Latest news with #AseanTradeinGoodsAgreement
The Star
13-06-2025
- Business
- The Star
Asean poised for major global economic role, but challenges remain, experts say
KUALA LUMPUR/MANILA (Xinhua) -- Asean could emerge as the world's fourth-largest economy in the coming decades, experts say, but the regional bloc must accelerate integration, strengthen institutions, and adapt to global shifts to realize this potential. Experts also urge Asean to act collectively to solidify its global presence. EMERGING INDUSTRY FUELING COMMON FUTURE "Asean, presently with an economic size of 3.8 trillion U.S. dollars, could become the fourth-largest economy on an aggregated basis but of a smaller world," said Mohd Munir Abdul Majid, chairman of CARI Asean Research and Advocacy, in a recent email interview with Xinhua. Mohd Munir, who is also president of the Asean Business Club and a senior fellow at LSE IDEAS, said technology -- particularly artificial intelligence (AI) in the services sector -- will drive future growth. He emphasized that Asean's access to technology should be guided by cost and technical quality. "E-commerce could be a key catalyst for intra-regional trade," Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Berhad, said that a robust digital infrastructure, including telecommunications and smart devices, is essential. Mohd Afzanizam also highlighted the importance of logistics to ensure speedy delivery, which necessitates efficient warehousing systems. He further emphasized that payment systems, such as QR code networks, are crucial to support micro, small, and medium enterprises (MSMEs) in expanding into international markets. Oh Ei Sun, principal adviser at the Pacific Research Center of Malaysia, stated that Asean should prioritize high-tech sectors that offer greater value-added potential. However, he told Xinhua that traditional commodities like palm oil and petroleum would remain vital as the region catches up in advanced industries. ASEAN INTEGRATION PROGRESSING STEADILY Aseans economic integration has been advancing gradually, with a strong emphasis on consensus and free trade, experts say. "Asean's economic integration has progressed steadily rather than hastily, grounded in a consistent commitment to free trade," said Mohd Munir. According to him, Asean's journey began with the Asean Free Trade Area in 1992, followed by the launch of the Asean Economic Community (AEC). The process is now guided by the Kuala Lumpur Declaration on Asean 2045, adopted at the 46th Asean Summit in May. "There is a lot happening. Not fast enough or optimally, but in a clear direction," he noted, adding that Asean has progressed based on consensus to deepen integration and free trade. Li Yuqing, assistant professor of Institute for International and Area Studies of Tsinghua University, said ASEAN's updates to the Asean Trade in Goods Agreement enhance regional trade and deepen integration, supporting its goal of becoming the world's fourth-largest economy. "Above all, Asean is a peaceful region, which makes it a conducive location for foreign direct investment and business ventures that can come from across the globe," Mohd Afzanizam said, highlighting initiatives such as the Johor-Singapore Special Economic Zone as evidence of strengthening regional ties. INSTITUTIONAL REFORMS, STRATEGIC CLARITY NEEDED Despite progress, experts pointed out that Asean faces institutional limitations. Mohd Munir said the bloc's decision-making structure remains slow, and the secretariat is under-resourced, despite the ASEAN 2045 vision calling for strengthening. "The point Asean must realise is that there is an urgent need to develop its strategic options in a changing world. It has taken a slow and steady course on increasing intra-regional trade, labor mobility and institutional implementation, emphasizing always on consensus," he said. "But there are now big issues for decision-making that cannot follow that route." Mohd Afzanizam warned that non-tariff barriers remain a key obstacle, as member states often act to protect their domestic industries. "Continuous dialogue, both government-to-government and government-to-business, is vital to identify and bridge these gaps," he said. Oh echoed those concerns, urging Asean to address internal development disparities. "Asean should focus on eradicating the abject poverty amongst itself for the least developed member states, and escaping the middle-income trap for the developing member states," he added. CHINA TIES OFFER CHANCE FOR COOPERATION Experts believe Asean-China relations are entering a new phase, driven by growing investment and strategic collaboration. Mohd Munir noted that Asean-China relations have been close in trade and, increasingly, in investment. In the context of global trade