Jennie M. Xue

Business Success as an Outlier

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by Jennie M. Xue

Contrary to what motivational speakers believe, Malcolm Gladwell posited that many variables are at play in “successful” individuals: they are more than intelligent, courageous, and persistent in achieving goals. They are “outliers,” meaning that success is an accumulation of, among others, consistent training of 10,000 hours in five years, good “entry” timing, which part of town or country you were born in, who your parents are, what economic era you were born in, and which month of the year you were born in.

On top of these, one must have sufficient talents and skills to showcase to the world. The same also applies with products and services that businesses offer. Being an outlier certainly helps a business and outliers can help it even more.

First things first, let us discuss the traits of an outlier business.

Which businesses are “outliers”? Amazon is definitely one. It had the advantage for being one of the first players in the online retail world. It also started with one of the easiest products to market: books. It was founded in 1994, when the Internet was in its infancy, so it enjoyed almost non-existent barriers of entry. Being a pioneer in the field is definitely an outlier element.

Amazon was established in Seattle. It is the home of Microsoft, Starbucks, Nordstrom and Boeing. Thus, it is home to a pool of highly-educated individuals. Great timing, great headquarters location, and a great business model.

Balancing Views of 2014

by Jennie M. Xue

As 2014 is a presidential election year, it will be abound with politics. With the global economy yet to recover fully and BRIC countries slowing down, local businesses have started to become anxious. Will this be the year when things go awry? Will 2014 be a reprise of the 1997 Asian Financial Crisis?

In general, there are two views on why the 1997 Asian Financial Crisis occurred. The first view believes that its roots lie in sudden shifts in regional market expectations and confidence, which later unfolded beyond control. Exacerbated by investors’ panic and inappropriate responses by the International Monetary Fund, the crisis worsened. This version is, perhaps, a bit oversimplified.

The second view states that the crisis was a reflection of structural and policy distortions in the countries affected. In short, it was the result of failed economic policies, particularly in the banking and financial sectors, such as lack of supervision, weak regulation, corrupt lending practices without sufficient legal ramifications, and monopolistic practices among financial players. Trade deficits, currency depreciation and huge foreign debts were the final straws.

The Taller They are...

Download FORBES Indonesia November 2013

by Jennie S. Bev

Often overlooked, there appears to be a rough correlation between skyscrapers and financial bubbles. Skyscrapers and other magnificent architectures may be useful indicators of speculative economic bubble conditions. The Burj Khalifa, the world’s tallest building at 830 meters, had to halt construction after the 2008 global financial crisis started.

Take a look at some other skyscrapers. The Taipei 101 at 509 meters marked the tech bubble. Petronas Tower in Kuala Lumpur at 452 meters marked the Asian financial crisis. Sears Tower in Chicago at 527 meters and World Trade Center in New York at 526 meters marked 1970s stagflation. The Empire State building at 443 meters, Chrysler building at 319 meters and 40 Wall Street building at 283 meters in New York marked the Great Depression. The Metropolitan Life building at 247 meters and the Singer building at 187 meters in New York marked the Panic of 1907.

China itself is susceptible to bubble conditions, if we go by building heights. By 2015, China will house the world’s number 2, 3, 5, 9, and 10 tallest buildings. According to Vikram Mansharamani, author of “Boombustology: Spotting Financial Bubbles Before They Burst,” this indicator is consistent. Why? Because magnificent architecture is built during times when investors have access to excess liquidity, as very tall buildings require large amounts of financing.

“A period of easy money leads to rapid expansion of the economy and a boom in the stock market… and this is when the world’s tallest buildings are begun,” notes economist Mark Thornton, who proposed a skyscraper index financial model to track this correlation in 2005. Some economists have proposed this idea even earlier, back in the late 1990s, although others have cast doubt how serious this indicator is to predict a financial bubble.

Macrotrends in Supply Chain Management

by Jennie S. Bev, Santa Clara

How we do business has evolved greatly since 1980s and 1990s. Many things have become more convenient, but others might require more efforts with a new shift of consciousness. Thus, businesses should be aware of the global macrotrends and the new challenges in supply chain management.

New and disruptive macroeconomic variables include population growth and migration, rising economies and new buying power, global connectivity, increased geopolitical activity and environmental and climate change, according to a new book “Global Macrotrends and Their Impact on Supply Chain Management: Strategies for Gaining Competitive Advantage” by Chad Autry, Thomas Goldsby and John Bell. 

