• ASEANFOCUS is a bimonthly publication providing concise analyses and perspectives on ASEAN matters • ISSUE 2/2016 ⓹ FEB / MAR 2016

ISSN: 2424-8045 ASEANFocus ASEANFocus is published by the ASEAN Studies Centre at ISEAS-Yusof Ishak Institute and available electronically at www.iseas.edu.sg

EDITORIAL CHAIRMAN Tan Chin Tiong MANAGING EDITORS Ooi Kee Beng Tang Siew Mun PRODUCTION EDITOR Contents Termsak Chalermpalanupap ASSISTANT PRODUCTION EDITOR 1 EDITORIAL NOTES Jason Salim EDITORIAL COMMITTEE 2 TURNING VISION INTO REALITY Moe Thuzar Laos’ ASEAN Chairmanship in 2016 Sanchita Basu Das Pham Thi Phuong Thao Nur Aziemah Aziz 4 AN ENDURING FRIENDSHIP ASEAN and the United States 6 THE FUTURE OF ASEAN-US RELATIONS 8 WHAT FLIES AHEAD ASEAN Single Aviation Market INSIDER VIEWS 10 Tan Sri Tony Fernandes 11 Sentot Mujiono PEOPLE AND PLACES 12 Pia Wurtzbach 13 Kampong Ayer 14 ASEANINFO ASEAN Ministerial Meeting on Drug Matters ISEAS-Yusof Ishak Institute is not responsible for 16 ASEAN IN FIGURES facts presented and views Tourism in ASEAN expressed. Responsibility rests exclusively with the individual author(s). No part of this publication may be reproduced in any form without permission. Comments are welcome and may be sent to the author(s). Copyright is held by the author(s) of each article.

ISEAS-Yusof Ishak Institute 30 Heng Mui Keng Terrace Pasir Panjang Singapore 119614 Tel: (65) 6870 4509 Fax: (65) 6778 1735 ASEANFocus • Editorial Notes •

researchers Dr. Tang Siew Mun and Dr. Tham Siew Yean’s assessments of the Sunnylands Summit and its impact on the future of ASEAN-US relations.

The ASEAN-US Summit was the first major ASEAN meeting under the chairmanship of Laos, which now holds the formal leadership of ASEAN for only the second time since it joined ASEAN in 1997. Laos will have the task of building on the achievements of ’s term as chair last year, and lead the charge on implementing the many initiatives put in place in the 2025 Blueprints. We are privileged to have Ambassador Yong Chanthalangsy, the Director-General of the Lao Institute of Foreign Affairs, outline Laos’ priorities as ASEAN Chair in 2016 as well as its vision for the year ahead.

One of the most tangible aspects of this newly-forged ASEAN Community is the ASEAN Single Aviation Market (ASAM). The proliferation of air travel across the region, capable of not only carrying goods for trade but also of bringing people together to understand and appreciate the rich cultural diversity within the ASEAN Community, is a strong indicator of a more integrated and connected ASEAN. Dr. Alan Khee-Jin Tan of the National University of Singapore shares with us the prospects of “open skies” in ASEAN in his article on ASAM, and two leading figures in the world of aviation in the region, Tan Sri Tony Fernandes of Air Asia and Mr. Sentot Mujiono of Garuda , provide us with insights into and recommendations for ASAM in our Insider Views segment.

t was business as usual for ASEAN following the much- In our regular sections, ASEANInfo focuses on the ASEAN anticipated landmark establishment of the ASEAN Ministerial Meeting on Drug Matters (AMMD), ASEAN’s ICommunity on 31 December 2015. February 2016 bore newest ministerial body and a key platform for regional witness to a turning point in the history of ASEAN-US cooperation against narcotics trafficking. People and Places relations as US President Barack Obama hosted ASEAN’s 10 features the 2015 Miss Universe Pia Wurtzbach of the leaders in an informal summit at Sunnylands, California, the , and the charming Kampong Ayer at the heart of same estate in which President Obama had hosted Chinese in Darussalam. We sign off this President Xi Jinping in June 2013. Although the argument issue with statistics on tourism in ASEAN, illuminating this can be made that the essence of the summit lies more in the crucial part of ASEAN’s sustained economic growth and the symbolism than the substance, the summit made clear that potential for more intra-ASEAN connectivity. Washington places a high priority on maintaining solid relations with ASEAN. By holding the summit less than a On 4 March 2016, we received news that Khun Thanat year before his presidency ends, President Obama has made Khoman, former Thai Foreign Minister and the longest- it clear that he intends to entrench the strategic rebalancing surviving signatory of the 1967 ASEAN Declaration, passed to Asia to become one of his administration’s most lasting away at the age of 102. Khun Thanat had been instrumental legacies in US foreign policy. ASEANFocus is honoured to in the creation of ASEAN and the formulation of Thai foreign have prominent Singaporean diplomat and keen observer of policy in the midst of the Vietnam War. The ISEAS-Yusof the United States, Professor Tommy Koh, contribute a piece Ishak Institute and the ASEAN Studies Centre pay homage on ASEAN-US relations in the build-up to the Sunnylands and salute Khun Thanat for his visionary foresight and Summit. Professor Koh’s piece is accompanied by ISEAS lifelong commitment towards ASEAN.

ISSUE 2/2016 | FEBRUARY / MARCH 2016 1 ASEANFocus • Analysis • Turning Vision into Reality for a Dynamic ASEAN Community The Director-General of the Lao Institute of Foreign Affairs outlines Laos’ agenda for its ASEAN Chairmanship in 2016

