ASEAN’s neutral stance offers a viable platform for trade and investment with major economies, attracting US$228 billion in foreign direct investment in 2024.
KUALA LUMPUR: ASEAN’s neutrality offers a rare, viable platform for trade, technology collaboration and investment with all major economic players, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.
He said ASEAN’s consistent engagement with both the United States and China, without aligning with any single strategic orbit, has preserved the policy space many regions lack.
“This deliberate posture preserves autonomy while enhancing ASEAN’s economic appeal,” he said during a talk on “Building Regional Strength through Smarter Fiscal and Trade Policies” here today.
Tengku Zafrul said that over the past year, Malaysia has had the honour of chairing ASEAN, during a period marked by geopolitical fragmentation and great power rivalry.
Despite these challenges, he said ASEAN demonstrated resilience, cohesion, and stability, reaffirming its role as a vital anchor of economic balance and strategic neutrality.
“Meanwhile, one key insight from Malaysia’s ASEAN Chairmanship is that the region’s relevance has grown in step with intensifying global polarisation.
“As major powers recalibrate and supply chains realign around geopolitical shifts, ASEAN’s balanced and forward-looking stance has become a valuable stabilising force,” he added.
He said at the 47th ASEAN Summit, Malaysia, as part of ASEAN, also signed the upgraded ASEAN-China Free Trade Agreement 3.0 (ACFTA), reinforcing the longstanding economic partnership with China.
Additionally, the ASEAN Trade in Goods Agreement (ATIGA) Upgrade, concluded during Malaysia’s ASEAN Chairmanship, also marked a pivotal step toward deepening regional economic integration.
“In an era where resilience and agility increasingly determine competitiveness, the ATIGA Upgrade lays the institutional foundation for this region to function as a more seamless, trusted single market, enhancing its appeal for investments.
“Indeed, in 2024, ASEAN defied global trends with an 8.5 per cent increase in foreign direct investment, reaching US$228 billion (US$1=RM4.14). With ATIGA’s upgrade, I am confident this momentum can be sustained,” he said.
Meanwhile, for the ASEAN Digital Economy Framework Agreement (DEFA), the ASEAN digital economy is projected to reach US$1 trillion by 2030.
With DEFA, advanced under Malaysia’s leadership, this is set to double to US$2 trillion, he said.
On green transition and industrial decarbonisation, he said ASEAN has made progress on the ASEAN Power Grid that will revolutionise and create closer integration in the regional energy sector. – Bernama
