Master Plan on ASEAN Connectivity:A Progress Report

Lim Chze CheenAssistant Director and Head of ASEAN Connectivity Division

ASEAN Secretariat

3rd ASEAN Connectivity SymposiumPhnom Penh, Cambodia

7-8 September 2012

Connectivity: A Natural Progression

Establishment of

ASEAN

ASEAN Free Trade Area

(AFTA)

ASEAN Vision 2020

ASEAN Economic

Community Blueprint

Vientiane Action

Programme(VAP)

1967 1992 1997 20031998 2009

Bali Concord II

Roadmap for an ASEAN

Community (2009-2015)

Hanoi Plan of Action (HPA)

2004 20082007

Entry into Force of ASEAN Charter

2010

Master Plan on ASEAN

Connectivity

2011

ASEAN Framework on Equitable

Economic Development

2012

Phnom Penh Agenda

Strategy for ASEAN Community 2015

4Cs

ASEAN Charter

ASEAN Community

ASEAN Connectivity

ASEAN Centrality

Synergy of Opportunities

Physical Connectivity

Institutional Connectivity

People-to-People Connectivity

ASEAN ICT Master

Plan

ASEAN Plan of Action for

Energy Cooperation

ASEAN Strategic

Plan on Transport

Cross-Pillar Coordination

AFAS

Transport FacilitationAgreements

ATIGA

ACIA

ASEAN Tourism Strategic

Plan

MRAs

ASEAN Education Work Plan… … …

ASEAN Matters, Connectivity Matters

• If ASEAN were a single country in 2011, it would be: the world’s 9th largest economy; the 3rd most populous country; the world’s 5th largest trading power (after

the EU, US, China and Germany); among the world’s top 10 in terms of

foreign direct investment (FDI) inflows. • With enhanced connectivity, ASEAN will be

well positioned to take advantage of global developments.

Global Comparison in Infrastructure Coverage, 2008

ItemRoads

(km/1000 persons)

Rails (km/100

0 persons)

Phones(number/

1000 persons)

Electrification

(percentage)

Clean Water

(percentage)

ASEAN 10.51 o.27 3.53 71.69 86.39

Asia 12.83 0.53 3.47 77.71 87.72

OECD 211.67 5.21 13.87 99.80 99.63

Latin America

14.32 2.48 6.11 92.70 91.37

Africa n.a. 0.95 1.42 28.50 58.36Source: ADB

Trade Intensity Indices (2004-2011)

2004 2005 2006 2007 2008 2009 2010 20110

1

2

3

4

5

6

ASEAN, EU and NAFTA Goods Trade Intensity (2004-2011

ASEAN-10EU-27NAFTA

Year

Source: Ahmad Ahsan & Gianni Zanini, 2012

Trade integration within the ASEAN region is already much larger than expected, compared to using intra-ASEAN trade share

Intra-ASEAN Tourist Arrivals Growing as a Proportion of Total

Arrivals, 2000-2011

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 20110

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

70,000,000

80,000,000

90,000,000

15,915,613.0018,220,992.0018,791,460.0016,999,040.0022,307,585.0024,403,222.0025,110,769.0027,335,279.00

30,276,449.0031,693,838.0034,819,958.00

37,807,274.0039,136,421.0041,960,036.0043,762,773.00

38,371,442.00

49,055,299.0052,811,170.00

55,950,996.0062,272,270.00

65,400,908.0065,680,330.00

73,752,641.00

81,229,022.00

International Arrivals to ASEAN (2000-2011)

Intra-ASEAN visitors Total

Year

Millions

Updates on Implementation Arrangements

• Developed modality for coordination that brings together various implementing bodies/agencies at the regional, sub-regional and national levels.

• Developed implementation matrix as a tool to track specific actions to be undertaken by ASEAN collectively or by individual ASEAN Member States.

• Organised public outreach and advocacy activities on MPAC at the regional and national levels.

• The ASEAN Connectivity Coordinating Committee has drawn up concise project information sheets to flesh out details of 15 prioritised projects.

Updates on Implementation Arrangements

• Working on ASEAN Connectivity Plus. ASEAN+1, ASEAN+3 Partnership on

Connectivity, East Asia Summit Declaration on ASEAN Connectivity

• Informal Consultation of ACCC with Dialogue Partners and Development Partners To improve efficiency of connectivity

efforts, to avoid duplication, and to ensure sustainability.

