ASEAN Strengthens Transport Cooperation

1.     At the close of the 23rd ASEAN Transport Ministers Meeting, ASEAN Member States (AMSs) welcomed the signing of five and adoption of six initiatives₁ which reaffirmed its commitment towards enhancing transport co-operation amongst the AMSs and with their Dialogue Partners. These include further liberalising air services in the region, improving the safety and efficiency of air travel in ASEAN and facilitating the seamless cross-border movement of passengers. 

Facilitating the Growth of Air Services in ASEAN 

2.     ASEAN Transport Ministers adopted the ASEAN Air Traffic Management Master Plan to support the establishment of the Seamless ASEAN Sky (SAS). The SAS aims to facilitate the flow of aircraft across ASEAN in a more integrated and harmonised manner. When fully realised, the SAS envisages an increase in airspace capacity, resulting in reduced delays, reduced operational costs for airlines and enhanced safety of air traffic management.

3.     The Ministers also signed two agreements to liberalise air services in the region. The first agreement signed was Protocol 3 on domestic code-share rights between points within the territory of any other ASEAN Member States. This agreement will enable ASEAN carriers to expand their international networks without deploying their own aircraft, increase network coverage to markets where the traffic potential is thin, and eventually build up market awareness and demand for direct linkages. For travellers, there will be more flight options to these destinations and they can enjoy greater travel convenience such as through-check and baggage transfers on code-share flights. This will enable the greater movement of people and goods, benefitting our economies and businesses, and expanding tourism. 

4.     The second agreement was the Protocol to Implement the Tenth Package of Commitments under the ASEAN Framework Agreement on Services. This agreement seeks to progressively reduce restrictions on trade in air transport ancillary services within ASEAN (see Annex A for more details).

5.     To facilitate the development and growth of the aviation sector, the Ministers signed the Mutual Recognition Arrangement on Flight Crew Licensing, which is a key safety initiative under the ASEAN Transport Strategic Plan 2016-2025₂. This is the first mutual recognition arrangement in the ASEAN region for aviation personnel. The agreement will ease the validation or conversion of licenses issued by one AMS to another's by reducing regulatory resources required and the associated costs for training organisations and simulator operators.

6.     To further improve the safety of air travel, ASEAN Transport Ministers have made a good start on the ASEAN Foreign Operator Safety Assessment (AFOSA) programme. AFOSA is another key safety initiative under the ASEAN Transport Strategic Plan 2016-2025. The sharing and analysis of data from ramp inspections conducted on foreign aircraft amongst AMSs will help to establish a high level of safety in ASEAN.

Enhancing ASEAN-China cooperation in air accident investigation 

7.     The Transport Ministers of ASEAN and China also welcomed the signing of the Memorandum of Understanding (MOU) between the Authorities in charge of Aircraft Accident Investigation of ASEAN Member States and the Civil Aviation Administration of China on Cooperation Relating to Aircraft Accident and Incident Investigation. The MOU will strengthen aviation safety through proactive investigation co-operation among AMSs and China.

8.     The MOU will enable the sharing of investigation facilities and equipment and investigation expertise to support aircraft accident investigation, offering of investigation training slots to each other, sharing of safety information and facilitating the attachment of observers from other parties when conducting investigations. Such sharing of investigation resources, experience and training opportunities will further enhance the investigators' capabilities and professionalism.

Moving towards seamless cross-border movement of passengers 

9.     ASEAN Transport Ministers also signed the ASEAN Framework Agreement on the Facilitation of Cross Border Transport of Passengers by Road Vehicles (CBTP), which will make it easier for buses and coaches from one ASEAN country to enter another ASEAN country. Upon implementation, ASEAN citizens will find it more convenient to travel by bus within the region, be it for business or for leisure. This will create more commercial and investment opportunities, especially for our trade and tourism sectors. Our citizens will also find it easier to interact with one another, deepening social and cultural understanding within the ASEAN community.

10.    With the CBTP agreement, each AMS will be allowed a quota of 500 non-scheduled buses₃ that will enjoy facilitated entry to or transit through other member states. Scheduled cross-border bus services covered under this agreement would still be subject to mutual agreement between adjacent AMSs on the routes, stopping points, number of buses, technical requirements and fares. 

11.    Speaking at the closing ceremony of the 23rd ASEAN Transport Ministers Meeting, Mr Khaw Boon Wan, Coordinating Minister for Infrastructure and Minister for Transport, Singapore said: “Our commitment to ASEAN's transport co-operation will help us achieve ASEAN's Vision 2020 and the Master Plan on ASEAN Connectivity 2025. It will make a real difference to raising the quality of life for our people, creating good paying jobs and contributing to peace and stability in the region.”

12.    The 24th ASEAN Transport Ministers Meeting will convene in Thailand in 2018.

Annex A 

FACTSHEET ON THE PROTOCOL TO IMPLEMENT THE TENTH PACKAGE OF COMMITMENTS UNDER THE ASEAN FRAMEWORK AGREEMENT ON SERVICES 

New and improved offers under the tenth package of commitments on air transport services include:

1.     Indonesia - (New) Aircraft catering services with maximum 49% foreign equity participation from AMSs.

2.     Lao PDR - (New) Ramp handling services up to mode 3₄.

3.     Malaysia - (Improved) Aircraft leasing with crew and aircraft leasing without crew with maximum foreign equity participation from AMSs increasing from 49% to 51%.

4.     Philippines - (New) Ramp handling services and aircraft refuelling services with maximum 40% foreign equity from AMSs.

5.     Singapore - (Improved) Selling and marketing of air transport services with maximum foreign equity participation from AMSs increasing from 51% to 70%.

6.     Vietnam - (New) Aircraft line maintenance services up to mode 2₅. 

₁ The initiatives are (a) ASEAN Foreign Operator Safety Assessment programme Terms of Reference; (b) ASEAN Air Traffic Management Master Plan; (c) Disaster Prevention and Mitigation Guidelines for Ports in ASEAN; (d) Best Approaches Book on User-friendliness in the Transport Sector; (e) Terms of Reference for the establishment of an ASEAN-EU Transport Dialogue; and (f) Commemorative booklet on ASEAN transport development for ASEAN's 50th anniversary.

₂ The ASEAN Transport Strategic Plan 2016-2025 (also known as Kuala Lumpur Transport Strategic Plan) details the roadmap towards advancing safe skies in ASEAN and to establish a mechanism to facilitate mutual recognition of approvals, certificates and licenses.

₃ Non-scheduled buses are bus services that do not run on a regular schedules with fixed stopping points, such as a tour bus.

₄ Mode 3 is where a service supplier from a Member State, having established commercial presence in another Member State, supplies the service within the territory of that Member State (commercial presence). For example, a foreign-owned (and controlled) company that provides a service within Singapore through its locally-established affiliate or subsidiary.

₅ Mode 2 is where a service is supplied within the territory of a Member State to consumers from other Member States (consumption abroad). For example, Singaporeans who move abroad as tourists, students or patients, and consume the respective foreign country's tourism, education and medical services.