ASEAN must rethink supply chains and strengthen regional integration amid global trade uncertainty, says APEC former executive director.
KUALA LUMPUR: ASEAN must rethink its supply chains and strengthen regional economic integration amid an increasingly uncertain global trade environment.
Asia-Pacific Economic Cooperation former executive director Tan Sri Dr Rebecca Fatima Sta Maria said ASEAN nations must be prepared to adapt to changing trade dynamics.
“We expect to live with this environment for a while,” she said during the 9th ASEAN Media Forum’s panel session on global economic dynamics.
Sta Maria, who is also Institute for Democracy and Economic Affairs director, noted shifting global landscapes require reviewing ASEAN strategies.
She revealed ASEAN economic ministers acted quickly when US President Donald Trump took office, forming the ASEAN Geoeconomics Task Force.
“The task force just presented its findings to the economic ministers and foreign ministers at their meeting, their first meeting in 20 years,” she said.
Sta Maria identified the ASEAN Digital Economy Framework Agreement as one area needing acceleration.
The agreement was initially scheduled for completion this year but may only be ready for signing next year when the Philippines hosts meetings.
She stressed ASEAN needs structural changes rather than treating current challenges as temporary hiccups.
“There is a need for structural change in ASEAN,” she said, noting the interrelation between politics, geoeconomics and security.
She recommended economic and foreign ministers meet regularly to address these interconnected issues.
Sta Maria also proposed introducing common external tariffs in selected sectors as an integration step.
“Have common external tariffs for sectors that matter to us, whether it’s textiles or electrical and electronics,” she said.
She urged researchers and think tanks to explore treating ASEAN as a single market through this approach.
Monitoring implementation impact rather than just compliance should be prioritised, she emphasised.
The ASEAN Media Forum served as a platform for open dialogue between ASEAN and regional media.
Organised by the ASEAN Secretariat in consultation with Malaysia as ASEAN Chair, the event addressed pressing regional economic concerns. – Bernama
