| This
is an abstract of one article from The McKinsey Quarterly;
a very important article especially for us who are citizens
of ASEAN countries. Full article can be accessed in this
link. Great article!
Integrating
Southeast Asia's Economy
By
Adam Schwarz and Roland Villinger
Southeast Asia's economies are falling behind. Although it
offers a market of 560 million people, rich natural resources,
and skilled labor, investors increasingly choose to put their
money into the large and integrated Chinese market, where
labor is often cheaper. Efforts to create a common market
under the banner of the Association of Southeast Asian Nations
(ASEAN) haven't halted the fragmentation, so different prices,
tariffs, and regulations still divide the region into a collection
of subscale economies.
The take-away
To restore Southeast Asia's competitiveness, its leaders must
improve the productivity of the region's workers and reduce
costs across the production value chain. Barriers to free
trade should be reduced to create a true single market where
companies and consumers alike can benefit from economies of
scale.
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