Asean pestle jan 2013

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ASEAN political, economic, social, technology, environment and legal outlook until 2017

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Asean pestle jan 2013

  1. 1. ASEAN and Thailand Issues and Outlook Robert J Twiddy 30/31 January 2013 www.k-solutions.com and www.roberttwiddy.comSaturday, 26 January 13
  2. 2. Agenda • Introduction • PESTEL model • Use of PESTEL model in business strategy • PESTEL for ASEAN 2013 to 2020 • Analysis precepts • Analysis • Summary 2 © K-solutions Ltd www.k-solutions.com and ww.roberttwiddy.comSaturday, 26 January 13
  3. 3. What is a PEST? (from www.marketingteacher.com) www.k-solutions.com and www.roberttwiddy.comSaturday, 26 January 13
  4. 4. What does PEST stand for? www.k-solutions.com and www.roberttwiddy.comSaturday, 26 January 13
  5. 5. What does PEST stand for? www.k-solutions.com and www.roberttwiddy.comSaturday, 26 January 13
  6. 6. What does the “P” stand for? www.k-solutions.com and www.roberttwiddy.comSaturday, 26 January 13
  7. 7. What does the “P” stand for?  Political. What is a synonym for politics? www.k-solutions.com and www.roberttwiddy.comSaturday, 26 January 13
  8. 8. What does the “P” stand for?  Political. What is a synonym for politics?  Government. Why is politics important for the business environment of a country? www.k-solutions.com and www.roberttwiddy.comSaturday, 26 January 13
  9. 9. What does the “P” stand for?  Political. What is a synonym for politics?  Government. Why is politics important for the business environment of a country?  The Government makes laws which regulate businesses, and this in turn influences the spending power of consumers and other businesses. www.k-solutions.com and www.roberttwiddy.comSaturday, 26 January 13
  10. 10. What are some aspects of Politics that you should consider in a PEST Analysis of a country? Two are given as examples. Think of three more aspects with your partner.  1.How stable is the political environment?  2.Will government policy influence laws that regulate or tax your business? www.k-solutions.com and www.roberttwiddy.comSaturday, 26 January 13
  11. 11. What are some aspects of Politics that you should consider in a PEST Analysis of a country? Two are given as examples. Think of three more aspects with your partner.  1.How stable is the political environment?  2.Will government policy influence laws that regulate or tax your business?  3.What is the governments position on marketing ethics? www.k-solutions.com and www.roberttwiddy.comSaturday, 26 January 13
  12. 12. What are some aspects of Politics that you should consider in a PEST Analysis of a country? Two are given as examples. Think of three more aspects with your partner.  1.How stable is the political environment?  2.Will government policy influence laws that regulate or tax your business?  3.What is the governments position on marketing ethics?  4. What is the governments policy on the economy? www.k-solutions.com and www.roberttwiddy.comSaturday, 26 January 13
  13. 13. What are some aspects of Politics that you should consider in a PEST Analysis of a country? Two are given as examples. Think of three more aspects with your partner.  1.How stable is the political environment?  2.Will government policy influence laws that regulate or tax your business?  3.What is the governments position on marketing ethics?  4. What is the governments policy on the economy?  5. Does the government have a view on culture and religion? www.k-solutions.com and www.roberttwiddy.comSaturday, 26 January 13
  14. 14. What are some aspects of Politics that you should consider in a PEST Analysis of a country? Two are given as examples. Think of three more aspects with your partner.  1.How stable is the political environment?  2.Will government policy influence laws that regulate or tax your business?  3.What is the governments position on marketing ethics?  4. What is the governments policy on the economy?  5. Does the government have a view on culture and religion?  6. Is the government involved in Free trade agreements such as EU, NAFTA, ASEAN, or others? www.k-solutions.com and www.roberttwiddy.comSaturday, 26 January 13
  15. 15. What does the “E” stand for? www.k-solutions.com and www.roberttwiddy.comSaturday, 26 January 13
  16. 16. What does the “E” stand for?  Economic Factors www.k-solutions.com and www.roberttwiddy.comSaturday, 26 January 13
  17. 17. What does the “E” stand for?  Economic Factors  What are some Economic factors that you should consider in a PEST analysis? www.k-solutions.com and www.roberttwiddy.comSaturday, 26 January 13
