What ASEAN central banks are aiming for is to enable businesses and individuals to make and receive electronic payments more conveniently yet less costly. A prominent example here is the “Asian Payment Network” which translates to full regional ATM interoperability. Through this initiative, an ASEAN  1  World Bank website (2014) (http://data.worldbank.org/indicator/BX.KLT.DINV.CD.WD)  2  ASEAN-6 includes Brunei Darussalam, Indonesia, Malaysia, Philippines, Singapore and Thailand. BIS central bankers’ speeches  1  resident, for instance, can use his or her local ATM card to withdraw cash from a machine in another ASEAN country without having to pay the fees charged by third-party payment providers. 8. We can see that the upcoming realization of the AEC is a springboard for a more vibrant GMS region. However, the benefits for the region go beyond the AEC. I can see some points where tangible outcomes will take place in the near future. 9. The first one is the more integrated production networks of the main industries which dominate the GMS. We all know that the region has a comparative advantage in primary industries which are demanded by other ASEAN countries. This is why we have observed the large inflows of investment into agro-industry, garment and mining sectors. Realizing the high potentials of these sectors, we have also seen contract farming practices in Laos, where key commodities such as corn and sugarcane are produced using advanced technology and practices. 10. The other point concerns the development of infrastructure.
This is particularly important given the lack of well-developed road and rail networks of the region. Countries in the GMS are addressing this through various projects, the main one being the road corridors. The North-South Corridor which connects Yunnan in China, with Myanmar, Laos and Thailand has been completed. Also, the East-West Corridor which links Vietnam, Laos, Thailand and Myanmar is near completion. This will make the whole region more closely interconnected, hence investments in any of the GMS country stand to benefit the rest. 11. The final point is on the demand side. The GMS will enjoy a larger consumer market base with distinct needs and increased purchasing power. The AEC is home to over 600 million people. In tandem with this is the significant rise of the middle class population. The Asian Development Bank estimates that the share of ASEAN’s middle class is expected to increase to 65% by 2030.3 Moreover, ASEAN continues to pursue closer integration into the global economy through various Free Trade Agreements. This includes China and India, both superpowers at the crossroads of the GMS. Therefore, the AEC will also be an important gateway, connecting the GMS to major markets of the Asia-Pacific region. 12. The bright future is ours for the making. The GMS economies are blessed with abundant resources and promising growth prospects. With the realization of the AEC, the region’s opportunities will be multiplied. Yet there remain important challenges. The bright future is ours only if we work to overcome the challenges together.