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Association of Southeast Asian Nations (ASEAN) London International Model United Nations

21st Session | 2020

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London International

Model United Nations 2020

Table of Contents

Introduction to the Association of Southeast Asian

Nations (ASEAN): 7

TOPIC A: Bridging the Development Gap among ASEAN

Member States 11

Definitions 13

Timeline of Events 14

Discussion of the Problem 15

Bloc Positions 20

Conclusion 21

Questions a Resolution should answer: 21

Further Reading 22

Bibliography 23

TOPIC B: Implementing Measures to Tackle Labour

Exploitation and Challenges for Businesses in the ASEAN

Region 26

Timeline of Events 28

Discussion 30

Bloc Positions 36

Conclusion 42

Questions a Resolution should answer: 42

Further Reading 43

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Bibliography - Introduction to the Association of Southeast

Asian Nations: 44

Bibliography – Topic B 45

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Dear Delegates,

It is our greatest pleasure to welcome you to London International Model

United Nations 2020. We hope that this conference will be both an

informative, rewarding, and exciting experience for you.

After 20 years, LIMUN still continues to serve as a forum and simulation

for internationally minded university students from around the world to

discuss and debate the challenges which our common humanity faces.

LIMUN continues to imbue in its participants an understanding of the

principles of collaboration and cooperation.

This year, the ASEAN committee’s topics are ‘Bridging the development

gap among ASEAN member states’ and ‘Implementing measures to tackle

labour exploitation and challenges for businesses in the ASEAN region.’

We expect delegates to propose creative solutions to the two topics at

hand, while staying in line with ASEAN’s core objectives outlined in the

ASEAN Declaration.

This study guide has been designed to provide you with a framework for

your research and highlight areas that we, as Directors would like to see

discussed throughout committee sessions. We strongly encourage you to

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use this guide to help you come up with relevant solutions that you can

bring to the committee. In order to stand out and ensure the most

productive committee session possible, we also recommend you read

from various other sources and come up with creative solutions that we

may not necessarily cover in this guide.

If you have any questions before or during the conference, whether your

question concerns the procedure of the committee or the content of the

topics themselves, please feel free to contact us.

We wish you the best of luck preparing for the committee and are excited

for the fruitful debate that is to come.

Yours truly,

Lina Jeffcock & Francis Acevedo

[email protected]

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Director - Lina Jeffcock

Lina is a second-year History student at the London School of Economics

and hopes to convert to Law upon completing her undergraduate degree.

She is the President of the London School of Economics’ United Nations

Society and loves the unique sense of community that Model United

Nations brings.

Lina has had a somewhat nomadic upbringing moving back and forth from

France, the USA, the UK and Japan. She is a serious foodie and starting a

conversation on the topic of food could have her talking for hours!

Lina looks forward to hearing debate about all the solutions that she has

considered, as well as ones she has not thought of herself. She loves a bit

of creative thinking in committees! As the Director of the ASEAN Regional

Summit, she hopes to ensure a high-quality and memorable learning

experience and is excited to meet all the delegates of her committee.

Assistant Director – Francis Acevedo

Francis Acevedo is a Filipino second-year International Relations student

at the London School of Economics. He is active in the UK MUN circuit and

also is the Chief Design Officer for LSE’s United Nations Society. Francis

grew up mostly in the Philippines but has also lived in Singapore,

providing him great insight into life, culture, and politics in Southeast

Asia. Outside of MUN, he is passionate about discussions on life, the

pursuit of happiness, and the latest trends in aviation.

Francis is passionate about all aspects ASEAN and is interested to see

what perspectives and solutions delegates bring forward during

committee session. He is eager and cannot wait to meet the delegates of

the ASEAN committee!

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Introduction to the

Association of Southeast

Asian Nations (ASEAN):

“One Vision, One Identity, One Community” - ASEAN’s Motto

The Association of Southeast Asian Nations (ASEAN) was formed in 1967

by Indonesia, Malaysia, the Philippines, Singapore, and Thailand to help

promote regional stability through political and economic cooperation.1 Its

creation was arguably driven by a common fear of communism from its

founding members.2 The ASEAN declaration of 1967 is considered to

be its founding document and emphasizes ASEAN’s dedication to key

principles of peace and cooperation. Other aims set out in the ASEAN

declaration include the acceleration of economic growth, social progress,

and cultural development in the region. 3

At the end of the Vietnam War in 1975, the change in the regional

power dynamic strengthened the organisation’s ability to coordinate.

ASEAN’s joint response to Vietnam’s invasion of Cambodia in 1979 is a

key example of this.4 In 1984, Brunei joined ASEAN as its sixth member,

1 Julie Ginsberg, “Background: ASEAN: The Association of Southeast Asian Nations,” The New York Times (The New York Times, February 25, 2009),

https://archive.nytimes.com/www.nytimes.com/cfr/world/slot3_20090225.html)

2 Ibid. 3 “Overview - ASEAN: ONE VISION ONE IDENTITY ONE COMMUNITY,” ASEAN, accessed

November 29, 2019, https://asean.org/asean/about-asean/overview/) 4 “TIMELINE: Key Dates in ASEAN History,” Reuters (Thomson Reuters, November 20,

2007), https://www.reuters.com/article/us-asean-history-timeline-

idUSGOR01167020071120)

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and Vietnam, Laos, Myanmar, and Cambodia joined the association in the

90s. The end of the Cold War brought a period of greater political

independence in the ASEAN region and throughout the 1990s ASEAN’s

influence in the global arena began to grow. On December 15th 1995, the

bloc signed the Southeast Asian Nuclear-Weapon-Free Zone Treaty,

which agreed that Southeast Asia would remain a nuclear weapon free

zone in an effort to promote peace and stability in the region.5 The treaty

became fully ratified and effective in 2001, sending a powerful message

to the rest of the world.6

In 2015, ASEAN formed the ASEAN Economic Community (AEC),

whose purpose is to form a common market similar to that of the

European Union. ASEAN’s 10 members have since had discussions about

creating common standards in agriculture and financial services,

intellectual property rights, and consumer protection.7 Through such

measures the AEC aims to work towards free movement of goods and

services, skilled labour, investment and capital.

On June 23, 2019, the 34th ASEAN Summit was held in Bangkok. During

the conference, ASEAN leaders asked the United States and China to

resolve their trade war and warned the United States of the harm their

protectionist policies would pose on ASEAN states and international trade

more generally. A major point of discussion was China’s influence in the

South China Sea and the way in which this could pose a threat to ASEAN

members’ maritime rights.8

5 “Treaty on the Southeast Asia Nuclear Weapon-Free Zone - ASEAN: ONE VISION ONE IDENTITY ONE COMMUNITY,” ASEAN, accessed November 29, 2019,

https://asean.org/?static_post=treaty-on-the-southeast-asia-nuclear-weapon-free-zone) 6 Ibid.

