Latest news with #ASEANEconomicCommunityStrategicPlan
Malaysia Sun
13-06-2025
- Business
- Malaysia Sun
Economic Watch: ASEAN sees necessity to expand LCS to enhance integration, prevent external risks
HONG KONG, June 13 (Xinhua) -- During the 46th Association of Southeast Asian Nations (ASEAN) Summit concluded last month in Malaysia, leaders of the 10-member bloc agreed to expand and strengthen regional payment connectivity and promote local currency settlement (LCS). Adopted by the 46th ASEAN Summit, the ASEAN Economic Community Strategic Plan 2026-2030 pledged that ASEAN will "promote the use of local currencies to reduce the region's vulnerability to exchange rate fluctuations and external economic and financial shocks, and to lower transaction costs associated with cross-border payments." FAST STEPS FORWARD In 2021, Thailand and Singapore linked their fast payment systems, a pioneering move allowing people to make real-time, low-cost mobile payments using just the recipient's phone number. In 2023, ASEAN leaders adopted the declaration on advancing regional payment connectivity and promoting local currency transactions, eyeing leveraging local currencies for cross-border payments and establishing a task force to develop an ASEAN local currency transaction framework. Since then, progress by 2025 has been both significant and tangible, particularly through the Regional Payment Connectivity (RPC) initiative, said Tasawan Khao-uppatum, a senior researcher at Kasikorn Research Center in Thailand. The RPC has rapidly expanded from five founding central banks in 2022 to nine ASEAN members by 2025, and it aims to build seamless regional payment systems through cross-border QR code payments, especially for tourism and retail, and account-to-account transfers that enhance financial inclusion, particularly for small- and medium-sized enterprises (SMEs), Tasawan said. Now, many national systems have already been linked, including Thailand's PromptPay, Indonesia's QRIS, Singapore's PayNow, Malaysia's DuitNow, and full ASEAN-wide interoperability is expected by the end of 2025, according to the expert. "In practice, Thai consumers can now use QR code payments abroad in countries such as Japan, Cambodia, Vietnam, Malaysia, Indonesia, Singapore and some other places. Additionally, cross-border transfers with Singapore can now be done using mobile phone numbers." ENHANCE REGIONAL INTEGRATION As intra-regional trade is rapidly growing, promoting LCS through the QR code-based payment systems simplifies transactions for tourists, expatriates and small businesses, promotes financial inclusion, and boosts local economic development. SMEs can use the system to conduct international trade with lower transaction costs. In ASEAN, the adoption rate of digital payments, especially QR code payments, has grown significantly. Mohammad Faisal, executive director at the Center of Reform on Economics Indonesia, said that for Indonesia, cooperation in the implementation of local currency transactions has started since 2017 with Thailand and then followed by several other countries including Malaysia, Singapore, Japan, South Korea, and China. Faster and more interoperable payment systems support seamless trade, investment, and tourism flows within the ASEAN bloc, said Tasawan, adding that in 2024, 25 percent of Thailand's exports were settled in local currency Thai baht, up from 14 percent in 2010. "For instance, the growth of cross-border QR payment systems makes it easier for Thai tourists to spend abroad, particularly within ASEAN. The number of Thai travelers to ASEAN countries increased from 4.5 million in 2013 to 6.7 million in 2023. Likewise, the number of ASEAN tourists entering Thailand rose from 7.38 million in 2014 to 10.6 million in 2024," said Tasawan. Vice President of National Chamber of Commerce and Industry of Brunei Darussalam Haji Halim Saim said the LCS will enhance trade and investment as well as economic activities in ASEAN region and boost ties with financial institutions. MITIGATE EXTERNAL RISKS Analysts also believe that ASEAN's push for a framework for trading in local currencies will enhance its resilience -- by promoting financial integration and the use of local currencies, ASEAN aims to avoid the volatility in global financial markets and possible disruptions caused by geopolitical events. Referring to the change of U.S. interest rate in the past years, Faisal said that every policy that comes from the United States related to monetary policy often greatly affects the emerging countries, including ASEAN, because of the large use of the U.S. dollar by ASEAN countries' trade. Therefore, it is necessary to reduce dependency on the U.S. dollar to make the ASEAN currencies more stable. The benefit of building regional payment connectivity for ASEAN is to make the ASEAN currencies more stable, stronger and more resilient against external shocks or changes in the global economy. It can also encourage an increase in intra-ASEAN trade and investment, Faisal added. By settling trade in local currencies, emerging markets aim to reduce their exposure to exchange rate volatility and external monetary shocks stemming from advanced economies' policy shifts, said Tasawan, adding that this trend signals a decentralization of global financial power -- moving away from a reliance on the U.S. dollar and toward a more balanced system where multiple currencies play significant roles regionally and globally. Experts suggest that by decreasing dependence on the U.S. dollar, ASEAN can gain greater control over its economic future and lessen its susceptibility to U.S. monetary policy. The growing trend of emerging markets shifting to local currency settlements in international trade reflects their increasing needs and awareness to have a more stable global economy and a more balanced global economic order, Faisal said.
