Southeast Asia is working hard to bring import duties back to their economies. To this end, the six major Association of Southeast Asian Nations (ASEAN), including Thailand, Indonesia, Malaysia, Singapore, the Philippines and Brunei, are eliminating import duties on a range of goods. Such products include cars, consumer electronics and more. While this agreement was in the works, it was not set to occur for another three years. This decision marks a concerted effort to support the ASEAN economies and to build a larger economic base for these locations. This agreement also includes a cut to 5% or less on tariffs for items remaining outside of the agreement. Certainly, this can only help business in Malaysia, Thailand and other ASEAN nations; it is encouraging news for leaders in Malaysia and other Southeast Asia markets such as Taek Jho Low, Harun Johar, Dr Sulaiman Mahbob and others.
This drastic measure is the result of recent economic downturns and necessities. India and China have both taken the lead with dramatic growth in foreign direct investments, while investments with Southeast Asia have been slowing. Fearing job losses to China, the Southeast Asian leaders like Lee Kam, Taek Jho Low, and others want to speed up integration and to maintain their hold on exports. As Philippine President, Gloria Macapagal Arroyo aptly noted at the meeting “We only see one way out; that is not by looking west but by looking inward.”