7 Ginsberg, Background: ASEAN: The Association of Southeast Asian Nations”

8 Ibid.

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Figure 1: ASEAN Heads of States Holding Hands at the 34th ASEAN Summit

STRUCTURE AND FUNCTIONS OF THE ASEAN SUMMIT

As of December 2008, ASEAN principles such as non-interference, the

importance of respecting democracy, the rule of law, and human rights

have been codified in the ASEAN Charter.9 The ASEAN Charter sets out

the mandate and function of different ASEAN bodies and made ASEAN a

legal entity. These bodies include the ASEAN summit, ASEAN Coordinating

9 David Martin Jones, “Security and Democracy: the ASEAN Charter and the Dilemmas of

Regionalism in South-East Asia,” International Affairs 84, no. 4 (2008): pp. 735-737,

https://doi.org/10.1111/j.1468-2346.2008.00735.x)

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Council, and ASEAN Community Councils.10 The ASEAN body delegates at

LIMUN will be simulating is the ASEAN Summit. The ASEAN Summit is the

supreme policy-making body of ASEAN, comprised of the ASEAN Heads of

State or Government.11 The ASEAN Summit meets twice a year, and the

meetings take place over a period of three days. The meetings are hosted

by the member state holding the ASEAN Chairmanship. The Chairmanship

of ASEAN for 2020 is held by Vietnam. ASEAN Summit meetings observe

ASEAN specific terminology, seating arrangements, and resolution

structure.12 However, for the most part, ASEAN protocols are very similar

to traditional UN General Assembly rules of procedure. Thus, the ASEAN

summit at LIMUN will follow the standard LIMUN rules of procedure

concerning procedural and substantive voting.

10 “ASEAN Charter,” Maruah Singapore, June 3, 2008, https://maruah.org/asean-charter/)

11 Ibid.


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TOPIC A: Bridging the

Development Gap among

ASEAN Member States

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Introduction

Undoubtedly, ASEAN has achieved impressive economic growth, and

continues to develop at impressive economic growth rates every year. In

2018, ASEAN’s global GDP growth rate was 5.1% compared to the global

average of 3.6%.13 However, this growth is not without its problems. A

long-term challenge for the member states of ASEAN is posed by the

developmental differences socially, economically, and politically. Even if

economic growth continues in the region, a gap continues to persist

between ASEAN's most developed members and its least; Singapore's

HDI of 0.932 is miles away from Myanmar's 0.578.14 And while ASEAN

has made commitments to attempt to narrow this gap, the gap persists

and the main plan, Initiative for ASEAN Integration (IAI) Work Plan III, is

set to end in 2020.15 The development gap, if unaddressed, could

threaten the process of further integration within the ASEAN Economic

Community. If economic and developmental inequality continues to

persist within the bloc, it presents the danger of dismantling any chance

of cohesion in economic interests. Furthermore, the development gap has

implications for regulatory harmonisation, intra-bloc trade, the possibility

for free movement within the bloc, the region’s prosperity as a whole, and

the reification of the ASEAN way.16 For this committee, delegates should

address this topic by discussing and debating solutions to address the

development gap amongst ASEAN members, and the factors that allow

this developmental gap to persist.

13 ASEAN Secretariat, “ASEAN Economic Integration Brief No. 5,” ASEAN Secretariat,

June 2019, https://asean.org/storage/2019/06/AEIB_5th_Issue_Released.pdf. 14 United Nations Development Programme. Human Development Indices and Indicators:

2018 Statistical Update. (New York: United Nations Development Programme, 2018),

22-25. 15 ASEAN Secretariat, Initiative for ASEAN Integration (IAI): Work Plan III, (Jakarta:

ASEAN Secretariat, 2016), 10. 16 Ludo Cuyvers, “The ‘ASEAN Way’ and ASEAN’s development gap with Cambodia, Laos,

Myanmar and Vietnam: A Critical View,” Asia Pacific Business Review 25, no. 2 (2019),

DOI: 10.1080/13602381.2019.1652980.

https://asean.org/storage/2019/06/AEIB_5th_Issue_Released.pdf

https://doi.org/10.1080/13602381.2019.1652980

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Definitions

ASEAN Economic Community (AEC): Established in 2015, the AEC is

the main framework within which ASEAN economic integration in trade,

freedom of movement, and capital is meant to take place. The AEC,

together, forms the seventh-largest economy in the world.17

Official Development Assistance (ODA): A term first deployed by the

OECD, it refers to any financial aid provided by governments, agencies, or

international institutions to countries in order to promote economic

development.18 Grants and loans are the two main forms of ODA.

The ‘CLMV’ Group: A term to refer to Cambodia, Laos, Myanmar, and

Vietnam. In discussions regarding ASEAN economic development, these

four countries are often grouped together as they are transitioning

between stages of economic development.19

ASEAN-6: A grouping that includes the Philippines, Singapore, Indonesia,

Thailand, Malaysia, and Brunei.20 A comparison of HDI levels reveals that

the states of the ASEAN-6 are considerably more developed than those of

the CLMV group.21

17 Wolfgang Lehmacher, “What you need to know about the ASEAN Economic Community,” World Economic Forum, May 31, 2016,

https://www.weforum.org/agenda/2016/05/asean-economic-community-what-you-need-to-know/.

18 “Official Development Assistance – Definition and Coverage,” OECD, accessed

November 17, 2019, https://www.oecd.org/dac/stats/officialdevelopmentassistancedefinitionandcoverage.htm

19 “Bridging the Development Gap among Members of ASEAN,” ASEAN Secretariat, last

modified July 3, 2012, https://asean.org/?static_post=bridging-the-development-gap-among-members-of-asean.

20 Ibid. 21 United Nations Development Programme. Human Development Indices and Indicators:

2018 Statistical Update. (New York: United Nations Development Programme, 2018),

22-25.

https://www.weforum.org/agenda/2016/05/asean-economic-community-what-you-need-to-know/


https://asean.org/?static_post=bridging-the-development-gap-among-members-of-asean


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Timeline of Events

• 23 July 2001 – Hanoi Declaration on Narrowing the

Development Gap: In 2001, foreign ministers of ASEAN member

states signed the Hanoi Declaration, one of the first agreements

produced specifically on the development gap.22

• 29 July 2002 – IAI Work Plan I: The first work plan was signed

in Brunei at the 35th ASEAN Ministerial Meeting and covered 232

projects during its course.23

• 28 February 2009 – IAI Work Plan II: Following the end of IAI

Work Plan I in 2008, ASEAN member states agreed upon IAI Work

Plan II in 2009. This plan covered 182 projects.24

• 22 November 2015 – Signing of the Declaration of the AEC:

During the 27th ASEAN summit, heads of government signed the

agreement that brought the AEC into existence, a key event in

ASEAN economic integration.25

• 6 September 2016 – Vientiane Declaration on the Adoption

of IAI Work Plan III: Heads of ASEAN member states met in Laos

to jointly adopted the Vientiane Declaration to usher in IAI Work

Plan III, which guides ASEAN’s efforts on the development gap into

the future.26

22 ASEAN Secretariat, “Ha Noi Declaration On Narrowing Development Gap For Closer

ASEAN Integration,” accessed November 17, 2019, https://asean.org/ha-noi-

declaration-on-narrowing-the-development-gap-2001/. 23 ASEAN Secretariat, Initiative for ASEAN Integration, 7.

