Latest news with #AECStrategicPlan
The Sun
13-06-2025
- Business
- The Sun
Asean's ambition of becoming world's fourth biggest economy by 2030 well within reach: Tengku Zafrul
KUALA LUMPUR: Asean's ambition to become the world's fourth-largest economy by 2030 is well within reach, provided the region sustains an annual gross domestic product (GDP) growth rate between 4% and 5%. Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz highlighted the region's robust growth prospects at the official launch of the Asean Economic Community (AEC) Strategic Plan today. 'Our economists have thoroughly analysed the growth projections for all Asean economies under current conditions, and we are confident that the targets are indeed achievable,' he said. Tengku Zafrul noted that the Asean Secretariat projects regional GDP growth at 4.7% for 2025, as presented at the latest Asean Economic Ministers' Meeting. 'But things are very dynamic. It depends on the global economic situation. The IMF (International Monetary Fund) will also produce their forecast of global growth,' he said, stressing the need for vigilance amid shifting external factors. Tengku Zafrul emphasised the AEC Strategic Plan's role in keeping Asean's policies current and responsive to evolving business needs and emerging challenges. 'As the first instalment of this long-term vision, the plan serves as a comprehensive roadmap that outlines a clear and actionable path forward,' he said. The plan has been carefully crafted to implement the economic aspects of the Asean Community Vision 2045, leveraging the region's vast opportunities and potential. A key pillar of the plan is the establishment of a forward-looking digital economic framework, which is expected to double Asean's digital economy to US$2 trillion (RM4.5 trillion) by 2030. The focus on digital transformation, alongside sustained economic integration and resilience, positions Asean to not only achieve its growth targets but also to strengthen its global influence. On the domestic front, Tengku Zafrul sees positive signals from foreign investors in Malaysia, with no indication of existing investors withdrawing their commitments despite ongoing global uncertainties. 'So far, no existing investors have expressed any intention to exit Malaysia. They remain committed to their investments, and no cancellations have been announced.' However, he observed that new investors are adopting a more cautious, 'wait and see' approach, influenced by heightened geopolitical tensions – particularly between the United States and China – and broader global volatility. Looking ahead, Tengku Zafrul said his trade negotiations in Washington on June 18 will focus on reducing tariffs on Malaysian exports. 'The negotiations are essentially to address the current tariff structure, where the US has imposed a 24% tariff on Malaysia. Our first goal is to bring that down.' The second objective is to identify key sectors where Malaysia believes tariffs should be reduced even below the 10% floor, targeting industries important to both Malaysian exporters and the US economy. In April, the US government announced new tariff measures affecting more than 60 countries, including Malaysia. The implementation of these tariffs has been paused for 90 days to allow room for negotiations.
The Star
13-06-2025
- Business
- The Star
‘Asean offers what others cannot'
KUALA LUMPUR: Asean offers a stable and predictable environment for various businesses to thrive, says Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz. 'These are features that businesses and investors desperately need but other regions cannot easily replicate. 'Those attributes are set to help Asean become the world's fourth-largest economy by 2030,' he said in his speech at the Regional Socialisation of the Asean Economic Community (AEC) Strategic Plan 2026-2030 event yesterday. 'Regardless of where global trends lead, Asean member states remain committed to supporting a transparent, free, fair and inclusive rules-based multilateral trading system with the World Trade Organisation (WTO) at its core,' he added. Tengku Zafrul noted that globalisation, once the driving force behind Asean's integration into global value chains and economic growth, is being upended by recent geopolitical tensions, as well as trade and tariff wars. 