LOGISYM MAGAZINE JULY 2018 | WINDOW OF HOPE TOWARDS ASEAN ECONOMIC INTEGRATION 35

Window of Hope
Towards ASEAN
Economic Integration
Conceived in 2003, the ASEAN Single Window (ASW) is a digital
platform that connects traders and government agencies. This
platform enables an electronic exchange of border documents,
thereby simplifying customs clearance and expediating cargo
clearance. Once the ASW is in place, goods can move seamlessly
within ASEAN. To realise this ambitious initiative, ASEAN would
have to adopt an approach that combines practicality with
political willpower.
 36 LOGISYM MAGAZINE JULY 2018 | WINDOW OF HOPE TOWARDS ASEAN ECONOMIC INTEGRATION
Benefits of ASW for Businesses
• Streamlined process of transporting
goods within ASEAN
• Paperless clearance at customs,
leading to efficiency and predictability
of supply chains
• Real-time updates in government-
to-government, government-to-
business or business-to-business
communications help to minimise
disruption in supply chains
• Easier for industries to comply with
government regulations
• Reduced cost of doing business - One-
time submission of digital documents
can help traders avoid duplicative
administrative processes and re-use
data like export declaration easily
Current State of ASW
Despite these benefits, the progress
of implementing the ASW has
been sluggish in the last 15 years.
Operations only went ‘live’ in five
member states - Indonesia, Malaysia,
Singapore, Thailand and Vietnam.
Within these five countries, traders
can electronically file the certificate of
origin, also known as Form D.
Nevertheless, this is only a superficial
achievement in the broader scheme
of things. Other customs permits
continue to be submitted manually.
Digitalization currently constitutes
just a small fraction of the clearance
process. Consequently, traders are
disincentivized to use Form D because
they would face the inconvenience of
alternating between automated and
manual procedures.
While ASEAN-5 makes a slight
headway with the ASW, the remaining
five member states are still in the
early stages of implementation. These
countries are either in the midst of
testing the ASW Gateway software
or preparing their National Trade
Platforms (NTPs).
With the ASW, cargo should ideally be
cleared at an ASEAN member state’s
port within a few hours. The current
dwell time in most ASEAN member
states is unacceptably lengthy. For
instance, the clearance process in
Indonesia takes more than three days.
Therefore, the ASW would undeniably
boost the competitiveness of shipping
in the region.
ASW Supported by NTP
One feasible way to implement
the ASW is to set up a single digital
interface that connects all member
states’ NTPs. The NTP is a digital
interface that connects the trading
community and relevant government
agencies involved in the trade process.
An example of a successful NTP is the
Automated Commercial Environment
(ACE) Single Window in the United
States. ACE has partnered with more
It is however the nurturing
process, composed of many
experiences, exposures and
direct involvement that
really count. It is this journey
that produces leaders - with
confidence, with a balanced
expression and engaging
in whatever challenge they
undertake.
than 47 government agencies and
automated 269 forms required for
imports and exports. The digital
platform has enabled near real-time
decision making by the relevant
government agencies. As a result, the
waiting time at land border stations
for trucks has been reduced by 44%.
Public-private Cooperation
Private sector involvement is integral
to ensure Trade Platform and Single
Window usability. Businesses should
be able to conduct electronic
communications with government
agencies effortlessly. Hence, the
digital interface should connect with
private sectors stakeholders in their
preferred formats.
Application Programming Interface (a
software intermediary that connects
different applications and bridges
communications between these
applications) is a useful tool to forge
interoperability between different
 LOGISYM MAGAZINE JULY 2018 | WINDOW OF HOPE TOWARDS ASEAN ECONOMIC INTEGRATION
Private
Government
Sector
National Trade Platform1
ASEAN Single Window
USA’s Automated Commercial
Environment (ACE) Single
Window
Figure 1: Example of Interlinked Single Windows in Global Trade
stakeholders in the trade community.
Digital service providers in the private
sector can supply cutting-edge
technology to create a technology
platform that integrates information
between all NTPs and the ASW.
While it is fashionable to embrace
trendy technology like blockchain,
policymakers should first adopt an
operating system that is user-friendly
to the trade community. Existing
software systems like EDIFACT and
SAP are suffice to meet the demands
of a functional regional window.
Furthermore, these applications are
scalable, which would accommodate
more NTPs as the network grows.
Establishing a functional NTP is akin
to laying the foundation of a regional
single window. Given the differing
technology and documentation
standards across ASEAN, it would be
unrealistic to expect all member states
to adopt one common system. Hence,
policymakers should strive towards
devising interoperability between
individual NTPs.
Interoperable trade platforms can also
Private
Government
Sector
National Trade Platform2
serve as the gateway to a regional and
global trade ecosystem, illustrated by
Figure 1. (see image above)
Differing Stances on
Localisation
A digitalized ASW hinges on the flow
of data. In order to connect individual
NSWs to the ASW, policymakers
need to formulate benchmarks for
regulating data protection. Data
localization laws are currently present
in Malaysia, Brunei, Indonesia and
Vietnam. Localisation laws are often
enacted as a blanket approach to
protecting citizens’ privacy and
national security, where a breach of
citizens’ privacy is deemed as a threat
to national security.
On the other hand, countries like
Singapore are in favour of eliminating
barriers to data flow. Given the
diverse positions on data localization,
reaching a consensus on this issue
would inevitably be a daunting
obstacle. Member states would first
need to agree on which type of
personal information is necessary for
national security and must remain
37
within national borders. Then common
standards of data protection in the
private and public sectors need to be
set to ensure a secured cross-border
transfer of data.
