Presented at an event hosted by the OECD "Countdown 2015: Towards Inclusive and Sustainable Growth in the ASEAN Economic Community" at the 2014 World Economic Forum

1. COUNTDOWN 2015:
TOWARDS INCLUSIVE AND
SUSTAINABLE GROWTH IN THE
ASEAN ECONOMIC COMMUNITY
OECD High Level Working Dinner, Davos
24 January 2014

2. In light of the growing importance of Southeast
Asia’s economy
• How can participants of the dinner support the
creation of the ASEAN Economic Community
(AEC) in 2015?
• How can participants of the dinner help to make AEC
contribute to inclusive and sustainable growth in
Southeast Asia?
• What can the OECD do to help?
22

3. Agenda
1. AEC 2015: Opportunities and Challenges
2. OECD’s contribution
3. Areas for discussion
a. Trade and Investment
b. Connectivity and Infrastructure
c. Inclusive and Sustainable Growth
3

4. 1. AEC 2015: Opportunities and
Challenges
4

5. Southeast Asia remains a dynamic growth
region…
Real GDP growth of Southeast Asia
(Annual Percentage Change)
7.9
7.2
2012
7.7
6.8
6.8
6.2
6
2.2 trillion in 2012, composed
6.8
6.5
5.1
mostly
4.9
5.2
5.4
5.5 5.4
1.3
0
young,
growing
middle class.
•
2.3
of
populations and an expanding
3.3
1
Market of 600 million people
and a combined GDP of USD
2014-2018
5.8
5.6
•
Real GDP growth rate in the
Southeast
Asia
region
is
projected with an average growth
of
5.4%
per
annum.
Indonesia will be the fastestSource : Economic Outlook for Southeast Asia, China and India 2014, OECD
growing
economy
among
the
ASEAN-6.
5

6. … but SEA faces challenges for inclusive and
sustainable growth
Selected challenges for Southeast Asia:
•
To reduce social and economic development gaps between ASEAN member
countries,
poverty reduction and human development measures remain key
challenges, particularly in the CLMV countries (Cambodia, Lao PDR, Myanmar, Viet Nam).
•
Develop more efficient infrastructure and connectivity to facilitate cross-border and
intra-regional exchange.
•
Reduce barriers to trade and investment.
•
Strengthen
institutional
capacity
for
human
capital
development
and
innovation in order to avoid the middle income trap.
6

7. The 2015 ASEAN Economic Community offers
great opportunities to support growth
ASEAN Economic Community (AEC) has the goal of the region’s full economic
integration by end of 2015, including:
•
A single market and production base, which promotes a free flow of goods,
services, investment, skilled labour and a freer flow of capital
•
A highly competitive economic region
•
A region of equitable economic development with a narrowing development
gap
•
A region fully integrated into the global economy and attractive for FDI
•
Deeper regional integration within ASEAN will:
•
enable a more efficient division of labour and allocation of resources in the
region, improving private sector efficiency and competitiveness.
•
•
•
facilitate capital account liberalisation and exchange rate flexibility.
provide incentives for national liberalisation efforts.
ASEAN is well positioned in the geographic center of the world’s growth corridor,
from East Asia through ASEAN to India.
7

8. 2. OECD’s contribution
8

9. OECD is ready to support the ASEAN economic
integration process and…
OECD collaboration with ASEAN Secretariat:
•
Investment: ASEAN-OECD Investment Programme conducts country-level Investment
Policy Reviews and regular regional investment dialogues.
•
Regulatory Reform: ASEAN Regulatory Reform Agenda is positioned as one of
ASEAN’s flagship activities to foster good regulatory practices.
•
Small and Medium-Sized Enterprises (SME): Evaluation of SMEs progress and SME
policies based on the SME Policy Index.
•
Economic Outlook for Southeast Asia, China and India: The
Outlook, an OECD - ASEAN joint annual publication, analyses economic
growth, development and regional integration process.
•
Initiative on Employment and Skills Strategies in Southeast Asia (ESSSA)
promotes co-operation and sharing of knowledge and experiences for job-rich growth.
•
Connectivity/PPPs: Development of a database of risk mitigation instruments
for private investments into long-term infrastructure projects.
9

