The Difference in the Foreign Direct Investment Policy (FDI) Regime Among ASEAN Member States: Legal Challenges in Realising the ASEAN Economic Community according to ASEAN Comprehensive Investment Agreement (ACIA)

As agreed in the AEC Blueprint, ASEAN is committed to achieving the objective of the free movement of investments and capital among its member countries beginning in 2015. ASEAN is more focused on FDI inflows. However, ASEAN continues to look at the possible regional financial integration that will be followed by the liberalisation of the financial industry and the free movement of capital among member states. Based on the six dimensions of financial liberalisation, ASEAN is seen to be committed to only to two dimensions which is the key to global financial integration; Free movement into the financial services industry and also the liberalisation of international capital flows. Whereas the 4-dimensional balance that is concerned with the elimination of credit control, the elimination of interest rate control, bank autonomy and private ownership of banks are all taken into account as a national interest. However, although ASEAN is seen to be focusing on investment, there are still challenges in implementing ACIA and in achieving regional integration goals. The first part of this paper will discuss the history of ASEAN investment cooperation and elaborate on ACIA. The second part will provide an overview of investment policy and legislation in each ASEAN member country. While the third section will touch on the issue of the people being prejudiced by liberalisation and the fourth part will provide suggestions and conclusion.