We should expect to see the world population become ten billion by 2050 and the most populated regions would remain Southeast Asia and Africa. These trends requires unprecedented distribution and marketing channels to reach customers, including a 24/7/365 global connectivity through real-time Internet. 

These days emerging countries are looking to secure supplies of natural resources such as oil, coal and others. Developed countries have their own “stocking up” agenda, including having enough farmland (or making what they have more productive) to ensure adequate food supplies to feed themselves. Natural resources, food and water have become harder to gather as the population expands and resources dwindle, in both size and productivity. Global warming and other ecological threats will aggravate this situation.

Hattanomics and Political Bubbles

by Jennie S. Bev, Santa Clara

After Widjojonomics and Habibienomics, we are now in the Hattanomics era, a term referring to the policies of Coordinating Minister of Economics Hatta Rajasa and popularized by Kevin O’Rouke in “The Politics of Indonesia’s Protectionism” (The Wall Street Journal, May 23). The three fundamental elements of Hattanomics: protectionism, trade barriers, and restrictions on foreign investment. Policies based upon these underlying principles include the economic development master plan (MP3EI), massive private sector financing, limiting foreign ownership, export restrictions, import quotas, renegotiation of mining contracts, restrictions in raw mining products export, restrictions on some finished-goods imports, and requiring foreign investors to sell majority stakes within ten years.

Its ultimate goal is helping Indonesia to become a developed country and a top ten world economy by 2025. It would require an average economic growth rate of at least 7% involving collaborative efforts among private and public sectors as well as local government entities.

Despite its noble intention, Hattanomics comes with huge risks. In “Political Bubbles: Financial Crises and the Failure of American Democracy” by Princeton professors Nolan McCarthy, Keith T. Poole and Howard Rosenthal, the authors attempt to show that while “financial bubbles” are a mix of mistaken beliefs, market imperfections and greed, “political bubbles” are the concoction of ideologies, unresponsive and ineffective government institutions and special interests.

Can Indonesia be the Next Philippines?

by Jennie S. Bev, Santa Clara

The Philippines has become the favorite destination for offshore outsourcing of U.S. companies. The country’s young population’s strong skills, culturally adaptable attitude and western-mindedness are a clear advantage. In general, Filipino workers in the global outsourcing marketplace can be distinguished into two categories: migrant workers who work outside their homecountry doing house chores and blue-collar jobs and in-country workers who work at blue-collar jobs, and low-, middle- and higher-level white-collar jobs.

Ten million Filipino migrant workers toil in households around the globe. The Victoria Park in Hong Kong is famous as a weekend gathering spot for those who work in this modern part of China. Throughout Singapore, Filipino waiters and waitresses and salespersons can be found smiling and proudly serving their customers. 

Compared to Indian workers whose speaking accent is more on the British side and culturally less adaptable, in general Filipino workers are known for their flexibility and westernized attitude. For U.S. companies, Filipino workers have an advantage over their Indian counterparts for the former are more Americanized as the Philippines was once an American colony. 

IT and accounting jobs, which don’t require cultural elements, are still favorably offshored to Indians. Filipino foreign outsourced workers are better with soft-skill jobs like call center customer service, administrative assistance, research, Web search, writing, and editing. A good number of hardcore IT jobs are also absorbed by the Philippines, though India is still leading the pack.

Is Sustainability Still Possible?

   

Jennie S. Bev, Santa Clara

More and more businesses declare that they’re environmentally friendly, ecologically conscious, and sustainable. Ecofriendly signs have become a seal of approval that a product is good for the environment, yet many questions remain unanswered. Still, many believe that it’s better to choose something with a seal of approval than without one.

Interestingly, corporate social responsibility (CSR) programs often are publicity-oriented than truly providing social values for stakeholders. In today’s business world, “sustainable” and “CSR” seem to have become overused and it’s hard to separate hype from reality. According to Ecological Footprint’s calculations, the world’s population currently consumes 1.5 times global capacity. The earth is now being asked to sustain 7 billion people. It took 200,000 years to reach a population of 1 billion in the 1800s. Scarcity has definitely taken center stage in the larger scheme of things: by mid-century the world’s population would reach nine billion. The world is unlikely to cope with the exponential loss.