tensions, it would be good to deepen that relationship for mutual benefit. "For China, Asean's economic integration provides a relatively stable regional trade environment, helping China manage external trade risks and enhance economic resilience and stability," Li mentioned. She also noted that integration makes Asean's investment environment more stable and transparent, enabling businesses to better access the Asean market and achieve more efficient resource allocation. ASEAN countries may deepen cooperation with China in infrastructure development, which would accelerate progress in the digital economy and green transition, Oh suggested. GREATER INFLUENCE AMID UNCERTAINTY Regardless of whether Asean becomes the fourth-largest economy, its current size already warrants greater global influence, as the bloc is urged to exercise its weight in global affairs. "Asean needs to be less reticent about asserting its influence and initiating new ideas in a world marked by global disorder," he added. "Deeper Asean economic integration would strengthen the bloc's bargaining power," Li said, adding that it would enhance its role as a regional coordinator and allow it to play a more significant role. Mohd Afzanizam said that the shift toward a multipolar world provides more platforms for diplomatic solutions rather than unilateral decisions, especially from a single superpower, which can be disruptive. "This should resonate well with Asean as the region has always been peaceful. Certainly, Asean would want to advocate this at the global arena which is a universally accepted value," he added. - Xinhua
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New Straits Times
27-05-2025
- Business
- New Straits Times
[UPDATED] Asean commits to deepen economic ties with GCC, external partners
KUALA LUMPUR: Asean is committed to intensifying its economic engagements by deepening cooperation with external partners and expanding ties with new and emerging partners. In a joint statement following the 46th Asean Summit, Asean leaders said this includes region-to-region linkages such as those with the Gulf Cooperation Council (GCC). "Asean is also committed to intensifying its economic engagements by deepening cooperation with external partners and expanding engagement with new and emerging partners, including region-to-region linkages such as with the GCC. "Together, these efforts will reinforce Asean's resilience, expand and enhance economic opportunities, and secure its position as a dynamic and forward-looking hub of global trade and investment," they said. Amid global challenges, the regional bloc said Asean remains committed to being a reliable economic partner to all, and will continue to advance regional economic integration by strengthening and expanding existing economic partnerships, as well as seeking new opportunities for economic cooperation. These efforts will be anchored in mutual respect, shared values, and a common goal of peace and prosperity. "We stand ready to work constructively with all partners to advance and support a resilient, inclusive, and rules-based multilateral trading system for the benefit of our peoples and economies." It also reaffirmed strengthening Asean's resilience by further deepening internal trade and investment. This includes accelerating priority initiatives, including the Asean Digital Economy Framework Agreement and the upgrade of the Asean Trade in Goods Agreement. "We are confident that these efforts will reinforce regional integration, boost business certainty and competitiveness, and ensure Asean remains cohesive, agile and responsive to emerging challenges." The regional bloc added that it would also leverage, modernise, and upgrade Asean Plus One Free Trade Agreements (FTAs) and the Regional Comprehensive Economic Partnership Agreement (RCEP) in mitigating the risk of global trade uncertainties and supply chain disruptions. This would be done while ensuring they remain modern, comprehensive, and inclusive, whilst, in parallel, strengthening and boosting intra-Asean trade and investment, and responsive to 21st-century economic realities. They would also enhance Asean's internal coordination, making full use of existing cross-sectoral mechanisms and the newly established Asean Geoeconomic Task Force. "To this end, we task relevant ministers to monitor the current global economic challenges and to coordinate as appropriate for a strategic and coherent Asean response," they said. They added that the Asean Outlook on the Indo-Pacific (AOIP) is a vital instrument and primary framework that guides Asean's engagement of all its partners, anchored in the principles of Asean-centred, openness, inclusivity, transparency, resilience, and rules-based order regional architecture that upholds international law.
