.2 Indonesia 0.726
Philippines 1.8 Philippines 0.745
Vietnam 1.1 Vietnam 0.718
Laos 0.9 Laos 0.608
Cambodia 0.7 Cambodia 0.575
Myanmar 0.5 Myanmar 0.585
Source: ASEAN Secretariat, UNDP Aiding the economic integration of CLMV

Singapore is leading the way to aid these countries
through a program known as the IAI
ASEAN-6 Contributions to IAI
Initiative for ASEAN Integration (IAI) As at May 2008
• The IAI was launched in 2000 by former PM Goh
Chok Tong. Singapore spearheads this effort
S’pore
among the ASEAN-6 countries 74%
• Objectives are to narrow the development gap in
the CLMV countries Total: Rest of
US$31m ASEAN-6
• Singapore’s motivation for leading the effort is to
share with these developing nations the technical
and systems skills that the country has learned
since independence
• Singapore’s focus in the IAI program is in Human Singapore is the biggest unilateral contributor
Resource Development (HRD); it relates to the within the IAI program; However, there are
country’s comparative advantage in the region other multilateral projects that operate
concurrently with the IAI
Source: ASEAN Secretariat Aiding the economic integration of CLMV

The IAI’s projects address several areas which help
to develop economic integration
Project Types Project Allocation
Infrastructure Total projects as at May 2008 = 131
• Public buildings and transport links; Regional Econ. Integr.
increased accessibility facilitates Tourism
distribution of aid
5 General Coverage
31 8
Human Resource Development
• Training in management and 14 Infrastructure
vocational skills
29
Information and Comms. Technology
• Facilitates communications between
civil institutions and regional 44
Human Resource
neighbours Development
Regional Economic Integration Information and
• Training officials in customs practices Communications
and trade policy standardization Technology
Source: ASEAN Secretariat Aiding the economic integration of CLMV

The IAI program’s weaknesses present challenges
to Singapore’s future implementation
IAI Program Review Outcomes
Level of
• Training programs are typically compressed into a week or less; too rushed
understandability of
• Materials used were too complex for regional officials e.g. US college level
textbooks
training programs
• Scope of learning remained at an awareness-building level, not anything
deeper
Insufficient
• CLMV countries have little vested interest in the programs; funding
comes from sponsoring countries
ownership from
CLMV countries
• Lack of political will for institutional change even after officials have
been trained
• The IAI program’s funding constraints limit the courses provided to a
Lack of long-term short and ‘one-off’ nature; there is a lack of continuity
focus • Current participants are not required to measure knowledge
acquired or skills improved after returning back to their respective
positions
Source: ASEAN Secretariat Aiding the economic integration of CLMV

Solutions are currently being implemented to
mitigate the effects of these weaknesses
Proposed Solutions from IAI’s review efforts – non-exhaustive
Quantification of participants’ progress
• Developing a standardized set of measurement parameters to track
the program’s efficacy in participant’s job roles
• Key metrics of interest:
(a) Changes in trainee’s work performance
(b) Measuring if these changes are substantial enough to change
organizational performance
Deeper consultations with individual CLMV countries and their
relevant sub-agencies
• Need to understand the context and economic, social, political
circumstances of each country
• Manage expectations between trainees’ capabilities and pace of
institutional reform in their respective countries
Source: ASEAN Secretariat Aiding the economic integration of CLMV

Recap
• To respond to competition from regional powers,
ASEAN is taking steps to integrate economically
• The main stumbling block to a unified ASEAN market
is the economic condition of the CLMV countries
• Singapore leads the effort to help these countries
through the IAI program
• However, the program’s implementation comes with
its own set of challenges – 3 of which were discussed
• 2 of the solutions from the IAI’s review efforts were
discussed
Aiding the economic integration of CLMV