ASEAN-GCC-China: Building resilient trilateral trade architecture

By DATUK PROF DR MOHD FAIZ ABDULLAH
IF procrastination is the thief of time, then pussyfooting around the ASEAN-GCC-China Summit agenda might well be wanton heedlessness! Indeed, ASEAN must lead, not wait, because Malaysia is well positioned to set that agenda.
While the Kuala Lumpur Declaration on ASEAN 2045 outlines an ambitious vision – a developed ASEAN that is the epicentre of growth in the Indo-Pacific – this aspiration won't come to pass in isolation. As Prime Minister Anwar Ibrahim said, ASEAN's journey 'is a story of cooperation across borders, dialogue across difference and hope across generations.'
To rise as an engine of global growth hinges on how ASEAN diversifies its economic linkages, including with the GCC and China.
The Joint Statement of the trilateral Summit and the ASEAN-GCC Joint Declaration on Economic Cooperation mark a significant step forward. Both documents lay the foundation for a convergence that could reshape the region's trade architecture and existing economic synergies, through three interconnected tracks: the ASEAN-China Free Trade Area (ACFTA) 3.0 Upgrade, the ASEAN-GCC FTA, and indirectly, the China-GCC FTA.
Each agreement is progressing at a different pace. The ACFTA 3.0 is nearing completion, incorporating new-generation chapters on digital trade, competition, green economy and regulatory coherence. On the other hand, the China-GCC FTA, long under negotiation, is close to finalisation. Meanwhile, the ASEAN-GCC FTA is at the feasibility study stage while negotiations will be launched soon. It gives ASEAN and the GCC a rare opportunity to draw on the structure and substance of the other two negotiations and design an agreement that bridges the earlier two initiatives. The sequencing could, in fact, work tremendously in favour of ASEAN, positioning it as the central node in a new trade framework.
What is often overlooked is that these are not discrete bilateral tracks. Rather, they weave a coherent structure connecting Southeast Asia, the Gulf and China, three of the world's most dynamic economic blocs. Such a scheme could lend further credence to the rules-based multilateral trading system, which, in Anwar's words, is being subjected to 'the onslaught of arbitrary imposition of trade restrictions.' It would also provide greater certainty and predictability for investors, and institutionalise ASEAN's centrality in the evolving global trade order.
The economic logic is compelling and the numbers are convincing. The GCC was ASEAN's seventh-largest trading partner in 2022, with trade totalling USD130.7 billion, and is projected to grow at 30% annually. ASEAN-China trade surpassed USD722 billion in 2022, making China ASEAN's largest trading partner for the past 14 consecutive years. These relationships already run deep. What is missing is strategic coherence, something the trilateral FTA configuration could decisively address.
Woven into such an arrangement must be substantial commitments in key growth sectors such as Islamic finance, digital economy, and renewable energy which offer mutual benefits and long-term dividends. Introducing them explicitly into such an FTA would mark a refreshing departure from conventional trade accords, not to mention create a more innovative partnership. Naturally, working together on currency settlements, cross-border payments, and sovereign wealth fund linkages could further strengthen financial resilience.
Malaysia, as ASEAN Chair, has already taken the lead. We are pushing for the early conclusion of ACFTA 3.0, supporting a clear timeline for ASEAN-GCC FTA negotiations, while advancing the formation of a permanent mechanism that would co-ordinate the multiple trade tracks strategically. Additionally, setting up a regional business council could ensure private sector alignment, enabling businesses to benefit from this evolving topography.
While some noted the absence of several GCC Heads of State at the Summit, the GCC was nonetheless robustly and adequately represented, underscoring institutional earnestness. Premier Li Qiang's attendance, meanwhile, is a clear signal of China's commitment.
If a picture paints a thousand words, then the appearance of ASEAN leaders being flanked by GCC leaders, clad in traditional Arab attire, on one side and those from the Chinese side on the other, does make for amazing optics! Granted while faith may move mountains, looks alone won't. But add in the substantive discussions and professed undertakings, we are looking at a level of engagement that must perforce inspire ASEAN to seize the moment.
The coming decade will not be shaped by more of the same. It will be shaped by those who can integrate across fault lines, build resilient frameworks, and champion multilateralism with a powerful sense of purpose. A trilateral trade architecture linking ASEAN, the GCC and China is not just about trade flows. It is a strategic bet on a more cohesive, rules-based and opportunity-rich regional order.
The ball's in ASEAN's court. And Malaysia, as Chair, must hit it!
* Writer is Chairman, Institute of Strategic and International Studies (ISIS) Malaysia

