Asean aims for 30 to 40pct intra-bloc trade, says Mohamad Hasan

New Straits Times

5 days ago

KUALA LUMPUR: Greater trade between Asean member states could help reduce over-reliance on traditional trading partners and cushion the region against increasing global economic uncertainty, said Foreign Minister Datuk Seri Mohamad Hasan.
Noting that intra-Asean trade currently remains below 25 per cent, Mohamad said the Asean 2045: Our Shared Future framework aims to boost trade within the region.
"While Asean already possesses significant political strength, our economies are still heavily dependent on countries outside the bloc. Therefore, we must strengthen the economic ties between member states by increasing intra-Asean trade.
"If we can raise that figure to 30 or 40 per cent, it would be a major milestone," he said in response to a supplementary question from Manndzri Nasib (BN–Tenggara) in the Dewan Rakyat.
Manndzri had asked about key initiatives to ensure Asean's continued relevance after Malaysia's Asean chairmanship, particularly in enhancing the bloc's unity and centrality amid current geopolitical challenges.
Mohamad said that Malaysia, domestically, still relied on its traditional trade partners.
"Malaysia must diversify beyond its established trading partners to avoid potential economic disruptions when those partners face difficulties.
"When issues emerge in those countries, it poses serious challenges to our economy. We do not want this situation to persist.
"That is why we are exploring new markets. Malaysia's recent acceptance as a partner country in BRICS is significant — it's a large grouping representing 40 per cent of the world's population and 25 per cent of global GDP," he said.
On Asean's broader outreach, Mohamad said the recent Asean–Gulf Cooperation Council (GCC) Summit was a key step in strengthening ties with resource-rich Gulf nations.
"We also held the Asean–GCC–China meeting. If these three major blocs can be effectively integrated, the outlook for Asean is highly promising.
"The Gulf countries have strong purchasing power, Asean has a sizeable workforce, and China offers a vast market. Linking these strengths presents enormous economic potential for Asean," he added.