Sothea OUM Economic Research Institute for ASEAN and East Asia (ERIA) The 8th Asia Economic Forum on “ASEAN in the Evolving Regional Architecture: Opportunities, Challenges, and Future Direction” Hotel Sofitel Phnom Penh Phokeethra, Phnom Penh, March The Voice of ASEAN Youth: ASEAN Priorities and Challenges

AEC Vision and Blueprint: Key Initiatives Towards AEC 2

3 Transformation of International Commerce - 2 nd Unbundling in Manufacturing and Related service 20 th century trade 21 st century trade Source: Baldwin (2011) 1) Necessary trade & service links Connecting factories - Trade policy barriers; - Transportation services; - Business mobility; - Communication services. 2) Necessary “Behind the border barriers” (BBB) reform Doing business abroad - International investment; - Application of home’s technology abroad; - Local availability of business services.

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Challenges: Closing Income Gaps 6

7 What does AEC look like in 2015? Free Trade Area Customs Union Common Market (range of nuance) Economic & Monetary Union AEC 2015 is more than FTA. It aims for a common market but not quite a single market. It is not a customs union and does not aim for economic and monetary union. NOTE: Common Market range of nuance: from free movement of goods and freer flow of services, capital and labor on one end, and on the other end, a single market. ASEAN

Challenges and Ways Forward 8 Challenges - Jobs, Jobs, and Jobs for new entrants to labor markets and business opportunities - Master ASEAN language and new high skills to benefit from new industries - Once AEC is further advanced, fiercer competition – standards and conformance, technological gaps/frontiers, especially for SMEs - Structural/sectoral adjustments, skill mismatch, dislocation, losers Ways forward - Be better informed and prepared for AEC – mechanism/safety net to mitigate potential negative effects - ASEAN activism - proactive be it business, political or cultural, policies that matter to youth – Raise your voice to be heard - Compassionate, prosper-thy-neighbors – within and beyond borders - You(th) are deserved and should demand for Quality of Education, Education, and Education !!! - Streamlining ASEAN studies into education system

Economic Research Institute for ASEAN and East Asia Thank You “Don't ask what ASEAN can do for you, but what you can do for ASEAN” - John F. Kennedy, the 35th President of the United States, reincarnated as ASEAN Champion 9