NOVEMBERASIA BUSINESS OUTLOOK9NEWSROOMASEAN ECONOMIC GROWTH & CHALLENGES IN SOUTHEAST ASIAChina has announced measures to boost birth rates amid a declining population over the past two years. The State Council's family planning policies aim to foster a "new marriage and childbearing culture" by promoting early marriage, shared parenting responsibilities, and support for childcare.New policies will include enhanced maternity insurance, extended maternity leave, childcare subsidies, and expanded medical resources for children. Local governments are also urged to fund childcare centers and offer preferential tax benefits for these services. According to Yang Chang, chief policy analyst at Zhongtai Securities Research Institute, these steps may set a precedent for future initiatives to counter declining birth rates.The policy adjustments also address education support through increased financial aid for disadvantaged families and a gradual expansion of free education. Housing support for families with multiple children and employment protection for pregnant women and mothers are other key areas of focus. Additionally, non-commercial platforms will be established to help young people form relationships to encourage marriage and childbearing.These initiatives follow a recent survey on childbearing attitudes, intended to understand factors influencing people's willingness to have children. The Association of Southeast Asian Nations (ASEAN) is an economic organization comprising ten Southeast Asian countries. These countries collectively have a Gross Domestic Product (GDP) of $3.8 trillion and a population of over 647 million. Their strength lies in diversity and strong economies made possible by positive trade balance.Overview of ASEAN Economic GrowthThe ASEAN Member States (AMS) currently holds the position of the fifth-largest economy in the world. Together, they expanded by 4.1 percent in 2023 and are forecasted to end 2024 with over 4.6 percent. As an essential participant in global world trade and the third-largest participant globally, AMS is responsible for 9.5 percent of international trade.The region is on track to form the ASEAN Economic Community (AEC), which is the end goal of its economic integration. The AEC's purpose is to make ASEAN a single market and manufacturing headquarters.AEC will facilitate the free movement of goods and services between ASEAN member states. Investments will also be accessible to flow between countries, making the region more attractive as a single investment destination. CHINA INTRODUCES SLEW OF POLICIES TO COUNTER DECLINING BIRTHS
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