ASEAN Micro, Small and Medium Enterprises Toward AEC 2015

By the end of 2015 or the first day of January 2016 the Association of Southeast Asian Nations or ASEAN is going to implement an ASEAN single market and production base comprises five core elements: the free flows of goods, services, investment, capital and skilled labor, known as the ASEAN Economic Community (AEC) 2015. All existing tariffs on exports and imports and also domestic regulations which restricted skilled workers in one member state to work in other member states within ASEAN will be eliminated. All non-tariff barriers will also be gradually phased out. ASEAN investors will be free to invest in all economic sectors throughout the region. All existing trade and customs requirements will be simplified, harmonized and standardized, which are expected to reduce transaction costs significantly. The AEC 2015 will then boost the development of production networks, foster the regional integration of priority sectors and allow for the free movement of business persons, professionals, skilled labor and talents. Recent debates among policy-makers and researchers on micro, small and medium enterprises (MSMEs) in ASEAN have been focused on the ability of MSMEs to survive.