Even with a population of 7 billion, greenhouse gas emissions and natural resource consumption must be decreased considerably to be able to reach a “sustainable” level. Analysts have begun to see a state of emergency has arrived. In regions where ongoing violence and extreme poverty are rampant, “sustainability” seems a distant goal. Whether Indonesia has fallen into this category remains to be seen. University of Indonesia Public Policy scholar Andrinof Chaniago has offered a solution to Jakarta’s overpopulation: moving the capital city to Kalimantan.

As we currently live in the so-called anthropocene era—an informal geologic chronological term that serves to mark the evidence and extent of human activities that have had a significant global impact on global ecosystems—we bear the highest responsibility to ensure that our species and nature are well managed and maintained. Corporations, naturally, bear some, if not larger, part of the blame for all these perilous changes in the environment now and in the future.

2020 Megatrends and Indonesia Part 2 of 2

Download this article in FORBES May 2013

by Jennie S. Bev, Santa Clara

According to economist Thierry Malleret, by 2020, the six global megatrends engendering instability are: unfavorable demographics, resource scarcity, climate change, geopolitical rebalancing, indebtedness and fiscal issues, and rising inequalities. We have discussed the first three trends in the April 2013 issue of Forbes Indonesia.

The fourth trend is geopolitical rebalancing. Despite the popular belief that the 21^st century is Asian, Asian countries have a long way to go in leading world’s geopolitics. America remains the dominant power, despite its much lower hard power due to the ongoing slow economy.

The G20 has not been showing any strong leadership and China has been a reluctant leader. Thus, the past G7 countries have been maintaining global leadership despite the sluggish economic growth. In other words, a country’s economic power does not correlate to global leadership.

Whether Asia can be the dominant power is now questionable because its low-cost advantage is disappearing and post-industrialization and re-industrialization of the West are strengthening. Indonesia might well be losing momentum to lead global, or even Asia, power in the next few years due to various elements, one of which includes the high real cost of doing business here in comparison with other Asian countries in the form of inefficiencies and poor infrastructure. 

Indebtedness and fiscal issues will continue to require structural reforms in U.S., Europe and Japan. However, they may as well continue to lead the global power with their post and re-industrialization activities. Policy makers, however, will also continue to juggle the overleveraged global economy and high unemployment as the “new normal.”

2020 Megatrends and Indonesia

   

Download FORBES Indonesia April 2013

by Jennie S. Bev

This column is the first of two parts, the second will appear in the May issue.

Living in a modern society involves risks and some are bigger than others. In 2020, the world shall encounter an important milestone: make it or break it. According to economist Thierry Malleret, by that year the six global megatrends will be engendering worldwide instability: unfavorable demographics, resource scarcity, climate change, geopolitical rebalancing, indebtedness and fiscal issues, and rising inequalities.

The world population is aging. In developed and certain Asian countries, the birth rate is falling. Of course, Indonesia isn’t included, which is both a pro and a con. Approximately 4 million are born in Indonesia annually, which is almost the size of Singapore. Singapore itself is losing population rapidly, which it attempts to offset with encouraging immigration policies and supportive “pro baby” taxation provisions.

Japan’s labor force started to shrink in the 1980s, while South Korea and Taiwan will be losing population within 15 years. If Indonesia can manage its population well with meaningful social and vocational developments, it has an unprecedented opportunity to penetrate various job markets in Asia and, even, worldwide. The trend of elite “national plus” bilingual and trilingual K-12 schools is a good start in cultivating young leaders with an international attitude. The Philippines and India have been capitalizing on this trend. The former is now multinational corporations’ favorite destination for offshore call centers, while the latter is for offshore IT desks.

Floods and Rockefeller Habits

 

Download PDF FORBES INDONESIA March 2013

by Jennie S. Bev

Theories are great as fundamentals. In the real world, it is how-to strategies, tips and realistic goals that make implementation of a theory possible. Hands-on information makes or breaks a business. You can have all those nice theories, yet you can’t go anywhere without a clear path.

One of the most valuable Rockefeller management habits is recognizing a “chokepoint” – the weak link in a system – according to Verne Harnish in “Mastering the Rockefeller Habits.” The recent flooding incidents throughout Indonesia is an indication of a multiple chokepoints in the overall economic development of the country.