'As the global order is being reshaped, the only certainty is uncertainty – of course, this is not conducive for business growth and investor confidence. 'This, in turn, poses serious risks to Asean's growth, resilience, security and long-term potential. 'Amid these challenges, Asean must recalibrate its post-2025 economic integration framework. Today's challenging landscape calls for agility over aggressive growth, and resilience over radical expansion,' he said. Tengku Zafrul added that the AEC Strategic Plan is key to realising the regional bloc's aspiration of becoming a single market and production base, driven by competitiveness, inclusivity and sustainable growth. 'Structured in five-year cycles until 2045, it will keep Asean's policies current and updated, so we can be more responsive to evolving business needs and emerging challenges,' he said. 'As the first instalment of this long-term vision, the AEC Strategic Plan 2026-2030 serves as a comprehensive roadmap outlining a clear and actionable path forward. 'This has been carefully developed to implement the economic aspects of the Asean Community Vision 2045, by harnessing Asean's vast opportunities and potential. 'Through the AEC Strategic Plan, Asean aspires to significantly enhance intra-Asean trade by boosting the interconnectedness of the single market for goods, services, and investments. 'By further reducing persistent non-trade barriers, we can realise the fuller potential of intra-Asean trade. 'This will strengthen Asean's competitiveness and build greater resilience against external shocks.' According to Tengku Zafrul, the plan demonstrates Asean's readiness to embrace transformation, enhance connectivity and promote innovation, anchored on the core principles of sustainability and inclusivity. It also emphasises establishing a forward-looking digital economic framework expected to double Asean's digital economy to reach US$2 trillion (RM8.4 trillion) by 2030. Despite isolationist policies by some parts of the global economy, the AEC Strategic Plan strongly reinforces the regional bloc's commitment to market openness and proactive engagement with external partners. 'Asean seeks to enhance engagements with not only traditional markets and established dialogue partners, but also new markets, for our goods, services and investments. This will reduce over-dependence on selected economies, thereby strengthening Asean's macroeconomic resilience,' he said. Dr Ahmad Zafarullah Abdul Jalil, director of the Asean Integration Monitoring Directorate, Asean Economic Community Department of the Asean Secretariat, said the AEC outlined six Strategic Goals, 44 Objectives and 192 Strategies. 'The strategic goals outline what kind of community we want to become by 2045. We want to become an action-oriented community; a sustainable community; an enterprising, bold and innovative community; an adaptable and pro-active community; a nimble and resilient community and an inclusive participatory and collaborative community,' he said during the context-setting session. 'The strategic plans outline the measures we need to take in order to achieve all these strategic goals,' he said, adding that documents would be released over the years to articulate in a more detailed manner how Asean would achieve these goals. At a press conference later, Tengku Zafrul said that despite the geopolitical tensions between the United States and China, there have been no cancellations of foreign investments in Malaysia. 'The ones already in Malaysia continue to stay, and those committed have not pulled out, but those yet to commit are now thinking,' he said. Tengku Zafrul, who is slated to visit the United States next week, said the main goal for Malaysia's negotiations with President Donald Trump's administration would be on reducing the 24% tariff on Malaysian goods exported to the United States. He added that the government also aims to negotiate for lower than 10% tariffs for exports from certain sectors. 'A lot of things we do actually strengthen and complement US businesses both in the United States and Malaysia. So, it is a win-win relationship,' he said.
