the association represents the collective will of the nations of south-east asia to bind themselves together in friendship and cooperation and, through oint efforts and sacrifices, secure for their peoples and posterity the blessings of peace, freedom and prosperity!" the asean declaration (# august 1$%&) table of contents introduction ' asean ' obectives and principles of the establishment of asean ( the asean charter 5 asean political-security community (aspc) & asean economic community (aec) 11 asean socio-cultural community (ascc) 1& towards an asean community 2015 ' introduction the association of southeast asian nations (asean) was established on # august, 1$%&! the member states of the association are brunei darussalam, cambodia, indonesia, lao pdr, malaysia, myanmar, philippines, singapore, thailand and viet nam! malaysia as a founding member of asean is very committed to achieve the obectives of asean establishment and asean community 2015! association of southeast asian nations (asean) efforts to establish regional cooperation continuously held especially after the conclusion of the malaysia and indonesia)s confrontation in august 1$%%! during negotiation in bang*o* in early august 1$%&, five foreign ministers of asean founding countries agreed to establish association of southeast asian nations (asean)! finally, the asean declaration also *nown as the bang*o* declaration was signed by the foreign ministers at that time were tun abdul ra+a* (malaysia), adam mali* (indonesia), narciso r! ramos (philippines), r! raaratnam (singapore) and thanat *homan (thailand)! this declaration set the goal and purpose of asean establishment and the membership openness to all countries in southeast asia! this declaration also proclaimed asean as representing the aspirations of southeast asia countries based on the spirit of friendship and co- operation to contribute towards peace, progress and prosperity of the region! ( towards an asean community 2015 obectives and principles of the establishment of asean bang*o* declaration 1$%& set a goal of asean establishment that is to accelerate the economic growth, social and cultural development based on the spirit of cooperation, partnership and e,uality to strengthen the development of a progressive and peaceful community among asean member countries! it is also aims to establish regional peace and stability by encouraging member countries to establish intergovernmental relations with respect to ustice and laws as well as to adhere to the principles of the united nations charter! the treaty of amity and cooperation in southeast asia (tac) stated that, cooperation and relation between asean member countries are on the following principles- respect the independence, superiority, e,uality, territorial integrity and national identity of all nations! the right of every country to lead, free from e.ternal interference, subversion or coercion! resolution of differences or arguments peacefully! decline the use of military! effective cooperation between member countries! towards an asean community 2015 5 the asean charter % towards an asean community 2015 the asean charter united by a common desire and collective will to live in a region of lasting peace, security and stability, sustained economic growth, shared prosperity and social progress, and to promote our vital interests, ideal and aspirations!" the asean charter 200& (20 november 200&) the asean leaders adopted the asean charter at their summit in singapore in november 200&! a high level tas* force had drafted the charter, drawing upon the recommendations of an eminent persons group! the charter embodies fundamental principles, goals, obectives and structures of asean cooperation, codifies all asean norms, rules and values, gives asean a legal personality", determines the functions, and develops areas of competence of *ey asean bodies and their relationship with one another! with the entry into force of the asean charter on 15 december 200#, asean has become a rules-based intergovernmental organisation with a legal personality! some institutional changes include- an improved structure to ensure greater efficiency and prompt implementation of asean agreements and decisions convening of the asean summit twice a year creation of an asean coordinating council single chairmanship for *ey high-level asean bodies creation of a committee of permanent representatives in a*arta establishment of the asean intergovernmental commission on human rights towards an asean community 2015 & asean political-security community (apsc) # towards an asean community 2015 asean political-security community (apsc) a rules-based community of shared values and norms a cohesive, peaceful and resilient region with shared responsibility for comprehensive security a dynamic and outward- loo*ing region in an integrated and integrated and interdependent world! the aspc aims to ensure that the peoples and member states of asean live in peace with one another and with the world at large in a ust, democratic and harmonious environment! to achieve this, the apsc promotes political