10. … the new OECD Southeast Asia Regional Programme
scales up OECD members’ engagement in the region…
At the 2007 Ministerial, member countries identified SEA (Southeast Asia) as a region of
strategic priority. The Resolution asked the OECD to strengthen relations with the region in
light of its growing importance in the world economy and “with a view of identifying
countries for possible Membership.”
At the 2013 Ministerial meeting, the OECD received a mandate to establish a comprehensive
Southeast Asia Regional Programme (SEARP). It would support domestic reform
processes and contribute to regional integration initiatives.
 The new SEARP programme will be officially launched by OECD and Southeast Asian officials
at the 2014 MCM.
 The substance of the Programme will be developed by Regional Policy Networks (RPNs)
with experts from SEA and OECD countries.
 The RPNs will draw on the work programme of substantive OECD bodies and draw
upon OECD working methods in order to ensure effective policy exchange and
accountability for outputs.
 All efforts will be made to build on existing regional processes and networks.
Engagement with regional institutions, including ADB, ADBI, APEC, ASEAN, UNESCAP and
ERIA.
 Country-specific reform implementation support complements the regional work.
10

11. … by focusing on policy fields related to the AEC
blueprint to support inclusive and sustainable growth
SEARP will focus on four clusters, which will be
implemented by six Regional Policy Networks:
The fields of work will also include:
• Trade Initiative
• Gender Initiative
Priorities in these policy areas will
be refined at the Davos working
dinner and the OECD Southeast
Asia Regional Forum (25-26
March 2014 in Bali,
Indonesia).
11

12. Tonight's table discussions provide essential
input to the thematic focus of the SEARP
Regional Networks and Cluster:
Topics for the table discussion:
Investment
Business Climate
Trade and
Investment
Connectivity and PPPs
Connectivity and
Infrastructure
Inclusive Growth
SME
Education and Skills
Inclusive and
Sustainable Growth
We welcome you to the policy discussions to shape the new SEARP
programme and develop new initiatives to foster ‘inclusive and
sustainable growth’ in the region!
12

13. 3. Areas for Discussion:
a) Trade and Investment
13

14. Trade and Investments flows are increasing in the
region
FDI in the region:
 Increasing FDI inflows (8% of global flows in
2012)
 FDI focus diverges in the region:
•
Mining: Brunei and Myanmar
•
Manufacturing: Indonesia, Malaysia,
Thailand and Vietnam.
•
Services: Singapore, Laos, Philippines
FDI landscape shaped by new developments:
 Emergence of new sources of FDI
 Boost in intra-regional investment
 Increase of regional production networks
 Greater influence of reg. integration on FDI
Challenges:
 FDI inflows focused on five countries:
95% of FDI goes to Singapore, Indonesia,
Malaysia, Thailand and Vietnam, whereas
Singapore alone accounts for 51%.
Opportunities:
 Ease of regulatory restrictions on investment
as a driver of economic growth.
TRADE in the region:
 ASEAN countries export destinations are
diversified.
 However: intra-regional trade flows in
SEA lower than in other regions.
Challenges:
 OECD export credit ratings show still
high risk perception in selected countries.
 Comparative advantages in exported
goods diverge in the region and are below
the level of direct competitiors.
 Removal of regulatory barriers essential
to spur trade in services, thereby
improving supply and competitiveness.
Opportunities:
 Regional integration has the potential to
increase intra-regional trade.
 Expansion of regional production
networks would support economic
growth.
14

15. INVESTMENT: Strong FDI flows to the SEA region
boost growth, but there are wide disparities
FDI flows to Southeast Asia
(by industry, 2010 and 2011)
Mining and quarrying 84.0%
Trade and commerce 9.6%
Finance 30.8%
Cambodia Manufacturing 26.1%
Agriculture, fishery & forestry 20%
Manufacturing 39.8%
Indonesia Mining and quarrying 17.5%
Services 16.9%
Services 46.0%
Lao PDR Mining and quarrying 13.3%
Manufacturing 48.9%
Malaysia Finance 18.2%
Mining and quarrying 16.1%
Brunei
Destination of FDI in Southeast Asia
Net inflows of 450 billion USD from 2006 to 2011
Vietnam,
9.3%
Brunei,
0.7%
Myanmar, Cambodia
0.8%
, 1.0%
Lao PDR,
Indonesia 0.4%
, 13.1%
Thailand,
11.3%
Malaysia,
9.9%
Singapore,
50.9%
Philippines
, 2.6%
Myanmar Mining and quarrying 99.6% (2010)
Services 19.3%
Philippines Real estate 11.7%
Finance 10.6%
Finance 23.1%
Singapore Real estate 16.7%
Trade and commerce 15.7%
Manufacturing 52.8%
Thailand Finance 21.4%
Real estate 12.4%
Manufacturing 39.2%
Vietnam Services 24.3%
Real estate 17.6%
Source: ASEAN Investment Report 2012
Findings:
• Singapore
receives
more
than 50% of all
FDI.
• Less developed
Cambodia, Laos,
Myanmar
get
only 2.2% of
total FDI.
Source: ASEAN Factsheet on the ASEAN Economic Community
(AEC)
Southeast Asian share on global FDI increased from on
average 4.8% between 2003 - 11 to 8.2 % 2012.
The share far exceeds the SEA share on global GDP of
3.2% in 2012.
15

