IAI kicks off Work Plan V with fresh focus on Timor-Leste

Member states representatives gather at the 79th meeting of the Initiative for ASEAN Integration (IAI) at ASEAN Headquarters in Jakarta, June 5, 2026. (ASEAN Secretariat)

On June 5, the Initiative for ASEAN Integration (IAI) Task Force convened its 79^th meeting at the ASEAN Headquarters in Jakarta. IAI Task Force 2026 Chairperson and Permanent Representative of Cambodia to ASEAN, Noy Choumneanh chaired the gathering.

The task force formally launched the execution phase of Work Plan V (2026-2030), which spans across six main areas, namely agriculture, micro, small and medium enterprises (MSMEs), education and training, local community resilience, as well as inclusive and sustainable growth. The main focus centres on ASEAN’s newest member, Timor-Leste.

For context, the IAI Task Force is an effort to narrow the development gap between ASEAN member states as well as to promote equitable development. Established in 2000, this framework has been providing a structural pathway for regional cooperation.

While all ASEAN members sit on the Task Force, the daily implementation falls on the CLMV nations (Cambodia, Laos, Myanmar and Vietnam). The task force recently reached a consensus to allow ASEAN’s newest member, Timor-Leste, to become a full beneficiary of IAI projects, active since May 2024.

Because the IAI focuses on developing poorer member states, it relies heavily on external co-funding. Major global partners, including Singapore, Japan, Australia, Germany and China, directly fund and support these technical training projects.

What does this mean for business?

Despite ASEAN’s regional ambitions, development gaps between, and within, member states remain a fundamental challenge. Closing these gaps is not merely a matter of equity; it is a prerequisite for the kind of deep regional integration that underpins ASEAN’s broader economic credibility. Work Plan V directly targets this structural issue across six priority areas, with MSMEs and workforce development at its core.

For businesses, targeted funding into MSME digitalisation and workforce upskilling stands to lower cross-border operational barriers and unlock fresh talent pools across the CLMV economies. Meanwhile, Timor-Leste’s formal inclusion as a full IAI beneficiary creates early-mover advantages for firms looking to establish a footprint in an emerging, donor-backed market.

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Kala Advisory helps European investors move early on openings like these, from CLMV workforce pools to donor-backed Timor-Leste, across Southeast Asia. Visit kala-advisory.com.