  18. 18. What does the “E” stand for?  Economic Factors  What are some Economic factors that you should consider in a PEST analysis?  Two are given as examples. With a partner think of three more factors. www.k-solutions.com and www.roberttwiddy.comSaturday, 26 January 13
  19. 19. What does the “E” stand for?  Economic Factors  What are some Economic factors that you should consider in a PEST analysis?  Two are given as examples. With a partner think of three more factors.  Spending power of the local consumers. www.k-solutions.com and www.roberttwiddy.comSaturday, 26 January 13
  20. 20. What does the “E” stand for?  Economic Factors  What are some Economic factors that you should consider in a PEST analysis?  Two are given as examples. With a partner think of three more factors.  Spending power of the local consumers.  Long term prospects for the economy. www.k-solutions.com and www.roberttwiddy.comSaturday, 26 January 13
  21. 21. What does the “E” stand for?  Economic Factors  What are some Economic factors that you should consider in a PEST analysis?  Two are given as examples. With a partner think of three more factors.  Spending power of the local consumers.  Long term prospects for the economy.  The price of oil. www.k-solutions.com and www.roberttwiddy.comSaturday, 26 January 13
  22. 22. What does the “E” stand for?  Economic Factors  What are some Economic factors that you should consider in a PEST analysis?  Two are given as examples. With a partner think of three more factors.  Spending power of the local consumers.  Long term prospects for the economy.  The price of oil.  Interest rates. www.k-solutions.com and www.roberttwiddy.comSaturday, 26 January 13
  23. 23. What does the “E” stand for?  Economic Factors  What are some Economic factors that you should consider in a PEST analysis?  Two are given as examples. With a partner think of three more factors.  Spending power of the local consumers.  Long term prospects for the economy.  The price of oil.  Interest rates.  Unemployment rates. www.k-solutions.com and www.roberttwiddy.comSaturday, 26 January 13
  24. 24. What does the “E” stand for?  Economic Factors  What are some Economic factors that you should consider in a PEST analysis?  Two are given as examples. With a partner think of three more factors.  Spending power of the local consumers.  Long term prospects for the economy.  The price of oil.  Interest rates.  Unemployment rates.  GDP % growth rates. www.k-solutions.com and www.roberttwiddy.comSaturday, 26 January 13
  25. 25. What does the “E” stand for?  Economic Factors  What are some Economic factors that you should consider in a PEST analysis?  Two are given as examples. With a partner think of three more factors.  Spending power of the local consumers.  Long term prospects for the economy.  The price of oil.  Interest rates.  Unemployment rates.  GDP % growth rates.  Inflation/Deflation rates. www.k-solutions.com and www.roberttwiddy.comSaturday, 26 January 13
  26. 26. What does the “S” stand for? www.k-solutions.com and www.roberttwiddy.comSaturday, 26 January 13
  27. 27. What does the “S” stand for?  Social and cultural factors www.k-solutions.com and www.roberttwiddy.comSaturday, 26 January 13
  28. 28. What does the “S” stand for?  Social and cultural factors  The social and cultural influences on business vary from country to country. It is very important that such factors are considered. www.k-solutions.com and www.roberttwiddy.comSaturday, 26 January 13
  29. 29. What does the “S” stand for?  Social and cultural factors  The social and cultural influences on business vary from country to country. It is very important that such factors are considered.  What are some Social and cultural Factors that we need to consider in a PEST analysis? www.k-solutions.com and www.roberttwiddy.comSaturday, 26 January 13
  30. 30. What does the “S” stand for?  Social and cultural factors  The social and cultural influences on business vary from country to country. It is very important that such factors are considered.  What are some Social and cultural Factors that we need to consider in a PEST analysis?  Again the first two are given as examples. With your partner think of three more social factors. www.k-solutions.com and www.roberttwiddy.comSaturday, 26 January 13