BY AMBASSADOR YONG CHANTHALANGSY

eing a small developing country heritage. Taken together, these eight and 2005, when it hosted the 10th with less than 7 million in priorities reflect a desire by Laos to ASEAN Summit in Vientiane from Bpopulation and the only land- accord the same level of importance to all 29-30 November 2004. That Summit locked member of ASEAN, narrowing three pillars of the newly-forged ASEAN produced, among other things, the the development gap and promoting Community, and realise a more people- historic Vientiane Action Programme ASEAN connectivity now feature oriented and people-centred ASEAN. (2004-2010), and laid the foundation prominently among the eight priorities for subsequent community-building for the ASEAN Chairmanship of Laos The Ministers agreed that in order in ASEAN. The ASEAN Summit in 2016. to ensure effective implementation which Laos will host in Vientiane this of the ASEAN Community Vision year will be special for Laos: President Dr Thongloun Sisoulith, the Lao 2025, ASEAN will further strengthen Barack Obama has confirmed that he Deputy Prime Minister and Minister of the capacity of ASEAN institutions, will lead the US delegation to Vientiane Foreign Affairs, received strong support streamline ASEAN meetings, and and attend not only the 4th ASEAN- from his ASEAN colleagues when he expedite the secondment of officers US Summit but also the 11th East Asia introduced Laos’ eight priorities for from government agencies in the Summit. If the trip materialises, consideration at the retreat of ASEAN AEC and the ASCC pillars to reinforce President Obama will be the first US Foreign Ministers Meeting (the AMM member governments’ Permanent president in history to visit Laos. Retreat) in Vientiane on 27 February. Missions to ASEAN in Jakarta. A “robust monitoring and reporting It may be somewhat anti-climactic The other six priorities are: system”, in which the ASEAN Secretariat for Laos to chair ASEAN after the implementation of the ASEAN shall work closely with the Committee of adoption of the new 2016-2025 Community Vision 2025; trade Permanent Representatives to ASEAN Roadmap by ASEAN Leaders at the facilitation; small and medium-sized (CPR) in Jakarta, shall also be put in place. 27th ASEAN Summit in Kuala Lumpur enterprise development; tourism last November. In the wake of the development; decent work promotion This is the second time that Laos is formal “establishment” of the ASEAN and transition to formal economy in chairing ASEAN since it joined the Community on the 31 December 2015, ASEAN; and preservation, protection regional organisation in July 1997. It what can Laos do to make ASEAN and promotion of ASEAN cultural first chaired ASEAN between 2004 interesting this year?

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“Translating the good ideas in the ASEAN 2025 blueprints into tangible actions and outcomes presents a far bigger – and more important – challenge.”

Laos is aware of the heavy related summit meetings, notably the Steering Committee, led by Deputy responsibilities and expectations, and ASEAN+1 Summits with , , Prime Minister and Minister of Foreign has as such designated as the theme for the Republic of Korea, , the US, Affairs Thongloun Sisoulith, has its 2016 chairmanship “Turning Vision and the UN; the ASEAN Plus Three carefully planned and mobilised the into Reality for A Dynamic ASEAN Summit; and the EAS. In an effort resources necessary to prepare Laos for Community”. Translating the good to streamline the ASEAN-related the ASEAN Chairmanship. ideas in the ASEAN 2025 blueprints into meetings, the two ASEAN Summits tangible actions and outcomes presents (28th and 29th) will be held back-to-back Maintaining a far bigger – and more important – in Vientiane in September after the 11th ASEAN’s Attractiveness challenge. G-20 Summit in China. Laos is fully aware of the need to continue defending ASEAN’s centrality Another important deliverable for Laos will also have the responsibility and maintaining the organisation’s Laos is to shepherd the conclusion of chairing key ministerial meetings, attractiveness. At the same time, Laos of the drafting of the Third Work including the ASEAN Foreign will also try to be accommodating and Plan of the Initiative for ASEAN Ministers Meeting (AMM, of which avoid offending any friend or partner. Integration (IAI) to further narrow the 49th edition and its related ASEAN has the good reputation of the development gap among ASEAN meetings will be held from 21-26 July being friendly to all and threatening member states, and a Post-2015 Master in Vientiane), the ASEAN Defence none, so it is important that it remains Plan on ASEAN Connectivity, which Ministers Meeting (ADMM, although constructive, positive and neutral. Laos will take into account significant recent there will be no ADMM-Plus meeting will endeavour that all of ASEAN’s developments, such as China’s Belt and planned for 2016), the ASEAN Dialogue Partners support ASEAN’s Road Initiative, and the establishment Economic Ministers Meeting (AEM), neutrality and to avoid turning the of the Asian Infrastructure Investment and the ASEAN Finance Ministers regional organisation into a “rugby Bank (AIIB), which all 10 ASEAN Meeting (AFMM). In addition, Laos sc r u m”. members have joined. Laos is very will also lead other key ASEAN bodies, pleased to take the lead in formulating including the Committee of Permanent Laos considers chairing ASEAN to these two important ASEAN Representatives (CPR), and the ASEAN be both a great honour and a great documents, because narrowing the Intergovernmental Commission on opportunity for it to showcase itself development gap and enhancing Human Rights (AICHR). and its unique cultural heritage to the connectivity are crucial to Laos’ world. Laos is ready to do its part to national development. Undoubtedly, the human resource keep ASEAN a continuing success in requirements for any country, community-building and engagement Nearly 1,000 Meetings particularly Laos, to effectively chair with the rest of the world. ■ One recent estimate shows that there ASEAN are huge. Therefore, as part will be nearly 1,000 ASEAN meetings of the national preparation, about Ambassador Yong Chanthalangsy is this year. This is a far cry from the 400 700 Lao officials have undergone currently Director-General of the Institute ASEAN meetings which were held special training with assistance from of Foreign Affairs of the Ministry of Foreign during Laos’ first time as the ASEAN several countries - notably the US, Affairs of the Lao People’s Democratic Chairman in 2004-2005. Under the New Zealand, and Singapore - and a Republic, and a former Lao Permanent ASEAN Charter, the ASEAN Chairman large pool of Lao officials and ASEAN Representative to the United Nations in for the whole calendar year shall chair veterans have been mobilised to tackle Geneva and host two ASEAN Summits and the formidable workload. The National

ISSUE 2/2016 | FEBRUARY / MARCH 2016 3 ASEANFocus • Analysis • ASEAN and the United States: An Enduring Friendship One of Southeast Asia’s most prominent diplomats share with us his thoughts on ASEAN’s ties with the US in the lead-up to the Sunnylands Summit

BY PROFESSOR TOMMY KOH

n the 15th and 16th of February, Obama made the unprecedented move ASEAN’s fourth largest trading partner. President Barack Obama hosted of institutionalising an annual The ASEAN Economic Community Othe ten Leaders of ASEAN to ASEAN-US Summit, committing the and the recently-concluded Trans an informal ASEAN-US Summit at US President to meet all ten ASEAN Pacific Partnership (TPP) will create Sunnylands, Rancho Mirage, California. Leaders every year. Third, the US more opportunities for ASEAN and The venue is significant because this was was the first non-ASEAN country to US businesses. The result is that trade where President Obama and President appoint an Ambassador to ASEAN. and investment will be boosted. Xi Jinping held their historic informal Fourth, the US has joined the ASEAN- Economically, ASEAN is growing and summit in June 2013. The message led East Asia Summit and has played integrating. It is the world’s seventh is that President Obama attaches as a constructive role in it. Fifth, largest economy and is projected to much importance to ASEAN as he does President Obama visited Myanmar to become the fourth largest in the near to China. encourage all the stakeholders to make future. It is today a larger recipient of a successful transition to democracy. FDI than China. The US has overcome ASEAN’s Friend in Sixth, during the past seven years, the 2008 financial crisis and will once the White House the US has conscientiously sent high- again be a locomotive of the world ASEAN has never had a better friend level representations to the annual economy. in the White House. President Obama East Asia Summit (EAS), as well as the had spent several years of his childhood ASEAN Regional Forum and the EAS US Contributions in Jakarta and is able to speak Bahasa ministerial meetings. to ASEAN’s Development Indonesia. Because of his background, Over the years, the US has also he has a feel for our region and an The ASEAN-US relationship is played an important role in ASEAN’s understanding of its culture. He has comprehensive, substantive, mutually educational, social and cultural made a paradigm shift in US policy beneficial and trouble-free. The development. Many of ASEAN’s leaders towards Southeast Asia and towards relationship is supported by substantial have received their education in the US. ASEAN. economic ties, common values and American foundations and universities visions, and political and security have helped the ASEAN countries to Paradigm Shift on US Policy cooperation. eliminate illiteracy and to educate and First, President Obama overcame train their people. American initiatives the reluctance of previous US Substantial Economic Ties have helped to empower girls and administrations and acceded to the The US is ASEAN’s largest foreign women. Other initiatives have sought to iconic Treaty of Amity and Cooperation investor, with cumulative investments strengthen the rule of law in the ASEAN in Southeast Asia. Second, President of over US$225 billion. The US is countries. President Obama has also

