NARRATIVE DISCUSSION

The Association of Southeast Asian Nations (ASEAN) is the fastest growing economic bloc
globally and is the third-largest economy in Asia. As the ASEAN economies prospered and opened to
global investment and trade, Singapore also benefited as a hub. Singapore has become one of the
founding members of ASEAN. The country has been recognized for its economic stability and business-
friendly environment. As a core member of ASEAN and as a trade partner and signatory in the ASEAN
region, they also acted as a regional signatory to establish ten regional free trade areas (Hawksford, 2020).
The Singapore Business Outlook and reinvention for future-readiness have shown that the diversity of
international investment is expanding. Thus, China and emerging Asian markets are increasingly
choosing Singapore for regional and global growth. As Singapore has strengthened its position as Asia's
premier regional hub, Investors and nearly half of the world's multinationals are choosing to have their
regional headquarters in Singapore (Goncalves, 2019). Most business owners consider Singapore to be a
suitable regional or international business hub because of its low tax rates, conducive environment, and
rapid economic growth rate. Singapore is considered to be an interesting location for the top company in
their global business. Aside from offering a strategic location for access to the world market or IT-related
infrastructure, it also provides a skilled workforce who can manage the entrepreneurs' industry and
provide related services that the entrepreneurs may need. The tax structure effectiveness of Singapore
ensures that the company could not be treated as a resident of the home country, wherein a company that
is incorporated in Singapore is still considered as another country's company if the management and
control of that company remain to be belonging to them (Paul Hype Page & Co, 2016).

Asia is the largest and most diverse among the seven continents. Due to the Diversity across Asia,
GDP per capita is used to determine how wealthy a nation is in monetary value. The GDP per capita
describes the value of a geographic location’s total goods and services and its relation to the population,
while GDP determines how wealthy a nation is. It is the monetary market value of all final goods and
services made within a country during a specific period (World Population Review, 2021). These serve as
an indicator of a nation's economic strength, and positive change is an indicator of economic growth.

Singapore's city-state is the wealthiest economy in Southeast Asia when ranked in terms of GDP
per capita, followed by Brunei And Malaysia. Recently, the statistic shows a gross domestic product
(GDP) per capita of Singapore from 2019 to 2020 with 6$5,233.88 and $58,483.96 respectively (Pelcher,
2021). Singapore is a highly developed market economy that ranks at the top of the global list of the
freest and most competitive economies. The country belongs to the top ten least corrupt nations of the
world. The low tax rate has also increased the country's popularity as a tax haven, and Singapore hosts the
highest percentage of millionaires in the world (Nag, 2019).

Brunei is the second wealthiest economy in the region in GDP per capita with a GDP capita of
23,116.71 US dollars during 2020 and $32,414 in 2019. . Brunei is a small Southeast Asian nation
located on the Northern coast of the island of Borneo. The country receives substantial foreign
investments that supplement the income of the government. Brunei heavily relies on imports for its food
requirements as 90% of its GDP depends on oil and natural gas production (Nag, 2019), unlike Singapore,
whose wealth does not depend on its oil but its low government level corruption business-friendly
environment. The third wealthiest Southeast Sian country in terms of GDP per Capita is Malaysia.
Malaysia is a newly industrialized market economy that has a significant influence on the State. It is one
of the fastest-growing economies globally and is rapidly approaching its target of becoming a developed
economy. Like Brunei, Malaysia relies upon its agriculture and tourism to increase its GDP (Nag, 2019).

Malaysia is followed by Thailand, Indonesia, Philippines and Vietnam with recent GDP per
capita of $7,807, $4,197$, $3,512, $3,416, respectively and its annual GDP is 543,549M, 1,120,141M,
376,795M, 329,537M respectively. Thailand becomes an upper-middle-income economy in2011. Over
the past years, Thailand has made remarkable progress in social and economic development, moving from
a low-income country to an upper-income country in less than a generation due to its smart policies. The
country has sustained strong growth and an impressive development story. However, in the past years, its
economic growth slowed because there were weaker demands for exports reflecting the impact of US-
China trade tensions. This slows down public investments and drought, impacting agricultural production.
Weakness in education outcomes and skills matching has also contributed to the falling behind economic
and welfare indicators (The World Bank, 2020).

Indonesia is the largest economy in Asia and the fifth in rank in terms of GDP per capita.
Indonesia is a diverse archipelago and is the world’s fourth most populous nation. However, it has made
enormous gains in poverty reduction. As they are consistently maintaining their economic growth, the
country has reached the upper-middle-income status. Their strategy was promoting human Capital. The
Philippines, on the other hand, is a country rich both in human resources and natural resources; however,
Filipinos remain low because of corruption and political oppression. This prevents Filipinos from making
the great leap forwards from poverty to riches. Aside from that, extractive institutions that allow a small
group to extract incomes and wealth from the rest of society block economic growth when its interests are
threatened (Mourdoukoutas, 2017). Unlike the Philippines, Vietnam has experienced a high and well-
sustained economic growth rate in the past decades. Due to economic and political reforms, Vietnam
spurred rapid economic growth, transforming them into a lower-middle-income country. The vast
majority of Vietnam’s remaining poor is because of its ethnic minorities. The GDP increase during 2019,
making them one of the fastest-growing rates in the region. Vietnam’s rapid growth and industrialization
have had detrimental impacts on the environment and natural assets. Compounding the problem is the
reality that much of Vietnam’s population and economy are highly vulnerable to climate impacts (The
World Bank, 2020). Following Vietnam, countries such as Myanmar, Cambodia and Laos are considered
the poorest with the most stagnant economies in Southeast Asia.

