Jakarta: ASEAN and the OECD launched the OECD Competition Assessment Reviews: Logistics Sector in ASEAN region and the OECD Competitive Neutrality Reviews: Small-Package Delivery Services in ASEAN reports at the ASEAN Economic Ministers Meeting on Thursday.
The reports identified legislative and regulatory issues in the bloc’s logistics services sector that would hinder it from reaching its full potential.
The reports provided robust, pragmatic, non-binding policy recommendations to ASEAN governments to help the industry boost overall growth and expedite its recovery from the negative economic impact of the covid-19 pandemic.
According to the reports, the GDP of ASEAN has almost doubled since 2005. Its growing middle class now forms a large potential group of consumers. Yet further growth and greater prosperity are constrained by regulatory obstacles that impede competition in its logistics industry, reducing efficiency, driving up costs for businesses and not maximising consumers’ welfare, and hampering regional and international trade.
The OECD Competition Assessment Reviews: Logistics Sector in ASEAN report assessed the impact of regulation on competition in the sector. It covers five main subsectors of the logistics market: freight transportation, including transport by road, inland waterway and maritime; freight forwarding; warehousing; small-package delivery services; and value-added services.
Meanwhile, the OECD Competitive Neutrality Reviews: Small-Package Delivery Services in ASEAN report examined the effects of state-owned enterprises on competition in the bloc’s small-package delivery market. This market segment is a critical part of the logistics industry due to its role in the rapid expansion of e-commerce, whose growth has been dramatically accelerated by covid-19 pandemic.
"While the project started in 2018, the policy recommendations have taken into account the COVID-crisis to remain relevant to contribute to structural and regulatory shortcomings, which can help ASEAN economies resume sustainable growth and job creation by enhancing competitiveness, encouraging investment and stimulating productivity in the logistics sector, with economy-wide effects and consumer benefits," Dato Dr. Amin Liew Abdullah, Chair of the AEM Meeting and Brunei's Minister at the Prime Minister’s Office and Minister of Finance and Economy II said in a press release on Thursday.
The two reports are part of the OECD’s Fostering Competition in ASEAN project.
The project, a partnership between the OECD and ASEAN, supported by the UK Government’s ASEAN Economic Reform Programme.
It reviewed regulatory constraints on competition in all 10 ASEAN Member States to identify regulations that hinder the efficient functioning of markets and may unlevel the playing field to the disadvantage of businesses and consumers.
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