VIENTIANE: Malaysia has emphasised three key strategies to strengthen ASEAN’s economic resilience as global expansion is projected to be at a subdued pace, affected by ambiguity in inflation, heightened geopolitical tensions and increasing geoeconomic fragmentation.
Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said the first strategy is for ASEAN to fully explore trade potential with strategic and emerging economies.
This is to mitigate the impact of growth deceleration, stagnation and imbalances in traditional economies, he said at the 24th ASEAN Economic Community (AEC) Council Meeting here today, noting that market diversification would reduce the effects of global demand fragility on ASEAN’s growth potential.
“I strongly believe that ASEAN is well positioned to avert the impact of geopolitics through the ASEAN Way as well as our principle of neutrality and being the channel of engagement. This will be a source of strength in a world that is becoming more polarised,” he said during Malaysia’s intervention at the meeting.
Secondly, Tengku Zafrul emphasised the need to boost intra-ASEAN trade to its fullest potential to develop the region’s economic strength and cushion ASEAN’s vulnerabilities against the ramifications of global shocks.
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He said the 10-member bloc must continue its efforts to remove trade barriers and avoid inward-looking policies that, in the long run, benefit neither the economy nor the people of ASEAN.
“We must continue our focus on enhancing trade facilitation and coordinating and complementing our efforts in strengthening our regional unity.
“I urge colleagues around the table to double our efforts to conclude negotiations on the upgraded ASEAN Trade in Goods Agreement (ATIGA) in 2025 to maximise the effective utilisation of the advantages of regional integration,” he said.
Tengku Zafrul said the third strategy is for ASEAN to be more resilient and agile by focusing on developing robust mechanisms to manage economic volatility, investing in future-oriented industries and strengthening regional collaboration.
Post-2025, he said ASEAN must strive to strengthen its position in embracing sustainability and climate response, building a digitally resilient ASEAN, and ensuring the centrality of inclusivity in its initiatives, particularly for the micro, small and medium enterprises to ensure that no one is left behind and to narrow the development gap.
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Tengku Zafrul expressed his gratitude to Laos, this year’s ASEAN Chair, for hosting the 24th AEC Council Meeting and organising various meetings throughout the year.
He added that Malaysia, as the incoming Chair, is eager to continue the progress made by Laos and previous ASEAN Chairs.
“We are eager to assume the role of ASEAN Chair, steering the region towards the post-2025 agenda in enhancing regional economic integration and in our collective pursuit to position ASEAN as the fourth largest economy by 2030,” he said.