The Sun
12-06-2025
- Business
- The Sun
ASEAN Geoeconomics Task Force to present report in September
KUALA LUMPUR: The ASEAN Geoeconomics Task Force will present an ASEAN Integration Report in September, which will complement the ASEAN Economic Community Strategic Plan 2026-2030, said the Investment, Trade and Industry Ministry (MITI). In his opening speech at the second ASEAN Geoeconomics Task Force meeting today, Deputy Investment, Trade and Industry Minister Liew Chin Tong said he hopes the report would assist ASEAN in addressing some of the immediate challenges facing the region. 'Our aspiration is that this report will serve a role akin to that of a Mario Draghi Report for the European Union that will guide us through the challenges that lie ahead,' he said during the virtual meeting session. Liew said the ASEAN Integration Report were jointly led by former Trade Minister of Indonesia Dr Mari Pangestu and Assistant Governor of Bank Negara Malaysia Fraziali Ismail. The task force was jointly chaired by Liew and Indonesia's Director-General of International Trade Negotiations Djatmiko Bris Witjaksono. The ASEAN Geoeconomics Task Force was established during the 31st ASEAN Economic Ministers' Retreat in Desaru, Johor, in February this year. It held its inaugural meeting on May 16.
The Sun
12-06-2025
- Business
- The Sun
ASEAN Geoeconomics Task Force to Present Integration Report
KUALA LUMPUR: The ASEAN Geoeconomics Task Force will present an ASEAN Integration Report in September, which will complement the ASEAN Economic Community Strategic Plan 2026-2030, said the Investment, Trade and Industry Ministry (MITI). In his opening speech at the second ASEAN Geoeconomics Task Force meeting today, Deputy Investment, Trade and Industry Minister Liew Chin Tong said he hopes the report would assist ASEAN in addressing some of the immediate challenges facing the region. 'Our aspiration is that this report will serve a role akin to that of a Mario Draghi Report for the European Union that will guide us through the challenges that lie ahead,' he said during the virtual meeting session. Liew said the ASEAN Integration Report were jointly led by former Trade Minister of Indonesia Dr Mari Pangestu and Assistant Governor of Bank Negara Malaysia Fraziali Ismail. The task force was jointly chaired by Liew and Indonesia's Director-General of International Trade Negotiations Djatmiko Bris Witjaksono. The ASEAN Geoeconomics Task Force was established during the 31st ASEAN Economic Ministers' Retreat in Desaru, Johor, in February this year. It held its inaugural meeting on May 16.