The Star
27-05-2025
- Business
- The Star
Asean faces ‘moment of truth'; it must step up or risk losing relevance, says PM Wong
KUALA LUMPUR (The Straits Times/ANN): Asean must step up and define a clear, purposeful role for itself in a changed world, or risk losing relevance, said Prime Minister Lawrence Wong on May 27. He noted that the need for the regional grouping to accelerate its integration has become more urgent than ever, given the increasingly uncertain and turbulent global environment. 'In many ways, this is a moment of truth for Asean. We have to either step up and carve out a clear, purposeful role for ourselves in this changed world, or Asean will lose its relevance,' said PM Wong in an interview with Singapore journalists after the 46th Asean Summit. PM Wong said he was glad that Asean leaders had held candid discussions on the new realities at the summit, and recognised the urgency of pushing for closer integration. There was a renewed sense of urgency among leaders to move forward on this front, he added. Significant announcements at the summit held in Malaysian capital Kuala Lumpur included an agreement between government-linked firms from Malaysia, Singapore and Vietnam to jointly explore the export of renewable energy. Under the pact, the three countries will collaborate on developing a new electricity link. Ahead of the summit, Asean economic ministers also concluded negotiations to upgrade the Asean Trade in Goods Agreement at a meeting of the Asean Economic Community Council. PM Wong said the concrete steps Asean that can take include the full implementation of existing agreements, making Asean completely tariff-free and reducing non-tariff barriers to make trade more seamless. He had earlier pointed out at the summit that his officials found 24 economic agreements, some from as far back as 2015, which had been agreed to but still not implemented. The bloc should also improve connectivity and make itself more attractive as an investment destination, said PM Wong. 'These are all traditional areas associated with trade and investments that we can work on,' he added. 'And then there are also new areas to integrate, especially in terms of digital connectivity and power connectivity.' He said that there is a 'full agenda ahead' for Asean, and the leaders had very good discussions to ensure progress on these areas. Asked about Asean's approach to working with the United States, PM Wong said that while the US may prefer to deal with countries individually, the group coming together to engage America does not contradict these bilateral engagements. This collective approach is complementary and reinforcing, he said, noting that Asean's diversity means member states have different levels of economic development and trade balances with the US. Some issues are also unique to individual countries, he added. 'So Asean member states also want that flexibility to engage America individually,' he said. 'But there is also a benefit for us to come together as a group to engage America as Asean, and the two are not mutually exclusive.' He added that Asean's objective in both bilateral and collective engagements with the US is to reduce barriers and strengthen trade and investment flows. Turning to ongoing trade tensions between the US and China, PM Wong said he had a good conversation with Chinese Premier Li Qiang at the summit. Premier Li had updated him on the discussions between the two countries, and PM Wong welcomed news of their deal to reduce tariffs. On May 12, US and China had reached a deal to roll back some of the steep tariffs imposed by America. But even with the deal, tariffs remain well above pre-Liberation Day levels, PM Wong noted. 'There will still be impact on both sides. Because America importing goods from China, there will be an impact. It could impact their domestic inflation. It could have an impact on overall growth as well,' he said. High tariffs will continue to affect growth prospects in the two economies, which are key engines of the global economy. PM Wong warned that the effects will spill over to the rest of the world, including Asean and Singapore. 'For Singapore, we will just have to redouble our efforts to work with like-minded partners to strengthen our trade and investment linkages with countries that are prepared to do so with us, and continue to find ways to steer our economy through these challenging times,' he said. Asked about the progress of Timor-Leste's accession to Asean, which was agreed in principle in 2022, PM Wong said while the country has made good progress on the road map set out for its membership, some issues remain to be resolved, including certain economic agreements. Asean leaders at the summit agreed to try and expedite the outstanding issues and provide full support to Timor-Leste, with the goal of welcoming the country as a full Asean member by the October summit in 2025, he added. 