The Sun
12-06-2025
- Business
- The Sun
Asean's ambition of being world's fourth biggest economy by 2030 well within reach: Tengku Zafrul
KUALA LUMPUR: Asean's ambition to become the world's fourth-largest economy by 2030 is well within reach, provided the region sustains an annual gross domestic product (GDP) growth rate between 4% and 5%. Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz highlighted the region's robust growth prospects at the official launch of the Asean Economic Community (AEC) Strategic Plan today. 'Our economists have thoroughly analysed the growth projections for all Asean economies under current conditions, and we are confident that the targets are indeed achievable,' he said. Tengku Zafrul noted that the Asean Secretariat projects regional GDP growth at 4.7% for 2025, as presented at the latest Asean Economic Ministers' Meeting. 'But things are very dynamic. It depends on the global economic situation. The IMF (International Monetary Fund) will also produce their forecast of global growth,' he said, stressing the need for vigilance amid shifting external factors. Tengku Zafrul emphasised the AEC Strategic Plan's role in keeping Asean's policies current and responsive to evolving business needs and emerging challenges. 'As the first instalment of this long-term vision, the plan serves as a comprehensive roadmap that outlines a clear and actionable path forward,' he said. The plan has been carefully crafted to implement the economic aspects of the Asean Community Vision 2045, leveraging the region's vast opportunities and potential. A key pillar of the plan is the establishment of a forward-looking digital economic framework, which is expected to double Asean's digital economy to US$2 trillion (RM4.5 trillion) by 2030. The focus on digital transformation, alongside sustained economic integration and resilience, positions Asean to not only achieve its growth targets but also to strengthen its global influence. On the domestic front, Tengku Zafrul sees positive signals from foreign investors in Malaysia, with no indication of existing investors withdrawing their commitments despite ongoing global uncertainties. 'So far, no existing investors have expressed any intention to exit Malaysia. They remain committed to their investments, and no cancellations have been announced.' However, he observed that new investors are adopting a more cautious, 'wait and see' approach, influenced by heightened geopolitical tensions – particularly between the United States and China – and broader global volatility. Looking ahead, Tengku Zafrul said his trade negotiations in Washington on June 18 will focus on reducing tariffs on Malaysian exports. 'The negotiations are essentially to address the current tariff structure, where the US has imposed a 24% tariff on Malaysia. Our first goal is to bring that down.' The second objective is to identify key sectors where Malaysia believes tariffs should be reduced even below the 10% floor, targeting industries important to both Malaysian exporters and the US economy. In April, the US government announced new tariff measures affecting more than 60 countries, including Malaysia. The implementation of these tariffs has been paused for 90 days to allow room for negotiations.
The Star
12-06-2025
- Business
- The Star
Asean provides stable environment for business growth, says Tengku Zafrul
KUALA LUMPUR: Asean offers a stable, predictable environment for various businesses to thrive, says Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz. "These are features that businesses and investors desperately need, but features which other regions cannot easily replicate. Those attributes are set to help Asean become the world's fourth-largest economy by 2030," he said during his speech at the Regional Socialisation of the Asean Economic Community (AEC) Strategic Plan 2026-2030 event on Thursday (June 12). 'Regardless of where global trends lead, Asean Member States remain committed to supporting a transparent, free, fair, and inclusive rules-based multilateral trading system with the World Trade Organisation (WTO) at its core," he added. Tengku Zafrul noted that globalisation, once the driving force behind Asean's integration into global value chains and economic growth, is being upended by recent geopolitical tensions, as well as trade and tariff wars. "As the global order is being reshaped, the only certainty is uncertainty—of course, this is not conducive for business growth and investor confidence. This, in turn, poses serious risks to Asean's growth, resilience, security, and long-term potential," he said. Amid these challenges, Asean must recalibrate its post-2025 economic integration framework. Today's challenging landscape calls for agility over aggressive growth, and resilience over radical expansion." In achieving that aim, Asean Member States' collective response must be calm, collected, and calibrated. To that end, as Asean Chair, Malaysia has convened various engagement sessions with Economic Ministers and Dialogue Partners to chart a coordinated approach that will continue to shape Asean's external engagements," he said. He said that Asean has grown steadily over the past decade, with growth averaging 4.4% annually. Additionally, its 680-million strong market, rich natural