16. INVESTMENT: OECD products help improve
the investment climate and increase FDI
FDI Restrictiveness Index
The Index accesses regulations relevant for FDI
and includes four areas of restrictions:
• Foreign equity limitations in investments
• Screening or approval mechanisms
• Restrictions on the employment of foreigners
as key personnel
• Operational restrictions (branching, capital
repatriation or on land ownership)
0.5
OECD FDI Restrictiveness Index
0.4
0.3
0.2
0.1
0.0
Source: OECD 2013. OECD staff calculations
OECD research and standards on
investment:
OECD Investment Policy Reviews (IPR)
• Objective: Assessment of the
investment climate.
• Approach: Review of the policies
on FDI and the role of FDIs in the
Economy.
• IPRs in Southeast Asia:
Indonesia (2010), Malaysia (2013),
Viet Nam (2009). Forthcoming :
Myanmar, Philippines, Lao PDR
Policy Framework for Investment (PFI)
• The PFI is the most comprehensive approach for
improving investment conditions ever developed.
• 10 policy areas to support governments to design
policy reforms to create an attractive investment
climate.
• OECD conducts trainings with ASEAN on
investment policy making using the PFI.
16

17. TRADE: Diversified export destinations, but
some countries have low number of exports with
revealed comparative advantage
Number of products exported
with a revealed comparative
advantage (RCA)
Intra-regional trade comparison
Region
Intra regional exports
ASEAN (2011)
25.0 %
EU 27 (2011)
64.3 %
North America (2007)
51.3%
East Asia (2007)
52.1%
Source: eurostat, WTO, Comtrade, ASEAN
300
250
200
150
100
50
0
ASEAN Trade Partners (2011)
Others,
21.4%
USA, 8.3%
ANZ, 2.8%
Canada,
0.5%
Russia,
0.6%
Pakistan,
0.3%
Republic of
Korea,
5.2%
Intra
ASEAN,
25.0%
China,
11.7%
Japan, India, 2.9% EU-27,
11.4%
9.8%
Source: ASEAN: Factsheet on the ASEAN Economic Community (AEC)
Source: OECD staff caluclations using COMTRADE data
Main findings:
• SEA countries differ in the export of
goods with a revealed comparative
advantage (RCA).
• Thailand exports the highest number of
products with a RCA.
17

18. TRADE: OECD instruments to facilitate trade
and improve access to export credits
OECD Export Credits Arrangements
• Purpose: Setting minimum premium rates for
transactions based on country risk.
• Content: Measuring the country risk composed of
transfer/convertibility risk and cases of force majeure.
Code 0 to 7 , with 0 the lowest country risk.
• Outcome:
- Cambodia, Laos and Vietnam face a score above 4,
corresponding to major challenges to access export
credits.
- Singapore, Brunei and Malaysia have good scores.
- Remaining countries belong to middle risk countries.
7
6
Classifications above 3 are
considered high.
OECD trade facilitation indicators
• Purpose: Basis for governments to prioritise
trade facilitation reforms and assess potential
impact of reforms.
• Content: Sixteen trade facilitation indicators
(TFIs), corresponding to the main policy areas
under negotiation at the WTO.
• Methodology: Values drawn from publicly
avail able data and subsequently fact checked
with concerned governments.
Covers 133 countries across income levels,
geographical regions and development stages.
5
Trade in Value-Added (OECD-WTO)
4
The TIVA-database analyses the value
added by a country in the production of any
good or service that is then exported, and
offers a fuller picture of commercial
relations between nations. Thus, TIVA
provides information business
competitiveness and export
18
performance.
3
2
1
0
Source: OECD