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been personally invested in growing region’s stability and prosperity has maintain friendly ties with China, the people-to-people relationship, as made it a trusted partner for many Japan, India, the EU and others. ASEAN seen through his personal involvement ASEAN states. does not wish to take sides in the in the Young Southeast Asian Leaders disputes among the major powers or Initiative (YSEALI). Strategic Partnership in their competition for influence. By When ASEAN and US Leaders met in being neutral, independent and trusted, ASEAN and the US are cooperating Kuala Lumpur in November 2015, they ASEAN is able to play the role of the extensively in the realm of non- decided to elevate their relationship region’s convenor and facilitator. traditional security, such as counter- to a strategic level. They recognised terrorism, cyber-crime, human- that the ASEAN-US partnership has Conclusion trafficking, the smuggling of drugs, played a key role in contributing to the I hope that the ASEAN-US Leaders’ emergency preparedness, etc. Both stability and prosperity of the Asia- Summit in Sunnylands offered an sides are also exploring new areas of Pacific region. Both sides will have to opportunity for the Leaders to go cooperation, such as climate change, invest energy and resources to nurture beyond their scripted remarks and have innovation and information and and grow the relationship. The summit a heart-to-heart talk on the pressing communications technology. in Sunnylands was an opportunity to issues of the region and the world. I chart the future direction of ASEAN- also hope that the informal summit will Common Values and Vision US relations. While the elevation of consolidate the achievements of the past ASEAN and the US share certain relations marks an important milestone seven years and institutionalise them in important values and objectives. They in the ASEAN-US relationship, the a way which will endure no matter who share the common objective to promote more meaningful task ahead lies in will be elected as the new President of peace and stability in the region. They realising the Strategic Partnership the US in November. ■ have both benefited from the current in tangible ways that will benefit rules-based regional and international the peoples of both sides. ASEAN Professor Tommy Koh is Ambassador- order and seek to uphold it. They welcomes the continued engagement of at-Large at the Ministry of Foreign Affairs, believe that when disputes arise they our region by the US. We hope that this Singapore, and Chairman of the Centre for should be settled peacefully and in will be sustained and enhanced beyond International Law, National University of accordance with international law. The the current US administration. Singapore US appreciates the central role which ASEAN plays in regional institutions ASEAN Centrality and supports that role. The US’ positive ASEAN believes that it can be friends track record in contributing to the with the US and, at the same time,

US President Obama and ASEAN Leaders at the Sunnylands Summit Office of the President, Republic of the Philippines of Republic the President, of Office

ISSUE 2/2016 | FEBRUARY / MARCH 2016 5 ASEANFocus • Analysis • Why US should stay engaged with ASEAN BY THAM SIEW YEAN

fter weathering a tumultuous infrastructure. The second pillar seeks economic transition from an export 2015, the Association of South- to support the connectivity, clean base to domestic consumption and Aeast Asian Nations (ASEAN) energy and energy security goals from manufacturing to services as new appears headed into an uncertain 2016 set out by ASEAN, while the third drivers of growth. despite the formal establishment of provides technical support for various the ASEAN Community, including the programmes related to innovation, The US can benefit from deeper ASEAN Economic Community (AEC), science and entrepreneurship. Finally, economic engagement with ASEAN at the end of 2015. Policy Connect seeks to support as well. ASEAN is America’s fourth- ASEAN in creating policies conducive largest trading partner. Two-way The ASEAN Community remains to trade and investment, digitally investments are also growing and the very much a statement of intention enabled innovation, and sustainable US is now the fourth-largest investor rather than a reality. Steep declines and equitable economic growth. in ASEAN. Accelerating economic in commodity prices, falls in most integration within ASEAN will regional currencies against the dollar Closer US-ASEAN Ties offer a growing consumer market and weak global demand, including The geopolitical rationale for the US’ for American companies, driven by weakening demand from China, have deeper economic engagement with the expanding the middle classes of all combined to slow down growth ASEAN can be attributed to the rise Vietnam and Indonesia. in the ASEAN economies. Some of China and the increasingly close countries in the region have grappled economic links between ASEAN and According to the ASEAN Business with internal problems. These include, China, which is currently ASEAN’s Outlook Survey 2015, US companies are among others, economic restructuring largest trading partner outside the upbeat about the region’s potential as a woes for middle-income economies region; Beijing also has a free trade large market, and this is not surprising such as Malaysia, high household debt agreement with ASEAN while the US as almost 60 per cent of ASEAN’s in Malaysia and , Thailand’s does not. population is under 35 years of age. weakening economy under military rule and the emergence of protectionist The US-ASEAN Connect initiative is The choice of the three Connect centres sentiments in Indonesia. probably a calculated move to show in ASEAN — Jakarta, Singapore and that besides contributing to regional — to coordinate US resources The new US-ASEAN Connect initiative security, America has still much more is well suited. The ASEAN Secretariat is announced by United States President to offer Southeast Asia on the economic in Jakarta while Singapore hosts a large Barack Obama at the historic summit development front. number of US companies. Bangkok, with ASEAN leaders in Sunnylands to on the other hand, hosts a few important coordinate US economic engagement in Tellingly, the US has indicated that regional offices for the US government. the region is therefore welcome. as part of the initiative, it will also be conducting a series of workshops It is important for US and ASEAN to ride According to Mr Obama, Washington to help ASEAN members such as on the momentum of the Sunnyland plans to set up a network of three Indonesia, the Philippines and Thailand summit to kick-start the US-ASEAN hubs across South-east Asia — in become members of the Trans-Pacific Connect initiative as soon as possible, Singapore, Jakarta and Bangkok — to Partnership (TPP). starting with more detailed information connect entrepreneurs, investors and on the specific plans and programmes businesses from both sides. Currently, Brunei, Malaysia, Singapore to be implemented. and Vietnam are the only ASEAN While details are still scarce, the members that are parties to the Translating these into concrete actions initiative will focus on four main areas, 12-nation TPP, which does not include will enhance the positive signals of the dubbed Business Connect, Energy China. US’ continued interest in ASEAN. ■ Connect, Innovation Connect and Policy Connect. The first part aims to ASEAN has little to lose and much to Dr. Tham Siew Yean is Senior Fellow at facilitate regional trade and economic gain with greater economic links with ISEAS – Yusof Ishak Institute. This article integration under the AEC framework the US. For one, the ongoing economic was previously published on TODAY, 26 and boost US and ASEAN business recovery in America can serve to February 2016. ties in sectors such as information counterbalance slowing demand from and communications technology and China as it grapples with its own