24 Ibid, 7. 25 “ASEAN Economic Community,” ASEAN Secretariat, accessed November 21, 2019.

https://asean.org/asean-economic-community/.

26 ASEAN Secretariat, Initiative for ASEAN Integration, 3-4.

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• 14 November 2018 – ASEAN-China Strategic Partnership

Vision 2030: ASEAN member states and China made an

agreement for further cooperation at the 21st ASEAN-China Summit

in Singapore, with clauses 7 and 8 making specific mention of the

development gap.27

Discussion of the Problem

The Current Situation

Narrowing and closing the development gap among ASEAN member

states requires policymakers to make multiple considerations. From an

economic development standpoint, ASEAN member states can be divided

into two categories: the ASEAN-6 and the CLMV group.28 The goal of

narrowing the development gap is contingent on the achievement of

convergence among these two groups, utilising untapped economic

growth potential in CLMV countries to achieve ‘catch-up’ growth.29

ASEAN’s official approach to addressing the development gap has, so far,

been mixed. Most effort done by the organization to address the problem

has been within the framework of ASEAN economic integration, with

member states and the ASEAN Secretariat placing the issue within IAI

work plans and AEC blueprints.30 However, despite the best efforts of

member states and the numerous projects supported by these work

plans, there are no strong commitments by ASEAN itself to provide direct

assistance and aid to CLMV countries.31

27 “ASEAN-China Strategic Partnership Vision 2030,” ASEAN Secretariat, last modified

November 14, 2018, https://asean.org/storage/2018/11/ASEAN-China-Strategic-

Partnership-Vision-2030.pdf. 28 Cuyvers, “ASEAN’s development gap.”

29 Moses Abramovitz, "Catching Up, Forging Ahead, and Falling Behind," The Journal of Economic History 46, no. 2 (1986): 385.

30 Cuyvers, “ASEAN’s development gap.”

31 Cuyvers, “ASEAN’s development gap.”

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The ASEAN Development Fund (ADF) is an example of a prior ASEAN

attempt at a solution to narrowing the development gap. The ADF was

established in 1994 by an agreement signed in Bangkok and was funded

by equal contributions from all member states equalling USD 1 million per

year, in addition to any further voluntary contributions or contributions

made by ASEAN dialogue partners.32 The ADF, however, fell out of

relevance primarily because of a lack of professional control and limited

scope in terms of the activities that it was able to undertake.33 This is

especially so because of the minute USD 1 million contribution each state

was required to make to the ADF, leading to a considerably small

development fund.34

The Environment and Human Rights

Plans to pursue development come also with certain complications. Many

development projects both directly and indirectly contribute to a country’s

carbon emissions. Large infrastructural projects can also impact entire

ecosystems and environments. The Xayaburi Dam in Laos, for example,

has dried up parts of the Mekong, affected fish populations, and impacted

the livelihood of villagers who live along the river.35 This serves as an

example of how certain groups like residents, fishermen, and farmers are

typically negatively affected, often because of necessary relocation as a

result of such infrastructural projects.

32 “Terms of Reference of the ASEAN Development Fund,” ASEAN Secretariat, accessed

November 17, 2019, https://www.asean.org/storage/images/archive/ADF-TOR.pdf.

33 Cuyvers, “ASEAN’s development gap.” 34 Ibid.

35 Reuters, “New Mekong dam in Laos opens to protests from villagers in Thailand,” The Japan Times, October 29, 2019, https://www.japantimes.co.jp/news/2019/10/29/asia-

pacific/new-mekong-dam-laos-opens-protests-villagers-thailand/#.XdF5ZTL7TUo.

https://www.japantimes.co.jp/news/2019/10/29/asia-pacific/new-mekong-dam-laos-opens-protests-villagers-thailand/#.XdF5ZTL7TUo

https://www.japantimes.co.jp/news/2019/10/29/asia-pacific/new-mekong-dam-laos-opens-protests-villagers-thailand/#.XdF5ZTL7TUo

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International Involvement

With the various developmental, economic, and infrastructural concerns

among ASEAN member states, various governments have taken interest

in helping fund projects across Southeast Asia. Many ASEAN member

states are currently recipients of ODA from foreign government agencies,

intergovernmental organisations, and international financial institutions.

The funding for these projects come primarily in the form of loans and

grants, with various conditions attached depending on the donor country

or institution.

International institutions, such as the UN, the World Bank, and the

Asian Development Bank (ADB), have played key roles in providing

financial assistance for development projects. In partnership with ASEAN,

the ADB established the ASEAN Infrastructure Fund (AIF) in 2011 to

provide loans to fund infrastructural projects in energy, water, and

transport by using savings in the region.36 World Bank investments in the

region have specifically prioritized the development of human capital, with

36 “ASEAN Infrastructure Fund,” Asian Development Bank, last modified June 18, 2019,

https://www.adb.org/site/funds/funds/asean-infrastructure-fund.

https://www.adb.org/site/funds/funds/asean-infrastructure-fund

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the institution committing USD 3 billion to projects on health and

education.37

Western countries and groups, such as the EU and the US have also

contributed to development projects in Southeast Asia. The EU has

committed over EUR 200 million specifically for ASEAN integration and

has provided a greater sum of EUR 2 billion in bilateral deals; more than

half of this 2 billion goes to CMLV countries.38 The US, traditionally more a

security partner than an economic one, has also acted through USAID to

support the ASEAN Smart Cities Initiative and the US-ASEAN Connect

plan.39

More recently, China has become a key player in providing ODA

bilaterally to ASEAN member states. In total, China has provided close to

USD 230 billion to Southeast Asia.40 The top three recipients being

Indonesia, Vietnam, and Cambodia.41 Even the lowest recipient, the

Philippines, is projected to acquire USD 14 billion from China which would

usurp its traditional top-ODA partner, Japan, which also provides

development loans and grants.42 China is helping fund large projects in

ASEAN member states, such as the 600km-long East Coast Rail Link in

37 Victoria Kwakwa, “Investing in people: ASEAN's key to better development,” World

Bank Blogs, September 16, 2019, https://blogs.worldbank.org/eastasiapacific/investing-people-aseans-key-better-development.

38 EU Mission to ASEAN, EU-ASEAN Blue Book 2019 (Jakarta: European External Action

Service, 2019), 8, https://eeas.europa.eu/sites/eeas/files/eu-asean_blue_book_2019.pdf.

