ASEAN Must Diversify Trade Ties Amid Global Uncertainty, Says Economist

Barnama

24-04-2025

By Wan Muhammad Aslah Wan Razali
KUALA LUMPUR, April 24 (Bernama) -- ASEAN must urgently diversify its trade and investment relationships to strengthen resilience amid global uncertainty, said Senior Fellow at the ISEAS – Yusof Ishak Institute, Dr Jayant Menon, during the FPCI Forum on ASEAN Community Building: Road to ASEAN Vision 2045 held here on Thursday (April 24).
Menon, a veteran economist and former Asian Development Bank (ADB) official, said the region can no longer afford to rely heavily on any single economic partner, citing the increasingly erratic global trade environment, particularly recent efforts by the United States (US) to reshore industries and reduce foreign engagement.
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'Being too heavily dependent on any one country is an issue. A crisis presents an opportunity to explore more varied trade and investment patterns that reduce the risk of country-specific shocks,' he said.
Menon said ASEAN's 2045 vision -- anchored on resilience, inclusion and sustainability -- requires urgent attention to structural reforms in labour mobility, human capital development, and climate action, areas where the region still lags.
'We have to bite the bullet. Labour mobility within ASEAN needs to be addressed properly before 2045. The work has to start now,' he stated.
On sustainability, Menon urged ASEAN to pursue green growth regardless of external political shifts, including the return of climate scepticism in the US.
'We must not let that derail our efforts,' he said, stressing the importance of aligning economic development with environmental goals.
Touching on the challenges of intra-regional inequality, he said that while development gaps between ASEAN member states have narrowed, inequality within countries is growing across gender, ethnicity, and geography.