Chokepoint is written all over the country’s wealth situation: 40 richest Indonesians have assets worth 10% of the GDP and 0.02% of the population controls 25% of the GDP, according to Merrill Lynch. Indonesia expert Jeffrey Winters points out that wealth in Indonesia is three times more concentrated than in Thailand, four times Malaysia, and 25 times Singapore.

Thanks to its intense wealth concentration, Indonesia’s GDP per capita looks amazing: approaching $4,000. This may as well be a “false sense of wealth” for average Indonesians. This figure is an indication of a chokepoint. Similar observations are found in organizations of smaller scale.

Post-Industrial Network Synchronization

by Jennie S. Bev

Parts of the world today, especially Santa Clara in Silicon Valley where I reside, has reached the post-industrialism or “knowledge economy” era. In Indonesia, hints of post-industrialism can already be sensed. Indonesia is aware of the power of post-industrialism, and it helps to have persons such as Mari Elka Pangestu as the minister of tourism and creative economy.

A post-industrial society is created when the service sector produces more wealth than the manufacturing sector. In a newer definition, a post-industrial society is one in which innovative products and services are primarily created by individuals working with strong scientific and artistic knowledge.

Silicon Valley and Hollywood are good examples of a knowledge or post-industrial economy. The main characteristic of this economy is creativity, with continuous invention and re-invention. A post-industrial person is future-oriented and is highly innovative regardless of the field. Instead of manufacturing products and being a rank-and-file employee or executive, or even a factory worker by following orders and having a rigid job description, they are individuals who are set to replace the Industrial Revolution’s workers. 

Consequently, the environment has become highly competitive. When Adam Smith wrote The Wealth of Nations, massive consumption and making as much profit as possible required massive amounts of capital. In a knowledge economy, those who have access to funding might no longer be the strongest players.

Will a Financial Bubble Pop in 2013?

Download the article in Forbes January 2013

by Jennie S. Bev

The economic implosion of 2008, tech bubble bursting in early 2000s and the 1997 Asian Financial Crisis are popped financial bubbles. Yet such bubbles go back to the tulip mania in 1600s and the origins of the Great Depression of the1930s are two other such bubbles, further back in time.

Yale University lecturer and global equity investor Vikram Mansharamani in “Boombustology: Spotting Financial Bubbles Before They Burst” proposed five lenses to spot financial bubbles and make the necessary moves before it’s too late: microeconomics, macroeconomics, psychology, politics and biology. Every lens provides some insights into how bubbles are created and any combination of those lenses spells trouble. 

The two elements of microeconomics are supply and demand, which always find a way to achieve the so-called “equilibrium.” However, monetary policies often come into picture, which can tip the balance. Thus, both Milton Friedman and John Maynard Keynes’ arguments have their own strengths and weaknesses in the creation of financial bubbles.

Investment Grade for Indonesia?

by Jennie S. Bev

The recent Indonesia Investment Summit in Jakarta was a party filled with euphoria. Vice President Boediono, Indonesia Investment Coordinating Board (BKPM) Chairman Chatib Basri, Minister of Trade Gita Wirjawan, Minister of Tourism and Creative Industry Mari Elka Pangestu, economists and investors in Indonesia all showed a positive attitude towards Indonesia’s potential. While both Fitch Ratings and Moody’s raised Indonesia’s credit rating to investment grade, Standard and Poor’s (S&P) hasn’t done this yet.

Economists are optimistic that next year’s growth would remain at 6.5% or even more, despite the global recession. With such a large domestic market, of which 53% live in urban areas, we can expect to see more ripple effects of the global economy in this growth market. The large population of 240 million people, of which 60% are under 39 years old, provide a ready workforce and the costs of doing business in Indonesia are competitive with other countries.

 Indonesia has many alluring factors, of course, but at the same time one has to strike a note of caution—can it be that good? For the challenges are also prevalent: lack of reliable infrastructure in between cities and islands, lack of reliable local suppliers, and lack of skills in this large labor pool.

The Interplay of Culture and Economy

[Download Forbes November 2012 Interplay of Culture and Economy]

 by Jennie S. Bev

“Culture” is probably one of the hardest English-language words to define. Almost anything we encounter everyday—consciously or not—is part of it. Raymond Williams in his 1976 book “Culture” posited that culture “never completes or finishes. It is continuously evolving, propagating with various meanings and identities, and shaping every aspect of the society.” 

