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ASEAN – home to over 630 million people and a thriving economy. It
shows huge potential hailing from the rising middle class in Indonesia,
Philippines, and Thailand.
The benefits of regional economic integration will far exceeded its
cost. For the aviation industry, the multiplier effect is 13 fold. In
other words, every $1 an airline spends leads to a $13 increase in GDP.
This will also fuel the growth of job opportunities, as the aviation
industry heavily depends on a highly skilled workforce for it to grow.
Boeing estimates that ASEAN will need 56,500 more pilots and 59,500 more
aircraft technicians in the next two decades.
ASEAN citizens are the
ultimate beneficiaries of the product of regulations being liberated in
ASEAN. However, there are many things that still need to take place in order for ASEAN to reap these benefits.
What needs to take place
The tourism industry is booming. Nearly half of the 105 million
international arrivals in the region came from within ASEAN itself. In
the next 10 years, ASEAN alone will contribute 5% of regional GDP,
creating over 15 million jobs overall.
To support the growth, the “ASEAN
minus” policy should be enforced, allowing member-states to opt out of a
regional program to encourage faster adoption of policies.
A good
example is the ASEAN common visa system, which would allow a person to
travel around ASEAN countries with just one visa. There are some valid
concerns around security for some countries, resulting in the hesitation
to adopt. These countries should be able to opt-out, while still
allowing others to benefit quickly from its implementation.
The ASEAN Secretariat, headquartered in Jakarta, is mandated to
coordinate and facilitate the implementation of ASEAN's projects and
activities. It plays a key role in the integration of the region. But
the ASEAN Secretariat is severely limited in its ability to carry out
its role due to budgetary constraints, an overstretched staff of 300 and
a lack of institutional capacity.
It is imperative that we strengthen
the ASEAN Secretariat by substantially increasing its funding so that it
is able to carry out its projects, hire more staff -- experts in their
field, and provide necessary training for its personnel. We need to work
out a system where ASEAN countries with bigger GDPs or GDP per capita
can contribute more without affecting the equal voting weightage.
The creation of ASEAN Institutions is a much needed factor in
streamlining the region’s fragmented regulatory landscape as well as
addressing concerns on talent shortage.
The key for the aviation
industry would be the creation of an ASEAN Joint Aviation Institution.
The institution will act as an agent to facilitate ASEAN states to adopt
Mutual Recognition Agreements (MRAs) and free movement of aviation
personnel. Adoption of MRAs on pilot and aircraft technician licenses
and certifications, harmonization of qualification standards, alignment
of trainings, joint accreditation of training centers and better-
quality technical courses at local colleges will expedite the creation
of common aviation safety standards.
"The future is exciting for ASEAN" |
The ongoing concerns of talent
shortage in certain countries will be addressed as it will allow
personnel to work in any ASEAN country without having to incur extra
time and cost obtaining redundant documentations such as work-permits
and licenses and re-sitting for exams.
All mentioned above will lead us one step closer to achieving the
ASEAN traveller's dream - affordable air fare, high connectivity linking
tier 2 & 3 cities, consistent airport experience and security, a
single ASEAN visa, safe, competitive and profitable regional airlines,
and most importantly, a single aviation regulator with high safety
standards.
One vision. One identity. One community. The future is exciting for ASEAN and personally I can't wait to be a part of it.
Tan Sri Dr. Tony Fernandes CBE is Group CEO of the world's
best low cost airline AirAsia and co-founder of the Tune Group which includes
Tune Money, Tune Mobile and Tune Hotels. He is Co-Chair Malaysia of the
ASEAN Business Club and recently
received the Fourth Pillar Award for services to USA-ASEAN relations. He is also
Co-Chairman of Queens Park Rangers FC in the England Championship. He Tweets at @tonyfernandes.
AEC
ASEAN
ASEAN Secretariat
Aviation
Integration
Labour
Mutual Recognition Agreements
Regulation
Tourism
Transportation
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