The recent Association of Southeast Asian Nations (ASEAN) summit, which was chaired by Vietnam and conducted online, drew the attention of global leaders, especially from China, Japan, and South Korea. Central discussions were oriented towards the impact of Covid-19 on Southeast Asia, with leaders expressing apprehensions over the harsh economic repercussions of the pandemic and stressing on the importance of reopening trade routes to protect jobs, food supplies and stockpiling medical equipment.
Impact of COVID-19 on ASEAN Economies
COVID-19 has drastically affected the region’s tourism and economies that are heavily reliant on exports. The insistence of Vietnam on the urgencies for Southeast Asian leaders to establish an emergency fund to combat the coronavirus reiterates the gravity of the situation.
Fears and Challenges Faced by the Region
Different regions in ASEAN countries face different challenges when dealing with the pandemic. Limited testing in Indonesia has led to a lower number of reported cases resulting in around 400 deaths for a country with a population of 260 million. The health systems in places like Myanmar and Laos are believed to be under-reporting infections. Recent surge in infection rates in Singapore raises concerns of the virus rebounding in areas that initially combated the outbreak successfully. The Thai economy, being the second largest in ASEAN, is forecasted to shrink by 5.3% in 2020, which is a 22-year low, leaving millions unemployed.
About ASEAN
The ASEAN is a regional grouping founded on August 8, 1967, via the signing of ASEAN Declaration (Bangkok Declaration) in Bangkok, Thailand by Indonesia, Malaysia, Philippines, Singapore and Thailand. ASEAN now has ten members – Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam – and its chairmanship rotates annually, following the alphabetical order of the English names of Member States.
The ASEAN boasts a total population of 650 million and a combined Gross Domestic Product (GDP) of $2.8 trillion, which demonstrates that the community is economically vast and diverse. It plays a significant role in Asian economic integration through six free-trade agreements with other regional economies and has been instrumental in initiating negotiations for potentially the world’s largest free trade pact.
To tackle the current COVID-19 crisis, ASEAN leadership is pivotal in driving economic recovery whilst maintaining a robust health system. With effective coordination and collaboration among its members, ASEAN at its core promotes economic, political, and security cooperation, proving itself as an essential player in the global arena.
Last Modified: February 7, 2024