As individuals and institutions, we shape and are shaped by culture. A strict approach in comprehending and analyzing it would be problematic. Either as a producer or a consumer of goods and services, we are culture-shapers. According to Williams, there are four interplays of culture and economy: negative, positive, competitive or emergent.

In the case of Indonesia, how has culture been shaping the economy or vice versa? Which cultural elements are involved, such as regional, national or international? Which is dominant: state or private? How are digitalization and globalization affecting this process? Do capitalistic interests reduce the purity of artistic and scientific elements of culture?

Why Radicalism and Corruption Won’t Hurt Growth

Download this article --Forbes Oct 2012

by Jennie S. Bev

Indonesia has long grappled with corruption and Islamic radicalism, along with abuses of minority religions, yet Indonesia’s latest growth figures showed a promising 6.4%. How do we explain this paradox? It seems these serious issues don’t have any effect on economic growth—yet it seems intuitively correct that radicalism and corruption would hamper growth. Is it really so? Or are we heading into a future that is likely affected by these social liabilities?

Nor did these issues seem to have a large impact on investment. In the first half of this year, investment in Indonesia increased 24%, according to Indonesia’s Investment Coordinating Board (BKPM). Investments contribute roughly one-third of current GDP, which is the largest since 1997 Asian financial crisis. The new investment influx totaled $8.1 billion in the second quarter, an increase of 10% from the first quarter. The overall investment total is now around $15.6 billion. In G20, only China has a faster growth in investment than Indonesia.

The Perfect Storm and Indonesia

by Jennie S. Bev

A dark cloud is hanging over the world economy and it may mean disaster for Indonesia next year. Or maybe not? Conditions in the U.S., the Eurozone and China point to a strong possibility of a hard time ahead in 2013. The U.S. recovery has been slower than expected, with a possibility for another dip. With only 1.9% growth in the first quarter and unemployment rate at 8.2% in June, combined with an increase in taxes, we can only expect very limited, if not nonexistent, disposable income.

The ongoing mortgage crisis is expected to result in the foreclosure of approximately two million homes in 2013, making housing inventory skyrocket. Prices are likely to be forced to fall further or, at least, stagnate for the next two years. With property values being dragged down by foreclosures or firesales of properties, negative equity on homes is likely to remain.

In Europe, the dark clouds are even more apparent and hanging low. The ongoing Eurozone crisis, volatile oil prices and credit crunch are making things worse. The recent Libor scandal involving London-based Barclays traders indicated the corrupt financial system may also have other hidden flaws not yet revealed. The system that regulates Libor itself requires utmost ethical conduct to properly work. Otherwise, one of the key components of the the global credit system could be jeopardized.

Whither Indonesia Amidst Global Uncertainty?

by Jennie S. Bev

The U.S. economic recovery is underway—albeit with a mixed picture. Some sectors are showing impressive improvement, while others are still in the doldrums. Meanwhile Europe is in crisis and China is slowing down, so the U.S. recovery is experiencing a lukewarm reaction from the corporate sector marked by limited hiring activities and a reluctance to make investments.

The weak job growth is due to tight corporate spending and cautiousness over another wave of recession brought on by the European crisis. Lower state spending on education, welfare and transportation is expected later this year, despite the fact that 31 states have enjoyed increased revenues.

Furthermore, budget balancing has been dragging on the economic recovery despite an improvement in fiscal conditions. With tax cuts of $600 billion slated to expire at the end of this year, a new spending cut of $100 billion shall start on the first day of January 2013. The Congressional Budget Office warns that these factors could trigger another bout of recession.

The JOBS Act, the US economy and Indonesia

by Jennie S. Bev

U.S. President Barack Obama signed the JOBS (Jumpstart Our Business Startups) Act into law on April 5, 2012. It is not a cure-all that would directly create jobs but an intervention that encourages job formation through easier access to capital to boost businesses. The payoff is to encourage investments, backed by statistics such as a study that shows a single angel investment can create on average six new jobs. 

It also proposes three payroll tax cuts, reforms unemployment insurance to ensure 6 million people don’t lose their benefits, reemployment assistance, startup assistance, and subsidizing employment for low-income youths. The most interesting provision in JOBS Act is probably the crowdfunding section, a financing technique that allows a large group of investors to contribute money for a single investment, usually via the Internet. The crowdfunding in this act would create a ripple effect to businesses worldwide, not just U.S. companies. The JOBS Act means that Indonesian companies now have a rare opportunity to take advantage of a U.S. policy.