39 Kaewkamol Pitakdumrongkit, “Pence in Southeast Asia: Ways forward for U.S.-ASEAN cooperation on infrastructure development,” Brookings Institute, November 27, 2018,

https://www.brookings.edu/blog/order-from-chaos/2018/11/27/pence-in-southeast-

asia-ways-forward-for-u-s-asean-cooperation-on-infrastructure-development/ 40 Michelle Jamrisko, “China No Match for Japan in Southeast Asia Infrastructure Race,”

Bloomberg, June 23, 2019, https://www.bloomberg.com/news/articles/2019-06-

23/china-no-match-for-japan-in-southeast-asia-infrastructure-race. 41 Jinny Yan, “The BRI in Southeast Asia,” in China's Belt and Road Initiative (BRI) and

Southeast Asia, (Kuala Lumpur: CIMB ASEAN Research Institute, 2018), 8. 42 Jenny Lei Ravelo, “Japan, China battle for ODA influence in the Philippines,” Devex,

November 20, 2018, https://www.devex.com/news/japan-china-battle-for-oda-

influence-in-the-philippines-93868.

https://blogs.worldbank.org/eastasiapacific/investing-people-aseans-key-better-development

https://blogs.worldbank.org/eastasiapacific/investing-people-aseans-key-better-development

https://www.brookings.edu/blog/order-from-chaos/2018/11/27/pence-in-southeast-asia-ways-forward-for-u-s-asean-cooperation-on-infrastructure-development/

https://www.brookings.edu/blog/order-from-chaos/2018/11/27/pence-in-southeast-asia-ways-forward-for-u-s-asean-cooperation-on-infrastructure-development/

https://www.bloomberg.com/news/articles/2019-06-23/china-no-match-for-japan-in-southeast-asia-infrastructure-race

https://www.bloomberg.com/news/articles/2019-06-23/china-no-match-for-japan-in-southeast-asia-infrastructure-race

https://www.devex.com/news/japan-china-battle-for-oda-influence-in-the-philippines-93868


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Malaysia.43 China has heavily invested in some of the CLMV countries as

well. In Cambodia, Laos, and Myanmar, China is effectively the largest

foreign investor in these three economies.44 China’s involvement in

economic development projects has raised the ire of many in Southeast

Asia as they are concerned by the influx of Chinese investment. Non-

administration political figures in the Philippines, for example, have raised

concerns about the lack of transparency in many of these deals and the

potential for debt-trap diplomacy endangering national sovereignty.45

Such opaque deals and agreements coupled with tensions with claimant

countries, especially Vietnam, over territorial disputes in the South China

Sea also threaten China’s ability to pursue BRI projects with Southeast

Asia as a whole.46

Japan, however, continues to be the region’s top ODA investor. Overall,

Japan supports 240 infrastructural development projects throughout the

Southeast Asian region, beating China by 30 projects, worth an estimated

USD 367 billion.47 Many of the Japanese-funded projects are also high-

profile, like the USD 58.7 billion high-speed railway between Ho Chi Minh

City to Hanoi.48 Seeing as China’s economy already outsizes Japan’s and

as Chinese projects begin to get more attention, competition between the

two will continue.49

43 Hong Liu and Guanie Lim, “The Political Economy of a Rising China in Southeast Asia:

Malaysia’s Response to the Belt and Road Initiative,” Journal of Contemporary China 28, no. 116 (2019), 223.

44 Ate Hoekstra, “Is Chinese invesment taking over the Mekong?” Deutsche Welle, January 15, 2018, https://www.dw.com/en/is-chinese-investment-taking-over-the-

mekong/a-42150023.

45 Aika Rey, “Poe: Release 'made in China' loan contracts in full for public scrutiny,” Rappler, April 4, 2019, https://www.rappler.com/nation/227256-grace-poe-says-

release-made-in-china-loan-contracts-public-scrutiny.

46 Wenjuan Nie, "Xi Jinping's Foreign Policy Dilemma: One Belt, One Road or the South China Sea?" Contemporary Southeast Asia 38, no. 3 (2016): 424.

47 Jamrisko, “China No Match for Japan.” 48 Ibid.

49 Panos Mourdoukoutas, “Japan, Not China, Is The Biggest Investor In Southeast Asia's

Infrastructure,” Forbes, June 27, 2019,

https://www.dw.com/en/is-chinese-investment-taking-over-the-mekong/a-42150023

https://www.dw.com/en/is-chinese-investment-taking-over-the-mekong/a-42150023

https://www.rappler.com/nation/227256-grace-poe-says-release-made-in-china-loan-contracts-public-scrutiny

https://www.rappler.com/nation/227256-grace-poe-says-release-made-in-china-loan-contracts-public-scrutiny

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Bloc Positions

The CLMV Group:

The less economically developed members of ASEAN, particularly the

CMLV group, have a vested interest in ensuring that they are prioritized

for projects related to narrowing the development gap. Of great

importance is the acquisition of ODA, particularly of grants and softer

loans with low interest rates. Furthermore, the CLMV group should seek

to solicit greater support from ASEAN member states to pursue economic

development objectives beyond regional economic integration. These

states must be mindful as well of potential brain-drain that may occur as

a result of policies that pursue human capital improvement and must

balance this with policies that improve the overall economic condition in

their countries.

ASEAN-6:

The ASEAN-6 must consider the needs of their respective states while also

considering the greater objectives of narrowing the development gap,

enhancing regional integration, and making Southeast Asia a more

prosperous region. These relatively more economically developed ASEAN

member states must first consider their individual foreign policy stances

on providing more developmental support for less economically developed

member states and whether they are capable of doing so. These member

states must also consider their relations with ASEAN’s dialogue partners

and should reflect on the political and economic implications of pursuing

further relations with these external states. Lastly, seeing as economic

development even within this group is not consistent, these member

https://www.forbes.com/sites/panosmourdoukoutas/2019/06/26/japan-beats-china-in-

the-philippines-singapore-and-vietnam/#663dfdec39d8.

https://www.forbes.com/sites/panosmourdoukoutas/2019/06/26/japan-beats-china-in-the-philippines-singapore-and-vietnam/#663dfdec39d8

https://www.forbes.com/sites/panosmourdoukoutas/2019/06/26/japan-beats-china-in-the-philippines-singapore-and-vietnam/#663dfdec39d8

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states should consider which sectors of their economies require further

investment.

Conclusion

Conclusively, the issues of economic inequality and the questions

surrounding how to narrow the development gap are great areas of

debate and discussion. There are many sub-areas and topics that

delegates could debate, namely how much the more developed members

should help the less developed, if sustainability should be a primary

concern, what sectors development should focus on, and whether ASEAN

should seek help from external actors in financing development (namely

China). The topic particularly calls upon the first, third, and fifth aims of

the ASEAN Declaration. With the differing stances ASEAN member states

hold on those questions, resolution blocs should form among delegates

fairly naturally. Delegates should be aware of the relevant commitments

made by their own countries and ASEAN-wide commitments as well.

Questions a Resolution should answer:

❖ How should ASEAN member states approach ODA from external

actors (such as the EU, US, China, the World Bank etc.)?

❖ What place should concerns regarding maintaining environmental

sustainability take in comparison to the goal of economic growth?

❖ If economic integration continues, particularly in movement of

labour, what solutions can be in place to prevent ‘brain drain’ from

less economically developed member states?

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❖ How should ODA be distributed among and within ASEAN member

states; who and what should be prioritized?

❖ Should ASEAN seek to revive the ADF or not?

