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1. Elevating Consumer Confidence: Strengthening Legal Frameworks and Cross-Border Dispute Resolution in ASEAN’s Digital Marketplace

Author:
Mahirah Mahusin and Hilmy Prilliadi
Publication Date:
12-2024
Content Type:
Policy Brief
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
ASEAN’s rapidly growing digital economy underscores the urgent need to safeguard online consumers. As internet and e-commerce usage soar, robust consumer protection mechanisms are essential to address the risks inherent in digital transactions. This Policy Brief explores the current state of online consumer protection in ASEAN, highlighting the critical need for comprehensive legal and policy frameworks that span all stages of online transactions. Drawing on the ASEAN Strategic Action Plan on Consumer Protection and exist­ing legislative measures, it identifies significant gaps in coverage and enforcement. The analysis emphasises the importance of pre-con­tractual information duties in fostering transparency and consumer trust. Key policy recommendations include the establishment of min­imum protection standards for digital platforms, the development of thorough pre-contractual regulations, and the creation of an in­teroperable ASEAN Online Dispute Resolution (ODR) network. These measures aim to enhance consumer confidence, ensure a secure digital marketplace, and align ASEAN’s practices with international standards.
Topic:
Digital Economy, ASEAN, E-Commerce, Digital Marketplace, and Consumer Protection
Political Geography:
Asia

2. Promoting E-Invoicing Interoperability in ASEAN: Overcoming Barriers to Trade Digitalisation

Author:
Mahirah Mahusin and Hilmy Prilliadi
Publication Date:
12-2024
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
Electronic invoicing (e-invoicing) is a vital component of paperless trading, delivering substantial cost savings and efficiency gains for businesses. The ASEAN e-invoicing market has experienced notable growth, spurred by initiatives from tax authorities, public procurement agencies, and business digitalisation programmes. However, adoption across the region still faces significant challenges. To address these barriers, ASEAN has introduced initiatives to foster interoperability, develop common standards, and support regional integration. By prioritising standardisation, offering government support, and encouraging private sector adoption through financial incentives and capacity-building efforts, ASEAN can accelerate trade digitalisation and enhance economic integration across the region.
Topic:
Trade, ASEAN, Supply Chains, Digitalization, and Electronic Invoicing
Political Geography:
Asia

3. Securing Regional Solar Supply Chains: Determinants and Preparedness of the Northeastern Region of India and ASEAN

Author:
Prabir De, Komal Biswal, and Venkatachalam Anbumozhi
Publication Date:
11-2024
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
Renewable energy contributes to the acceleration of the energy transition, supports global environmental mitigation, and helps meet sustainable development goals. Energy connectivity of India’s Northeastern Region (NER) with neighbouring countries particularly ASEAN assumes critical importance for accelerating economic integration. NER can play a three-dimensional role as power producer, exporter, and transit provider provided a quadrangular approach to build energy linkages and promote integration is consciously put in place. To understand whether the NER states are capable enough to take forward the solar supply chain development and bolster the ASEAN-India engagements in solar energy sector, this study has designed a state-level index of solar supply chain development by factoring in seven parameters, namely, (i) economic situations, (ii) environmental factors, (iii) spread of connectivity, (iv) financial enabling conditions, (v) mobility, (vi) human development, and (vi) social cohesion, which directly or indirectly influence the solar supply chain development in India. The results show that a clean and decent environment is must for development of solar supply chain. In addition, the study suggests that there is a need to improve the solar supply chain capability in the NER to enhance the economic growth. Leveraging policy support and reinvigorating existing institutions and creating new ones are imperatives for predicting the solar supply chain in the NER. This indexing may help track the trends, allowing for more informed decision-making in securing regional solar supply chain.
Topic:
Renewable Energy, ASEAN, Solar Power, Supply Chains, and Energy
Political Geography:
India and Asia

4. Urban Amenities and Trade Resilience During the Covid-19 Pandemic in Malaysia

Author:
Cassey Lee
Publication Date:
11-2024
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
The main objective of this study is to empirically examine the role played by amenities in supporting growth and trade in Malaysia during the pandemic and post-pandemic recovery phases. The manufacturing sector has been an important factor in mitigating the negative impact of the pandemic. It has also been a positive driver of the country’s economic recovery. Transport, health and ICT-related amenities supported production, consumption, and trade activities during the pandemic and post-pandemic recovery periods.
Topic:
Trade, Cities, Resilience, COVID-19, and Amenities
Political Geography:
Malaysia, Asia, and Southeast Asia

5. Enhancing Plastic Reuse and Recycling with a Full Life-Cycle Approach

Author:
Aulia Salsabella Suwarno and Ivana Suradja
Publication Date:
11-2024
Content Type:
Policy Brief
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
Plastic pollution poses both environmental and economic challenges for Southeast Asia, underscoring the urgent need for a transition to a circular plastics economy driven by reuse and recycling strategies. Although AMS have incorporated these strategies within their National Action Plans, they are struggling to achieve the scale necessary to counteract rising plastic waste. This policy brief identifies key barriers hindering the growth of plastic reuse and recycling initiatives in the region and provides targeted recommendations based on a full life-cycle approach. By adopting this approach, AMS can maximise the economic potential associated with effective plastic waste management and pollution mitigation.
Topic:
Environment, Pollution, Recycling, ASEAN, and Plastic
Political Geography:
Asia