'Given the progress that has been made so far, the leaders agreed at this meeting that we will try and expedite the outstanding issues, provide full support to Timor-Leste, and we look forward to welcoming Timor-Leste as a full member of Asean by the end of this year,' he said. PM Wong added that Singapore will do its part to support this process. The Republic has conducted capacity-building courses for Timorese officials, and more than 800 have gone through them so far. On Asean's ties with the Gulf Cooperation Council (GCC), he said the bloc took the opportunity to deepen relations with what he described as an important strategic partner. Singapore's existing free trade agreement (FTA) with the GCC could serve as a model for an eventual Asean-GCC FTA, creating more opportunities for trade and investment, PM Wong said. He noted that the first-ever summit involving Asean, the GCC and China had taken place on May 27, highlighting South-east Asia's efforts to expand its network of partnerships. PM Wong acknowledged that discussions are still at an early stage, but said these dialogues are essential for broadening economic links. The ongoing conflict in Gaza was also raised during discussions with the GCC. PM Wong said all parties were saddened by the humanitarian disaster in Gaza, which is the result of Israel going too far in its actions. ASEAN and GCC leaders called for a cessation of hostilities and the return of hostages, he said, as well as compliance with international law and humanitarian law to ensure aid can be delivered to those in need. But he cautioned that a ceasefire alone would not be enough, as violence can recur after a temporary pause. A negotiated two-state solution is the only durable solution, he said. 'The international community is doing its best, and Singapore will do our part to facilitate these efforts as well.' PM Wong also commended Malaysia's leadership as Asean chair, describing it as 'effective and energetic'. Malaysia had played an important role in helping Asean navigate a range of global challenges, from US tariff actions to the humanitarian crisis in Myanmar and the conflict in Gaza, he said. PM Wong added that Singapore is already preparing to host its own Asean summit in the future, with officials taking notes and getting ready for that responsibility. 'Malaysia has helped to steer Asean through challenges including the US tariff actions, humanitarian crisis in Myanmar, difficult issues like conflict in Gaza,' he said. 'These are all global issues that matter to us as well in Asean and Malaysia, has taken the lead to help Asean navigate these issues, and also taken the lead to help Asean forge stronger partners.' - The Straits Times/ANN
AsiaOne
27-05-2025
- Business
- AsiaOne
Asean must strengthen its integration to give itself 'manoeuvring space': PM Wong, Singapore News
KUALA LUMPUR — Asean countries must redouble efforts to deepen the grouping's integration in a world where multilateralism and globalisation are in retreat, Prime Minister Lawrence Wong said on May 26. Doing so while also strengthening its external partnerships will be key to ensuring it has "the manoeuvring space and the agency" to continue charting its own destiny in these turbulent times, he added. Speaking at both the plenary and retreat sessions of the 46th Asean Summit in Kuala Lumpur, PM Wong said a more ambitious agenda is necessary for Asean in the years ahead if the region is to be more secure, stable and prosperous. In his remarks, PM Wong commended Malaysia for its efforts in steering Asean's response through these very difficult times. "We should continue to constructively engage the US, individually as countries but more importantly, collectively as Asean. We appreciate Malaysia's leadership in that regard," he said. PM Wong noted that, under Malaysia's chairmanship, Asean concluded upgrades to trade pacts such as the Asean Trade in Goods Agreement and the Asean-China Free Trade Agreement, and is also on track to concluding negotiations on the Asean Digital Economy Framework Agreement in 2025. "All this demonstrates Asean's ability to make progress in meaningful areas of co-operation, but there is still much more to be done, and we have to chart a more ambitious agenda for Asean in the years ahead," he said. PM Wong also welcomed the signing of an enhanced memorandum of understanding on the Asean Power Grid — aimed at improving regional clean energy connectivity — but noted that there are still key elements that must be put in place, including a proper framework for subsea power cables in Asean. A key area for improvement is in the timely implementation of agreements that the grouping has already inked, he said. PM Wong said his officials found 24 economic agreements, some from as far back as 2015, which had been agreed to but still not implemented. "Clearly, there is still a lot of room for us to improve in terms of implementation, execution and strengthening our integration even in existing areas of goods, services and investments," he said. He also urged the removal of barriers, such