C-level executives of leading companies in different industries across Southeast Asia feel that the ASEAN Economic Community will provide incremental opportunity and will make the region a more compelling investment destination – granting access to new and bigger markets, as well as lowering costs.
Most believe the AEC will happen - not by 2015, but within three to five years thereafter, according to Deloitte Southeast Asia’s AEC (ASEAN Economic Community) Survey.
A majority of respondents (96%) think that the AEC is an opportunity for their business. These opportunities being new markets (54%), bigger markets (36%), and lower costs (34%). Sixty-three percent indicated that increased competition is the biggest threat of the AEC.
However, out of the 100 respondents for Deloitte Southeast Asia’s AEC (ASEAN Economic Community) Survey, 62% feel that the AEC measures introduced to-date have limited or no impact on their business. Sixty-nine percent say that consultation by policy makers is somewhat lacking or insufficient.
Most are of the view that there will be winners and there will certainly be losers from increased competition. But, although that is a widely held view, the state of understanding and of readiness is low – only 20% of businesses have made plans in anticipation of the AEC.