ASEAN Economic Community
Understanding the AEC blueprint and its impact.
With the official launch of the ASEAN Economic Community (AEC) on 31 December 2015, the ten member countries now form a single market and production base. Collectively, the region is the 5th largest economy in the world with a combined GDP of around 4 trillion USD and a population of approximately 670 million, making it the third-largest market in the world
Nearly 100% of originating goods can now be traded customs-free within the ASEAN-6 (Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand), the most developed economies of the association. Special provisions still apply for Cambodia, Laos, Myanmar and Vietnam, though integration is progressing.The services sector continues to liberalize, with increasing foreign equity limits and commitments across sectors. ASEAN aims to allow up to 70% foreign ownership in 128 service subsectors, including finance, tourism, logistics, and healthcare
Labor mobility has also advanced, allowing skilled professionals in fields such as medicine, engineering, architecture, and accounting to work across borders. However, national licensing and language requirements do still apply in many cases.
Non-tariff barriers and regulatory fragmentation remain. The AEC Blueprint 2025 continues to guide efforts toward deeper integration, aiming for a more cohesive, competitive, and inclusive economic region and towards a more unified economic community.