as complex customs procedures and import licensing requirements that continue to hamper intra-Asean trade, and that the region accelerate trade in services and its competitiveness as an investment area. "If we are open and candid with ourselves, we know that while we have achieved much, there is still so much more that needs to be done," he told fellow Asean leaders during the summit at the Kuala Lumpur Convention Centre. Quoting Singapore's founding foreign minister S. Rajaratnam — who said Asean must hang together or it will hang separately — PM Wong urged the other member countries to reinforce the grouping's centrality, while also demonstrating its value to external partners. While Asean is already strengthening partnerships with other economies by enhancing its free trade agreements, PM Wong said it should also grow its relationships with other regional groupings. He noted that countries such as China, Japan, South Korea and India are keen to do more with Asean, as do its partners outside East Asia such as the European Union, Australia, New Zealand and Canada. While some of these countries may not be ready to become formal partners, Asean should engage them in specific areas of mutual interest and be flexible in configuring ways to co-operate, as it is doing with the Gulf Cooperation Council (GCC) countries, said PM Wong. Singapore also welcomes more Asean members to be part of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), he added. The CPTPP is a free trade agreement among 12 economies: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United Kingdom and Vietnam. "If you look at all of us combined — Asean, CPTPP, the EU and the GCC — collectively, we make up a significant part of the world economy," he said. "And if together, we can push back and uphold a rules-based trading system, that would enable us to strengthen multilateralism and make our overall economic foundations a lot more robust and resilient." PM Wong also stressed the need for Asean to ensure that its existing platforms remain relevant and effective in building trust, managing differences and preventing outright conflict. This is especially so for the East Asia Summit (EAS), which brings together all the major powers with interests in the region, he noted. The EAS is a leaders-led platform for dialogue and co-operation on political, security and economic issues, involving Asean and eight other participating countries. "Although these platforms cannot solve all the issues, they help to foster collaboration and dialogue," he said. Turning to Myanmar, PM Wong expressed appreciation for Malaysia's leadership in Asean's response in the aftermath of the recent earthquake there. The 7.7-magnitude earthquake that struck central Myanmar on March 28 caused widespread devastation and killed thousands. PM Wong reiterated Singapore's readiness to support Asean's humanitarian efforts, and joined other leaders in calling for an extended ceasefire as one step towards a longer-term political solution. Myanmar has been in turmoil since its military staged a coup against the elected government in February 2021. Asean drew up a five-point peace plan with the military two months later that called for dialogue among all parties, an immediate halt to the violence in Myanmar, the appointment of an Asean special envoy to facilitate mediation, humanitarian assistance, and a visit by an Asean delegation to the country to meet all concerned parties. "We know that successive chairs have tried to find a way forward for Myanmar and move things in the right direction," PM Wong said. "Unfortunately, progress has been slow. The issues are complex, and it's very difficult to find a way forward. But we should still continue to engage." In the meantime, Asean must continue to uphold the Five-Point Consensus, and the leaders' decisions to restrict Myanmar's representation at its meetings to non-political figures. This is important for Asean's credibility, especially with its external partners, said PM Wong. PM Wong said Asean faces many daunting challenges, but that they can be overcome if the grouping steps up both its internal integration and its external partnerships. "We have almost 60 years of experience in responding to and overcoming crises. I'm confident that we can do it again," he said. On May 26, Asean leaders also signed the Kuala Lumpur Declaration 2045 — Our Shared Future, a new blueprint that reaffirms the grouping's commitment to a sustainable and inclusive future. In a speech at the signing ceremony, Malaysian Prime Minister Anwar Ibrahim said Asean's continued relevance will be defined by revolutions in technology and science. He called for the grouping to embrace innovation while learning to govern it together, and with care. Asean leaders also attended a gala dinner hosted by Datuk Seri Anwar and his wife at the Kuala Lumpur Convention Centre. [[nid:718377]] This article was first published in The Straits Times. Permission required for reproduction.
