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ECONOMIC RELATIONS WITH ASEAN

Looking at the relationship between Japan and ASEAN in economic terms, we can
see that in the 1980s Japanese enterprises moved vigorously into the ASEAN are. A strong
yen and a weak dollar facilitated this, and the direct investment was a significant factor in
pushing the ASEAN member countries along the path of high economic growth.
However in the 1990s Japan’s presence as a main source of direct investment to
ASEAN lessened, and Japanese investment moved instead towards China. In the same
period, the ASEAN Free Trade Agreement (AFTA) was set up in 1993 to promote
economic growth in the region. With the AFTA in place, ASEAN cut tariffs to 0-5% to
provide trade incentives. However, there are still non-tariff barriers to trade which have not
been removed, such as licensing systems and transport controls. For example, Thai
registered vehicles cannot pass through Malaysia: this means that goods being trucked from
Bangkok to Kuala Lumpur have to be unloaded from Thai trucks and loaded on to
Malaysian ones. Also, the North-South Highway, which runs form Penang to Singapore, is
not being used effectively and times is being wasted. Unless ASEAN dissolves these
inefficient restrictions, it will not become an economic community like the European
Union.
What is the present economic situation within ASEAN? When looking at the results
of economic integration, it is usual to use two indices. These are the rates of trade among
members, and the degree of dependence on trade with outside areas. Neither of these
indices indicates a strong trend at present in ASEAN. AFTA data from 2001 show that
21,4% of ASEAN exports go to another member, and 25% of imports are from another
member. In the European Union (EU), 61,1% of exports are other members, and 636% of
imports are from other members; trade among ASEAN members is clearly much lower than
among EU members. There is also a difference in trade with outside areas: among ASEAN
members 71,2% exports and 62,2% of imports are foreign, where in the EU 25.6% of
exports and 26.7% of imports are foreign. The ASEAN economy still relies on countries
outside the area.
ASEAN’s biggest export market is the United States. When the US economy slows,
the influence on ASEAN is felt at once. This trend resembles that of Japan’s past economic
relationship with the US. From the late 1950s until the early 1970s, Japan relied on its
exports to the US-it was often said when the US sneezed, Japan caought a cold.
There are differences, though, between the Japan of yesterday and the ASEAN of
today. One is that ASEAN’s economic growth may lack an element of continuity. Japan
adapted technology imported from the US to develop its own original, homegrown
technologies, and this was important in producing dramatic economic growth. The ASEAN
nations have a need for this type of technological reform, but at the moment this is not
happening strongly enough, and there is a shortage of skills.
ASEAN will need to remove non-tariff barriers and tackle technological reform if it
is to establish a unified economic community. ASEAN has already established a global
position as a production base for information technology goods, and if it can improve its
business acumen then it could well achieve double digit economic growth.
At the Japan-ASEAN Commemorative Summit in December last year, Japan
announced that it would provide over 1.5 billion dollars over the next three years to support
the development of skills that will aid the process of technological reform. Also, as Japan
aims to establish a firm partnership with ASEAN, it joined the Treaty of Amity and
Cooperation (TAC). Based on the idea of acting together and advancing together, the
economic relationship between Japan and ASEAN will grow even closer.

NAMA : RUSDIANTO
NIM : A9802016
THE SHIP FOR SOUTHEAST ASIAN YOUTH PROGRAM

Report from the Philippines


“I think the experiences I gained meeting local people during my homestays while
participating in the SSEAYP will be of great value to me in the future,” says Wilasluk
Aurtaveekul from Thailand. She feels that participating in the SSAYP has been a positive
and important part of her personal development.
The Nippon Maru Sailed into the Port of Manila on the morning of October 6 last
year with a total of 318 young people from all 10 ASEAN members on board. In the
afternoon they attended a welcome ceremony given by their Philippine hosts at a hotel in
the city. An exchange event was held the following day at the Philippine National
University, where the program participants met local youths to get to know each other and
share information about each other’s national customs and culture.
“I head that public safety in the Philippines was not good, but having come here I
find that the people are really very friendly,” says SSEAYP participant Abd Isa Bin Abd
Rasah form Malaysia. “The city is modern and the young people are very well dressed.
Everyone complains about how clogged the streets are here, but it’s just the same back
home in Kuala Lumpur”.
The participants spent the final day with their homestay hosts. Many went shopping
in the neighborhood, or enjoyed parties with their host families. Chalo Sugono, a
participant from Japan, said she was most impressed by how she felt completely at home
with her host family. “People may perhaps ask me what I am going to do after the SSEAYP
with the experiences and knowledge I have gained deal through participating. But for me,
the real beginning is when the SSEAYP ends. I have learned a great deal through
participating, and I hope to put that to good use when I return to everyday life after the
program”.
On the afternoon of October 9,a throng of host families and Philippine staff
members waved farewell to the Nippon Maru and all her young passengers as they left the
Port of Manila for Yokohama, Japan, the final pert of call.

NAMA : RUSDIANTO
NIM : A9802016

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