THE Asean Single Market is an idea whose time has been slow to come. Created in 1967, the Association of Southeast Asian nations, or Asean, didn't start thinking of economic integration until 1992.
The gaping differences between the bloc's economies then were often named as the main hurdle to economic integration. But three events — rapid globalisation, the Asian financial crisis and the rise of China as an economic powerhouse — pushed the regional bloc into greater integration.
The idea of an Asean Economic Community (AEC) was first mooted in 2003, coming as it did with a few grand schemes to make the bloc a single market: one production base, a highly competitive economic environment, equitable economic development for all and full integration with the global economy.
But in true Asean fashion, this idea had to wait until 2015 when the regional bloc's heads of government signed the AEC Declaration in Kuala Lumpur.
Malaysia's chairmanship of Asean next year is a good time to push the 2015 AEC Blueprint further towards implementation. One year is obviously not enough for Malaysia to push for full economic integration when there is so much more left to be done.
The Asean Single Market has the misfortune of being compared with the European Union Single Market. Viewed this way, the cup of the 2015 AEC Blueprint would be seen as half empty.
But such a view is unfair. Asean isn't the EU in many ways, but two will do. One, the Southeast Asian bloc is an intergovernmental organisation, not a supra governmental organisation like the EU. Let's not forget the European Parliament. That is like having an Asean government.
Two, the EU member countries form a single European land mass, making economic and political integration that much easier. Economics is always easier to do than politics.
To expect the AEC to do the job of a customs union or currency union is to expect the bloc to be what it never intended to be in the first place.
A fairer way of seeing the cup of the Asean Single Market is as half full.
The Asean Single Market has many things going for it. Southeast Asia is home to some of the world's most exciting economies, declares The Economist. Not surprising. Together, the 10 member countries of Asean account for 700 million people, described as "youthful" by the British newspaper. This is missing reality a bit, but we give it a pass. The International Monetary Fund, too, is as excited about Asean's economy as the bloc should be. Who wouldn't be, given an economic growth of almost five per cent for every remaining year of the decade, when most of the world is on an economic saunter. China is a good example of the latter. In IMF's assessment, the world's second largest economy is on the way to an average growth of 3.8 per cent between 2025 and 2030 and to around 2.8 per cent over 2030 to 2040. This is heft for Asean to exploit, especially when it is on track to become the world's fourth largest economy. Further integration across goods, services and labour — the ideal of a single market, really — will enable Asean to grow strong for long.