19. 3. Areas for Discussion:
b) Connectivity and Infrastructure
19

20. Infrastructure and connectivity development
facilitates trade and economic growth
•
ASEAN member countries are confronted with a number of challenges with respect to their
connectivity, i.e. poor quality of roads and incomplete road networks, missing railway
links and incompatibility of gauges, inadequate maritime and port infrastructure
including dry ports, inland waterways and aviation facilities and widening of digital divide, and a
growing demand for power.
•
With the Master Plan on ASEAN Connectivity towards 2015 and beyond, ASEAN member
countries are engaged in strengthening their infrastructure in order to response to the need of
increasing number of cross-border exchanges. 15 Projects on connectivity cover the
infrastructure development in 3 dimensions:
1. Physical infrastructure: ASEAN Highways Network, Singapore- Kunming Rail Links.
2. Institutional connectivity: ASEAN Community building programme, Operationalize all
National Single Windows (NSWs), Develop ICT skill standards;
3. Free movement of ASEAN citizen: Easing visa requirement for ASEAN nationals
However, implementation of the Master Plan remains an issue of concern.
•
Around USD 600 billion are required for infrastructure investments in ASEAN between 2010
to 2020 (power, transport, telecommunication and water and sanitation).
20

21. Infrastructure projects need to attract further
private financing…
ASEAN’s total infrastructure
investment needs, 2010-2020
Sector
Amounts
(US$ billion)
Power
216.3
Transport
159.4
Telecommunications
63.6
Total
596.1
•
•
70% financed by the public sector
10% financed by ODA funds
20% from the private sector
156.8
Water and Sanitation
Sources of financing for projects:
PPP in SEA: Thailand, Indonesia and Philippines have
some PPP experience with mixed success in development
and execution of PPP projects. Future steps: improved
operating environment and institutional capacities.
Source: ADB, ASEAN Secretariat
ASEAN Infrastructure Fund (AIF) has been established in 2012 to finance
critical infrastructure needs in the region.
–
The fund will finance about six projects a year, with a $75 million lending cap
per project. Criteria for investments include their potential to cut poverty, increase
trade and bolster investment.
–
AIFs equity contribution will be funded by ASEAN (69%) and ADB (31%) at the total
amount of USD 485.2 million.
21

22. … to close infrastructure gaps and improve
connectivity in the region and beyond
Missing transport links in the Singapore Kunming
rail link project
Route
Distances (KM)
Lao PDR
(Vientiane – Thakek – Mu Gia)
466
Viet Nam-Lao PDR
(Mu Gia – Tan Ap – Vung Ang)
119
Cambodia
(Poipet – Sisophon)
48
Cambodia- Vient Nam
(Phnom Penh – Loc Ninh)
254
Viet Nam
(Loc Ninh – Ho Chi Minh, )
129
Myanmar-Thailand
(Thanbyuzayat – Three Pagoda Pass)
110
Thailand (Three Pagoda Pass to Nam Tok)
153
Source: Master Plan on ASEAN Connectivity, ASEAN
22

23. OECD instruments to strengthen institutional
capacities for PPP infrastructure investments
Publications:
OECD PPP support on: Project Life Cycle
•
•
Upstream Policy
Assistance
Pre-Tendering
(RFP)
Capacity support to
government on regulatory
frameworks for PPPs
Testing bidder interest
in the project…
End of OECD
Project
Identification
Selecting viable
infrastructure projects
through screening criteria –
‘marketability’
Strengthen institutional
capacities
involvement
OECD Principles for Private Sector
Participation in Infrastructure
OECD Principles for Public
Governance of Public-Private
Partnerships
for infrastructure investment
Pre-Qualification
Advising on conformity with
market needs and
requirements
Project Specification
Pre-Feasibility
Support government in
designing optimal legal,
regulatory and
guarantee-related
framework for the project
Selecting a suitable
procurement method
(through value for money
test )
23

