The economic integration of countries under the Asean by the end of the year should prove a “credit positive” event for sovereigns in the region even as trade in other markets were seen slowing down, according to analysts at Moody’s Investors Service.
The global credit watcher said that while Asean member-states were “on track” to fulfill their commitments to the integration, other important aspects of the agreement were seen to face delays due to several key developments.
These “important aspects” include the elimination of nontariff barriers, enhanced regional labor mobility and financial integration. These, according to Moody’s, face delayed implementation due to intraregional disparities, lack of institutional capacity and a shift in focus toward domestic political issues.
The Asean Economic Community aims to accelerate economic integration among member-nations through four distinct pillars: a single market and production base, a competitive economic region, equitable economic development and integration with the global economy.
Moody’s said the huge disparities in the region are a risk to AEC implementation, including and most notably the rank of member-countries under the ease of doing business this year—with the 10 countries ranging from rank 1 to as low as 177.
Bianca Cuaresma