Introduced since 1996, the ASEAN Industrial Cooperation (AICO) Scheme aims to promote resource sharing and to increase the competitive position of ASEAN’s manufacturing industries by means of production integration across borders facilitated by tariff preferential rate of no more than 5 percent. As of 10 March 2003, 166 applications were received, of which 104 applications have been approved. Based on the data provided at the time of application, these approved AICO arrangements are expected to generate an estimated value of US $ 1,173 million of transactions per year.
ASEAN INDUSTRIAL COOPERATION APPLICATION STATUS
(As of 10 March 2003 )
|
|
2003 |
|
NUMBER OF APPLICATIONS |
166 |
|
Number of Closed / Withdrawn Applications |
33 |
|
Number of Approved Applications |
104 |
|
Estimated Value of Transaction per year |
US$ 1,173 million |
SUMMARY OF ASEAN INDUSTRIAL COOPERATION
APRROVED APPLICATIONS BY COUNTRY
(As of 10 March 2003 )
|
|
Indonesia |
Malaysia |
Philippines |
Singapore |
Thailand |
Viet Nam |
Indonesia, Malaysia, Philipines, Thailand |
|
Indonesia |
|
11 |
11 |
|
18 |
|
|
|
Malaysia |
11 |
|
14 |
|
23 |
1 |
|
|
Philippines |
11 |
14 |
|
|
22 |
|
|
|
Singapore |
|
|
|
|
2 |
1 |
|
|
Thailand |
18 |
23 |
22 |
2 |
|
|
|
|
Viet Nam |
|
1 |
|
1 |
|
|
|
|
Indonesia, Malaysia, Philipines, Thailand |
|
|
|
|
|
|
1 |
|
Grand Total |
40 |
49 |
47 |
3 |
65 |
2 |
1 |
The AICO scheme continues to generate interest from the private sector, including further request for the extension of the waiver of the 30 percent minimum national equity requirement criteria.
ASEAN announced in the joint press statement of the 34th ASEAN Economic Ministers (AEM) Meeting on 12 September 2002 in Bandar Seri Begawan, Brunei Darussalam, that for new approvals, the AICO rate would be set at zero percent by 1 January 2003 for Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia and Singapore. ASEAN will also extend the waiver on the 30 percent national equity requirement for AICO applications until 31 December 2003.
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