ASEAN’s economic fundamentals remain solid despite Thailand-Cambodia border tensions, with no major foreign investment withdrawal from the region.
KUALA LUMPUR: ASEAN confidence remains strong despite heightened attention on regional tensions, including the situation between Thailand and Cambodia.
Malaysia-Cambodia Business Association (MCBA) president Datuk Seri Ricky Yaw said the fundamental structure and long-term attractiveness of the ASEAN Economic Community remain solid.
“Any moderation in investment pace reflects prudent risk management and diversification rather than a loss of confidence in the region,” he said in a statement.
Businesses are more focused on whether geopolitical developments could affect investment security, business stability and supply chain execution.
Yaw said there has been no large-scale withdrawal of foreign investments from Cambodia or the wider ASEAN region based on member feedback.
He noted investors are adopting a more cautious approach for new decisions involving long-term capital commitments.
Companies are paying closer attention to practical operational risks like cross-border logistics, customs efficiency and currency fluctuations.
These factors are prompting firms to reassess supply chain structures and regional operating strategies for greater resilience.
Any slowdown in Thailand-Cambodia trade could lead to a redistribution of orders and investments within ASEAN.
MCBA members are already evaluating alternative ASEAN locations for their operations.
Yaw said Malaysia is well-positioned to capture new opportunities in manufacturing, logistics and professional services.
He cited Malaysia’s political stability, mature institutions and strong bilateral relations with Cambodia as key advantages.
The current tension remains confined to specific border areas and has not affected major cities or commercial activities in Cambodia.
“While regional uncertainty presents challenges, it also reinforces the importance of sound risk management and long-term planning,” Yaw added.
He stated ASEAN will remain a key region for global business expansion as long as the situation does not escalate.
MCBA plans to organise an exhibition in Cambodia next year for Malaysian companies to showcase products and explore partnerships.
