Chichi Conde, Bali, Indonesia – Foreign ministers of the Association of Southeast Asian Nations (ASEAN) have agreed to set up review group that will study the application for membership of East Timor.

The decision was reached during the 9th meeting of the Asean Coordinating Council in Nusa Dua.

According to Philippine permanent representative to Asean Ambassador Wilfredo Villacorta, East Timor has a "strong chance" in having its application to join the 10-member country bloc approved.

The Philippines has earlier committed to push for East Timor's application "provided it is able to comply with all obligations for membership."

East Timor has struggled meeting Asean's criteria for membership because of its underdeveloped economy, inadequate physical infrastructure, and fragile domestic institutions. It also has only four embassies out of the 10 Asean member-states.

The impoverished nation gained formal independence from Indonesia in 2002 after winning its freedom in a 1999 United Nations-backed referendum.

One of the world's youngest and smallest countries, its gross domestic product last year was only a little over $600 million, far behind Laos, Asean's current smallest economy which recorded a 2010 GDP of close to $7 billion.