6 ISSUE 2/2016 | FEBRUARY / MARCH 2016 ASEANFocus • Analysis • Turning the US-ASEAN strategic partnership into a lasting one BY TANG SIEW MUN

hen Mr Barack Obama an overwhelming concentration on the pockets and its strong political will to use hands over the United States larger ASEAN economies. For example, them. Washington will have to look to its Wpresidency to his successor nearly 90 per cent of US foreign direct ally — Japan — to provide ASEAN states on Jan 20 next year, he will leave behind, investment are located in six ASEAN with an alternative source of financing among other achievements, the legacy of member states. Statistics from the and developmental partner. elevating the relationship between the tourism sector showed a similar pattern Association of Southeast Asian Nations of imbalance. Three in every four While the 720-word joint statement at (ASEAN) and the US. No other US American tourists in 2013 opted to visit the recent US-ASEAN Summit did not President in history has attached as much only the Philippines, Singapore, Thailand contain a single mention on China, the importance to ASEAN as Mr Obama has. and Vietnam. shadow of the world’s second-largest economy loomed large. The three However, there are lingering concerns In this context, the newly unveiled US- paragraphs on the South China Sea in the region that America’s rebalancing ASEAN Connect initiative is a positive (SCS) were as much as about the freedom strategy to the region may not survive development and will harness US support of navigation and rule of the law as they beyond the Obama administration. across the business, energy, innovation were about ASEAN’s growing queasiness Washington’s short attention span on and policy domains to bolster ASEAN on China’s muscle-flexing. ASEAN has been a perennial concern. integration. When implementing this But this perception may soon be a thing laudable initiative, the US should give The alleged failure to finger-point China of the past for two reasons. due attention to ensure that Cambodia, in the declaration above all showed a Myanmar, Laos and Vietnam (CMLV) high degree of pragmatism on the part First, ASEAN is no longer at the periphery are not sidelined. The choice of Jakarta, of ASEAN and the US. Calling out China of US national interest. Washington Singapore and Bangkok as Connect will provide nothing more than short-term cannot afford to “deprioritise” ASEAN Centres is a case in point. Adding one of political gratification. Handling the SCS since doing so will cede strategic ground the CMLV capitals to the list will serve issue in a measured manner preserved to China and thereby give Beijing a freer to send the strongest political signal that the strategic and diplomatic space for hand to expand its influence in the region the “newer” ASEAN members are just as ASEAN and the US to continue engaging at the expense of the US. Second, ASEAN important. This is a missed opportunity China. Notwithstanding the rhetoric is an efficient and cost-effective means of that could easily be rectified by adding a on all sides, ASEAN, the US and China engaging Southeast Asia, and cultivating fourth Connect Centre. realise that there is little to gain and all to ASEAN gives Washington leverage and lose if the disputes spiral out of control. policy options in the larger context of Managing China There are clearly more common interests East Asian geopolitics. The incoming US Engaging ASEAN should translate into that unite ASEAN and the US with China President will thus find that engaging meaningful outreach and partnerships than concerns that divide them. ASEAN serves the US national interest. with all 10 ASEAN member states instead of cherry-picking the most But the success of the Sunnylands In the near term, ASEAN’s concerns advantageous partners. In comparison, Summit — and by extension, the vis-a-vis the US revolve less around China’s “shotgun” approach at engaging rebalancing policy — will be short-lived Washington’s strategic endurance the whole of ASEAN has positioned if the ASEAN-US relationship remains and more towards the quality of its China as a key economic partner, and has a personal victory for Mr Obama. His engagement. The US is ASEAN’s fourth- edged ASEAN even closer to the Chinese legacy in elevating ASEAN-US relations largest trade partner, but its growth rate orbit as a result. can only be secured if he succeeds in is the lowest among ASEAN’s top five depersonalising these achievements to trade partners. Statistics compiled by the China is also making substantive institutionalise the strategic partnership. ASEAN Secretariat showed that from inroads into ASEAN by investing in Otherwise, the ASEAN-US relationship 2007-13, US trade with ASEAN grew at infrastructure projects across the region. will again be subjected to the vagaries of the average rate of 3.62 per cent, which It secured a US$6 billion (S$8.41 billion) whoever sits in the White House as well is markedly lower than ASEAN’s other rail project in January this year that will as a Congress perpetually distracted by major trading partners: China (14 per link landlocked Laos with China, and is the noise of domestic politics. ■ cent), EU28 (6.26 per cent), Japan (5.84 per in negotiations with Thailand on a US$14 cent) and (13.4 per cent). billion rail project. Dr. Tang Siew Mun is Head of the ASEAN Studies Centre at ISEAS – Yusof Another distinctive characteristic of Infrastructure financing is one battle that Ishak Institute. This article was previously US engagement in the region features the US cannot win given China’s deep published on TODAY, 3 March 2016.