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Daily Express

34 minutes ago

• Daily Express

Integrity must be embedded in all levels of Sabah's administration: Tun Musa

Published on: Saturday, June 21, 2025 Published on: Sat, Jun 21, 2025 By: Bernama Text Size: Musa confers Sabah's highest state award, the Seri Panglima Darjah Kinabalu (SPDK), on Jahid. - fotoBERNAMA KOTA KINABALU: Integrity must be upheld across all levels of administration and leadership in Sabah to maintain public trust in government institutions, said Yang Dipertua Negeri Tun Musa Aman. He said it is his aspiration to see the state governed with integrity, accountability and wisdom, supported by sustainable development plans that prioritise the people's well-being. 'I believe with strong leadership and the support of the people, Sabah will continue to grow and prosper,' he said in a special address in conjunction with his 74th official birthday here today. He delivered the address at the 2025 Sabah Investiture Ceremony at Istana Seri Kinabalu, where 60 individuals received state awards, medals and honours. Also present were Chief Minister Datuk Seri Hajiji Noor and other state leaders. Tun Musa emphasised the need to strengthen development efforts to ensure sustainable and inclusive progress, through close cooperation between the government and the people. Advertisement He also stressed the importance of addressing global challenges through progressive approaches, including the promotion of technological innovation, development of quality human capital, and the building of a resilient economy 'Building a dynamic and competitive society is crucial to ensuring the long-term sustainability of the state's development,' he said. He further called for continued unity among the people, describing it as the foundation for peace and progress in Sabah. Tun Musa also commended Chief Minister Datuk Seri Hajiji Noor and his Cabinet for their commitment to advancing the state in line with a more inclusive and sustainable development agenda. Sabah Rural Development Minister Datuk Jahid Jahim led today's honours list after being conferred the Seri Panglima Darjah Kinabalu (SPDK), which carries the title 'Datuk Seri Panglima'. Businessmen Datuk Ahmad Fuad Md Ali and Datuk Albert Lim Yu Ming were also awarded the SPDK. A total of 37 individuals received the Panglima Gemilang Darjah Kinabalu (PGDK), which confers the title 'Datuk'. Among the recipients were Deputy Minister of Domestic Trade and Cost of Living Dr Fuziah Salleh and Kapayan assemblyman Jannie Lasimbang. Other PGDK recipients included Senator Anna Bell@Suzieana Perian, Sabah Parks director Dr Maklarin Lakim, Amanah Sabah chairman Lahirul Latigu, Kota Kinabalu High Court Judge Alexander Siew How Wai, Sabah Special Branch chief SAC Abdul Rahman Ishak, State Health director Dr Maria Suleiman, and veteran journalist Emin Madi of Malaysian National News Agency (Bernama) Sabah Bureau. The first session of the investiture ceremony also saw five individuals receiving the Ahli Setia Darjah Kinabalu (ASDK), four each receiving the Ahli Darjah Kinabalu (ADK) and Bintang Setia Kinabalu (BSK), and six receiving the Justice of the Peace (JP) title. Earlier, Musa, accompanied by his wife Toh Puan Faridah Tussin, attended the parade held in conjunction with the official birthday celebration of the Yang Dipertua Negeri of Sabah at Padang Merdeka. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia

BusinessToday

an hour ago

• BusinessToday

Nikkei Drops 0.22% To 38,403 On Global Trade And Profit-Taking Pressure

Japan's Nikkei 225 closed down 0.22%, falling by 85.11 points to 38,403.23 on June 20. The decline reflected profit-taking in key sectors and caution over ongoing global trade uncertainties driven by increased tariff tensions. Traders noted that recent strength in export-linked shares prompted gains earlier in the week, but the momentum waned as investors locked in profits. Broader market sentiment was dampened by lukewarm cues from China's economy and mixed signals on global trade negotiations. Meanwhile, the Topix index also pulled back, weighed down by defensive sectors as investors adopted a more conservative stance heading into next week's economic calendar. Analysts expect Tokyo's markets to remain range-bound as traders monitor fresh developments in US-China relations and await upcoming economic data, particularly corporate earnings and global trade indicators. Related

New Straits Times

an hour ago

• New Straits Times

Integrity must be embedded in all levels of Sabah's administration

KOTA KINABALU: Integrity must be upheld across all levels of administration and leadership in Sabah to maintain public trust in government institutions, said Yang Di-pertua Negeri Tun Musa Aman. He said it is his aspiration to see the state governed with integrity, accountability and wisdom, supported by sustainable development plans that prioritise the people's well-being. "I believe with strong leadership and the support of the people, Sabah will continue to grow and prosper," he said in a special address in conjunction with his 74th official birthday here today. He delivered the address at the 2025 Sabah Investiture Ceremony at Istana Seri Kinabalu, where 60 individuals received state awards, medals and honours. Also present were Chief Minister Datuk Seri Hajiji Noor and other state leaders. Tun Musa emphasised the need to strengthen development efforts to ensure sustainable and inclusive progress, through close cooperation between the government and the people. He also stressed the importance of addressing global challenges through progressive approaches, including the promotion of technological innovation, development of quality human capital, and the building of a resilient economy "Building a dynamic and competitive society is crucial to ensuring the long-term sustainability of the state's development," he said. He further called for continued unity among the people, describing it as the foundation for peace and progress in Sabah. Tun Musa also commended Chief Minister Datuk Seri Hajiji Noor and his Cabinet for their commitment to advancing the state in line with a more inclusive and sustainable development agenda. Sabah Rural Development Minister Datuk Jahid Jahim led today's honours list after being conferred the Seri Panglima Darjah Kinabalu (SPDK), which carries the title "Datuk Seri Panglima". Businessmen Datuk Ahmad Fuad Md Ali and Datuk Albert Lim Yu Ming were also awarded the SPDK. A total of 37 people received the Panglima Gemilang Darjah Kinabalu (PGDK), which confers the title "Datuk". Among the recipients were Deputy Domestic Trade and Cost of Living Minister Dr Fuziah Salleh and Kapayan assemblyman Jannie Lasimbang. Other PGDK recipients included Senator Anna Bell@Suzieana Perian, Sabah Parks director Dr Maklarin Lakim, Amanah Sabah chairman Lahirul Latigu, Kota Kinabalu High Court Judge Alexander Siew How Wai, Sabah Special Branch chief SAC Abdul Rahman Ishak, State Health director Dr Maria Suleiman, and veteran journalist Emin Madi of Malaysian National News Agency (Bernama) Sabah Bureau. The first session of the investiture ceremony also saw five individuals receiving the Ahli Setia Darjah Kinabalu (ASDK), four each receiving the Ahli Darjah Kinabalu (ADK) and Bintang Setia Kinabalu (BSK), and six receiving the Justice of the Peace (JP) title. Earlier, Musa, accompanied by his wife Toh Puan Faridah Tussin, attended the parade held in conjunction with the official birthday celebration of the Yang Dipertua Negeri of Sabah at Padang Merdeka. – Bernama