Further Reading

● China, Economic Statecraft and Policy Banks provides a brief

overview of how China has used its policy banks in other regional

contexts: https://www.clingendael.org/sites/default/files/2018-

05/Report_Hybrid_Conflict.pdf#page=32

● The ASEAN Economic Integration Briefs, published every June

and November since 2017, provide progress reports on the state of

economic integration in the region: https://asean.org/asean-

economic-community/aec-monitoring/asean-economic-integration-

brief/

● Catching Up, Forging Ahead, and Falling Behind is a core text

in economic history on how countries can economically catch up:

https://www.jstor.org/stable/2122171

● Do CLMV countries catch up with the older ASEAN members

in terms of income level? Gives insight on recent trends with the

CLMV group:

https://www.tandfonline.com/doi/abs/10.1080/13504851.2018.148

9494

● How to keep the ASEAN economies growing for another 50

years is a projection into the region’s future:

https://www.weforum.org/agenda/2018/09/to-keep-growing-

aseans-economy-must-adapt-heres-how/

https://www.clingendael.org/sites/default/files/2018-05/Report_Hybrid_Conflict.pdf#page=32

https://www.clingendael.org/sites/default/files/2018-05/Report_Hybrid_Conflict.pdf#page=32

https://asean.org/asean-economic-community/aec-monitoring/asean-economic-integration-brief/



https://www.jstor.org/stable/2122171



https://www.weforum.org/agenda/2018/09/to-keep-growing-aseans-economy-must-adapt-heres-how/

https://www.weforum.org/agenda/2018/09/to-keep-growing-aseans-economy-must-adapt-heres-how/

23

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China-SEA-BRI.pdf


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TOPIC B: Implementing

Measures to Tackle Labour

Exploitation and

Challenges for Businesses

in the ASEAN Region

27

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Introduction

The Association of Southeast Asian Nations (ASEAN) is home to some of

the world’s fastest growing emerging markets. ASEAN as a block ranks as

the seventh largest economy in the world with around US$ 5.3 trillion

worth of global trade passing through the region each year.50

As ASEAN member states continue to establish their manufacturing base

and tap-into their rich resources, ASEAN’s economic performance is

expected to outperform the global average. On top of this, ASEAN’s

regional economic integration agenda of the ASEAN Economic

Community (AEC) is likely to encourage further economic growth and

cooperation between ASEAN member states.51

However, despite these promising signs for the region, ASEAN faces many

challenges to realising their full economic potential. Firstly, this topic will

focus on the business challenges that ASEAN member states and will

require delegates to consider how ASEAN can approach these issues as a

bloc. The other half of this topic demands delegates to consider what

further measures ASEAN can take to rid the region of exploitative labour

practices.

Business barriers delegates should consider include the lack of

standardisation of legal and regulatory frameworks. This includes, varying

tax, financial, and legal systems, as well as disparities in capital and

exchange controls across ASEAN member nations. A lack of a regional

50 Fraser Thompson, “Understanding ASEAN: Seven Things You Need to Know,” McKinsey & Company, accessed November 29, 2019,

https://www.mckinsey.com/industries/public-sector/our-insights/understanding-asean-seven-things-you-need-to-know)

51 The economies of ASEAN and the opportunities they present. (2019), from

https://home.kpmg/vn/en/home/insights/2018/06/asean-business-guide.html

28

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strategy means that ASEAN cannot take full advantage of its growth

story, as businesses are often unable to overcome these barriers.52

Other challenges for businesses in the ASEAN region include dealing with

the lower demand for workers following the rise of the digital economy as

well as adjusting to the decline in the manufacturing sector as foreign

industries have been moving to locations with cheaper labour outside of

the ASEAN region53. ASEAN member states must, therefore, consider

progressive labour practices to enhance their competitiveness in the

global market. The committee must also discuss these business

challenges within the global context of rising protectionism. Seeing as one

of the AEC’s main goals is to liberalise trade in services, the ASEAN

committee must be prepared to take some bold measures to achieve this.

Timeline of Events

• August 8th 1967: ASEAN was founded in Bangkok by Indonesia,

Malaysia, Philippines, Singapore, and Thailand through the ASEAN

Declaration.

• February 24 1976: The first ASEAN Summit takes place declaring

ASEAN’s Fundamental Principles. The Principles include but are not

limited to mutual respect for the independence, sovereignty,

equality, territorial integrity, and national identity of all nations and

the right of every state to lead its national existence free from

external interference, subversion, or coercion.54

• January 8th 1984: Brunei Darussalam joins ASEAN.

52 Tashi, J. (2019). The Five Biggest Issues Related to Business and Human Rights in

Asia. Retrieved 1 November 2019, from https://asia.fnst.org/content/five-biggest-issues-related-business-and-human-rights-asia

53 Ibid.


29

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• July 28th 1995: Vietnam joins ASEAN.

• July 23rd 1997: Laos and Myanmar join ASEAN.

• January 1992: ASEAN creates the Common Effective Preferential

Tariff (CEPT) Scheme for the ASEAN Free Trade Area (AFTA). Both

CEPT and AFTA were created to increase the region’s global

competitive advantage as a production base.55

• April 30th 1999: Cambodia joins ASEAN.

• November 2007: Signing of the ASEAN Charter, a constitution to

serve as guiding principles and conduct for the 10 member states.

• December 2008: The ASEAN leaders met and addressed the need

to turn ASEAN into a legal entity that will create a single free-trade

area.56

• February 2009: A Free Trade Agreement was undertaken between

ASEAN, Australia and New Zealand. This is expected to boost GDP

across all parties involved by US$48 billion from 2010-2020.57

• February 2013: The first round of negotiations between ASEAN

and its six major trading partners were held to discuss establishing

a regional comprehensive partnership.

• 2015: The ASEAN Economic Community (AEC) is put into place as a

way to promote economic, political, social and cultural cooperation

across the region.58

• January 2017: On the third day of his Presidency, Trump signs an

executive order withdrawing the US from the Trans Pacific

Partnership Trade Deal.59

55 Ibid.

56 “TIMELINE: Key Dates in ASEAN History,” Reuters (Thomson Reuters, November 20,

2007), https://www.reuters.com/article/us-asean-history-timeline-

idUSGOR01167020071120)

57 “Overview - ASEAN: ONE VISION ONE IDENTITY ONE COMMUNITY,” ASEAN, accessed

November 29, 2019, https://asean.org/asean/about-asean/overview/) 58 Ibid.

59 “TPP: What Is It and Why Does It Matter?,” BBC News (BBC, January 23, 2017),

https://www.bbc.co.uk/news/business-32498715)

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Discussion

The issue of Labour Exploitation in the ASEAN region:

The UN Guiding Principles on Business and Human Rights put into

effect in 2011, states in its introduction that “business enterprises can

profoundly impact the human rights of employees, consumers, and

communities wherever they operate. These impacts may be positive, such

as increasing access to employment or improving public services, or

negative, such as polluting the environment, underpaying workers, or

forcibly evicting communities.”60

The International Labour Organisation reports that more than 1.1 million

people die annually from work-related accidents and diseases in

Asia and the Pacific.61 Among the less economically developed ASEAN

nations, crime, corruption, exploitation of human rights, weak monitoring

and implementation of rule of law set the environment for labour

exploitation. The issue of labour exploitation is a particularly difficult to

address due to the notion that the protection of human rights falls under

the sole responsibility of the government and not the private sector.

