A New Market in Southeast Asia

The regulation of dietary supplements in Southeast Asia is facing some significant changes over the next few years. Looking at the substantial economic growth of their neighbors China and India, the governments of the 10 countries of the Association of South East Asian Nations (ASEAN) have concluded that building their own single trade bloc is the best way to compete.This group is certainly not insignificant, bringing together countries with a combined population of more than 500 million with some of the most vibrant economic development on the planet.

To create a single market in ASEAN by the target date of 2015 requires the agreement of common regulations to eradicate existing barriers to trade.The governments have identified a number of sectors where harmonized regulation is essential and one of these is the health care sector. Within this, a government working group has been established, charged with the mission to develop common regulation on traditional medicines and health supplements. This resulting harmonized regulation will mean that each ASEAN country will change its existing legislation and introduce a new model, based on the consensus agreed by ASEAN as a whole. This will fundamentally shape the future regulatory and marketing environment for supplements across the region.

The issues that will be addressed in this working group are expected to be similar to those that are always faced in the development of new legislation:

The International Alliance of Dietary Supplement Associations (IADSA) first became involved in this process in late 2005 and, since that time, has been helping its national associations and governments in the region on providing answers to these questions to ensure consumer safety, consumer access to products and a viable market.

Of great significance is the recent creation, with full IADSA support, of a regional industry grouping to help provide one single industry voice into the harmonization process. This new association, the ASEAN Alliance of Health Supplement Associations (AAHSA), currently brings together members from Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam, and has the role of ensuring that the new regulatory framework reflects the best interests of the industry. This will be a considerable challenge due to the wide divergence of regulation in the region. Coordination and cooperation of industry across the region, and internationally, will be essential. While many of the major U.S. and European companies are already active in the process through their membership in national associations, many are not. Ensuring broad involvement of the majority of companies operating in the region, particularly through support of the work of the member associations of the ASEAN Alliance, will be critical to long-term success.

Simon Pettman is the executive director of the International Alliance of Dietary Supplement Associations (IADSA). For more information, visit www.iadsa.org.