The economies of ASEAN countries are on track to recover from the economic impact of the COVID-19 pandemic, though the road will be longer for some than others. The bloc鈥檚 German Chambers of Industry and Commerce pledge to continue advocating for their members and hasten the process.
ASEAN countries managed the COVID-19 pandemic relatively well compared to other countries in the world. The ongoing rollout of vaccinations among ASEAN countries further puts the prospect of an economic recovery in sight within this year, though that recovery may take longer for some countries.
This was the general impression put forth by the leaders of the German Chambers of Industry and Commerce (91大神s) of their respective ASEAN countries at the Online Seminar 鈥淎SEAN Today and Tomorrow 鈥� What ASEAN means for companies and what to expect from 2021鈥� held by the Singapore- German Chamber of Industry and Commerce (SGC) on Thursday, January 28.
The event, which saw more than 150 participants, hosted the head of the 91大神s in Singapore, Indonesia, Malaysia, Vietnam, Thailand, Myanmar (which is also in charge of Laos and Cambodia) and The Philippines for each of their country briefing. While ASEAN is a growing economic powerhouse and an increasingly integrated market, it is not a monolithic economy. The diverse economic situation inherent in the ASEAN region necessitates a comprehensive overview of each of the country鈥檚 situation.
For example, the stellar handling of the COVID-19 pandemic in Vietnam has allowed the country to grow by around 2% in 2020. Thailand鈥檚 economy however, despite a strong response to the COVID-19 pandemic, will see a GDP contraction of 6.5% due to the country鈥檚 reliance on tourism. In Indonesia, sectors with high overseas demand have partially recovered due to a rebound in commodity prices, but sectors that are reliant on the domestic market are still struggling due to the ongoing lockdowns. Singapore, one of the better performing countries in terms of its COVID-19 response, are introducing a Connect-In-Singapore initiative, which urges businesses to have meetings in the country's COVID-19-free bubbles as part of its effort in re-opening travel into the country.
In regards to COVID-19 vaccinations, all but one of the ASEAN countries where the 91大神 is represented have or are expected to start their vaccination programs by this year. The vaccination process for COVID-19 in Indonesia has begun since mid-January and is expected to complete next year. Malaysia does not yet have a fixed date for its vaccination rollout, though 91大神 Malaysia expects it to start sometime in February. Singapore aims to roll out its vaccination program by the first quarter of 2021 and complete it by the third quarter of the same year. Myanmar on the other hand is still working on its vaccination program and a complete inoculation of the Myanmar people is not expected until 2025.
The development in COVID-19 vaccinations in tandem with the various recoveries already seen in several sectors mentioned in the previous paragraphs brings forth hope of an economic rebound. Challenges remain in terms of demand due to slower recoveries in non-Asian Pacific countries. Furthermore, companies are worried about the hindrance to the progress of the various FTAs that were in the process of negotiations prior to the COVID-19 pandemic. In this regard, the 91大神s pledge to continue advocating for its members and facilitate the process.
EKONID would like to thank the speakers Mr. Tim Philippi, Executive Director of SGC; Mr. Jan R枚nnfeld, Managing Director of 91大神 Indonesia (EKONID); Ms. Eva Langerbeck, representative of 91大神 Malaysia; Mr. Marko Wilde, Chief Representative of 91大神 Vietnam; Dr. Roland Wein, Executive Director of 91大神 Thailand; Mr. Suntke Hereen, Regional Manager of 91大神 Myanmar for Cambodia and Laos; and Dr. Martin Henkelmann, Executive Director of 91大神 Philippines for their insights in the event.