Labour exploitation can manifest itself in many ways including poor

60 THE UN GUIDING PRINCIPLES ON BUSINESS AND HUMAN RIGHTS AN INTRODUCTION. (2019),

https://www.ohchr.org/Documents/Issues/Business/Intro_Guiding_PrinciplesBusinessHR

.pdf 61 ILO Estimates Over 1 Million Work-Related Fatalities Each Year. (2019). Retrieved 1

November 2019, from https://www.ilo.org/global/about-the-ilo/newsroom/news/WCMS_007969/lang--en/index.htm

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working conditions and safety, low wages, the use of child labour, unfair

land acquisition and gender inequality.62

Effectively combating extreme labour exploitation requires a collective

effort from all stakeholders involved, seamless collaboration across

countries, and policies to prevent further abusive treatments. Thus, the

role of ASEAN in addressing this issue as a united group is significant.

Past action taken by ASEAN to address labour exploitation:

In 2015, the ASEAN framework was expanded to include the ASEAN

Community, which covers the following three areas: Political-Security

Community, Economic Community, and Socio-Cultural Community. The

creation of the Socio-Cultural Community is particularly important for

the discussion of this topic and reflects ASEAN’s emphasis on developing

its human capital. With over half of ASEAN’s population being under the

age of 30 it is an area of particular importance for ASEAN. So far, the

ASEAN Socio-Cultural Community has succeeded in lowering the

proportion of people living on less than US$1.25 per day from one in two

to one in eight.63

On the 12th December 2018, the ASEAN Safe Migration Campaign was

launched to raise public awareness on safe labour migration that benefits

all. The Campaign launch was supported by the ASEAN Secretariat and

the International Labour Organization (ILO).64 The Campaign aims to

62 Jamyang Tashi, (2019). The Five Biggest Issues Related to Business and Human Rights in Asia. Retrieved 1 November 2019, from https://asia.fnst.org/content/five-

biggest-issues-related-business-and-human-rights-asia

63 Beginda Pakpahan, “ASEAN at 52: Achievements and Challenges Ahead > Articles,”

n.d., http://globalasia.org/v14no3/feature/asean-at-52-achievements-and-challenges-ahead_beginda-pakpahan) 64 ASEAN launches Safe Migration Campaign; top ASEAN, EU officials discuss safe labour

migration - ASEAN | ONE VISION ONE IDENTITY ONE COMMUNITY. (2019), from

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help achieve the goals outlined in the ASEAN Consensus on the Protection

and Promotion of the Rights of Migrant Workers and has helped bring

international attention to the issue of labour exploitation. While the

dynamic picture of labour exploitation is on the decline, progress is far too

slow.65 Thus, delegates must consider how ASEAN can take a more

proactive role in addressing various forms of labour exploitation.

Family-owned conglomerates and state-linked enterprises:

ASEAN is home to a wide

range of business models

including multiple family-

owned conglomerates and

state-linked enterprises

such as the Central Group in

Thailand, the Salim Group in

Indonesia, Singtel in

Singapore, and Vinamilk in

Vietnam.66 However, small

and medium-sized

enterprises, typically referred to as SMEs combined with entrepreneurs

make up around 89% of business activity in the ASEAN region yet

receive little support from the AEC.67 Widespread corruption amongst

some ASEAN member states in addition to entrenched interests of large

conglomerates means that the region’s business environment is

https://asean.org/asean-launches-safe-migration-campaign-top-asean-eu-officials-

discuss-safe-labour-migration/ 65 "7 key challenges for the future of ASEAN - Business - EBR", (2019)

66 Ibid. 67 Aucky Pratama , “SMEs as the Backbone of Southeast Asia's Growing Economy,” IFAC,

accessed November 29, 2019, https://www.ifac.org/knowledge-gateway/practice-

management/discussion/smes-backbone-southeast-asia-s-growing-economy)

^The Central World shopping complex in Bangkok is

owned by Central Group, a Thai conglomerate

33

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compromised. Therefore, the committee must consider policies that will

benefit SMEs and tackles said issues.

What efforts has ASEAN made to promote the growth of SMEs?:

The ASEAN Coordinating Committee for Micro, Small, and Medium

Enterprises (ACCMSME) and the Economic and Social Commission for

Asia and the Pacific (ESCAP) have promoted a forum for policy dialogue

on transforming SMEs in Southeast Asia.68 The forum allows stakeholders

in the region to share good practices on how to realize the transformation

of SMEs.69 The two key areas of focus they have outlined are fostering

access to digital techniques and promoting the acceleration of high-

growth enterprises.70 Delegates must therefore carefully consider ASEAN’s

past actions on this issue and look at how they can be improved upon.

Next steps for the ASEAN Economic Community (AEC):

Despite the fact that the AEC is primarily a form of state-level

cooperation, the inclusion of the private sector in integration is a key

factor in the implementation of AEC.71 The ASEAN and member countries’

attempts to promote and accelerate AEC implementation beyond

government and academic research have been insufficient. The lack of

information dissemination, and the AEC’s poor governance as a

supranational institution has been widely recognised since the

implementation of the ASEAN Free Trade Agreement (AFTA).

68 "ASEAN Commemorates Micro, Small and Medium-sized Enterprises Day - ASEAN | ONE VISION ONE IDENTITY ONE COMMUNITY", (2019)

69 Ibid. 70 "Policy Dialogue on Transforming SMEs in Southeast Asia | United Nations ESCAP",

(2019)

71 "ASEAN Achievements and Challenges in Regional Integration", (2019)

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Only slightly over 50% of ASEAN businesses have made use of tariff

reductions set out in the AFTA.72 While on the whole the use of tariffs in

ASEAN are in decline, the use of non-tariff measures such as licenses and

quotas are on the rise and need to be addressed. In addition, ASEAN

must encourage greater intra-regional trade to reduce the region’s

vulnerability to external shocks. To incentivise greater intra-regional

trade, delegates must consider ways to address infrastructure gaps and

simplify administrative policies and regulations across the ASEAN

region.73

Comprehensive Progressive Agreement for the TPP:

When the United States withdrew from the Trans-Pacific Partnership (TPP)

agreement in January of 2017, the rest of the eleven TPP members

proceeded forward without the United State’s participation to form the

Comprehensive Progressive Agreement for the TPP (CPTPP).74 The

four ASEAN member states that are part of the CPTPP are Brunei,

Singapore, Vietnam, and Malaysia. The TPP with the United States was

set to be the largest regional trade agreement in history with a combined

GDP of US$38 trillion.75 While more liberalized access to the US market

through the TPP would have generated far greater economic growth than

what the CPTPP can currently provide, the CPTPP leaves the option for

other members such as China to join at a later date. Thus, it is evident

that while the United States might have taken the road of protectionism,

the remaining TPP members did not follow suit. Some benefits and

requirements outlined in the CPTPP include requiring members to adopt

the following benefits and requirements:

72 Ibid. 73 Lehmacher, (2019)

74James McBride, “What Is the Trans-Pacific Partnership (TPP)?,” Council on Foreign Relations (Council on Foreign Relations), accessed November 29, 2019,

https://www.cfr.org/backgrounder/what-trans-pacific-partnership-tpp)

75 Ibid.

35

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• Establishing a committee to help developing country members take

full advantage of the agreement opportunities.

