A look at the ASEAN and our major partner economies

The Association of Southeast Asian Nations (ASEAN) is a big economic bloc with a combined population of 686 million in 2024, the third largest in the world after India and China. Its combined GDP size at purchasing power parity (PPP) values was $12.3 trillion, the fourth largest in the world after China, the US, and India.

In merchandise trade, the ASEAN had a combined $1.94 trillion in exports in 2024, the third largest in the world after China and the US. In foreign direct investment (FDI) inward stock (inflows minus outflows through the years) the bloc had a combined $3.59 trillion (dominated by Singapore), and was the second largest after the US. And in power or electricity production, it had a combined output of 1,362 terawatt-hours (TWh) in 2024, the fourth largest after China, the US, and India (see Table 1).

Looking at the numbers, Laos is a surprise — it has a small population, a small GDP size and FDI stock, but it is huge when it comes to power generation and is considered as the “Power Battery of Southeast Asia.” Electricity — mainly from hydro — is Laos’ main export product with over 75% of its power generation in 2024 sold to neighbors like Cambodia, Myanmar, Thailand, Vietnam, Singapore, and China.

Of the ASEAN’s major partners, I included only Germany from among the EU countries for brevity’s sake. For the FDI data, I used outward stock, not inward stock, to see who were the large exporters of capital.

In GDP size in nominal or current values, the US is No. 1 in the world, but in PPP values, China is No. 1, followed by the US and India. This is consistent with data on power generation – China produced twice the power of the US, followed by India.

But in terms of per capita GDP, FDI outstock, and power generation, the US is the largest economy, followed by Taiwan, South Korea, and Australia. In per capita exports, Taiwan and Germany have the most (see Table 2).

Today there is an “ASEAN Editors and Economic Opinion Leaders Forum” in Makati, organized by the Committee on Business and Investment Promotion (CBIP) of the Department of Trade and Industry (DTI). The keynote speakers in the morning include Executive Secretary Ralph G. Recto, DTI Secretary Ma. Cristina Roque, and Tetsuya Watanabe, President of the Economic Research Institute for ASEAN and East Asia (ERIA). This should be an interesting forum.

On Facebook on Feb. 18, I saw photos of a delegation made up of officials of the Philippines-Japan Economic Cooperation Committee (PHILJEC) and the Japan-Philippines Economic Cooperation Committee (JPECC) visiting President Ferdinand R. Marcos, Jr. at Malacañang. Among those in the photo were Endo Kazuya, Japan’s Ambassador to the Philippines.

The next day, Mr. Recto; Arsenio Balisacan, the Secretary of the Department of Economy, Planning, and Development; Dave Gomez, Secretary of the Presidential Communications Office, and other Philippine officials attended the 42^nd PHILJEC-JPECC meeting in BGC.

These are important and useful meetings to promote more economic cooperation between the two countries. We must encourage more trade and investments, more tourism and commerce, more infrastructure and human resource development, not more war mongering between or among countries.

The ASEAN member-countries should work on more economic cooperation with Japan, China, Korea, Taiwan, and Hong Kong. We are all neighbors in East Asia. We have more commonality in history, culture, and trade than far away countries that want to wedge themselves in disputes that are better resolved among ourselves.

Bienvenido S. Oplas, Jr. is the president of Bienvenido S. Oplas, Jr. Research Consultancy Services, and Minimal Government Thinkers. He is an internationa fellow of the Tholos Foundation.

minimalgovernment@gmail.com