development in adherence to the principles of democracy, the rule of law and good governance, and respect for the promotion and protection of human rights and fundamental freedoms as inscribed in the asean charter! it also subscribes to a comprehensive approach to security! at the same time, the apsc see*s to strengthen the mutually beneficial relations between asean and its dialogue partners and friends! the apsc thus envisages the following *ey characteristics- a rule-based community of shared values and norms/ a cohesive, peaceful, stable and resilient region with shared responsibility for comprehensive security/ and a dynamic and outward- loo*ing region in an increasingly integrated and interdependent world! the apsc has the following components- political development/ shaping and sharing of norms/ conflict prevention/ conflict resolution/ post-conflict peace building/ and implementing mechanisms! notable progress has continued to be made across the various areas and sectors under the asean political-security community (apsc) since the blueprint towards establishing the apsc was adopted by the asean leaders at the 1(th asean summit in 200$! the apsc blueprint is guided by the asean charter and the principles and purposes contained therein! it provides a roadmap and timetable to establish the apsc by 2015! it also leaves room for fle.ibility to continue programmes0activities towards an asean community 2015 $ beyond 2015 in order to retain its significance and have an enduring ,uality! the apsc blueprint envisages asean to be a rules-based community of shared values and norms/ a cohesive, peaceful, stable and resilient region with shared responsibility for comprehensive security/ as well as a dynamic and outward- loo*ing region in an increasingly integrated and interdependent world! in the area of political cooperation , the stature of the 1$&% treaty of amity and cooperation in southeast asia (tac) has been significantly enhanced! international interest in the tac continues to grow! asean is also ma*ing progress in conflict resolution and management! the launch of the asean institute for peace and reconciliation (aipr) during the 21 st asean summit is a testimony to this effort! aipr shall be the asean research institution on conflict resolution and conflict management to enhance peace, security, and stability in the region! in an effort to provide a framewor* for regional cooperation to tac*le the humanitarian aspects of landmines and e.plosive remnants of war (erw), the 21 st asean summit adopted the statement on the establishment of an asean regional mine action centre (armac)! in further strengthening the promotion and protection of human right in the region, asean adopted the asean human rights declaration (ahrd) and signed the phnom penh statement on the adoption of the ahrd at the 21 st asean summit in november 2012! this is another milestone for asean in the implementation of relevant human rights provisions as enshrined in the asean charter and the apsc blueprint! moving forward, the focus of the asean intergovernmental commission on human rights (aichr) will be on the implementation and dissemination of ahrd and the phnom penh statement, including the translation of ahrd into the national languages of asean member states, on security cooperation, the asean regional forum, which is entering into its 20 th year, has been wor*ing towards enhancing coordination with other asean sectoral bodies on cross-cutting issues in view of promoting synergy and complementary among e.isting asean mechanisms! cooperation under the framewor* of the asean defence ministers) 10 towards an asean community 2015 meeting (admm) has been progressing steadily! among others, wor* is being carried out towards the establishment of the asean peace*eeping centres networ* and the asean defence industry collaboration! in the admm-plus front, three maor e.ercises in the areas of humanitarian assistance and disaster response (hadr) and military medicine, counter terrorism and maritime security will be conducted in 201'! on the e.ternal relations front, asean is vigorously intensifying dialogue and cooperation with its dialogue partners, international and regional organi+ations as well as with other e.ternal parties! e.ternal parties increasingly regard asean as one of the most successful regional organisations, which serves as the central locomotive for peace, stability and prosperity in the region and beyond! asean is actively engaging its dialogue partners to further enhance dialogue and cooperation with them, in addition, asean is solidifying its engagement with regional and international organi+ations as well as international institutions and un specialised agencies! towards an asean community 2015 11 asean economic community (aec) 12 towards an asean community 2015 asean economic community (aec) single mar*et and production base competitive economic region e,uitable economic development integration into the global economy the asean economic community (aec) is the realisation of the end goal of regional economic integration by 2015 of the ten (10) economies of the asean member states, namely brunei darussalam, cambodia, lao pdr, indonesia, malaysia, myanmar, the philippines, singapore, thailand and viet nam! the aec will bring benefits to the peoples of asean by creating a more conducive environment through transparency, predictability and consistency for businesses to flourish! this will in turn benefit consumers who will have access to a cheaper and wider range of goods and services and enoy more e.tensive consumer protection! the newer asean member states of cambodia, lao pdr, myanmar and viet nam stand to also gain through the many opportunities for production networ*s created by an aec and the productivity enhancing effects of aec)s emphasis on best practices! asean aims to achieve the aec by facilitating free flow of goods, services, investments and s*illed labour, and free flow of capital/ increasing physical, institutional and people-to- people connectivity to bring down the cost of doing business/ narrowing the development gap both within and between asean member states by instituting targeted programmes/ and finding synergy through engaging in bilateral ftas and consolidating the plus one ftas into a regional comprehensive economic partnership (rcep)! further, by trac*ing our progress and performance against set targets through the aec scorecard mechanism! despite the still uncertain global environment, asean maintained its economic resilience with the economic growth of 5!% percent in 2012 from (!& percent in 2011, underpinned by strong domestic demand! the need to stay resilient against global uncertainties has also pushed the region to pursue its integration agenda further! as a result, the aec continued to ma*e good progress! by end- march 201', around &# percent of measures due under the aec blueprint have been implemented, with significant gains across pillars including the following- towards an asean community 2015 1' per capita income in the region had risen from usd21,2%& to usd1',&5$ in 2012 total trade of asean grew by 1%!#2, from usd12!05 trillion in 2010 to usd12!( trillion in 2011/ intra-asean trade reached usd15$# billion from usd1520 billion, an increase of 15!12, over the same period! asean continued to attract foreign investments, generating a record usd111( billion fdi inflow in 2011, a 2'2 increase from usd1$2 billion in 2010/ the asean comprehensive investment agreement (acia) is now enforced/ the landmar* asean agreement on movement of natural persons (mnp) has been signed/ the pilot implementation of the asean single window, which is e.pected to contribute to improved trade facilitation in the region, is well underway/ while in transport facilitation, renewed progress is made in the ratification of agreements/ a wor* program was also developed to address non- tariff barrier (ntbs), including enhancement of non-tariff measures (ntms) database and engagement of private sector to obtain feedbac* on ntb0ntm) issues! over the last year, the region)s financial mar*ets have been deepened, with greater focus on capital mar*et development and ban*ing and insurance mar*et integration! this has led to a strong financial intermediation in the region to support trade integration! efforts to implement the asean framewor* for e,uitable economic development which is intended to narrow the development gaps in the region have gained momentum, with new initiatives being introduced li*e financial inclusion! meanwhile, negotiations for the regional comprehensive economic partnership, which will further cement asean)s centrality when completed by 2015, have also started! despite this progress, realising the aec is still a challenge, particularly with the uncertain global environment! nonetheless, the aec is still the best strategic response by the region in preserving its competitive strength! over the years, wor* has intensified 1( towards an asean community 2015 at varying levels to implement the elements of the aec! while there have been important and positive achievements, more efforts are still needed achieve the integration targets! as the aec draws near, and following the priorities set by the leaders in the phnom penh agenda during the 20 th summit in april 2012, it has become clear that countries need to redouble their efforts and ta*e active steps to realise the aec by 2015! cumulative fdi net inflow to asean, host country 200% - 2011 nominal in share to total million usd in 2 brunei darussalam ',22$!' 0!& cambodia (,'&$!0 1!0 indonesia 5$,0($!5 1'!1 lao pdr 1,%$0!% 0!( malaysia ((,(21!1 $!$ myanmar ',5'1!& 0!# philippines 11,$0(!0 2!% singapore 22$,'$1!% 50!$ thailand 51,0&2!( 11!' viet nam (1,&(#!0 $!' asean (50,(1&!' 100!0 source - aseanstats database as of september 2012 for fdi! towards an asean community 2015 15 asean trade 2011 country value in million usd intra asean 5$#,2(2!2( an+ %&,&11!1( canada 10,&&1!15 china 2#0,(05!55 eu-2& 2'(,&&%!15 india %#,(2#!&# apan 2&','(&!0& *orea, republic of 12(,(&0!$0 pa*istan %,&%&!(5 russia 1',$%&!(5 usa 1$#,!$5 others 510,$10!05 trade 2,'##,5$2!2# source - aseanstats database as of november 2012 for trade!