Even with pressures for ASEAN integration, not everyone's in favor

But challenges may push region further together.

The pressure for ASEAN to integrate is top down, bottom up, internal and external, but there are external and internal pressures that do not favour ASEAN integration.

According to a research report from UBS, externally, although the US and China are competing for influence in Southeast Asia, their dominant economic position may be best served by negotiating with individual ASEAN member states rather than ASEAN as a whole.

For example, the TPP makes no attempt to negotiate with ASEAN as an entity. Separately, China is viewed by some to have disrupted efforts among the ASEAN member states to come to a unified formal position on territorial disputes in the South China Sea.

Here’s more from UBS:

Internally, each ASEAN country remains protective of its own sovereignty. This has led to what was referred to above as the ASEAN Way, meaning regional diplomatic and economic relations that are characterised by non-interference in other countries' domestic affairs and incremental change.

Despite this, we believe the pressure for a liberalisation dynamic in ASEAN – which is the underlying dynamic investors should care about – is still well supported.

There are external challenges to ASEAN unity, but these may serve to push the region further together.