GLOBAL TREND IN

BUSINESS – THE
SUPPLY CHAIN
CHAPTER 8
 The Association of Southeast Asian Nations (ASEAN):

Formed on August 8, 1967, by Indonesia, Malaysia, the

Philippines, Singapore, and Thailand.
Expanded its membership to include Brunei, Cambodia,
Laos, Myanmar, and Vietnam.
Faced doubts about its longevity and ability to achieve its
objectives in its early years.
Despite challenges, ASEAN remains the sole regional
organization in Southeast Asia representing the interests of
its ten member-states.
CHALLENGES IN SOUTH ASIA

Indigenous societies in Southeast Asia were

disconnected by geographical barriers, leading to
fragmented development.
Limited international interactions hindered the
formation of formal organizations like ASEAN,
exacerbating regional disparities
 Moreover, in spite of the emphasis of
philosophers on the terms beautiful and ugly,
aesthetics becomes a insignificant issue for
discussion in the description of what appeals
in nature. Just like when appreciating a poem,
it can be described as ironic, moving,
expressive, balanced and harmonious.
Likewise, in characterizing a favorite stretch of
countryside, it can be noted as peaceful, soft,
atmospheric, harsh, and evocative, rather than
beautiful.
 INTRODUCTION OF
ASEAN INTERGRATION
ASEAN leaders recognized the need for
regional integration to bridge these gaps
and promote collective development.
Thus, they established ASEAN Integration
to facilitate economic, political, and
cultural cooperation among member-
states.
 OBJECTIVES OF ASEAN
INTEGRATION
ASEAN Integration seeks to integrate
diverse economies, promote economic
growth, and enhance trade development.
Additionally, it aims to facilitate the freer
movement of goods, services, skilled
labor, and capital across the region.
 FOUR PILLARS OF
ASEAN INTEGRATION
The initiative is built on four pillars:
1.accelerating economic growth,
2. enhancing trade development,
3.facilitating freer movement, and 4.
fostering regional competitiveness.

These pillars form the foundation for

ASEAN Integration's comprehensive
approach to regional cooperation.
 THE ASEAN ECONOMIC
COMMMUNITY
A key aspect of ASEAN Integration is the
establishment of the ASEAN Economic
Community (AEC).
The AEC aims to transform Southeast
Asia into a single market and production
base, fostering competitiveness and
equitable economic development.
 IMPACT OF THE
ASEAN
INTEGRATION TO
THE PHILIPPINES
 Sy-Coson (2014) states on the article titled "ASEAN
Awareness on the Philippines", there is more
awareness now on ASEAN integration. She believes
that awareness will help slowly integrate and
appreciate the synergy of ASEAN integration.

According to an article by Vinayak (2014) titled

"Understanding ASEAN",
Intraregional trade in goods-along with other types of
cross-border flows-is likely to increase with
implementation of the ASEAN Economic
Community integration plan, which aims to allow
the freer movement of goods, services, skilled
labor, and capital.
 Sy-Coson (2014) states on the article titled "ASEAN
Awareness on the Philippines", there is more
awareness now on ASEAN integration. She believes
that awareness will help slowly integrate and
appreciate the synergy of ASEAN integration.

According to an article by Vinayak (2014) titled

"Understanding ASEAN",
Intraregional trade in goods-along with other types of
cross-border flows-is likely to increase with
implementation of the ASEAN Economic
Community integration plan, which aims to allow
the freer movement of goods, services, skilled
labor, and capital.
Based on the journal made by Rattiwan (2014) titled
"Chiang Mai opens Institution to Train Spa and
Massage Therapists for AEC" states that Chiang
Mai province has opened the first Human
Resources Development Institution for the spa and
massage industry in the Northern region in the
hope to develop Thai therapists to international
standards.

Conforming to a published article by Sellier (2016)

titled "The ASEAN Economic Community: The
Force Awakens" states that for an Economic
Integration to succeed, minimum levels of
uniformity in political, economic and cultural
standing among countries are essential
• According to an article by Suwanpradit (2014) titled "Beyond Beauty ASEAN", the
combination of oriental signature ingredients in their products helps promote the
integration of AEC and stands for the truly harmonious unified ASEAN and other
nations correspondingly.
• Based on the article of Chongkittavorn (2014) titled "Challenges of ASEAN Integration
2015" discusses that the ASEAN Integration is bounded of many challenges which
include; poverty, lack of infrastructure improvements and the region's biggest
challenge is to improve its overall competitiveness, to deepen economic integration in
ASEAN there must be an effective monitoring mechanism within the grouping that
follows up on each member's commitment and quality of implementation
• Mendoza (2015) on his article titled "A Change Towards a Better Future" that despite
low awareness and information about the integration, different ASEAN leaders strive
hard to make the public more aware
• Domingo (2013) in his article titled "Low Awareness of 2015 ASEAN Integration"
noted that the Southeast Asian Citizens generally don't know much about or are
uninterested in the regional grouping even as the 2015 threshold for building
anintegrated economic bloc approaches.
• Based on the statement by Rodriguez (2014) on the article titled, "Why Philippines
should Gear Up for ASEAN Integration", stated that the country's economic goals will
be easier to attain if it takes advantage of the ASEAN Integration by 2016.
• According to an article by Domingo (2015) on the article titled, "PH Ready for Full
ASEAN Integration in 2016", stated that the country is in a sweet spot. Philippines
have been experiencing robust economic growth, consistent upward rankings in
competitiveness, and successive credit rating upgrades
• Based on Legaspi (2016) titled, "How can Philippine Business Adapt with the Advent of
the ASEAN Integration", states that the ASEAN Integration will expose local businesses
to global competitiveness wherein other ASEAN countries will enter the Philippines
and exert effort to make its mark there, they may retain or increase their share of the
local market and more for their businesses.
• Based on a published article by Elchico (2015) titled, "PH not Ready for ASEAN
Integration, but Filipinos are-PMAP", reveals that according to the People
Management Association of the Philippines might not be ready for the ASEAN
integration in 2015. But the Filipinos workers are ready because of their
competitiveness; the group said that the Philippines may have a problem due to its
inadequate infrastructure, corruption, inefficient government bureaucracy, tax
regulations and restrictive labor laws.

• Based on an article by Soliven (2014) on the article titled, "PH Preparedness

for ASEAN Integration Doubted", government trade official allayed doubts of business
leaders on the preparedness of the Philippines when ASEAN implements a deeper
economic integration.