  31. 31. What does the “S” stand for?  Social and cultural factors  The social and cultural influences on business vary from country to country. It is very important that such factors are considered.  What are some Social and cultural Factors that we need to consider in a PEST analysis?  Again the first two are given as examples. With your partner think of three more social factors.  1.What is the dominant religion? www.k-solutions.com and www.roberttwiddy.comSaturday, 26 January 13
  32. 32. What does the “S” stand for?  Social and cultural factors  The social and cultural influences on business vary from country to country. It is very important that such factors are considered.  What are some Social and cultural Factors that we need to consider in a PEST analysis?  Again the first two are given as examples. With your partner think of three more social factors.  1.What is the dominant religion?  2.What are attitudes to foreign products and services? www.k-solutions.com and www.roberttwiddy.comSaturday, 26 January 13
  33. 33. What does the “S” stand for?  Social and cultural factors  The social and cultural influences on business vary from country to country. It is very important that such factors are considered.  What are some Social and cultural Factors that we need to consider in a PEST analysis?  Again the first two are given as examples. With your partner think of three more social factors.  1.What is the dominant religion?  2.What are attitudes to foreign products and services?  3.How does language impact product marketing? www.k-solutions.com and www.roberttwiddy.comSaturday, 26 January 13
  34. 34. What does the “S” stand for?  Social and cultural factors  The social and cultural influences on business vary from country to country. It is very important that such factors are considered.  What are some Social and cultural Factors that we need to consider in a PEST analysis?  Again the first two are given as examples. With your partner think of three more social factors.  1.What is the dominant religion?  2.What are attitudes to foreign products and services?  3.How does language impact product marketing?  4.How much time do consumers have for leisure? www.k-solutions.com and www.roberttwiddy.comSaturday, 26 January 13
  35. 35. What does the “S” stand for?  Social and cultural factors  The social and cultural influences on business vary from country to country. It is very important that such factors are considered.  What are some Social and cultural Factors that we need to consider in a PEST analysis?  Again the first two are given as examples. With your partner think of three more social factors.  1.What is the dominant religion?  2.What are attitudes to foreign products and services?  3.How does language impact product marketing?  4.How much time do consumers have for leisure?  5.What are the roles of men and women within society? www.k-solutions.com and www.roberttwiddy.comSaturday, 26 January 13
  36. 36. What does the “S” stand for?  Social and cultural factors  The social and cultural influences on business vary from country to country. It is very important that such factors are considered.  What are some Social and cultural Factors that we need to consider in a PEST analysis?  Again the first two are given as examples. With your partner think of three more social factors.  1.What is the dominant religion?  2.What are attitudes to foreign products and services?  3.How does language impact product marketing?  4.How much time do consumers have for leisure?  5.What are the roles of men and women within society?  6.Do the population have a strong/weak opinion on green issues? www.k-solutions.com and www.roberttwiddy.comSaturday, 26 January 13
  37. 37. What does the “T” stand for? www.k-solutions.com and www.roberttwiddy.comSaturday, 26 January 13
  38. 38. What does the “T” stand for?  Technological factors www.k-solutions.com and www.roberttwiddy.comSaturday, 26 January 13
  39. 39. What does the “T” stand for?  Technological factors  Technology is vital for competitive advantage, and is a major driver of globalization. www.k-solutions.com and www.roberttwiddy.comSaturday, 26 January 13
  40. 40. What does the “T” stand for?  Technological factors  Technology is vital for competitive advantage, and is a major driver of globalization.  One factor is given as an example. With your partner try to think of two more factors. www.k-solutions.com and www.roberttwiddy.comSaturday, 26 January 13
  41. 41. What does the “T” stand for?  Technological factors  Technology is vital for competitive advantage, and is a major driver of globalization.  One factor is given as an example. With your partner try to think of two more factors.  1. Does technology allow for products and services to be made more cheaply and to a better standard of quality? www.k-solutions.com and www.roberttwiddy.comSaturday, 26 January 13