24. 3. Areas for Discussion:
c) Inclusive and Sustainable Growth
24

25. Social and economic conditions improved
strongly in the region but challenges remain
Most Southeast Asian countries made remarkable improvements in living conditions,
measured in the UNDP Human Development Index:
•
Cambodia, Lao PDR and Myanmar had the strongest improvements in the region,
increasing their HDI from 2000-2012 annually by on average 1.7%, 1.5% and 2.2%
respectively.
•
Singapore improved its ranking by 7 positions between 2007 and 2012.
Challenges remain:
•
Further reduce multi-dimensional poverty by improving access and quality of the
educational and health system in several countries.
•
Improve education and job skills in the SEA region. Gains are essential for the six
more advanced ASEAN economies to achieve gains in productivity and thriving
technology-intensive industries.
•
Strengthen inclusive growth to enable all population groups to participate from
economic growth and to reduce inequality in income and opportunity.
•
Foster sustainable development through the protection of the environment and rich
biodiversity.
•
Beside strong economic improvements, a growing middle income population demand
more political inclusion and freedom.
25

26. Human development improved but still
diverges amongst Southeast Asian countries
Human Development Scores 2012
Source : data.undp.org
0.498
0.543
0.543
0.554
0.617
0.629
0.654
0.683
0.69
0.694
0.769
0.855
0.895
0.906
0.909
0.912
0.938
Main findings in ASEAN:
• Singapore and Brunei score well on human development.
• Myanmar, Lao and Cambodia face comparably far lower level of human
development.
• Most other countries are close to the world average.
Population in multidimensional poverty
Country Percentage
Cambodia
45.9
Indonesia
20.8
Laos
47.2
Philippines
13.4
Thailand
1.6
Viet Nam
4.2
Source : data.undp.org
Findings:
• Large multidimensional poverty in
several ASEAN
countries.
• Further work required
to improve health,
education and
standard of living.
26

27. SEA countries participating in PISA display
differences in educational performances…
OECD Programme for International Student Assessment (PISA)
PISA score in Asia (2013)
700
Main findings in ASEAN:
• Singapore ranks second and belongs to
the five highest-performing countries
in the three fields.
600
500
400
• Vietnam scores above the OECD
average in the three fields.
300
200
• Thailand, Malaysia and Indonesia
score below the OECD average.
100
0
• Results improved compared to the
2009 PISA scores in most ASEAN
countries.
Mathematics
Reading
Science
Source: OECD
Background: Education and skills are essential for
innovation and competitiveness.
PISA assesses the extent to which 15-year-old students have
acquired key knowledge and skills for full participation in
modern societies.
• In Malaysia, the score for ‘Reading’
and ‘Science’ decreased. Indonesia
received a lower score in ‘Science’.
27

28. Southeast Asia continues to face environmental
challenges
Environmental
Performance Index
Country (128 total)
Strongest Performer
Switzerland
Norway
Rank
1
3
Strong performer
Malaysia
Brunei Darussalam
Thailand
Philippines
25
26
34
42
Modest performer
Singapore
Cambodia
Myanmar
Indonesia
Viet Nam
52
59
69
74
79
Source: WEF GCR and Yale Univeristy
Background: The Environmental Performance Index (EPI) includes
facets of environmental public health and ecosystem vitality in the
countries. Thus, EPIs enable governments to measure their distance to
established environmental policies.
Findings:
Modest performer
• High developed Singapore only rank 52 out of 128 countries.
• All included lower developed countries Cambodia, Myanmar and
Viet Nam.
ASEAN:
• Southeast Asia contains one of the richest and most diverse natural
environments in the world, namely Indonesia, Malaysia and the
Philippines.
•
Economic development have been accompanied by damage of the
environment (overpopulation, health degradation, encroachment on
natural systems, air and water pollution).
•
Environmental challenges encompass:
Deforestation rates are particularly high in the tropical regions of
Southeast Asia. Further challenges are: limited safe water supplies;
air pollution and overfishing.
28

29. OECD products to support Inclusive and
Sustainable Growth
SME Policy Index
ASEAN 2013
Jointly conducted by OECD and ERIA*
Dimensions covered:
1.
Institutional framework
2.
Access to support services
3.
Cheaper, faster start-up and better
regulation for SMEs
4.
Access to finance
5.
Technology and technology transfer
6.
International market expansion
7.
Promotion of entrepreneurial
education
8.
More effective representation of
SMEs interests
Note: ERIA - Economic Research Institute for ASEAN and East Asia
Southeast Asian Economic Outlook with
Perspectives on China and India
• Assessment of medium-term
macroeconomic trends and projections.
Country-specific structural policy notes
and a thematic focus.
• In 2014, policy priorities for growing
beyond “middle-income trap” in
Emerging Asia
OECD Guidelines for Multinational Enterprises
• Guidelines for responsible
business conduct to promote
contributions by enterprises to
economic, environmental and
social progress worldwide.
• The only multilaterally agreed
and comprehensive standards.
•42 OECD and non-OECD adhering
countries.
29