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What flies ahead? Much still needs to be done to further integrate the region through the ASEAN Single Aviation Market

BY ALAN KHEE-JIN TAN

ir travel is one of the designated priority sectors aircraft in State B and fly them to State C and back (e.g. Thai for regional integration, in line with the ASEAN Airways operating a Singapore-Jakarta-Singapore sector). AEconomic Community (AEC). The ASEAN Single Neither are domestic operations allowed under ASAM – Aviation Market (ASAM) project takes place amidst a boom in thus, Thai Airways cannot operate a Jakarta-Bali sector. All regional airline operations, led by the now-ubiquitous low-cost these restrictions exist to protect the respective markets of carriers (LCCs) such as AirAsia, Lion Air, Jetstar, Tigerair and national airlines. In the European Union, in contrast, all these Cebu Pacific. Now that its declared deadline of 2015 has come restrictions have been abolished, allowing an EU airline and gone, ASAM (and the AEC as well) has seen some progress, to connect any two points within the region without any but is essentially still a “work in progress”. Much remains to be frequency or capacity limitation. done, while work on technical/regulatory integration is still in its early stages. Clearly, ASAM has to be extended beyond 2015 Some Member States Are Still Not Parties to tackle both unfinished and new matters. Despite the relatively modest commitments in the ASEAN agreements (limited to third, fourth and fifth freedom Market Access Barriers relaxations), several member states, namely Indonesia and ASAM relies on three multilateral agreements that provide for Laos, have yet to accept them fully. Hence, while Indonesia and unlimited third, fourth and fifth freedom operations within Laos have opened up their capitals to unlimited operations by the region. State parties to these agreements are obliged to other ASEAN carriers from their respective capitals, access provide for the following operations to become unlimited in into their non-capital cities remain restricted by the relevant frequency, capacity and aircraft type used: bilateral air services agreements (ASAs). Omitting Indonesia's secondary cities leaves a significant gap in the ASEAN “Third freedom” – the right of State A’s designated carriers to liberalisation project, given the country's sprawling size and operate from State A to State B. huge population. Example: Thai Airways (TG) flight from Bangkok to Singapore The Indonesian position can largely be linked to its carriers’ “Fourth freedom” – the corresponding right in the reverse lobbying to keep out other airlines and protect their market direction back to State A. shares. Meanwhile, there is an additional constraint. While Example: The same TG flight returning from Singapore to Bangkok there are now unlimited rights to fly into Jakarta, congestion at Soekarno-Hatta Airport means that other ASEAN carriers “Fifth freedom” – the same right but with an additional right find it difficult to obtain landing and take-off “slots”. ’s to make a stopover in State C to discharge and take on traffic Ninoy Aquino Airport is similarly congested. for profit. Example: TG operation between Bangkok and Singapore but with a The Need for ASEAN Seventh stopover in Kuala Lumpur in both directions to discharge and take Freedom to Counter External Carriers on traffic. Disallowing seventh freedom operations disadvantages the region’s airlines vis-à-vis those from outside. To illustrate, However, the agreements do not provide for “seventh ASEAN has already adopted an Air Transport Agreement freedom” rights. These would allow State A’s airlines to place (ATA) with China which provides for unlimited third and

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“ASAM (and the AEC as well) has seen some progress, but is essentially still work in progress’. Much remains to be done, while work on technical/regulatory integration is still in its early stages. Clearly, ASAM has to be extended beyond 2015 to tackle both unfinished and new matters.”

fourth freedom operations. Thus, a Thai carrier can operate own carriers only if they so wish. For other ASEAN carriers, to all Chinese points, though only from points in Thailand. the community model should be allowed and welcomed. Conversely, a Chinese carrier can connect all points in its own “backyard” (China, a single market) with all points in Infrastructure and Human Capital Constraints ASEAN. This is possible because the Chinese carriers have a LCC operations now account for more than half of all airline unified “backyard” of their own, while the ASEAN carriers capacity (international plus domestic) in ASEAN. Airports have do not. seen passenger traffic and aircraft movements grow robustly on the back of LCC operations. Yet, ASEAN governments have This presents a network imbalance that can only be “cured” generally not made adequate policy changes to accommodate by ASEAN states treating their “backyard” as a true common the spectacular growth of aviation. Major ASEAN airports market. A Thai carrier should be allowed to connect Vietnam, in Jakarta, Manila and Bangkok have now exceeded their Singapore, Indonesia and indeed all of ASEAN with China. intended capacity. This has created increasing congestion, For that to happen, ASEAN member states must grant each insufficient slots and longer delays. Governments must thus other’s carriers seventh freedom rights. pay more attention to airport capacity investments.

Unlike the EU, ASEAN lacks a supranational mechanism There will also be pressure on pilots and maintenance to compel member states to prioritise the regional interest personnel. The industry projects that the Asia-Pacific region over individual national interests. The real challenge is the alone will require 185,000 more pilots and 243,500 maintenance uneven level of development and competitiveness among personnel over the next 20 years. ASEAN will thus benefit member states and their airlines. ASEAN states thus resort from a harmonised crew training, accreditation and licensing to protecting their own carriers, even though there are clear programme. This will allow ASEAN pilots to enjoy hiring benefits in liberalising to promote extra-regional competition mobility across the region. However, this requires mutual and choice. confidence in each member state’s standards. In a region with wide disparities, this would be difficult to achieve. There is also a long-term need for a common external aviation policy that allows for ASEAN to negotiate with other countries Technical Integration and a Common as a bloc. This involves coordinating member states’ positions ASEAN Regulator? to strengthen their collective bargaining position vis-à-vis Technical integration is thus necessary to develop robust bigger trading partners. common standards. ASAM should steer the region to consider a common regulator to oversee technical matters. Notably, Ownership and Control Barriers standards need not be uniform, but harmonised to a sufficient In addition to market access barriers, ownership and control degree to allow cross-border enforcement cooperation in restrictions remain. ASEAN airlines must respect the line with international requirements. Like pilot training traditional “substantial ownership and effective control” standards, aircraft inspections conducted by one member rule. Hence, carriers must be majority-owned (beyond 50%) state according to harmonised rules could be recognised by by their own nationals, with foreign interests restricted to others as adequate. This avoids duplication in checks and minority shares. The ASEAN agreements actually allow enforcement. alternative ownership and control regimes such as the ASEAN “Community Carrier”, in which majority ownership can be Conclusion held by ASEAN nationals taken together (e.g. a Myanmar- ASAM should pursue further liberalising steps beyond registered carrier with 20% Myanmar, 20% Malaysian, 11% 2015, such as continuing to liberalise market access and Vietnamese and 49% Japanese interests). ownership/control rules beyond the status quo; overcoming infrastructural, human capacity and other constraints; However, individual member states retain the right to reject establishing an ASEAN regulator to develop harmonised a Community Carrier that wishes to operate to it, ostensibly standards, and; fostering a united ASEAN negotiating bloc to continue protecting its own airlines. That is why no stand vis-à-vis other countries. ■ Community Carrier has been established to date. One way to lift this barrier is for member states to retain the traditional Dr. Alan Khee-Jin Tan is Professor of Aviation Law at the Faculty “substantial ownership and effective control” rule for their of Law, National University of Singapore

ISSUE 2/2016 | FEBRUARY / MARCH 2016 9 ASEANFocus • Insider Views •

Views from the

SkiesThe ASEAN Single Aviation Market (ASAM) is one of the hallmarks of the ASEAN Economic Community. Its success or failure will be a reflection of the state of ASEAN-wide efforts at further integration and cooperation as outlined in the ASEAN 2025 Agenda. Departing from the usual format for Insider Views, we are proud to feature two thought-provoking insights written exclusively for ASEANFocus by prominent Southeast Asian figures in the aviation industry, Tan Sri Tony Fernandes of AirAsia and Mr. Sentot Mujiono of Garuda Indonesia.

