A new market, with 600 million consumers
SKGF, 'your ASEAN distribution partner', as our tagline goes, strongly believe in the Association of Southeast Asian Nations (ASEAN) opportunities, and it is well positioned to exploit all of them. ASEAN will boost the economies for all the ten country members located in Southeast Asia, especially for the companies in the trading and distribution business. The target of the association is to accelerate economic growth and social progress for a population of approximately 600 million people, which is almost 9% of the world's population. In 2010, its combined nominal GDP had grown to US$1.8 trillion. If ASEAN was a single entity, it would rank as the ninth largest economy in the world.
ASEAN: THE ADVANTAGES FOR SKGF
Trade in Services
An ASEAN Framework Agreement on Trade in Services was signed at the ASEAN Summit, December 1995. Now the members are negotiating intra-regional services liberalization in several market areas, including air and marine transport, construction, finance, telecommunications, tourism. Continue negotiations will bring to an expansion of the segments (and rules) covered by the agreement. This agreement is a big benefit for the future development of SKGF, as it focus specifically on SKGF core business.
Free Trade Area
The ASEAN Free Trade Area (AFTA) is the agreement on manufacturing in all ASEAN countries, active from 1992, when ASEAN had six members. Some latecomer countries have not fully met the AFTA's obligations, but they are considered part of the AFTA, and were given more time to meet AFTA's tariff reduction obligations. Since SKGF is trading mostly from Asean countries to Asean countries, and with the reduction of bureaucracy and taxes, SKGF expects to fully exploit the potential of the new Southeast Asia economical configuration.
Comprehensive Investment Area
The ASEAN Comprehensive Investment Area (ACIA) encourage the free flow of investment within ASEAN, including support to ASEAN investors, elimination of investment impediments, streamlining of investment procedures, adopting investment facilitation measures. As SKGF is growing fast, an easier access to the credit is a measure that will fully support its expansion.