East Timor entry to ASEAN likely to see further delay

Subject

East Timor and ASEAN.

Significance

Aspiring ASEAN member East Timor appears unlikely to acquire ASEAN membership at the summit in Vientiane on September 6-8, despite fulfilling most eligibility requirements. ASEAN's two largest economies, Indonesia and Thailand, back East Timor's entry, but other members are concerned at its poorly developed economic capability and high-profile stance on human rights.

Impacts

• ASEAN will be wary of East Timor's unsettled status becoming a thorn in its difficult relationship with China.
• Investment opportunities may grow in services, goods and tourism.
• East Timor will need investor support in developing transport, trade and power infrastructure.