The Black Economy in Southeast Asia: Current Issues and Future Challenges
EXECUTIVE SUMMARY • Between 1991 and 2015, the level of black economy activity in Southeast Asia equalled 33.4% of regional GDP, higher than for the rest of East Asia and above the global average. • By 2015, however, the regional average had declined to 28.3% of GDP. • The level of black economy...
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| Format: | Journal Article |
| Language: | English |
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ISEAS – Yusof Ishak Institute
2020
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| Online Access: | https://www.iseas.edu.sg/category/articles-commentaries/iseas-perspective/iseas-perspective-2020/ http://hdl.handle.net/20.500.11937/79515 |
| _version_ | 1848764066294661120 |
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| author | Schaper, Michael |
| author_facet | Schaper, Michael |
| author_sort | Schaper, Michael |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | EXECUTIVE SUMMARY
• Between 1991 and 2015, the level of black economy activity in Southeast Asia equalled
33.4% of regional GDP, higher than for the rest of East Asia and above the global average.
• By 2015, however, the regional average had declined to 28.3% of GDP.
• The level of black economy activity remains highest in Myanmar and Thailand, and lowest
in Singapore and Vietnam.
• Whilst black economy activity has declined, several problem areas remain. Tax collection
is still weak and poorly enforced in many parts of the region. Corruption is an ongoing issue,
as is smuggling (especially of wildlife, timber, jade and gemstones) and illegal transfers of
money out of China into Southeast Asia.
• Emerging additional threats include the growth of the methamphetamine drug trade, and the
likely prospect that Covid-19 will push many small formal businesses out of the regulated
economy as they attempt to survive the current downturn. The financial cost of Covid-19
may also weaken the ability of nations to sufficiently fund enforcement activities in the near
future.
• Whilst ministerial and senior government fora already exist to co-ordinate ASEAN work in
this area, much remains to be done. This includes a greater adoption of electronic banking
and traceable online money transfers; greater usage of biometrics for identity authentication;
improvements in tax collection rates in several jurisdictions; a sustained clampdown on
smuggling; and regulation of cryptocurrencies to ensure they are not used as a black market
tool. |
| first_indexed | 2025-11-14T11:13:27Z |
| format | Journal Article |
| id | curtin-20.500.11937-79515 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T11:13:27Z |
| publishDate | 2020 |
| publisher | ISEAS – Yusof Ishak Institute |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-795152020-08-24T08:19:34Z The Black Economy in Southeast Asia: Current Issues and Future Challenges Schaper, Michael 1605 - Policy and Administration EXECUTIVE SUMMARY • Between 1991 and 2015, the level of black economy activity in Southeast Asia equalled 33.4% of regional GDP, higher than for the rest of East Asia and above the global average. • By 2015, however, the regional average had declined to 28.3% of GDP. • The level of black economy activity remains highest in Myanmar and Thailand, and lowest in Singapore and Vietnam. • Whilst black economy activity has declined, several problem areas remain. Tax collection is still weak and poorly enforced in many parts of the region. Corruption is an ongoing issue, as is smuggling (especially of wildlife, timber, jade and gemstones) and illegal transfers of money out of China into Southeast Asia. • Emerging additional threats include the growth of the methamphetamine drug trade, and the likely prospect that Covid-19 will push many small formal businesses out of the regulated economy as they attempt to survive the current downturn. The financial cost of Covid-19 may also weaken the ability of nations to sufficiently fund enforcement activities in the near future. • Whilst ministerial and senior government fora already exist to co-ordinate ASEAN work in this area, much remains to be done. This includes a greater adoption of electronic banking and traceable online money transfers; greater usage of biometrics for identity authentication; improvements in tax collection rates in several jurisdictions; a sustained clampdown on smuggling; and regulation of cryptocurrencies to ensure they are not used as a black market tool. 2020 Journal Article http://hdl.handle.net/20.500.11937/79515 English https://www.iseas.edu.sg/category/articles-commentaries/iseas-perspective/iseas-perspective-2020/ ISEAS – Yusof Ishak Institute unknown |
| spellingShingle | 1605 - Policy and Administration Schaper, Michael The Black Economy in Southeast Asia: Current Issues and Future Challenges |
| title | The Black Economy in Southeast Asia: Current Issues and Future Challenges |
| title_full | The Black Economy in Southeast Asia: Current Issues and Future Challenges |
| title_fullStr | The Black Economy in Southeast Asia: Current Issues and Future Challenges |
| title_full_unstemmed | The Black Economy in Southeast Asia: Current Issues and Future Challenges |
| title_short | The Black Economy in Southeast Asia: Current Issues and Future Challenges |
| title_sort | black economy in southeast asia: current issues and future challenges |
| topic | 1605 - Policy and Administration |
| url | https://www.iseas.edu.sg/category/articles-commentaries/iseas-perspective/iseas-perspective-2020/ http://hdl.handle.net/20.500.11937/79515 |