ith the ASEAN Community now in We need to create an independent regional place, air connectivity has become ASEAN aviation regulator to streamline the Weven more crucial. Ours is a region region’s fragmented regulatory landscape and divided by large bodies of water and without enforce harmonised standards. As has been a comprehensive land transportation system – suggested, ASEAN can start with the creation the most convenient way to traverse the region of an ASEAN Joint Aviation Committee, with a is by air. Yet, despite the enormous demand representative from the civil aviation authority Tan Sri Tony for air travel and its key role in providing true of each ASEAN Member State, to oversee the Fernandes connectivity in the region, ASEAN has yet harmonisation of technical matters such as air is Group Chief to make adequate policy changes to support safety compliance and later evolve this committee Executive Officer commercial aviation. into an independent regional regulator. of AirAsia Group, a network of low-cost I would like to highlight some of the changes that We should adopt Mutual Recognition Agreements carriers flying to 100 we need in order to better integrate the region. (MRAs) such as on air crew licensing and destinations in 22 I cannot emphasise enough the importance of training, flight operations, safety programmes, countries. implementing these changes to better connect maintenance programmes and air traffic our communities. management. This would support the single aviation market and allow mobility of aviation We should prioritise the implementation of personnel in the region. Industry studies the ASEAN Single Aviation Market (ASAM), estimate that ASEAN would need some 56,500 including ASEAN Open Skies, following the pilots and close to 60,000 aircraft technicians in timeline provided in the Implementation the next 20 years. Framework of ASAM that was adopted in Phnom Penh in December 2011. All but two of the 10 Last but not least, we have to establish dedicated ASEAN countries have ratified all protocols low-cost carrier terminals (LCCTs) across the governing the ASEAN Open Skies, but barriers – ASEAN region to cater to the unique demands of such as lack of infrastructure and unavailability LCCs and their passengers. LCCs have been fueling of slots – remain. the growth of aviation in the region and now account for a growing market share in intra-ASEAN Liberalising airline ownership and control rules travel from 3.3% in 2001 to almost 60% in 2014. will not only allow for the establishment of ASEAN community carriers and develop strong These changes are feasible and necessary. The regional airlines, but it will also attract more region must now muster the political will to investments into ASEAN’s aviation sector and implement them for the successful integration of enable true ASEAN connectivity. ASEAN, this region that we call home. ■

10 ISSUE 2/2016 | FEBRUARY / MARCH 2016 ASEANFocus • Insider Views •

According to the World Bank, there industry must increase the number of skilled Mr. Sentot were 252 million passengers on all of manpower capable of handling the increased Mujiono is AASEAN’s domestic and international demand and fleet additions, including ground Vice President of air carriers in 2014. Given that ASEAN’s total staff, pilots and air crew. Indonesia's state- population in 2014 was about 600 million, the owned flag carrier high number of air passengers in the ASEAN As part of the “Sky Beyond 2016-2020” plan, Garuda Indonesia, region is a promising indicator of the region’s Garuda Indonesia sees ASEAN as an integral overseeing its economic growth as well as a sign of the huge part of our growth strategy for the next five operations in potential for the airline industry as a means of years. We are looking to connect Indonesia with Brunei, India, Laos, moving people and goods across the region. other ASEAN countries, with Vietnam and the Malaysia, Myanmar, Add this to the astounding figure of 55.8 million Philippines as our immediate priorities. We Philippines, tourist arrivals from outside ASEAN in 2014. are also hoping expand to Cambodia, Laos and Singapore, The growth of the airline industry presents an Myanmar through codeshare programmes with Sri Lanka, Thailand opportunity to foster intra-ASEAN tourism and partner airlines. and Vietnam. to promote ASEAN as an integrated tourism destination for visitors from the rest of the world. We have also unveiled a Wonderful Indonesia Travel Pass which encourages travel beyond Java However, there remains many obstacles to the and Bali to breath-taking destinations such as ASEAN Single Aviation Market. Infrastructure Nias, Derawan and Raja Ampat. Our strategy in remains a key challenge, with many airports the next five years will be to grow our presence in the region (especially the secondary cities) in the region and promote intra-ASEAN travel in lacking the facilities and safety mechanisms line with ASEAN’s sustained economic growth to cope with the accelerated expansion of under the ASEAN Economic Community. ■ regional air travel. Existing traffic rights allow for operations covered by the 3rd, 4th and 5th freedoms, but it remains to be seen whether the crucial 7th and 8th freedoms will be implemented, and how many ASEAN governments will actually implement it. Securing landing slots in major airports at optimal times of the day is becoming increasingly difficult as airlines need to strike a balance between exercising the option to fly to secondary cities to meet the demand whilst maintaining a healthy bottom-line, with or without government subsidies. Lastly, the

ISSUE 2/2016 | FEBRUARY / MARCH 2016 11 ASEANFocus • People • Queen of the World Pia Wurtzbach reigns as the first Miss Universe from Southeast Asia in 27 years

outheast Asia is home to some Miss Universe 2015 Pia returned to the Philippines in January of the world’s most beautiful Pia Wurtzbach 2016 to a rambunctious homecoming, Speople, like Pia Wurtzbach of the complete with a tickertape parade Philippines, the 2015 Miss Universe. through the thoroughfare connecting Manila and Makati cities. She met with Although the 2015 Miss Universe Philippine President Benigno Aquino pageant may long be remembered for III, and was honoured in the chamber the time host Steve Harvey announced of the Philippine Senate, which had the wrong winner, it was a moment of earlier passed a resolution commending pride for the Philippines as one of their Pia’s “positive attitude and strong very own became the third Filipina determination … (as a) great inspiration to (and the fifth Southeast Asian since her countrymen, particularly the youth”. the pageant started in 1952) to win this much-coveted crown. In a speech thanking her supporters, she said that Born in Stuttgart, Germany, to a German “My goal was to bring father and Filipino mother, Pia Alonzo back home the crown, Wurtzbach grew up in Cagayan de Oro in Mindanao. In an interview with the Organisation Miss Universe and finally, we did it! Sun Star newspaper in the Philippines, I say we, because this she revealed that she was called is not my crown, this “Piazilla” in school for her height (she is our crown. This is is now 1.73m tall). She has modelled and acted in television shows since she was for you, this is for the 11 under the name “Pia Romero”, and Philippines.” is presently not only a trained chef but also a frequent contributor to the beauty As for her future plans, Pia might have advice column of the Philippine Daily let on a little hint to Senate President Inquirer, the Philippines’ newspaper of Franklin Drilon, who told the media record. She was a relatively late entrant that she was interested in politics. If she into the highly-competitive Filipino her dream, she took part again in 2014, does, she will follow in the footsteps beauty pageant scene, taking part in her only to stumble at the Q&A segment and of the many Filipino celebrities – in firstBinibining Pilipinas (Miss Philippines) perform worse than the previous year. particular champion boxer Manny pageant in 2013 at the age of 24 and Third time eventually proved the charm Pacquiao – who have thrown their hats placing a respectable 5th position in the for Pia, who emerged victorious in the into the Filipino political arena. In any finals (the top 4 winners of Binibining 2015 Binibining Pilipinas and earned the case, 2016 will be a hectic year for Pia as Pilipinas attend 4 different pageants, much-coveted ticket to the 2015 Miss she embarks on the myriad of activities with the champion participating in Miss Universe pageant in Las Vegas. The rest, and responsibilities awaiting her as the Universe). Never one to easily forsake as they say, is history. reigning Miss Universe. ■