ASEAN Connectivity Progress, 2010-2012

Physical ConnectivityKey Actions Progress

ASEAN Highway Network: Upgrade all “below Class III” sections of AHN into at least “Class III” by 2012

There remains “below Class III” sections on AH15 (Lao PDR), AH1 (Myanmar) and AH2 (Myanmar).

Formulate a regional plan for developing inland waterways in ASEAN by 2012

A project proposal on “development study for the Inland Waterway Improvement project in CLMV countries" is being developed

Physical ConnectivityKey Actions Progress

ASEAN Power Grid: Addressing institutional issues such as harmonising legal and regulatory framework as well as common technical standards for power interconnection by 2012

ASEAN Energy Regulators' Network is being established.

Melaka-Pekan Baru Power Interconnection Project by 2012

Project preparation is being discussed between PLN and TNB. Commercial arrangement for Energy Transfer to be finalised.

ASEAN Connectivity Progress, 2010-2012

ASEAN Connectivity Progress, 2010-2012Institutional Connectivity

Key Actions Progress

ASEAN Framework Agreement on Facilitation of Goods in Transit (AFAFGIT): Sign Protocol 2 (Designation of

Frontier Posts)

Sign Protocol 7 (Customs Transit System)

Sign Protocol 6 (Railway Borders and Interchange Stations)

Consultation between Member States ongoing.

Undergoing domestic processes.

Signed by ASEAN Transport Ministers in 2011.

ASEAN Connectivity Progress, 2010-2012Institutional Connectivity

Key Actions Progress

ASEAN Single Aviation Market (ASAM): Sign the ASEAN Multilateral Agreement on

the Full Liberalisation of Passenger Air Services (MAFLPAS) by 2010 and ratify Protocol 1 by 30 June 2010

Conclude the Air Transport Agreement with China by 2010.

Conclude the Air Transport Agreement with India by 2011.

Formulate ASAM Roadmap

Pending ratification by several Member States.

Signed by ASEAN and China Transport Ministers in 2011.

Draft being discussed.

Implementation Framework of ASAM adopted.

ASEAN Connectivity Progress, 2010-2012Institutional Connectivity

Key Actions ProgressDevelop strategies for an ASEAN Single Shipping Market (ASSM)

Strategy paper for ASSM adopted.

Expedite the liberalisation of the telecommunications services as soon as possible

Being undertaken as part of 8th package of services commitments.

Implement National Single Windows (NSWs)

Member States are at various stages of NSW development. NSW of Singapore is already in operation.

Improve regional – subregional coordination of policies, programmes and projects

Ongoing efforts with a mapping exercise being undertaken.

ASEAN Connectivity Progress, 2010-2012

People-to-People ConnectivityKey Actions Progress

Establish ASEAN Virtual Learning Resource Centre

Consolidation of culture and information as well as media database ongoing.

Encourage the establishment of curricular offerings or education modules on ASEAN

ASEAN curriculum source book disseminated and made available online.

Progressively liberalising visa restrictions

Member States have generally implemented the visa-free facility to ASEAN nationals holding ordinary passports.

ASEAN Connectivity Progress, 2010-2012People-to-People Connectivity

Key Actions ProgressExplore the possibility of establishing ASEAN Immigration Lanes for ASEAN nationals in major international ports of entry in ASEAN

Issue is being discussed by the Directors-General of Immigration Departments and Heads of Consular Affair Divisions of theMinistries of Foreign Affairs (DGICM).

Encourage intra-ASEAN tourism through the concerted development of tourism products

The work plan for tourism products were endorsed by the ASEAN Tourism Ministers in January 2012

Encourage more intra-ASEAN movement of skilled labour through the development of further MRAs

The signed MRAs are being implemented.

Concluding Remarks• Regular involvement of stakeholders to elaborate the

key actions and translate them into viable projects• Effective coordination mechanism is essential:

Synchronise regional, sub-regional and national connectivity project planning and financing with external parties to improve the convergence of purposes and actions of various work plans.

• Needs are numerous, cross-sector, and cross-institutions: prioritisation is essential for optimal use of scarce resources that will deliver quick wins and build momentum.

• Sector reforms that create an enabling policy, legal and regulatory environment for PPP and other form of private sector participation essential.

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