Myanmar also known as Burma is the poorest among the ten members of ASEAN. The country
had a highly stagnant and isolated economy for decades. Adequate infrastructure and a large skilled
workforce are both lacking in the nation. Agriculture serves as the primary sector, and contributes greatly
to the national GDP wherein it has recently recorded GDP per capita of $ 1,244. It is followed by $ 1,620
of Cambodia and $2,670 Laos. Cambodia is the second poorest Southeast Asian nation in terms of GDP
per capita. It was previously categorized as a least Developed Country but its status was promoted to
lower Middle income in 2016. Lastly, Laos, it is a small landlocked and mountainous country and dense
forests. The population density is low. This country remains to be poor due to lack of political economic
freedom as well as its week property rights that has direct consequences on business . Despite taking small
steps to engage in international relations and trade, Laos has not yet fully embraced the rest of the world.
Although it is not entirely isolated, Laos still lags behind much of the international community in terms of
human and economic progress [ CITATION Isi17 \l 1033 ].
 Southeast Asia was part of the global part trading system even before Europeans' arrival, with
spices as the major export commodity. Although agriculture has historically been the mainstay of the
Southeast Asian economy, manufacturing and services are becoming more significant. Southeast Asia has
a diverse set of economies ranging from the highly developed, like Singapore, to rapidly growing ones,
like Indonesia, and stagnant economies like Myanmar. The economic development of Singapore is one of
the famous and most remarkable success stories in history. Singapore has become the only Asian country
to achieve a higher per capita gross income product than the United States by every measure during the
year 2013. Its success has been considered a real Asian "economic miracle," as it started being a third-
world country until it has made an edge above all by every developing country, including China.
Singapore has been considered as a classic example of an open economy because its total trade is indeed
considerably higher than its GDP, in line with the idea behind China's "opening up" policy. However,
studies show that Singapore's domestic development was based on the massive accumulation of capital
and labor, with only a tiny contribution from productivity growth, technically known as Total Factor
Productivity (TFP). Still, Asia's emergence forms the underdevelopment that persisted until the middle of
the last century is an outstanding economic achievement. This achievement created a model for economic
growth built on globalization and patient accumulation of human and non-human capital. This is indeed a
lesson for every developing country to study as they seek to replicate Singapore's success and approach
advanced economies.

References
ASEAN. (n.d.). Retrieved February 18, 2021, from www.mfa.gov.sg website:
https://www.mfa.gov.sg/SINGAPORES-FOREIGN-POLICY/International-Organisations/ASEAN#
Mourdoukoutas, P. (n.d.). Why Filipinos Remain Poor. Retrieved February 18, 2021, from Forbes website:
https://www.forbes.com/sites/panosmourdoukoutas/2017/06/01/why-filipinos-remain-poor/?
sh=3d19d7574f9b
Rafael Santa Maria. (2017, September 5). Why is Laos Poor? - BORGEN. Retrieved from BORGEN
website: https://www.borgenmagazine.com/why-is-laos-poor/
Richest Asian Countries 2021. (n.d.). Retrieved February 18, 2021, from worldpopulationreview.com
website: https://worldpopulationreview.com/country-rankings/richest-asian-countries
Singapore - Gross domestic product (GDP) per capita 2024. (n.d.). Retrieved from Statista website:
https://www.statista.com/statistics/378654/gross-domestic-product-gdp-per-capita-in-singapore/
Singapore as a Regional or International Business Hub | Singapore Business. (n.d.). Retrieved February
18, 2021, from Company Incorporation in Singapore | PaulHypePage.com website:
https://www.paulhypepage.com/why-and-how-singapore-company-can-be-your-asia-regional-or-
worldwide-hub/
Singapore cements its position as Asia’s premier regional hub. (2019, June 18). Retrieved February 18,
2021, from www.internationalinvestment.net website:
https://www.internationalinvestment.net/news/4002703/singapore-cements-position-asia-premier-
regional-hub
Smartphone users in the Philippines 2017. (n.d.). Retrieved February 18, 2021, from Statista website:
https://www.statista.com/statistics/467186/forecast-of-smartphone-users-in-the-
philippines/#statisticContainer
The World Bank. (2018). Thailand Overview. Retrieved from World Bank website:
https://www.worldbank.org/en/country/thailand/overview
Why Singapore is the gateway to ASEAN | Hawksford. (2020, November 2). Retrieved from
hawksfordcareers website: https://www.hawksford.com/knowledge-hub/2020/singapore-as-a-
gateway-to-asean
WorldAtlas. (2018, February 3). The Richest and Poorest Countries of Southeast Asia. Retrieved from
WorldAtlas website: https://www.worldatlas.com/articles/the-richest-and-poorest-countries-of-
southeast-asia.htm