Did You Know? Ms Apasra Hongsakula from Thailand was the first-ever Southeast Asian to win the Miss Universe crown in 1965. Since then, three more have followed: Ms Gloria Diaz from the Philippines in 1969; another Filipina, Ms Margarita Moran-Floirendo in 1973; and Thailand’s Ms Porntip Nakhirunkanok in 1988.

12 ISSUE 2/2016 | FEBRUARY / MARCH 2016 ASEANFocus • Places • Floating through Time Although Brunei may be off Southeast Asian tourism’s beaten track, it is home to one of the largest and most authentic water settlements in the world Wikimedia Commons

f the many waterfront cities in Antonio Pigafetta, Magellan’s scribe. ebbs and flows of time. The sights and Southeast Asia, Bandar Seri Pigafetta described Kampong Ayer as sounds of Kampong Ayer today would OBegawan in Brunei Darussalam a “Venice of the East”, a city “built not be too foreign to Pigafetta if he could is one of the few that manages to entirely in salt water (containing) time-travel back from 500 years ago. blend modernity and the rustic charm twenty five thousand families. The frequently associated with the days houses are structured from wood and In recent years, many Bruneians have of yore. Central to that mix of old and built up from the ground on tall pillars.” opted to forsake life on the water new is Kampong Ayer, a water settlement Over the centuries, Kampong Ayer for much more solid ground in the at the mouth of the Brunei River and has witnessed the massive transformation mainland. The population of Kampong in the heart of Bandar Seri Begawan. of Brunei from its days as a sleepy Ayer has decreased from 24,745 people Kampong Ayer’s 40 villages are built village through British colonial rule in 1991 to 13,162 in 2012, in part due on stilts and are linked to one another to its present days as a modern and to the National Resettlement Scheme by approximately 30 kilometres of independent sultanate, whilst retaining and the Indigenous Resettlement footbridges. Home to 13,162 people (as its simple, old-world charm through the Scheme introduced by the Bruneian of 2012) and connected to the Government. However, even as not-too-distant mainland by “Pigafetta described Kampong mainland-bound resettlement an intricate network of water continues, the Government has taxis, it is not just at the heart Ayer as a Venice of the East’, embarked on an experimental of life in Bandar Seri Begawan a city built entirely in salt project to build modern homes but a rich part of Brunei’s long water (containing) twenty five in an effort to lure people heritage. thousand families. The houses scared of flooding or fire to return to the water village. Song Dynasty records showed are structured from wood and This is perhaps in line with that Kampong Ayer has existed built up from the ground on a national effort to recognise as early as in 960AD, at a time tall pillars.’” the intrinsic cultural value as when Chinese traders plied well as tourism potential of the Nan Hai or the South Seas Kampong Ayer. in junks and Kampong Ayer itself constituted the royal Many academics too have seat of the Brunei kingdom. touted Kampong Ayer as a Even the famous Portuguese possible choice for Brunei’s first navigator Ferdinand Magellan UNESCO World Heritage Site. made a stop at Kampong As Brunei Darussalam lunges Ayer during his famous forward into the 21st century, circumnavigational voyage in perhaps there is a future after 1521. His visit to Kampong Ayer all for this authentic heart of was extensively chronicled by Brunei Darussalam Universiti the city, the soul of Brunei. ■

ISSUE 2/2016 | FEBRUARY / MARCH 2016 13 ASEANFocus • ASEANInfo • ASEAN Secretariat ASEAN ASEAN’s Newest Ministerial Body: ASEAN Ministerial Meeting on Drug Matters (AMMD) AMMD reflects ASEAN member states’ commitment to combating the proliferation of drugs and substance abuse BY TERMSAK CHALERMPALANUPAP

he ASEAN Ministerial Meeting on Drug Matters will ensure high-level political commitment to the fight (AMMD) was approved by the ASEAN Leaders against drugs and provide strategic guidance to the work Tlast November. The body has operated informally of ASOD [the ASEAN Senior Officials Meeting on Drug since 2012 before it was institutionalised as a body under Matters].” the ASEAN Political-Security Community (APSC). Its formal creation represents a revitalised ASEAN effort and The 4th AMMD endorsed ASOD’s proposal to establish a commitment to address the shortcomings of previous effort post-2015 Work Plan on Combating Illicit Drug Production, to achieve Drug-Free ASEAN 2015. Trafficking and Use. Indonesia will host a workshop in 2016 to develop the Work Plan. In a statement released on 29 October 2015 after chairing the 4th AMMD in Langkawi, Malaysia, Deputy Prime Minister The AMMD traces its roots to the ASEAN Special Ministerial and Minister of Home Affairs, Dato’ Seri Dr. Ahmad Zahid Meeting on Drug Matters, held in Bangkok on 30 August Hamidi noted that “the institutionalisation of [the] AMMD 2012. The 2nd AMMD was held in Bandar Seri Begawan

14 ISSUE 2/2016 | FEBRUARY / MARCH 2016 ASEANFocus • ASEANInfo •

Did You Know? At 5,881 metres, Hkakabo Razi, located in Myanmar’s Kachin State, is Southeast Asia’s tallest mountain, nearly 2 kilometres higher than Gunung Kinabalu. With such a high altitude within a subtropical region, this Himalayan giant is home to a diverse array of natural environments, ranging from tropical rainforests around its base to a permanently snow-capped peak.