30. OECD SME Policy Index findings:
Institutional Framework
Institutional Framework
6
Institutional Framework
5
Institutional Framework
4
3
SME definition
2
Intra-governmental coordination in
policy formulation
SME development strategy
1
SME policy implementation agency
or equivalent
0
SGP
MYS THA
PHL
IND VNM KHM LAO
Source: OECD
BRN MMR
Facilitation for a transition from
informal to formal (registered) sector
Main findings in ASEAN:
• Singapore performs well across the dimension (5.5)
•
MYS, THA, PHL, IND, VNM have developed a solid institutional framework (average 3.7)
•
In contrast, KHM, LAO, BRN and MMR are still establishing an institutional framework (average 2.3)
•
Policies could be strengthened to facilitate the transition from the informal to the formal sector
30

31. OECD SME Policy Index findings:
Access to Finance
Access to Finance
6
5
Access to finance for SMEs
Legal and regulatory
framework
4
Sound & diversified
financial markets
Cadastre (including land
use right)
1
0
Source: OECD
Credit bureau/registries
Creditor rights
2
Credit guarantee
schemes
Collateral and
provisioning
requirements
3
Factoring
Microfinance facilities
Leasing
Availability of risk
capital
Main findings in ASEAN:
•
Collateral Requirements: Most countries have adopted flexible collateral definitions, except
LAO & BRN. However, high collateral requirements are the norm (>100% loan value).
•
Cadastre exist across the region: Only in the advanced group (THA, MYS & SGP) is land
ownership fully documented
31

32. Summary
•
AEC presents a great opportunity for growth, but
supporting policy mix must be right to achieve inclusive
and sustainable growth.
• Governments, private sector and international
organisations need to work together to make AEC a
success in 2015 and beyond.
• The OECD Southeast Asia Regional Programme
stands ready to support the AEC process as well as
reforms on a country level.
32

33. Annex
1. Revealed Comparative Advantage in ASEAN countries
2. Medium-term policy challenges and responses for human
development in ASEAN
3. Ease of Doing Business and possible policy reforms
4. Investments with private participation
33

34. Revealed Comparative Advantage of ASEAN
countries
Concept: Revealed Comparative Advantage (RCA) calculates the relative advantage or
disadvantage of a country in producing certain goods or services, based on trade flows.
Main export good
Brunei
Petroleum oils, crude
Cambodia
Unused postage, stamps etc
Indonesia
Lao PDR
RCA Share
Second export good
5.62 50.14% Petroleum gases
RCA Share
Third export good
RCA Share
20.8 47.08% Acyclic alcohols
4.61
1.05%
637.4 20.87% Sweaters, pullovers etc
42.9 13.63% Women's suits
55.07
7.83%
Coal; briquettes
13.39 10.16% Petroleum gases
3.36
34.07
6.62%
Gold content
73.14 21.93% Refined copper and copper alloys
44.71 21.55% Electrical energy
Malaysia
Electronic integrated circuits
Myanmar
Petroleum gases
18.58 42.06% Dried legumes
Philippines
Electronic integrated circuits
14.01 39.73% Auto. data processing machines
Singapore
Electronic integrated circuits
Thailand
Auto. data processing machines
3.8
7.84% Electronic integrated circuits
1.72
Vietnam
Petroleum oils, crude
0.7
6.20% Footwear, with leather body
15.81
4.87 13.80% Petroleum oils, refined
6.95 19.71% Petroleum oils, refined
7.60% Palm oil, crude
1.32
5.81% Petroleum gases
230.4 11.91% Wood in the rough
3.44
7.09% Diodes, semiconductor devices etc
4.32 18.91% Auto. data processing machines
4.88% Natural rubber
5.24% Other furniture and parts thereof
64.83 15.90%
2.46
5.57%
97.66
8.46%
6.26
4.84%
2.02
4.17%
22.99
3.68%
9.18
4.05%
Main findings :
•
Low export diversification: Brunei (hydrocarbon products 98%) and Myanmar (Petroleum gases 42%).
•
Limited export diversification: Cambodia, Lao PDR, Philippines, Singapore
•
High export diversification: Indonesia, Malaysia, Thailand, Viet Nam
RCA calculation: Export share of the product of the country divided by the global export share of the product.
34

