Latest news with #intra-Asean
New Straits Times
3 days ago
- Business
- New Straits Times
Anwar: A greener, resilient Asean key to people-centred growth
KUALA LUMPUR: A truly people-centred Asean can only be realised through the development of a greener and more resilient region, says Prime Minister Datuk Seri Anwar Ibrahim. Anwar, who also chairs Asean this year, stressed that beyond its economic potential, sustainable development was now an urgent priority due to the growing impact of climate change on people's livelihoods. He said the resounding success of the recent Asean–GCC–China Summit demonstrated not only Asean's convening power but also the bloc's strong focus on leveraging economic synergies and building institutional cooperation. "The conclusion of the Digital Economic Framework Agreement will unlock the vast potential of the region's digital economy. "More importantly, enhanced intra-regional connectivity will create greater opportunities for local businesses to expand their reach across the region. "As the world transitions towards a greener and more sustainable economy, Asean must adapt and seize emerging opportunities and partnerships. We are intensifying our efforts in energy transition and better practices, including the development of sustainable investment guidelines and advancing the Asean Power Grid," he said in his speech at the 38th Asia-Pacific Roundtable. Anwar said that during the recent Asean meeting, leaders reached a breakthrough in progressing the Asean Power Grid — describing it as a phenomenal achievement for regional cooperation. Looking ahead, he said Asean was working to upgrade existing trade agreements among member states and dialogue partners. "Our strength lies in our ability to maintain peace and foster understanding. However, our weakness has long been the lack of intra-Asean trade and joint investments — a shortcoming which is now a key focus for Asean leaders, especially in the current climate of rising protectionism. "We must remind ourselves that trade is not a sideshow to security; it is part of the scaffolding that holds our region together. When trade falters, fractures follow," he said. Anwar added that Asean must confront hard truths about its regional structure and renew its commitment to shared responsibilities — with an emphasis on moving beyond rhetoric to real cooperation. "We will continue to place our trust in Asean's founding principles and its enduring promise. But we must go further — and strengthen our collective resolve," he said.
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 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
07-06-2025
- Business
- New Straits Times
US-China renewed dialogue seen lifting Malaysia's trade outlook
KUALA LUMPUR: Renewed trade talks between the United States and China are expected to boost investor confidence and strengthen Malaysia's trade momentum, an economist said. Putra Business School economist Professor Dr Ahmed Razman Abdul Latiff said any move to reduce tariffs between the two economic giants could steady the sails for Malaysia by boosting confidence and trade visibility. "If the US and China agree to resume talks and reach a deal to reduce tariffs on each other, Malaysia's trade environment and investor sentiment will become less volatile and uncertain," he told Business Times. "This would boost investor confidence and encourage continued investment in Malaysia," Razman added, noting that while tensions persist, Malaysia is taking steps to shield its economy. Razman also expects Malaysia's export markets and supply chains to remain competitive, although growth may moderate slightly. This, he said, is supported by ongoing efforts to diversify export destinations, grow the country's trading partnerships and enhance intra-Asean trade. Should US-China negotiations break down again, he said the impact on Malaysia would likely remain limited. "There will be some negative impact but it will be minimum as majority of Malaysia's products such as semiconductor will not be subjected to higher tariffs by the US," he said. Trump and Xi held a 90-minute phone conversation on Thursday, marking their first direct dialogue since Trump resumed office. The call, widely viewed as a positive step towards easing the prolonged trade tensions between the world's two largest economies, laid the groundwork for renewed bilateral cooperation and the resumption of high-level trade negotiations. Both leaders agreed to restart trade talks, with senior US officials, including Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick, expected to meet their Chinese counterparts. The timing and venue for these negotiations have yet to be finalised but are anticipated to be announced in the coming weeks. Although the call sparked market optimism, US stocks closed lower as a sharp decline in Tesla shares outweighed the positive momentum from progress in US-China tariff negotiations. Tesla shares plunged over 14 per cent in heavy trading as the escalating public feud between Trump and businessman Elon Musk rattled investors, wiping out about US$150 billion in market value. Razman downplayed concerns over the spat saying, "The impact on Malaysia will be minimal, as the fallout primarily affects the SpaceX program and Tesla production."
Business Times
05-06-2025
- Business
- Business Times
Non-tariff barriers, not tariffs, are stalling Asean's trade goals
[SINGAPORE] While global headlines fixate on tariff wars and rising protectionism sparked by US President Donald Trump's administration and its use of levies as geopolitical leverage, analysts say it is non-tariff barriers that are quietly choking trade within South-east Asia. In the Asean context, a key non-tariff barrier hindering deeper regional trade integration are the divergent national standards, particularly in areas such as testing and certification, said Arief Ramayandi, a senior research fellow at the Asian Development Bank Institute. 'These barriers are compounded by practices such as import licensing, quotas, complex customs procedures and local content regulations,' he told The Business Times. Some of these measures reflect legitimate policy goals and are likely to remain in place. But others are seen as unnecessarily restrictive, creating persistent roadblocks that have proven difficult to remove, he said. The answer, Ramayandi suggested, lies in greater harmonisation across standards and certification processes, and possibly the establishment of an independent mechanism to monitor and address non-tariff barrier-related practices more effectively. Natixis' senior economist for emerging Asia Trinh Nguyen noted that greater ease of worker mobility as well as better connectivity and infrastructure beyond mainland South-east Asia are also key to greater regional integration. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up Amid a broader global shift away from the world's largest consumer towards alternative economies and regional pacts, trade-reliant South-east Asia has set itself apart with repeated calls for unity and coordinated efforts to deepen intra-bloc trade. Notably, intra-Asean trade accounts for roughly a fifth of the ten-member alliance's total trade, which pales in comparison to the share of intra-European Union trade that's around three times larger. The 27-member bloc may be the world's largest single market, but Asean has also fully eliminated tariffs on 98.6 per cent of products traded in the bloc since 2020. Asked whether full tariff elimination within Asean would significantly help the bloc's standing in the current uncertain trade environment, Stephen Olson, a visiting senior fellow at the Iseas – Yusof Ishak Institute told BT that with tariffs within the region already so low, additional cuts are 'unlikely to be a game changer'. The remaining duties simply reflect the need of various Asean member states to continue providing a degree of protection to certain industries that are key to the government, whether it be for economic, strategic or social considerations, he explained. Asean on May 25 concluded negotiations on a revised trade in goods deal – the cornerstone of its economic integration framework – at the bloc's summit in Kuala Lumpur. Its conclusion to upgrade the pact 'sends a positive signal that the bloc remains highly committed to an open and rules-based multilateral trading system that has served regional growth well over the years', said DBS Group Research senior economists Radhika Rao and Chua Han Teng. The duo added that from a medium-term perspective, the region will also need to generate sufficient demand at home to benefit from intra-regional trade and investment flows, whilst lowering reliance on extra-regional markets. But the way Ramayandi sees it, the Asean Trade in Goods Agreement 'does not seem to be an effective tool for increasing intra-Asean trade volumes, which have been relatively steady since 2010, if not declining'. He noted that the upgraded deal is now set to address issues such as non-tariff barriers, digital trade, green trade and the resilience of supply chains. But 'although this sounds promising, its effectiveness in increasing the trade volumes is yet to be seen', said the economist. 'Non-tariff barriers are far more important, and it remains to be seen if the revised agreement will have the teeth to make meaningful progress on that front,' said Olson from Iseas – Yusof Ishak.
