May 2016

1. Overview

ASEAN Connectivity is a concept that consists of three parts: physical connectivity, such as transportation, information and communications technology (ICT), and energy; institutional connectivity, such as the liberalization and facilitation of trade in goods, investment and trade in services; and people-to-people connectivity, such as education, culture and tourism. Enhancing ASEAN Connectivity by, for example, maintaining road networks (physical connectivity) and eliminating non-tariff barriers in trade and investment (institutional connectivity) is integral to further building the ASEAN Community since a well-connected ASEAN will facilitate the flow of goods and people and contribute towards a more competitive and resilient region. With this in view, ASEAN developed the ‘Master Plan on ASEAN Connectivity (MPAC)’ in October 2010 as a means to enhance ASEAN Connectivity.

The joint declaration ‘ASEAN 2025: Forging Ahead Together,’ which was adopted at the ASEAN Summit held in November 2015, specified that ‘enhanced connectivity’ remains one of ASEAN’s key goals. ‘Enhanced connectivity’ will be realized by, for example, strategically implementing sectoral policies. Furthermore, ASEAN 2025 outlines concrete measures for sectors including transportation, ICT, e-commerce, energy, food, agriculture and forestry, tourism, healthcare, mineral resources, and science and technology. Examples are as follows:
- Transport: Infrastructure development of roads and bridges, establishing the ASEAN Single Aviation Market (ASAM) and ASEAN Single Shipping Market (ASSM), and facilitating cross-border transport under such agreements as the ASEAN Framework Agreement on the Facilitation of Goods in Transit (AFAFGIT).
- ICT: Utilizing ICT for economic growth, integration and empowerment of people through ICT such as broadband expansion, and technological innovations such as smart city and big data.
- E-commerce: Harmonization of legal frameworks for consumer protection and online dispute settlement.
- Energy: Enhancing the image of clean coal technology and improving energy efficiency by 30 percent.
- Food, agriculture and forestry: Facilitating agricultural trade, sustainable agriculture and enhancing productivity.

2. Japan’s cooperation on connectivity

Since the announcement of the ‘Master Plan on ASEAN Connectivity’ in October 2010, Japan has been providing support in three core areas to enhance ASEAN Connectivity: the development of the ‘East-West and Southern Economic Corridors (Land Corridors)’ and ‘Maritime ASEAN Economic Corridor (Maritime Corridor)’, and the ‘Soft Infrastructure Projects throughout the ASEAN Region.’ At the 14th Japan-ASEAN Summit in November 2011, Japan presented a list of the key projects designed to enhance connectivity under the ‘Flagship Projects’ (33 projects which were later revised to 32 projects). Japan subsequently added new projects to the Flagship Projects and presented the new list of Japan’s Cooperation Projects for Enhancing ASEAN Connectivity (approximately 70 projects) at the ASEAN-Japan Commemorative Summit (December 2013). In addition, Japan holds regular meetings (the Meeting between Japan Task Force on ASEAN Connectivity and the ASEAN Connectivity Coordinating Committee) to discuss Japan’s cooperation with ASEAN, mainly regarding the list of the renewed Flagship Projects on connectivity.

Some examples of the projects include the construction project on the Neak Loeung Bridge (Tsubasa Bridge) and the rehabilitation project on National Route 9 in Laos, both in the area of ‘Land Corridors’.

The crossing point for the Mekong River on Cambodia’s National Route 1 in the Southern Economic Corridor used to be serviced by ferries until the Neak Loeung Bridge was constructed. During the peak seasons, the waiting time for crossing the river lasted up to seven hours. The construction of the bridge using grant aid improved the situation to a large extent.

Neak Loeung Bridge
Photo: Ministry of Land, Infrastucture, Transport and Tourism, Japan

Similarly, Laos’ National Route 9, which is in the Lao PDR section of the East-West Economic Corridor, was in need of repair due to an increase in the volume of traffic and overloaded vehicles. Japan carried out pavement rehabilitation and structural reinforcement on the damaged areas using grant aid.

These projects contribute not only to the economic activities of the agricultural and trade sectors within the country but also to the overall development of the Mekong region by facilitating the movement of goods and people.

One example of Japan’s aid in the area of ‘Maritime Corridor’ includes improving the operational capacity of the Vessel Traffic Service (VTS) System in Indonesia. For this project, Japan supported endeavors to enhance the operational capacity of VTS by, for example, conducting workshops on VTS operation and maintenance for the straits of Malacca and Singapore and the surrounding area, which serve as major international routes. Furthermore, Japan supports an establishment of an ASEAN regional training center to develop the capacity of VTS operators in ASEAN. Through these projects, Japan is contributing to maritime safety in the straits of Malacca and Singapore, both of which serve as vital maritime routes for world trade.

The Urgent Rehabilitation Project of Tanjung Priok Port
Photo: Japan International Cooperation Agency (JICA)

3. Future activities

As the ASEAN Community was launched in December 2015, the revised version of the MPAC (ASEAN Connectivity 2025) is scheduled to be adopted in 2016. The Economic Research Institute for ASEAN and East Asia (ERIA), which was established based on Japan’s proposal, has formulated the Comprehensive Asia Development Plan (CADP) 2.0. The CADP 2.0 focuses on the provision of quality infrastructure and the implementation of infrastructure development according to the stage of development. ERIA is expected to contribute by being involved in drafting the revised version of the MPAC to ensure that it incorporates these elements suggested by the CADP 2.0.

Japan will continue to contribute to enhancing ASEAN Connectivity through ‘quality infrastructure investment’ and other efforts.