  42. 42. What does the “T” stand for?  Technological factors  Technology is vital for competitive advantage, and is a major driver of globalization.  One factor is given as an example. With your partner try to think of two more factors.  1. Does technology allow for products and services to be made more cheaply and to a better standard of quality?  2.Do the technologies offer consumers and businesses more innovative products and services such as Internet banking, new generation mobile telephones, etc? www.k-solutions.com and www.roberttwiddy.comSaturday, 26 January 13
  43. 43. What does the “T” stand for?  Technological factors  Technology is vital for competitive advantage, and is a major driver of globalization.  One factor is given as an example. With your partner try to think of two more factors.  1. Does technology allow for products and services to be made more cheaply and to a better standard of quality?  2.Do the technologies offer consumers and businesses more innovative products and services such as Internet banking, new generation mobile telephones, etc?  3.How is distribution changed by new technologies e.g. books via the Internet, flight tickets, auctions, etc? www.k-solutions.com and www.roberttwiddy.comSaturday, 26 January 13
  44. 44. What does the “T” stand for?  Technological factors  Technology is vital for competitive advantage, and is a major driver of globalization.  One factor is given as an example. With your partner try to think of two more factors.  1. Does technology allow for products and services to be made more cheaply and to a better standard of quality?  2.Do the technologies offer consumers and businesses more innovative products and services such as Internet banking, new generation mobile telephones, etc?  3.How is distribution changed by new technologies e.g. books via the Internet, flight tickets, auctions, etc?  4.Does technology offer companies a new way to communicate with consumers e.g. banners, Customer Relationship Management (CRM), etc? www.k-solutions.com and www.roberttwiddy.comSaturday, 26 January 13
  45. 45. What is a PEST Analysis?  It is very important that an organization considers its environment before beginning the marketing process. In fact, environmental analysis should be on-going and feed all aspects of planning. www.k-solutions.com and www.roberttwiddy.comSaturday, 26 January 13
  46. 46. What is a PEST Analysis?  It is very important that an organization considers its environment before beginning the marketing process. In fact, environmental analysis should be on-going and feed all aspects of planning. www.k-solutions.com and www.roberttwiddy.comSaturday, 26 January 13
  47. 47. What is a PEST Analysis?  It is very important that an organization considers its environment before beginning the marketing process. In fact, environmental analysis should be on-going and feed all aspects of planning.  What does Environment mean? ◦ the social and cultural forces that shape the life of a person or a population. www.k-solutions.com and www.roberttwiddy.comSaturday, 26 January 13
  48. 48. The organizations marketing environment is made up of: www.k-solutions.com and www.roberttwiddy.comSaturday, 26 January 13
  49. 49. The organizations marketing environment is made up of:  1. The internal environment e.g. staff (or internal customers), office technology, wages and finance, etc. www.k-solutions.com and www.roberttwiddy.comSaturday, 26 January 13
  50. 50. The organizations marketing environment is made up of:  1. The internal environment e.g. staff (or internal customers), office technology, wages and finance, etc.  2. The micro-environment e.g. our external customers, agents and distributors, suppliers, our competitors, etc. www.k-solutions.com and www.roberttwiddy.comSaturday, 26 January 13
  51. 51. The organizations marketing environment is made up of:  1. The internal environment e.g. staff (or internal customers), office technology, wages and finance, etc.  2. The micro-environment e.g. our external customers, agents and distributors, suppliers, our competitors, etc.  3. The macro-environment e.g. Political (and legal) forces, Economic forces, Sociocultural forces, and Technological forces. These are known as PEST factors. www.k-solutions.com and www.roberttwiddy.comSaturday, 26 January 13
  52. 52. What are the Legal aspects  Regulation  Labor laws  Import and Export Laws  Border laws  International law www.k-solutions.com and www.roberttwiddy.com 12Saturday, 26 January 13
