Connectivity is a challenge to ASEAN integration – Singaporean minister

By DANESSA O. RIVERA, GMA NewsMay 22, 2014 6:40pm 22 23 0 69 Connectivity is key to equitable development under the ASEAN Economic Community (AEC) starting 2015, a Singaporean official told business and political leaders at the World Economic Forum in Makati City on Thursday. The region should not just focus on forming an single-market because it is only one pillar of the AEC, Josephine Teo, Senior Minister of State at the Ministry of Finance and Transport in Singapore, said during the discussions on "Connect on Trade: Lifting Barriers to Growth." To have equitable development across the region and to be competitive globally, "you need connectivity," which remains a challenge, she said. "We need connectivity to make sure there is free flow of goods and services, equitable development, and increased competitiveness," she said. By 2015, the AEC sets in motion the creation of single market for the 10-nation bloc which include Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam. Air, cyrber, land connectivity ASEAN connectivity has three key areas: air, cyber space, and land and rail. Air travel is expected to grow significantly in the region due to a growing middle class, Teo said. "The demand for air travel in our part of the world will grow tremendously, because the growing middle class will exceed North America and Europe combined," she noted. The International Air Transport Association (IATA) expects air passengers to grow by 800 million this year, of which half would originate from the ASEAN region. The ASEAN open skies policy can be patterned after the European single aviation market, Teo said, noting the region can expect a multi-fold increase in number of flights, including direct city links, as well as reduced cost in air transport for passengers and freight. A challenge to regional connectivity is the capacity of airports. "There's a lot of need and opportunity to invest in airport capacity," Teo said. To unleash the full growth capacity of the region, the AEC should also sign air transport agreements with other big economies. Teo said the region currently has an air transport agreement with China and in the works are Japan, Korea and India. – VS, GMA News