ASEAN Secretary-General says innovation, connectivity and stability are key to making the bloc the world’s fourth-largest economy within five years.
KUALA LUMPUR: ASEAN must emerge as an innovation-driven region to strengthen its economic integration and global market competitiveness, said ASEAN Secretary-General Dr Kao Kim Hourn.
He identified three key foundations for a borderless ASEAN economy: innovation, seamless connectivity, and strong trust, confidence, peace, and stability.
This aligns with the ASEAN Plan of Action on Science, Technology and Innovation 2026–2030, which positions technology startups at the heart of the bloc’s economic development.
The plan sets ASEAN on course to become the world’s fourth-largest economy within the next five years, he added.
“Asia now commands 23% of global venture capital and hosts 19% of the world’s startups, demonstrating our expanding role in the global economy,” Kao said in his keynote address at the Cradle LIVE! Startup ASEAN Summit 2025 closing ceremony.
He highlighted that through initiatives like ASEAN Talent Mobility, over 8,000 professionals across 66 countries are now connected.
Malaysia is leading by example in making borders irrelevant for idea circulation, he noted.
Kao commended Malaysia’s ASEAN Startup platform, the region’s first online startup network connecting more than 4,000 startups with 1,000 investors.
The platform has generated an ecosystem value exceeding USD 131 billion.
He also congratulated Malaysia for successfully hosting the recent 47th ASEAN Summit, noting that decisions made there are now being implemented through startup initiatives.
Kao mentioned that Thailand and Cambodia signed the Kuala Lumpur Peace Accord during the summit, strengthening bilateral relations and making peace a top priority.
This contributes to regional stability and investor confidence, he added.
ASEAN continues to be a major destination for capital, capturing 15% of global foreign direct investment flows.
The bloc has maintained its position as the leading investment destination among developing regions for four consecutive years.
A recent Boston Consulting Group survey found over 60% of regional firms plan to expand or maintain their ASEAN investments.
This demonstrates strong confidence in the region’s competitiveness, market potential, and long-term growth prospects.
“What distinguishes ASEAN is not just economic dynamism, but the trust and stability established through decades of peaceful cooperation and sustainable engagement,” Kao said.
This trust drives investors, sustains growth, and positions ASEAN as a dependable hub amid global instability, he concluded.
Also present were Science, Technology and Innovation Minister Chang Lih Kang, the ministry’s Secretary-General Datuk Seri Hasnol Zam Zam Ahmad, and Cradle Fund Group Chief Executive Officer Norman Matthieu Vanhaecke. – Bernama