• Cooperating to ensure international standards do not create

unnecessary barriers to trade.

• Requiring members to adopt, maintain and apply national

competition laws that outline anticompetitive business conduct.

• Providing a system to settle disputes for areas covered under the

agreement.76

Only four ASEAN member states are part of the CPTPP. However,

delegates should consider the viability of an all-inclusive partnership

agreement between all ASEAN nations and the remaining CPTPP

members. Would the standards of uniformity enforced in the CPTPP

promote business activity in the ASEAN region?

The Digital Economy:

The digital transformation provides a range of opportunities for small and

medium-sized enterprises (SMEs). SMEs play a significant role in

Southeast Asia by contributing to employment and inclusive growth,

however, they face barriers related to access and use of digital

technologies that prevent them from achieving their full potential.77 In

particular, many ASEAN member states lack countrywide broadband-

based services, which would increase productivity, improve social welfare

and promote regional integration.78 The Organisation for Economic

Co-operation and Development (OECD) has conducted a project

called “Going Digital” which identifies seven key policy areas that need

to be improved on to usher in the age of digital transformation in the

76"The economies of ASEAN and the opportunities they present", (2019) 77 Southeast Asia Going Digital. (2019). Retrieved 1 November 2019, from

https://www.oecd.org/going-digital/southeast-asia-connecting-SMEs.pdf 78 Ibid.

36

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ASEAN region.79 These seven areas include: enhancing access to

communication services and related technologies; increasing the use of

digital services and applications; unleashing digital innovation; ensuring

good jobs; promoting social prosperity; strengthening trust; and fostering

market openness.80 The digital transformation has the potential to

completely reform how people live and work by facilitating new services,

products and applications. Thus, the digital economy is an important area

for delegates to focus on when thinking of ways to promote business

activity in the ASEAN region.81

However, the digital economy also poses challenges for some businesses

in the ASEAN region. The rise of the digital economy has in some

instances resulted in a lower demand for workers and the decline of the

manufacturing sector as foreign industries have been moving to locations

with cheaper labour outside of the ASEAN region.82 ASEAN member states

must, therefore, consider progressive labour practices to enhance their

competitiveness in the global market. These may include helping the

younger generation prepare for the demands of an integrated economic

region as more and more people move to cities such as Manila or Jakarta

in search of better opportunities.83

Bloc Positions

Looking at the ASEAN’s economy only through a regional lens, omits the

fact that ASEAN economies vary dramatically. ASEAN economies range

from the high-value knowledge economy of Singapore to the resource-

80 Ibid. 81 "Economic Outlook For Southeast Asia, China And India 2018 FOSTERING GROWTH

THROUGH DIGITALISATION" 2019

82 Ibid. 83 "ASEAN Achievements and Challenges in Regional Integration", (2019)

37

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focused industries of Myanmar. Thus, it is evident that while ASEAN

aspires to be an increasingly integrated single market, the reality is that

there are significant disparities between ASEAN member state

economies.

Brunei

Brunei has one of the world’s highest standards of living and per capita

GDP. Furthermore, Brunei’s combined history of political and economic

stability along with its abundant natural resources is an ideal environment

for businesses to prosper in.84 However, much of the country’s wealth

comes from the hydrocarbon industry so Brunei must diversify their

economy in the long term to stay competitive85. The government

recognizes the need to move the economy beyond exports of oil and gas

and thus welcomes economic and technical cooperation, as well as pro-

business policies that fit into Brunei’s long-term development plan,

“Wawasan Brunei 2035”.86

Cambodia

Cambodia possesses relatively small-scale domestic investment

opportunities, but has captured a great share of global manufacturing and

has been successful at attracting global investors. Cambodia has a large

young workforce, and they have used this to their competitive advantage

with multinationals seeking a lower cost base. Consequently, labour

exploitation has been an issue in Cambodia.87 Thus, some areas the

government will need to focus on include the lack of transparency in the

legal system, as well as reforming working conditions and poor wages. In

84 "Economic Outlook For Southeast Asia, China And India 2018 FOSTERING GROWTH THROUGH DIGITALISATION" 2019 85 Ibid.

86 The economies of ASEAN and the opportunities they present. (2019). Retrieved 1 November 2019, from https://home.kpmg/vn/en/home/insights/2018/06/asean-

business-guide.html

87 Ibid.

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addition, providing greater access to financing for small and medium-

sized enterprises (SMEs) will be crucial for Cambodia’s continued

economic growth. Furthermore, the Cross-Border Transport Agreement

(CBTA) made up of six countries, Cambodia, Laos, Myanmar, People’s

Republic of China, Thailand, and Vietnam has played an important role in

improving Cambodia’s soft and hard infrastructure.88

Indonesia

Indonesia, the largest country in Southeast Asia is rich in natural

resources such as coal, minerals, oil and gas, making it an attractive

country for foreign investors.89 Indonesia’s fertile land has allowed it to

become a significant agricultural producer and it has experienced

impressive economic growth since its resilience during the 2008 financial

crisis.90 Reforms since 2015 include greater investment in public

infrastructure and opening new areas of the economy to the private

sector. Over 50% of the population is below the age of 30 and are thus

likely to be highly adaptive to new technology.91 Indonesia needs to

promote reforms that can help narrow the skills gap between workers by

expanding vocational training opportunities for example.92

Laos

Laos has welcomed foreign investment that encourages infrastructure-led

growth, including major projects under China’s One Belt One Road

Initiative (OBOR). Furthermore, the Cross-Border Transport Agreement

(CBTA) made up of six countries, Cambodia, Lao PDR, Myanmar, People’s

Republic of China, Thailand, and Vietnam has played an important role in

88 "About us - Transport and Trade Facilitation", (2019)

89 "Economic Outlook For Southeast Asia, China And India 2018 FOSTERING GROWTH

THROUGH DIGITALISATION" 2019 90 "The economies of ASEAN and the opportunities they present", (2019)

91 Ibid.

92 Ibid.

39

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improving Laos’ soft and hard infrastructure.93 Laos looks to make their

energy and tourism sectors more attractive to foreign investors to boost

growth. In recent years, unfavorable weather has affected Laos’

agricultural sector for the worse.94

Malaysia

In Malaysia ethnic policies have too often hindered state institutional

capacities to support economic growth. Nonetheless, Malaysia has a

multi-sector economy and boasts liberal, market-oriented policies.

Malaysia aims to become a high-income developed country by 2025.95 It

has been focusing on innovation and knowledge-based activities and is

one of the most technologically advanced countries in Southeast Asia. The

World Bank ranks Malaysia as one of the top performing economies in the

Asia Pacific region.96 Thus, Malaysia can play an important role in

increasing ASEAN economic influence.

