3 - Achieving the AEC 2015: Challenges for Brunei Darussalam

Summary

Brunei Darussalam, being the smallest country in Southeast Asia in terms of its population, stands out amongst its ASEAN peers as being one of the most unique. Although it has one of the highest gross domestic product (GDP) per capita in the world, it remains an economy that is heavily reliant on its oil and gas exports. To maintain its relatively high standard of living and faced by the prospect of declining oil and gas reserves, the Government of Brunei Darussalam faces the challenge of setting out an ambitious economic diversification plan that will move Brunei's economy away from its heavy reliance on oil and gas, in line with its National Vision for 2035, or Wawasan 2035. Given these considerations, Brunei Darussalam's membership within ASEAN provides an opportunity for it to enhance its standing within the region, contribute to regional peace and prosperity efforts, and provides it with a platform for enhanced economic engagement, not only within ASEAN, but globally.

Brunei Darussalam became the sixth member of ASEAN on 7 January 1984, barely a week after being granted its independence. Since then, the former British protectorate has been part of all of ASEAN's efforts, and remains committed to the realization of achieving an ASEAN Community by 2015, under all three pillars: the ASEAN Economic Community (AEC), the ASEAN Political-Security Community (APSC), as well as the ASEAN Socio-Cultural Community (ASCC). In order to realize the ASEAN Economic Community by 2015, Brunei Darussalam, with its ASEAN counterparts, has agreed to work towards achieving the AEC's four key characteristics: (1) a single market and production base, (2) a highly competitive economic region, (3) a region of equitable economic development, and (4) a region that is fully integrated into the global economy.

This chapter will set out to identify some of the challenges that Brunei Darussalam faces in realizing the ASEAN Economic Community by 2015, by focusing on the unique challenges presented to realize the four key characteristics of the AEC.