The first Regional Outlook had its inception in 1992, offering a concise analysis of the political and economic trends in Southeast Asia and the wider region. Since then, an annual succession of this publication has tracked many political and economic developments and their implications on the region.

This year is no different, with emerging political and economic trends that warrant scrutiny. Written in an accessible and scholarly style, this publication is suited for a modern audience of business and research analysts, busy executives, professionals, diplomats, journalists, and interested observers. Regional Outlook, over the years, has managed to build up a loyal readership within Southeast Asia and beyond.

The year 2007 was a historic one for the Association of Southeast Asian Nations (ASEAN) in that the ASEAN Charter was signed by all member countries at the ASEAN Summit in Singapore in November. When ratified by all countries, this document will garner positive political, economic, and social benefits for the region. An ASEAN Economic Community will be formed by 2015, effectively unifying ASEAN into a single market. The implications in the years to come, though not during the period 2008–2009, will be significant.

In socio-political terms, the charter is a landmark as it sets out rules for good governance, democracy, and the rule of law in ASEAN countries. The establishment of a human rights body is a development that could not have been anticipated even a few years ago, and illustrates the maturity with which ASEAN is confronting the challenges of our times.

On the economic front and closer to the horizon of 2008 and 2009, growth will be modest at best for the Southeast Asian region because of the economic slowdown of the U.S. economy.

High oil prices remain worrisome, and this will be a negative factor for the growth prospects of ASEAN economies. The U.S. sub-prime mortgage market disrupted global financial markets in 2007, and though perceived by observers to be short-lived, has affected not only U.S. growth prospects in 2008, but is also likely to impact Southeast Asian economies.