Barnama
27-05-2025
- Business
- Barnama
ASEAN 2045: PETRA To Enhance Scope Of Regional Energy Cooperation
Deputy Prime Minister who is also Energy Transition and Water Transformation Minister Datuk Seri Fadillah Yusof PUTRAJAYA, May 27 (Bernama) -- The Ministry of Energy Transition and Water Transformation (PETRA) has voiced its full support for the Kuala Lumpur Declaration on ASEAN 2045: Our Shared Future, calling it a pivotal step towards realising the ASEAN Economic Community Strategic Plan. Deputy Prime Minister Datuk Seri Fadillah Yusof, who is also in charge of PETRA, said the ministry is committed to enhancing regional energy cooperation by finalising strategic frameworks and action plans under the Priority Economic Deliverables (PED), aimed at fostering a just and structured energy transition. He said among key initiatives undertaken to reach the goals is the upcoming ASEAN Plan of Action for Energy Cooperation (APAEC) 2026–2030, which will serve as the framework for long-term regional energy strategies towards a resilient, inclusive, and sustainable energy system across ASEAN by 2045. Fadillah also underscored the importance of advancing the ASEAN Power Grid (APG) through the implementation of a Memorandum of Cooperation, which will facilitate interconnectivity between member states' electricity grids. 'This will accelerate regional grid integration and enable broader adoption of clean energy sources and pave the way for cross-border power trading and greater use of renewable energy,' he said in a statement today. Fadillah said two other regional agreements, namely the Trans ASEAN Gas Pipeline Agreement (TAGP) and the ASEAN Petroleum Security Agreement (APSA), will serve as foundational frameworks to ensure secure and reliable supply chains of natural gas and petroleum, which are essential for supporting a phased transition to low-carbon energy systems, especially in power generation. 'Through these initiatives, PETRA is committed to supporting the Kuala Lumpur Declaration of ASEAN 2045, including efforts to position energy transition as a strategic pillar in building a more sustainable, inclusive, and resilient ASEAN Economic Community. 'This commitment aligns with Malaysia MADANI, the national development framework that champions sustainability, well-being, and innovation. It also strengthens regional collaboration for the shared benefit of all ASEAN communities,' he said. Yesterday, ASEAN leaders adopted the Kuala Lumpur Declaration on ASEAN 2045: Our Shared Future, which set the foundation to guide the region's development and cooperation over the next two decades.
The Sun
27-05-2025
- Business
- The Sun
ASEAN 2045: PETRA to enhance scope of regional energy cooperation
PUTRAJAYA: The Ministry of Energy Transition and Water Transformation (PETRA) has voiced its full support for the Kuala Lumpur Declaration on ASEAN 2045: Our Shared Future, calling it a pivotal step towards realising the ASEAN Economic Community Strategic Plan. Deputy Prime Minister Datuk Seri Fadillah Yusof, who is also in charge of PETRA, said the ministry is committed to enhancing regional energy cooperation by finalising strategic frameworks and action plans under the Priority Economic Deliverables (PED), aimed at fostering a just and structured energy transition. He said among key initiatives undertaken to reach the goals is the upcoming ASEAN Plan of Action for Energy Cooperation (APAEC) 2026–2030, which will serve as the framework for long-term regional energy strategies towards a resilient, inclusive, and sustainable energy system across ASEAN by 2045. Fadillah also underscored the importance of advancing the ASEAN Power Grid (APG) through the implementation of a Memorandum of Cooperation, which will facilitate interconnectivity between member states' electricity grids. 'This will accelerate regional grid integration and enable broader adoption of clean energy sources and pave the way for cross-border power trading and greater use of renewable energy,' he said in a statement today. Fadillah said two other regional agreements, namely the Trans ASEAN Gas Pipeline Agreement (TAGP) and the ASEAN Petroleum Security Agreement (APSA), will serve as foundational frameworks to ensure secure and reliable supply chains of natural gas and petroleum, which are essential for supporting a phased transition to low-carbon energy systems, especially in power generation. 'Through these initiatives, PETRA is committed to supporting the Kuala Lumpur Declaration of ASEAN 2045, including efforts to position energy transition as a strategic pillar in building a more sustainable, inclusive, and resilient ASEAN Economic Community. 'This commitment aligns with Malaysia MADANI, the national development framework that champions sustainability, well-being, and innovation. It also strengthens regional collaboration for the shared benefit of all ASEAN communities,' he said. Yesterday, ASEAN leaders adopted the Kuala Lumpur Declaration on ASEAN 2045: Our Shared Future, which set the foundation to guide the region's development and cooperation over the next two decades. The declaration, endorsed during the 46th ASEAN Summit here, represents a significant milestone in the bloc's commitment to building a more resilient, innovative, dynamic and people-centred regional community. According to the Declaration, ASEAN member states reaffirmed their collective resolve to enhance regional unity, promote inclusive and sustainable development and strengthen institutional capacity to respond effectively to existing and future megatrends. The document also envisions ASEAN as the epicentre of growth in the Indo-Pacific region, with a strong emphasis on regional solidarity, a shared identity and equitable access to economic opportunities among its people.