Considering President Obama has been using crowdfunding for his presidential campaign, it is expected to work well for business funding in a slow economy, where bank loans are harder to get. The provision liberates companies to both stay private longer and to go public as soon as possible. It also provides an unprecedented opportunity for non-U.S. “emerging growth companies” (EGCs) to enter the U.S. market, because the provision doesn’t distinguish between U.S. and non-U.S. companies. In fact, it encourages U.S. and non-U.S. exchanges to seamlessly occur.

The Power of American "Soft Power"

Read "The Power of American 'Soft Power'" on Forbes.com.

by Jennie S. Bev

Almost four years since the beginning of the Great Recession, signified by the implosion of the financial industry and the fall of Lehman Brothers in September 2008, the United States is recovering. In fact, some sectors have grown to new heights. Thus, a “declining USA” is no more than a myth.

This myth is likely to continue for a while despite the recession officially ending in June 2009 as the high unemployment and on-going foreclosure crisis have cloaked significant economic improvements.  In the last four years, declinism and declinists have been spreading paralyzing dystopian analyses. Combine this with Nouriel “Dr. Doom” Roubini’s “the perfect storm” forecast in 2013 and you probably would become even more paralyzed.

Daniel Gross’ best-selling book Better, Stronger, Faster released in May 2012 is an exception. It is probably one of the first books that presents encouraging facts in this recovery period rather than discouraging views of America’s future.

The Asian Century, Indonesia and competitive advantage

by Jennie S. Bev

The 21st century has been nicknamed the Asian Century, while the 19th century was the European Century and the 20th century was the American Century. Both Europe and the U.S. were economically, politically and culturally dominant in their respective centuries, yet we have just started the second decade of the 21st century. While some Asian countries such as China and India have climbed up the economic totem pole, their ability in maintaining economic leadership hasn’t been tested. Meanwhile, other emerging Asian countries have some homework to boost their competitiveness. Indonesia is no exception.

Indonesia’s economy has been self-sustaining and relatively unshaken by the global crisis, due to the large population that serves as a rich labor resource and domestic market and the availability of raw materials in islands surrounding Java. Such uniqueness explains why Indonesia has a strong comparative advantage over other countries in terms of labor-intensive production and raw materials sourcing. However, increasing competitive advantage in high-priced goods is still challenging. While some Indonesia-made goods have better quality nowadays, certain fine products require better skilled labor and technology.

A radical proposal

by Jennie S. Bev

Executives need a radical management style and only those who know how to master this style will be able to survive in the future. What is a radical management style? While profits must be nurtured for the short-term existence, a radical manager must have long-term objectives taken from an “eagle” viewpoint on future sustainability. Forest management, for instance, should be done with awareness of how it affects the larger environment and surrounding communities. Thus long-term sustainability becomes a critical goal for the radical manager.

It isn’t merely an empty phrase. Rather, it is the ultimate underlying principle by which an organization bases its production, services and management. It is a critical issue in a world with increased competition for dwindling resources and heightened awareness of environmental and sustainability issues. A radical management style fits the conditions of Indonesia. With its growth over 6%, the country is filled with major opportunities but also long-term sustainability challenges. In such an environment, executives and entrepreneurs must be willing to take bold steps not small, safe and conventional ones.

AEC 2015 and Indonesia

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by Jennie S. Bev 

March, 2012 - The ASEAN charter was signed in 2007 with a promise to build an economic community fully engaged in globalization. With this in mind, the ASEAN Trade in Goods Agreement (ATIGA) that was signed in May 2010 will remove all tariff barriers in most of the ASEAN region by 2015. Such a major agreement comes with opportunities, responsibilities and consequences. How would a potential ASEAN economic community (AEC) in 2015 change Indonesia’s business and economic landscape? What are the possible challenges?
 
The AEC provides a needed foundation for building an economic community fully engaged in the global economy by creating a consolidated—and competitive—single market. Goals such as financial stability, development of regional infrastructure, connectivity, sustainable development and closing the development gap should drive the community to create and implement mutually beneficial programs. For instance, under ATIGA, the first group of ASEAN countries (Brunei, Malaysia, Indonesia, the Philippines, Singapore, and Thailand) would drop their tariffs by 2015 while the newer members (Cambodia, Laos, Myanmar, and Vietnam) would drop their tariffs and non-tariff barriers by 2018.