  53. 53. Exercise  Fill in what you believe are the key PEST for Thailand 15mins Political Economic Social Technology www.k-solutions.com and www.roberttwiddy.com 13Saturday, 26 January 13
  54. 54. Southeast Asian Economic Outlook: With Perspectives on China and India Thematic focus: Narrowing development gaps 2013 edition ASEAN Business and Investment Summit 18 November 2012, Phonon Penn Rintaro Tamaki , Deputy Secretary General www.oecd.org/dev/ asiapacific www.k-solutions.com and www.roberttwiddy.comSaturday, 26 January 13
  55. 55. Outlook- Key questions • What growth prospects for Asia in 2012-2017? • What does ‘narrowing the development gaps in ASEAN countries’ mean? • Structural policy challenges of Cambodia as an example (from Structural policy country notes) • What is the main message of the SAEO 2013? www.k-solutions.com and www.roberttwiddy.comSaturday, 26 January 13
  56. 56. www.k-solutions.com and www.roberttwiddy.com 16Saturday, 26 January 13
  57. 57. Southeast Asia shows resilience, though Emerging Asia, inparticular China will begin to slow gradually…Real GDP Growth of Southeast Asia, China and India (annual percentage changes)   2011 2017 2000-2007 2013-2017 ASEAN-6 countries         Brunei 2.2 2.9 - 2.4 Indonesia 6.5 6.6 5.1 6.4 Malaysia 5.1 5.5 5.5 5.1 Philippines 3.9 5.3 4.9 5.5 Singapore 4.9 3.8 6.4 3.1 Thailand 0.1 5.3 5.1 5.1 CLMV countries         Cambodia 7.1 7.3 9.6 6.9 Lao PDR 8.0 7.6 6.8 7.4 Myanmar 5.5 6.7 - 6.3 Viet Nam 5.9 6.3 7.6 5.6 China and India China 9.2 8.0 10.5 8.3 India 6.8 7.0 7.1 6.4 ASEAN-10 average 4.6 5.8 5.5(a) 5.5 CLMV average 6.0 6.5 7.8(b) 5.9 Emerging Asia average 7.8 7.4 8.6(a) 7.4 Notes: The cut-off date of data is 1 November 2012. a) The average number www.roberttwiddy.com www.k-solutions.com and does not include Brunei and Myanmar. b) The average number does not include Myanmar. Source: OECD Development Centre, MPF-2013Saturday, 26 January 13
  58. 58. www.k-solutions.com and www.roberttwiddy.comSaturday, 26 January 13
  59. 59. Real_GDP_growth 17/01/2013 21:17 rtwiddy@k-solutions.com Real_GDP_growth Comments Share File Edit View Insert Format Data Tools Help View only New! Improved Comments Chart Insert discussion-style comments Copy chart Advanced edit... Publish chart Save image Delete chart and add notes to cells. Learn more | Dismiss Real GDP growth - 2011 to 2017 10 Brunei Indonesia Real annual GDP growth (%) 7.5 Malaysia Philippines Singapore 5 Thailand Cambodia Laos 2.5 Burma 0 1/2 2012 2013 2014 2015 2016 Real_GDP_table Real_GDP_graph Sheet2 Sheet3https://docs.google.com/a/k-solutions.com/spreadsheet/ccc?key=0AhORuxOwZhGydFJZandxa2hZc3lrR2FTT0NIRmJKZEE#gid=3 Page 1 of 1 www.k-solutions.com and www.roberttwiddy.comSaturday, 26 January 13
  60. 60. International Monetary Fund, World Economic Outlook - Google Public Data Explorer 17/01/2013 21:13 +Robert Search Images Mail Drive Calendar Sites Groups Maps More Search public data or change visualization rtwiddy@k-solutions.com 0 Share Public Data GDP per capita, current prices ? $60,000 International Monetary Fund, World Eco… Singapore Balance of Payments Commodity Prices $50,000 Government Finance Monetary National Accounts $40,000 Brunei Darussalam GDP based on PPP per capita GDP GDP based on PPP share of worl… $30,000 GDP based on PPP valuation of c… Clear Malaysia China $20,000 Thailand Compare by World Indonesia Philippines India World $10,000 Vietnam Countries Lao P.D.R. Cambodia Afghanistan Myanmar Albania $0 Algeria 1980 1985 1990 1995 2000 2005 2010 2017 Angola Antigua and Barbuda 1980 1985 1990 1995 2000 2005 2010 2015 Argentina Armenia Data from IMF, October 2012 WEO Last updated: Oct 9, 2012 Clear selections ©2012 Google - Help - Terms of Service - Privacy - Disclaimer - Discuss http://www.google.com/publicdata/explore?ds=k3s92bru78li6_&ctype=l&strail=false&bcs=d&nselm=h&me…:Earth&idim=country:KH:BN:CN:IN:LA:MY:MM:PH:SG:VN:TH:ID&ifdim=world&hl=en_US&dl=en_US&ind=false Page 1 of 1 www.k-solutions.com and www.roberttwiddy.comSaturday, 26 January 13