Crafting a general framework on
data flow would pave the way for
the ASW to interface with a wider
range of intermediaries in the supply
chain, and hopefully other single
windows. In this regard, the ASW has
the potential to be the building block
of a common global platform called
Digital Standards for Trade (DST).
Political Will Needed to Open the
Window
Data location is just one issue that
would put “the ASEAN way” to the
test in the ASW project. Decision-
making based on consensus has
served the region well. However,
Data the search for unanimity may slow
down the effectiveness of realizing
the ASW. Furthermore, capitalising
on opportunities in the digital age
requires agile governance and
regulations.
To speed up the decision-making
process, members participating in
this initiative can consider adopting
the EU’s model of Qualified Majority
voting, where the weightage of votes
is proportional to a member state’s
population size. Although modifying
“the ASEAN way” is unlikely in the near
future, member states should at least
set realistic but aggressive timelines
for implementing the ASW. More
importantly, member states should
be resolute in adhering to the agreed
deadlines. A practical work plan needs
to be matched with an appropriate
dedication of human and financial
resources.
With the persistence of the status-quo
in decision-making, the best hope for
 38 LOGISYM MAGAZINE JULY 2018 | WINDOW OF HOPE TOWARDS ASEAN ECONOMIC INTEGRATION
the ASW to become fully-fledged lies
in the political will of member states’
leaders. The prevalence of graft is
likely to impede political support
for the ASW. Automating border
clearance would demand increased
transparency in conducting intra-
regional trade, limiting the avenues of
corrupt practices. Cracking down on
rampant corruption is undoubtedly a
tall, but necessary, order for ASEAN to
achieve greater economic integration
and growth.
Thankfully, ASEAN has seen its fair
share of effective, albeit heavy-handed,
leaders who have exemplified the
adage of “when there’s a will, there’s
a way”. Singapore owes its cleanliness
reputation to the draconian laws on
littering devised by founding father
Lee Kwan Yew. In recent memory,
the Philippines President Duterte’s
controversial war on drugs and crimes
(including corruption) has been
hailed by the masses as a success for
improving their standards of living.
If policymakers can muster a similar
level of political commitment as these
strong-willed leaders to implement
the ASW, there will be hope that the
next phase of implementation will not
take another 15 years.
How Other Stakeholders Can Push
For ASW
There is, unfortunately, no ‘stick’
to compel member states to meet
deadlines. Nonetheless, the trade
community in each member state
can pressurise trade policymakers to
pull their weight in the ASW project.
The reduced red tape in cross-border
trade, especially eradicating the
submission of repetitive information,
will be extra beneficial to small and
medium enterprises (SMEs). Since
SMEs account for more than 95% of
business establishments in ASEAN1,
the immense opportunities brought
about by the ASW makes it a cause
worth fighting for.
The U.S. can also provide a ‘carrot’ to
incentivise member states to put the
ASW into effect. USAID, the foreign
aid arm of U.S. foreign policy, has
been funding the ASW since 2008. As
ASEAN is the fourth-largest market for
U.S. exports2, the U.S. stands to gain
from the success of the ASW. Once
the ASW becomes fully functional, US-
ASEAN trade relations can be further
elevated by connecting the ASW to
the U.S. Single Window.
To expediate the ASW implementation,
the U.S. can consider using free-trade-
agreement (FTA) with member states
who have joined the ASW as positive
inducement. Singapore is currently
the only ASEAN country that enjoys
an FTA with the U.S. Since the U.S.
has withdrawn from the Trans-Pacific
Partnership Agreement, most ASEAN
countries do not have preferential
Dr Raymon Krishnan
Secretary - General
Asia Business Trade Association
(ABTA)
Dr Raymon Krishnan is the foremost
thought leader on Supply Chain
Management in the region and
currently works as Director of
Corporate Advisory at the Asian
Trade Centre where he works with
clients on supply chain diagnosis,
supply chain and business strategy
and network design. Raymon
currently also serves as President
of the Logistics & Supply Chain
Management Society and Secretary-
General of the Asia Business Trade
Association.
access to the U.S. market. Hence,
enticing ASEAN member states with
additional rewards should help the
U.S. reap the fruits of its investment in
the ASW.
Towards Greater Economic Integration
Given that ‘a chain is only as strong as
its weakest link’, the success of the ASW
is dependent on the quality of NTP of
each member state. The ASW has only
experienced incremental progress
thus far. Member states should take
advantage of digitalization and be
relentless in accelerating the progress
of the ASW. The grit needed to
underpin the ASW will be worthwhile
as success of this milestone will bring
the region closer to the coveted goal
of establishing a common market.
1
http://www.aseansme.org/aboutus
2
https://www.usasean.org/why-asean/trade-
and-investment
Joyce Li
Research Analyst
Asian Trade Centre
(ATC)
Joyce Li is a sophomore at Yale-
NUS College, majoring in Global
Affairs, and currently interning at
the Asian Trade Centre as a Research
Analyst. Outside of the classroom,
she heads the Yale-NUS Southeast
Asian Society, where she shares her
fascination with the region’s diversity
and complexity with her peers. She
also fosters an interest in the Middle
East and North African region.
After starting her Arabic journey
in Morocco last year, she is further
deepening her understanding of the
Arab world in Oman and Qatar for
the rest of the year.