resources, and young talent—coupled with principles of neutrality and centrality—position it for a bigger role in global supply chains and in driving global trade and attracting more investments. Tengku Zafrul added that the AEC Strategic Plan is key to realising the regional bloc's aspiration of becoming a single market and production base, driven by competitiveness, inclusivity, and sustainable growth. "Structured in 5-year cycles until 2045, it will keep Asean's policies current and updated, so we can be more responsive to evolving business needs and emerging challenges," he said. As the first instalment of this long-term vision, the AEC Strategic Plan 2026-2030 serves as a comprehensive roadmap outlining a clear and actionable path forward. This has been carefully developed to implement the economic aspects of the Asean Community Vision 2045, by harnessing Asean's vast opportunities and potential." "Through the AEC Strategic Plan, Asean aspires to significantly enhance intra-Asean trade by boosting interconnectedness of the single market for goods, services, and investments. By further reducing persistent non-trade barriers, we can realise the fuller potential of intra-Asean trade," he said. This will strengthen Asean's competitiveness and build greater resilience against external shocks," he added. He said the plan demonstrates Asean's readiness to embrace transformation, enhance connectivity, and promote innovation, anchored on the core principles of sustainability and inclusivity. It also emphasises establishing a forward-looking digital economic framework expected to double Asean's digital economy to reach US$2tril by 2030. Despite isolationist policies by some parts of the global economy, the AEC Strategic Plan strongly reinforces the regional bloc's commitment to market openness and proactive engagement with external partners. "Asean seeks to enhance engagements with not only traditional markets and established Dialogue Partners, but also new markets, for our goods, services, and investments. This will reduce over-dependence on selected economies, thereby strengthening Asean's macroeconomic resilience," he said.
New Straits Times
12-06-2025
- Business
- New Straits Times
Malaysia braces for "tough" tariff talks with US, readies fallback offer
KUALA LUMPUR: The upcoming tariff negotiations between Malaysia and the United States will be "tough" but essential to reinforce both countries' complementary trade ties, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz. He said the ministry's Deputy Secretary-General (Trade), Mastura Ahmad Mustafa, who has been appointed chief negotiator, would lead on the technical groundwork ahead of the talks, allowing him to focus on strategic-level discussions. "I'll be going to the US with our chief negotiator, Mastura. Negotiations have been ongoing virtually, but a physical meeting is necessary," he said at a press conference during the Regional Socialisation of the AEC Strategic Plan under the Asean Community Vision 2045. "If Mastura manages to settle most of the technical matters, there will be less on my plate. But it's not going to be easy, and that's the reality. What's important is to demonstrate that the Malaysia-US trade and investment relationship is complementary. We are not undercutting or competing against the US," he added. Tengku Zafrul will travel to Washington on June 18 to resume negotiations over tariffs imposed on Malaysian goods. He is scheduled to meet US Trade Representative Jamieson Greer, as well as other officials from the US administration and investors. Meanwhile, Mastura told Business Times that Malaysia is prepared to present a fallback proposal in its ongoing tariff negotiations with the US should Washington deem its original offer "insufficient". She said Malaysia's upcoming engagement in Washington would be a timely opportunity to re-engage US officials after earlier talks were postponed. "I believe the US is currently more focused on its court cases and negotiations with China. They had earlier postponed our physical meeting," she said on the sidelines of the event held here, today. "We will take the opportunity of the minister's visit to meet with them and get their feedback on our initial offer. If that's not sufficient for them to consider, we're ready with a second layer of proposals to keep the negotiations moving," she added. Mastura did not disclose the details of either the initial or fallback offer. Earlier, on April 24, Tengku Zafrul led a high-level delegation to Washington, where he held talks with US Commerce Secretary Howard Lutnick and Greer. During that meeting, Tengku Zafrul stressed the importance of sustained engagement and reiterated Malaysia's commitment to finding constructive solutions to the concerns raised by the US. Malaysia has expressed its readiness to negotiate in four key areas, namely narrowing the trade deficit, addressing non-tariff barriers, strengthening technology protection and security and exploring the potential for a bilateral trade agreement. On April 2, US President Donald Trump announced tariff measures affecting around 60 countries, including a 24 per cent levy on most Malaysian goods. However, the tariffs have been temporarily suspended for 90 days, with the exemption set to expire on July 8.