  61. 61. Table 1 ASEAN Statistics Selected basic ASEAN indicators as of 15 February 2011 Annual Gross domestic Gross domestic product 5/ Population International merchandise trade 4/ Total land area Total population1/ 1/ population product 2/ per capita Foreign direct investments infow density 1/ at current prices Country growth at current prices Exports Imports Total trade 2 2 US$ million 2/ 3/ US$ million US$ million US$ million US$ million US$ million km thousand persons per km percent US$ US$ PPP 2009 2009 /p 2009 2009 2009 2009 2009 2009 2009 2009 2009 2010 Brunei Darussalam 5,765 406.2 70 2.1 10,758.6 26,486.0 36,177.4 7,168.6 2,399.6 9,568.2 369.7 247.9 Cambodia 181,035 14,957.8 83 2.1 10,359.2 692.6 1,787.6 4,985.8 3,900.9 8,886.7 530.2 313.5 Indonesia 1,860,360 231,369.5 124 1.2 546,864.6 2,363.6 4,371.2 116,510.0 96,829.2 213,339.2 4,876.8 6,243.9 Lao PDR 236,800 5,922.1 25 2.8 5,579.2 910.5 2,250.0 1,237.2 1,725.0 2,962.1 318.6 100.6 Malaysia 330,252 28,306.0 86 2.1 193,107.7 6,822.0 12,353.3 156,890.9 123,330.5 280,221.4 1,381.0 3,313.0 Myanmar 676,577 59,534.3 88 1.8 24,972.8 419.5 1,138.1 6,341.5 3,849.9 10,191.3 578.6 n.a The Philippines 300,000 92,226.6 307 2.0 161,357.6 1,749.6 3,591.8 38,334.7 45,533.9 83,868.6 1,948.0 732.0 Singapore 710 4,987.6 7,023 3.1 182,701.7 36,631.2 52,871.8 269,832.5 245,784.7 515,617.1 16,808.9 17,341.0 Thailand 513,120 66,903.0 130 0.6 264,322.8 3,950.8 7,943.5 152,497.2 133,769.6 286,266.8 4,975.6 3,511.8 Viet Nam 331,212 87,228.4 263 1.2 96,317.1 1,119.6 3,123.8 56,691.0 69,230.9 125,921.9 7,600.0 4,310.0 ASEAN 4,435,830 591,841.0 133 1.4 1,496,341.3 2,532.5 4,872.9 810,489.2 726,354.1 1,536,843.3 39,387.3 36,113.6 Sources ASEAN Finance and Macro-economic Surveillance Unit Database, ASEAN Merchandise Trade Statistics Database, ASEAN Foreign Direct Investment Statistics Database (compiled/computed from data submission, publications and/or websites of ASEAN Member States national statistics offices, central banks and relevant government agencies, and from international sources) Symbols used Notes - not available as of publication time 1/ Refers to/based on mid-year total population based on country projections, 2009 is preliminary figures n.a. not applicable/not available/not compiled 2/ 2009 annual figures for Lao PDR and Myanmar are taken from the IMF WEO Database April 2010. Data in italics are the latest updated/revised figures 3/ Computed based on IMF WEO Database October 2009 estimates and the latest actual country data from previous posting. 4/ Unless otherwise indicated, figures include equity, reinvested earnings and inter-company loans. Data for 2010 are preliminary figures and covers only first half of the year. p/ preliminary 5/ Trade statistics database as of September 2010 www.k-solutions.com and www.roberttwiddy.comSaturday, 26 January 13
  62. 62. Evolving development landscape in the region • Domestic demand will be an important driver of growth in the region. • The expansion of the middle class is likely to continue to boost domestic demand • Fiscal capacity needs to be strengthened through better revenue mobilization • Managing the extensive dollarization is a challenge for CLMV countries www.k-solutions.com and www.roberttwiddy.comSaturday, 26 January 13
  63. 63. Narrowing development gaps is critical towards an ASEAN Economic Community Greater efforts are required in poverty and human capital ASEAN-OECD Narrowing Development Gap Indicators (NDGIs): disparities between ASEAN-6 and CLMV countries 2005 2011 www.k-solutions.com and www.roberttwiddy.com Source: OECD Development Centre and ASEAN Secretariat.Saturday, 26 January 13
  64. 64. Disparity both “among” and “within” countries needs to be addressed in CLMV The picture varies across countries Note: Change in Gini coefficient between: 2004 and 2008 for Cambodia; 2002 and 2008 for Lao PDR; 2004 and 2008 for Viet Nam. Sources: OECD Development Centre, ASEAN Secretariat and World Bank World Development Indicators. www.k-solutions.com and www.roberttwiddy.comSaturday, 26 January 13
  65. 65. Cambodia’s medium-term policy challenges Build agricultural productivity and Agriculture tap the export potential of milled rice Increase enrolment rates at all levels Human of education and strengthen training capital and vocational education (TVET) to development build a skilled labour force Reform of Strengthen the banking sector and financial prudential measures sector www.k-solutions.com and www.roberttwiddy.comSaturday, 26 January 13
  66. 66. Main messages Growing at 5.5% through 2017, ASEAN economies show resilience, however, they need to narrow development gaps to sustain robust growth Disparities need to be examined beyond income level differences; and greater efforts are required in poverty reduction and human capital development. Southeast Asian countries need to rethink new growth and development strategies, rely more on domestic demand to adapt to changing international market conditions www.k-solutions.com and www.roberttwiddy.comSaturday, 26 January 13
