11. Figure I.1 illustrates the interaction between ASEAN Connectivity and ASEAN Community building. ASEAN Connectivity can be achieved by enhancing physical
connectivity and institutional connectivity thereby reducing the costs of investment and international trade in goods and services, including services link costs and network set-up costs. Enhanced physical and institutional connectivity can contribute to narrowing development gaps by expanding the frontiers of production/distribution networks and augmenting people-to-people connectivity, which will further nurture a sense of community in ASEAN.
Figure I.1: Interaction between ASEAN Connectivity and ASEAN Community