6. Strengthening ASEAN’s Cybersecurity: Collaborative Strategies for Enhanced Resilience and Regional Cooperation

Author:
Mahirah Mahusin and Hilmy Prilliadi
Publication Date:
11-2024
Content Type:
Policy Brief
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
As ASEAN’s digital economy continues to expand, the region faces escalating cybersecurity risks with significant potential costs. This policy brief examines ASEAN’s current cybersecurity landscape, underscoring the need for enhanced cooperation and comprehensive strategies to address the rising threat of cyberattacks. The economic impact of cyberattacks in ASEAN is already substantial, affecting both public and private sectors. This brief reviews existing efforts such as the ASEAN Cybersecurity Cooperation Strategy 2021–2025 and the ASEAN Regional Computer Emergency Response Team (ASEAN CERT), recommending the establishment of a shared cybersecurity taxonomy, capacity-building initiatives, and legal framework updates to bolster cybersecurity. Key policy recommendations encourage robust multi-stakeholder collaboration at national and regional levels.
Topic:
Regional Cooperation, Cybersecurity, Regulation, Digital Economy, and ASEAN
Political Geography:
Asia

7. Promoting Fair Competition in ASEAN’s Digital Economy: Strengthening Policies for a Level Playing Field

Author:
Mahirah Mahusin and Hilmy Prilliadi
Publication Date:
11-2024
Content Type:
Policy Brief
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
ASEAN’s digital economy is growing rapidly, offering both significant opportunities and challenges. Ensuring a competitive digital market is essential for fostering innovation, reducing costs, and enhancing product quality and choice for consumers and businesses, particularly MSMEs. This policy brief assesses the current digital market competition landscape in ASEAN, emphasising the need for robust competition policies to mitigate anti-competitive behaviours and establish a level playing field. It discusses key initiatives like the ASEAN Competition Action Plan (ACAP) 2025 and the ASEAN Guidelines for Sharing Merger Cases, while examining the complexities of digital markets, including the influence of dominant platforms, algorithmic impacts, and data privacy considerations. Policy recommendations focus on aligning provisions in the ASEAN Digital Economy Framework Agreement (DEFA) with regional standards and international best practices, enhancing regulatory capabilities, fostering regional cooperation, and promoting consumer education and protection.
Topic:
Digital Economy, Innovation, ASEAN, Economic Competition, and Digital Marketplace
Political Geography:
Asia

8. Global Minimum Tax: Policy Impact on Investment Promotion and Incentives in ASEAN Member States

Author:
Sufian Jusoh and Intan Murnira Ramli
Publication Date:
10-2024
Content Type:
Policy Brief
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
The Association of Southeast Asian Nations (ASEAN) Member States are some of the most important foreign direct investment destinations in the world. Investment in ASEAN Member States covers all four pillars of investment typology: natural resources, market-seeking, export oriented, and strategic assets. Key sectors – such as semiconductors, tourism, consumer products, e-commerce, banking, and commodities (e.g. nickel) – are expected to benefit from this trend. Many of the investors in ASEAN are multinational enterprises, and multinational enterprises earning €750 million or more in two of the four fiscal years, are now subject to the Global Minimum Tax (GMT) in more than 140 jurisdictions around the world. With the introduction of the GMT, ASEAN Member States must rethink their incentives and investment promotion strategies to maintain their competitive edge over other foreign direct investment destinations around the globe.
Topic:
Tax Systems, Investment, ASEAN, and Incentives
Political Geography:
Asia

9. Empowering Micro Businesses in Southeast Asia: Addressing Challenges and Harnessing Opportunities for ASEAN Economic Integration

Author:
Haris Zuan, Muhammad Falik Abd Razak, and Intan Murnira Ramli
Publication Date:
09-2024
Content Type:
Policy Brief
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
Micro, small, and medium-sized enterprises (MSMEs) form the backbone of Southeast Asia’s private sector, with microbusinesses comprising a significant majority. However, many operate informally, posing challenges for state recognition and assistance, particularly when youth manage these enterprises. More available data are needed to prioritise microbusinesses within economic policy. Nonetheless, microenterprises stand to benefit significantly from the region’s robust digital, transportation, and cultural connectivity, making enhancements in these areas crucial for their success. To address these challenges, policy recommendations focus on empowering youth in the micro-economy through digital inclusion initiatives and greater participation in decision-making processes. Additionally, enhancing cross-border payment systems is essential for promoting innovation and digitalisation in payment systems. Standard harmonisation, the adoption of shared data frameworks, and regulatory frameworks are necessary for facilitating faster cross-border transactions and minimising disruptions in payment systems.
Topic:
Business, Regional Integration, ASEAN, Economic Integration, and Inclusion
Political Geography:
Asia

10. Impacts of Trade Diversion from China in the United States Market on Wages in a Third Country: Evidence from Thailand

Author:
Kazunobu Hayakawa and Sasatra Sudsawasd
Publication Date:
09-2024
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
Since the latter half of the 2010s, China’s exports to the United States (US) have gradually decreased due to the US-China trade war and other factors, such as lockdown measures in China to combat COVID-19. This decrease has resulted in increasing exports from third countries, including Thailand, to the US market by substituting China’s exports, i.e. trade diversion. Against this backdrop, this study empirically investigates how the changes in exports to the US driven by the change in China’s exports to the US affect wages in Thailand. Especially, we examine the heterogeneous effects according to workers’ characteristics. To this end, we conduct regression analyses using individual-level quarterly data from the first quarter of 2017 to the second quarter of 2023. Our main finding is that the wage gap between low- and middle-skilled workers decreased, whilst the gap between middle- and high-skilled workers increased. Namely, the increased exports to the US caused ‘wage polarisation’ in Thailand. We also find that the increase in exports to the US contributed to expanding the wage gap by age but narrowing it by gender.
Topic:
Markets, Trade Wars, Exports, and Wages
Political Geography:
China, Asia, Thailand, and United States of America