  67. 67. Medium-term structural policy challenges (1): from country notes Build agricultural productivity and tap the export potential of Agriculture milled rice Human capital Increase enrolment rates at all levels of education and Cambodia development strengthen TVET to build a skilled labour force Reform of financial Strengthen the banking sector and prudential measures sector Narrow the regional divide by enhancing connectivity and the Infrastructure capacity of local government Strengthen the capacity of local government to provide Indonesia Education education infrastructure Accelerate healthcare reform, in particular, increase coverage Social security reform and access to healthcare services Human capital Strengthen TVET and the education system to address skills development shortages Malaysia Labour market Address weaknesses in labour market functioning SME development Enhance productivity of SMEs Improve road transport, power and energy infrastructure and Infrastructure strengthen public and private investment Philippine Labour market Focus firmly on job creation strategies s Improve access to quality education and training by Education strengthening K+12 programme www.k-solutions.com and www.roberttwiddy.com Sources: OECD Development Centre, forthcoming OutlookSaturday, 26 January 13
  68. 68. Medium-term structural policy challenges (2): from country notes Manage foreign worker dependence by increasing the Labour market productivity of local workforce Singapore SME development Sustain SME growth through fostering entrepreneurial environment Innovation Enhance the innovation capabilities of local enterprises Education Raise the quality of education and reduce disparities Thailand Healthcare system Achieve a more equitable healthcare system Green economy Foster green growth through investment and fiscal reforms Human capital Reform training and education to better meet demand for skilled development labour Development of Strengthen the banking system by establishing effective Viet Nam banking sector supervision SOEs reform Strengthen market-based reforms and monitoring of SOEs www.k-solutions.comOECD Development Centre, forthcoming Outlook Sources: and www.roberttwiddy.comSaturday, 26 January 13
  69. 69. Strategy and ASEAN Study Analysis www.k-solutions.com and www.roberttwiddy.com 29Saturday, 26 January 13
  70. 70. Study  SET 50 interviews ◦ A Top Level ◦ B Strategic Content ◦ C ASEAN specific ◦ D Strategy to Action  Analysis Statistical  Analysis Commentary www.k-solutions.com and www.roberttwiddy.com 30Saturday, 26 January 13
  71. 71. Statistics to date % using balanced scored 50% % quarterly review 100% % common strategy theme 25% % with feedback systems 20% maturity of strategy process 25% % problems with ASEAN 90% % problem with free flow labor 90% % problem investment 100% % Compliance 100% % problem buying real estate 100% % with specific ASEAN objectives 25% % supporting ASEAN single market 75% % looking internationally not ASEAN specific 25% % implement using localisation approach 75% % implement using centralised approach 25%  www.k-solutions.com and www.roberttwiddy.com 31Saturday, 26 January 13
  72. 72. Analysis commentary  Political ◦ South China Sea ◦ China’s interest in Laos and Cambodia ◦ Thai red, yellow, age of the King ◦ Corruption in Indonesia ◦ Elections www.k-solutions.com and www.roberttwiddy.com 32Saturday, 26 January 13
  73. 73. Analysis commentary  Economic ◦ Localisation via Mergers and Acquisition ◦ Banking regulations are country specific ◦ No single point of ASEAN information ◦ Country regulations are not aligned to ASEAN roadmaps ◦ No immigration changes except specific roles ◦ Tariffs have been implemented for ASEAN EC www.k-solutions.com and www.roberttwiddy.com 33Saturday, 26 January 13
  74. 74. Analysis commentary  Social ◦ Muslim religion ◦ Language - common: English or Chinese? www.k-solutions.com and www.roberttwiddy.com 34Saturday, 26 January 13
  75. 75. Analysis commentary  Technology ◦ IT and Telecoms www.k-solutions.com and www.roberttwiddy.com 35Saturday, 26 January 13
  76. 76. Comparison with EU so far  Roadmaps of how to develop three pillars  No binding laws or contracts  No common currency or banking regulations  Multiple religions  No single borders  No free work movement www.k-solutions.com and www.roberttwiddy.com 36Saturday, 26 January 13
  77. 77. Summary  Introduced you to PESTLE  ASEAN projection economically  Analysis of our study to date www.k-solutions.com and www.roberttwiddy.com 37Saturday, 26 January 13
  78. 78. QUESTIONS www.asean.org www.k-solutions.com and www.roberttwiddy.com 38Saturday, 26 January 13

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