Myanmar

As a developing country, Myanmar holds a lot of economic potential

through its abundance of natural resources and large workforce. Myanmar

needs to continue to develop itself in terms of infrastructure, easing legal

restrictions, and ensuring a strong education for its workforce. In 2016,

Myanmar experienced the fastest economic growth in the world following

the relaxation of sanctions after a peaceful election. Myanmar is expecting

major investment from China, the US, Japan, India, and Singapore in the

coming years as they have improved bilateral relationships with these

93 Ibid.

94 "The economies of ASEAN and the opportunities they present", (2019)

95 Kirk, Tom. 2019. "The Relationship Between Ethnic Diversity & Development: A Diversity Dividend?". Assets.Publishing.Service.Gov.Uk.

https://assets.publishing.service.gov.uk/media/5b507c88e5274a73380f7b3e/The_Relationship_between_Ethnic_Diversity___Development-

__A_Diversity_Dividend_Kirk__Stein___Fisher_21.6.18.pdf.

96 Ibid.

40

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countries. Furthermore, Myanmar’s low-cost of labour is a key asset to

growing its manufacturing base.97

Philippines

The Philippines boasts cultural ties from more than 10 million Filipino

living overseas, making it a popular choice for international business and

investors.98 GDP growth has been outpacing population growth, leading to

rising household incomes and stable inflation.99 As a result, consumption

spending has been the main driver of economic expansion. The Philippines

is one of the five best-educated ASEAN countries, according to the United

Nations Development Programme (UNDP). Looking forward, the

Philippines should look to improve the business climate for SMEs.100

Singapore

Singapore boasts one of the most livable cities in the world. Access to

efficient public transport, healthcare services, and education, makes

Singapore an attractive place to work. Singapore has a well-developed

market economy and has continued to grow and attract foreign

investors.101 Singapore is thus considered a first-class business

environment and is an ideal base for companies seeking access to

emerging markets in the ASEAN region. Looking forward, Singapore looks

to deepen digital capabilities, develop promising industries, and continue

to support a pro-business regulatory environment.102


98 “KPMG ASEAN Business Guide,” Philippines, 2018,

https://assets.kpmg/content/dam/kpmg/mm/pdf/2018/06/asean-guide-philippines.pdf) 99 Philippines continues reforms to improve the business climate: Doing Business report.

(2019). Retrieved 1 November 2019, from https://www.worldbank.org/en/news/press-release/2017/10/31/philippines-continues-reforms-to-improve-the-business-climate-

doing-business-report

100 Ibid. 101 "Economic Outlook For Southeast Asia, China And India 2018 FOSTERING GROWTH

THROUGH DIGITALISATION" 2019


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Thailand

Thailand is actively seeking to strengthen relationships with trading

partners, including ASEAN countries to remain competitive. For the past

few years, Thailand has retained its spot as one of the top 50 economies

on ease of doing business.103 Thailand has made it easier to start a

business by reducing the time needed to obtain a company seal and by

creating a single window for registration payment. The Thai government

is looking to shift the country from a production-based to a service-based

economy.104 Thus, promoting technology and innovation in business will

be a key area of focus for Thailand in the coming years.

Vietnam

Vietnam has one of the fastest-growing economies in the world yet ranks

low for ease of doing business due to its bureaucratic regulatory

environment.105 However, as labour in China becomes more expensive,

Vietnam has become the go-to-destination for manufacturing in textiles

and electronics. Going forward, the government will need to push on with

market liberalization to stay competitive and reform the State-Owned

Enterprise (SOE) sector. Other reforms Vietnam will need to focus on

include labour representation, intellectual property rights, e-commerce

and the digital economy.106 In addition, while the Vietnamese education

system produces a high level of literacy, additional training of workers will

be necessary to reduce the skills gap.107

103 Doing Business 2019. (2019). Retrieved 1 November 2019, from

https://www.doingbusiness.org/content/dam/doingBusiness/media/Annual-

Reports/English/DB2019-report_web-version.pdf 104 "The economies of ASEAN and the opportunities they present", (2019)

105 The World Bank in Vietnam . (2019, October 18). Retrieved from https://www.worldbank.org/en/country/vietnam/overview.

106 Ibid.


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Conclusion

The scope of this topic is large seeing as delegates must consider

measures to tackle both labour exploitation and challenges for business in

the ASEAN region. However, the two issues are closely intertwined. While

cheap labour can be beneficial for the growth of businesses, the focus of

this topic is to ensure that businesses grow sustainably and do not hinder

the rights of its citizens. For this reason, delegates should be careful to

address both parts of the topic at hand.

Questions a Resolution should answer:

❖ How can ASEAN take a more proactive role in preventing poor

working conditions and safety, low wages, the use of child labour,

unfair land acquisition and gender inequality throughout the region?

❖ Keeping ASEAN’s past efforts to tackle various types of labour

exploitation in mind, how can ASEAN ensure greater collaboration

between all stakeholders involved to prevent further abusive

treatments?

❖ What steps can ASEAN take to prepare the younger generation for

the demands of an integrated economic region as more and more

people move to cities in search of better opportunities?

❖ How can ASEAN help reduce digital barriers for businesses, in

particular the lack of countrywide broadband-based services?

❖ What measures can ASEAN take to narrow the skills gap between

workers, particularly among the young working population?

❖ What stance should ASEAN take on foreign investment that

encourages infrastructure-led growth, including major projects

under China’s One Belt One Road Initiative (OBOR)?

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❖ How can ASEAN simplify administrative policies and regulations to

incentivise greater intra-regional trade?

❖ What policies can the ASEAN Economic Community (AEC) introduce

to support SMEs and counter entrenched interests of large

conglomerates?

Further Reading

• KPMG’s “ASEAN Business Guide: The economies of ASEAN

and the opportunities they present”. A useful resource for

finding out more about various ASEAN member states’ business

climate. Available at:

https://assets.kpmg/content/dam/kpmg/vn/pdf/publication/2018/A

sean_Guide/ASEAN_Business_Guide.pdf

• OECD: “Southeast Asia Going Digital: Connecting SMEs”. A

guide to how the digital transformation can be used to the

advantage of SMEs. Available at:

https://www.oecd.org/going-digital/southeast-asia-connecting-

SMEs.pdf

• UNCTAD: “Achievements and Challenges in Regional

Integration”. A detailed guide on the history and future of ASEAN

integration. Available at:

https://unctad.org/en/PublicationsLibrary/gdsecidc2017d2_en.pdf

https://assets.kpmg/content/dam/kpmg/vn/pdf/publication/2018/Asean_Guide/ASEAN_Business_Guide.pdf

https://assets.kpmg/content/dam/kpmg/vn/pdf/publication/2018/Asean_Guide/ASEAN_Business_Guide.pdf

https://www.oecd.org/going-digital/southeast-asia-connecting-SMEs.pdf



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Bibliography - Introduction to the Association of

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https://www.mckinsey.com/industries/public-sector/our-

insights/understanding-asean-seven-things-you-need-to-know.