Member states of the Association of South-East Asian Nations (Asean) officially started their economic integration on New Year’s Eve in the region that is home to 625 million people.

The combined economy of the 10 Asean states - Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam - is the seventh largest in the world.

The European Union-inspired common market aims at boosting the economy and attracting more investment by lowering tariffs and allowing freer flows of capital, goods, services and skilled labour.

However unlike in most EU countries, the trade bloc, officially called the Asean Economic Community, has no common currency.

Analysts suggested the integration will be a slow process and the initial change will be minimal.

The region is home to economies with an expanding middle class and young workforce and home to extremely diverse markets from richer Singapore to poorer Laos and Cambodia.

Sandwiched between India and China, Asean was founded in 1967 with the goals of accelerating economic growth, social progress and cultural development, and promoting regional peace and stability.

- dpa