on 3 September 2013; and the 3rd AMMD in Jakarta on 3 and 64 used illicit drugs in 2013. It noted that the numbers December 2014. of people requiring treatment for their use of cannabis and ATS are increasing; and the prevalence of ATS use in Asia is At the 4th AMMD on 29 October 2015, the meeting shared “relatively high”. their concerns about the following: increased opiate drug production in the Golden Crescent [where Central Asia, The AMMD has been promoting regional and international South Asia, and Western Asia converge around Afghanistan]; efforts in eliminating illegal crop cultivation (opium and the threat of Amphetamine-Type Stimulants (ATS) and cannabis), and in improving access to treatment and diversion of precursors that continue to flow into the ASEAN rehabilitation of drug users to facilitate their reintegration into region; and increased threat of synthetic drugs, particularly society. In addition, the AMMD has also been in the forefront New Psychoactive Substances (NPS), and the challenges of tackling the illicit precursor trafficking and international posed to law enforcement. drug syndicates active in producing and smuggling of ATS and other synthetic drugs. The 4th AMMD also endorsed the ASEAN position statement to be reiterated by every ASEAN Member State’s delegation The AMMD meets every two years, starting in 2016 in which attending the upcoming UN General Assembly Special Singapore has offered to host the th 5 AMMD. The ASEAN Session on the World Drug Problem, to be held at in New York Ministerial Meeting on Drug Matters uses the abbreviation from 19-21 April 2016. The common ASEAN position includes AMMD, instead of AMMDM, because the AMMDM refers to the the following: zero-tolerance against drugs; comprehensive ASEAN Ministerial Meeting on Disaster Management, which and balanced approach towards drugs; and supporting the was created in October 2013 to enhance ASEAN cooperation in role of the UN’s Commission on Narcotic Drugs. disaster management and emergency response. ■

In its World Drug Report 2015, the UN Office on Drugs Dr. Termsak Chalermpalanupap is an ISEAS Fellow and Lead and Crime (UNODC) estimated that a total of “246 million Researcher (Political and Security Affairs), ASEAN Studies Centre people” worldwide, or 1 out of 20 between the ages of 15 at the ISEAS-Yusof Ishak Institute

ISSUE 2/2016 | FEBRUARY / MARCH 2016 15 ASEANFocus • ASEAN in Figures •

Tourism In ASEAN Rich in culture with numerous heritage sites, diverse landscapes and natural beauty, the ASEAN region remains an attractive destination for international tourism.

BY PHAM THI PHUONG THAO

n 2014, tourist arrivals to Southeast ASEAN region were the Soekarno- offering unique, diverse ASEAN Asia exceeded 100 million, an Hatta International Airport in Jakarta, experience, and will be committed Iincrease of 40% from 2010. Intra- Changi International Airport in to responsible, sustainable, inclusive ASEAN travel maintained its position Singapore and Suvarnabhumi Airport and balanced tourism development, as the most important source of tourist in Bangkok which handled 60 million, so as to contribute significantly to the arrivals, making up for 46.8% of total 54 million and 51 million passengers socio-economic well-being of ASEAN international arrivals in 2014. respectively in 2013. people”. In line with the establishment of the ASEAN Community and to The region has also garnered increased At the ASEAN Tourism Ministers’ commemorate the 50th anniversary of interest from markets in Europe and Meeting in January 2016 held in ASEAN in 2017, the “Visit ASEAN@50” Asia. China continues to be the second Manila, the Ministers highlighted campaign was launched to jointly largest source of visitors to the ASEAN the contribution of the tourism sector promote and showcase ASEAN as a region in 2014 (accounting for 12.4%), to the establishment of the ASEAN single tourism destination. followed by the EU (8.8%), Republic of Community and its role in making Korea (4.8%), Japan (4.4%), Australia greater contribution towards the As part of the on-going efforts for ASEAN (4.2%) and the US (3.1%). realisation of ASEAN integration goals. integration and promoting ASEAN as a single tourism destination, the ASEAN According to the Airports Council The ASEAN Tourism Strategic Plan member states have implemented the International annual report, the three 2016-2025 predicts that “by 2025, ASEAN 2006 Framework Agreement for Visa busiest international airports in the will be a quality tourism destination Exemption of ASEAN nationals and

16 ISSUE 2/2016 | FEBRUARY / MARCH 2016 ASEANFocus • ASEAN in Figures •

TOP FIVE COUNTRY SOURCES OF VISITORS TO ASEAN IN 2014 NUMBER OF SHARE TO TOTAL TOURIST YEAR TOURISTS ARRIVALS TO ASEAN (%)

ASEAN 49,223,000 46.8

CHINA 13,059,500 12.4 EUROPEAN UNION 9,275,200 8.8 REPUBLIC OF KOREA 5,018,400 4.8 JAPAN 4,634,200 4.4

THE BUSIEST INTERNATIONAL AIRPORTS IN THE ASEAN REGION

WORLD RANK CITY (AIRPORT) PASSENGERS IN 2013

10 Jakarta, ID (CGK) 60,137,347

13 Singapore, SG (SIN) 53,726,087 17 Bangkok, TH (BKK) 51,363,451 20 Kuala Lumpur, MY (KUL) 47,498,127

TOURIST ARRIVALS IN ASEAN INTRA-ASEAN EXTRA-ASEAN YEAR INTRA-ASEAN EXTRA-ASEAN TOTAL SHARE TO TOTAL SHARE TO TOTAL

2010 35,042,797 38,709,844 73,752,641 47.5 52.5

2011 37,732,932 43,496,090 81,229,022 46.5 53.5

2012 39,845,476 49,379,753 89,225,229 44.7 55.3

2013 46,154,447 56,044,602 102,199,049 45.2 54.8

2014 49,222,951 55,860,818 105,083,769 46.8 53.2 is currently working on the initiative to regional economy. Its ASEAN Pass develop the ASEAN common visa for non- offers passengers the luxury of paying ASEAN nationals. Eight ASEAN member for flights at a fixed rate on more than 148 states have committed to the Open Skies routes across Southeast Asia. Tourism initiative to create a single ASEAN aviation is not just good for the local economies, market, which is expected to increase it also serves to enhance people-to- regional and domestic connectivity, as well people connectivity and promoting as encouraging higher traffic growth and greater understanding amongst Southeast service quality. Asians. ■

The growth of low-cost carriers (LCCs) Pham Thi Phuong Thao is Research Officer, have been a boon for ASEAN tourism by ASEAN Studies Centre at the ISEAS-Yusof making air travel accessible and affordable. Ishak Institute AirAsia’s eponymous tagline, “Everyone Can Fly” accurately surmises the effect Sources: ASEAN Secretariat, Airports LCCs have on the face of air travel and Council International

ISSUE 2/2016 | FEBRUARY / MARCH 2016 17 ASEANFocus is published by the ASEAN Studies Centre at ISEAS-Yusof Ishak Institute

ISEAS-Yusof Ishak Institute 30 Heng Mui Keng Terrace Pasir Panjang Singapore 119614 Tel: (65) 6870 4509 Fax: (65) 6778 1735