Straits Times
26-05-2025
- Business
- Straits Times
Asean must strengthen its integration to give itself ‘manoeuvring space': PM Wong
- Asean countries must redouble efforts to deepen the grouping's integration in a world where multilateralism and globalisation are in retreat, Prime Minister Lawrence Wong said on May 26. Doing so while also strengthening its external partnerships will be key to ensuring it has 'the manoeuvring space and the agency' to continue charting its own destiny in these turbulent times, he added. Speaking at both the plenary and retreat sessions of the 46th Asean Summit in Kuala Lumpur, PM Wong said a more ambitious agenda is necessary for Asean in the years ahead if the region is to be more secure, stable and prosperous. In his remarks, PM Wong commended Malaysia for its efforts in steering Asean's response through these very difficult times. He noted that, under Malaysia's chairmanship, Asean concluded upgrades to trade pacts such as the Asean Trade in Goods Agreement and the Asean-China Free Trade Agreement, and is also on track to concluding negotiations in 2025 to the Asean Digital Economy Framework Agreement. 'All this demonstrates Asean's ability to make progress in meaningful areas of cooperation, but there is still much more to be done, and we have to chart a more ambitious agenda for Asean in the years ahead,' he said. PM Wong also welcomed the signing of an enhanced memorandum of understanding on the Asean Power Grid - aimed at improving regional clean energy connectivity - but noted there are still key elements that must be put in place, including a proper framework for subsea power cables in Asean. A key area for improvement is in the timely implementation of agreements that the grouping has already inked, he said. PM Wong said his officials found 24 economic agreements, some from as far back as 2015, which had been agreed to but still not implemented. 'Clearly, there is still a lot of room for us to improve in terms of implementation, execution, and strengthening our integration even in existing areas of goods, services and investments,' he said. He also urged the removal of barriers, such as complex customs procedures and import licensing requirements which continue to hamper intra-Asean trade, and for the region to accelerate trade in services and its competitiveness as an investment area. 'If we are open and candid with ourselves, we know that while we have achieved much, there is still so much more that needs to be done,' he told fellow Asean leaders during the summit at the Kuala Lumpur Convention Centre (KLCC). Quoting Singapore's founding Foreign Minister S. Rajaratnam - who said Asean must hang together or it will hang separately - PM Wong urged the other member countries to reinforce the grouping's centrality, while also demonstrating its value to external partners. He noted that countries such as China, Japan, South Korea and India are keen to do more with Asean, as do its partners outside East Asia such as the European Union, Australia, New Zealand and Canada. While some of these countries may not be ready to become formal partners, Asean should engage them in specific areas of mutual interest and be flexible in configuring ways to cooperate, as it is doing with the Gulf Cooperation Council (GCC) countries, said PM Wong. He also stressed the need for Asean to ensure that its existing platforms remain relevant and effective in building trust, managing differences and preventing outright conflict. This is especially so for the East Asia Summit (EAS), which brings together all the major powers with interests in the region, he noted. The EAS is a leaders-led platform for dialogue and cooperation on political, security and economic issues, involving Asean and eight other participating countries. 'Although these platforms cannot solve all the issues, they help to foster collaboration and dialogue,' he said. Turning to Myanmar, PM Wong expressed appreciation for Malaysia's leadership of Asean's response in the aftermath of the recent earthquake there. The 7.7-magnitude earthquake that struck central Myanmar on March 28 caused widespread devastation and killed thousands. PM Wong reiterated Singapore's readiness to support Asean's humanitarian efforts, and joined other leaders in calling for an extended ceasefire as one step toward a longer-term political solution. Myanmar has been in turmoil since its military staged a coup against the elected government in February 2021. Asean drew up a five-point peace plan with the military two months later that called for dialogue among all parties, an immediate halt to the violence in Myanmar, the appointment of an Asean special envoy to facilitate mediation, humanitarian assistance, and a visit by an Asean delegation to the country to meet all concerned parties. 'We know that successive chairs have tried to find a way forward for Myanmar and move things in the right direction,' he said. 'Unfortunately, progress has been slow. The issues are complex and it's very difficult to find a way forward. But we should still continue to engage.' In the meantime, Asean must continue to uphold the Five-Point Consensus, and the leaders' decisions to restrict Myanmar's representation at its meetings to non-political figures. This is important for Asean's credibility, especially with its external partners, said PM Wong. PM Wong said Asean faces many daunting challenges, but that they can be overcome if the bloc steps up both its internal integration and its external partnerships. 'We have almost 60 years of experience in responding to and overcoming crises. I'm confident that we can do it again,' he said. On May 26, Asean leaders also signed the Kuala Lumpur Declaration 2045 – Our Shared Future, a new blueprint that reaffirms the bloc's commitment to a sustainable and inclusive future. In a speech at the signing ceremony, Malaysian Prime Minister Anwar Ibrahim said Asean's continued relevance will be defined by revolutions in technology and science. He called for the bloc to embrace innovation while learning to govern it together, and with care. The group's leaders also attended a gala dinner hosted by PM Anwar Ibrahim and his wife at KLCC. Join ST's WhatsApp Channel and get the latest news and must-reads.