35. Medium-term policy challenges and responses
for human development in ASEAN
Recommendations from the OECD Southeast Asia Economic Outlook 2014
Country
Field
Policy Focus
Brunei
Human capital development
Improve tertiary education attainment
Cambodia
Agriculture
Improve productivity of agriculture, in particular rice production
Social security reform
Education
Accelerate reform of the pension system to improve transparency
and quality
Widen access to education, in particular for low-income households
Lao PDR
Poverty
Reduce poverty through inclusive growth
Malaysia
Education
Improve the quality of education
Myanmar
Human resource
development
Upgrade education and anticipate future demands for skilled labour
Human capital development
Poverty
Build holistic disaster risk reduction and management capacities to
reduce vulnerability to natural hazards
Create more jobs for sustainable poverty reduction
Education
Strengthen lifelong learning to increase labour market flexibility
Education
Upgrade human capital by improving the national curriculum and
teaching standards
Human capital development
Increase access to education and strengthen TVET to improve the
quality of human capital
Indonesia
Philippines
Singapore
Thailand
Vietnam
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36. Top 3 Priorities for DB
- Enforcing Contracts (161)
Brunei
- Registering Property (116)
Darussalam - Protecting Investors (115)
Cambodia
Indonesia
Lao PDR
Malaysia
Myanmar
- Resolving Insolvency (163)
- Enforcing Contracts (162)
- Dealing with Construction
Permits (161)
- Enforcing Contracts (147)
- Resolving Insolvency (144)
- Paying Taxes (137)
-
-
Resolving Insolvency (189)
Protecting Investors (187)
Getting Credit (159)
Dealing with Construction
Permits (43)
Resolving Insolvency (42)
Paying Taxes (36)
Enforcing Contracts (188)
Protecting Investors (182)
Getting Credit (170)
- Paying Taxes (131)
Philippines - Protecting Investors (128)
- Registering Property (121)
Problematic factors to DB
- Access to financing
- Poor work ethic in national labour force
- Restrictive Labour regulations
- Corruption
- Inefficient government bureaucracy
- Inadequately educated workforces
Ease of Doing Business Rank
In 2013
- Corruption
- Inefficient government bureaucracy
- Inadequate supply of infrastructure
- Inadequately educated workforces
- Access to financing
- Inadequate supply of infrastructure
- Inefficient government bureaucracy
- Corruption
- Poor work ethic in national labour force
- Access to financing
- Policy instability
- Corruption
- Inadequate supply of infrastructure
- Corruption
- Inefficient government bureaucracy
Singapore
- Registering Property (28)
- Enforcing Contracts (12)
- Getting Electricity (6)
- Restrictive Labour regulations
- Inflation
- Insufficient Capacity to innovate
Thailand
- Getting Credit (73)
- Paying Taxes (70)
- Resolving Insolvency (58)
- Corruption
- Government instability/coups
- Policy instability
Viet Nam
- Getting Electricity (156)
- Protecting Investors (157)
- Paying Taxes / Resolving
Insolvency (149)
COUNTRY
ASEAN
Brunei Darussalam
Cambodia
Indonesia
Lao PDR
Malaysia
Myanmar
Philippines
Singapore
Thailand
Viet Nam
Asia Pacific
Australia
China
Hong Kong
India
Japan
Korea, Rep.
New Zealand
RANK
59
137
120
159
6
182
108
1
18
99
11
96
2
134
27
7
3
- Access to financing
- Policy instability
- Inadequately educated workforces
Source: Economy ranking, doingbusiness.org, 2013 and World Economic Forum; Global competitiveness Report 2013
36

37. Investments with private participation
Private financing in infrastructure projects
in 2012 (million US$)
Country
Energy
Telecommunication
Cambodia
1,863.5¹
6.8
Indonesia
288
1,253.2
Lao PDR
501.4
1,250²
Malaysia
4,386.2
798.9
1,177.1
1,113
Thailand
1,580.6
1,169
Vietnam
168.8
N/A
Philippines
Source: World Bank
Note: 1: 2010 Data. 2: 2009 Data
37