ASEAN-GCC-China Cooperation To Benefit Global Trade, Investment -- Malaysian Expert
Chinese Premier Li Qiang arrives at Kuala Lumpur International Airport to attend the ASEAN (the Association of Southeast Asian Nations)-GCC (the Gulf Cooperation Council)-China Summit at the invitation of Malaysian Prime Minister Datuk Seri Anwar Ibrahim, in Malaysia, May 26, 2025. (Xinhua/Rao Aimin)
KUALA LUMPUR, May 27 (Bernama-Xinhua) -- Amid rising protectionism and unilateralism, stronger cooperation among China, the Association of Southeast Asian Nations (ASEAN) and the Gulf Cooperation Council (GCC) countries will boost global trade and investment, a Malaysian expert has said, Xinhua reported.
"China, as well as ASEAN and GCC countries, all share common aspirations in development and global challenges. It therefore makes good sense for us to work more closely than before in multiple sectors," said Bunn Nagara, director and senior fellow at the Belt and Road Initiative (BRI) Caucus for Asia-Pacific, an independent think tank based in Kuala Lumpur.
Energy, food security, and supply chain resilience offer the greatest potential for trilateral cooperation, Nagara told Xinhua on Saturday. The GCC leads in oil and gas, China leads in renewables and electric vehicles (EVs), and ASEAN is a key consumer market and production hub.
bootstrap slideshow
"Better resilience can be achieved by starting to work together more closely, then in ironing out any difficulties by resolving challenges along the way," he said. "What is important is an open attitude receptive to new areas and ways of cooperation, while remaining sensitive to the needs of other partners."
Nagara sees the BRI as a key mechanism for advancing the trilateral collaboration. "The BRI is a vast project that covers many related areas, including the digital economy and the green transition," he said.
The BRI is closely aligned with their shared interests in sustainable growth, offering fertile ground for ASEAN-GCC-China synergies, he added.
As global trade faces strong headwinds from protectionism and unilateralism, Nagara believes that the ASEAN-GCC-China cooperation serves as a model for the Global South.
"China and the ASEAN and GCC countries are also nations of the Global South, besides being Asian countries," said Nagara. The collaboration could inspire similar initiatives among countries in Africa and Latin America that share common aspirations.
"We do what we do to protect our legitimate interests in development, not to threaten other countries or regions. We prefer to be non-confrontational because that is a better way to ensure mutual benefit," Nagara said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Sun
2 hours ago
- The Sun
Rising costs top concern of Malaysian businesses: HSBC survey
PETALING JAYA: Malaysian businesses are grappling with rising costs and persistent supply chain disruptions, prompting them to reconsider their strategies and investment plans. According to HSBC's 2025 Global Trade Pulse Survey, the ongoing changes in tariffs and evolving trade policies continue to exert pressure on local companies, reshaping the landscape for growth and operations. Insights from the survey capture the perspectives and intentions of more than 5,700 international firms across 13 markets, including Malaysia, on the challenges and outlook related to tariffs and global trade. The survey found that, currently, the biggest concern for more than half of Malaysian businesses (55%) is rising costs due to tariffs and other trade-related factors. In response to this, 42% of Malaysian businesses have shifted their focus to domestic markets, prioritising local customers and reducing international exposure while 40% of businesses plan to do the same. In addition, the survey showed 37% of Malaysian businesses have increased their inventory levels to manage supply disruptions, with 49% planning to do so as well. Despite global uncertainties, 250 Malaysia-based companies surveyed are optimistic about their international growth but need external strategic advice on the matter, the findings showed. Furthermore, 91% of companies are confident that they can grow international trade, surpassing the 89% global average. More encouragingly, 73% believe that trade uncertainty has prompted their business to evolve and explore new opportunities, while 55% are seeking strategic advice on international expansion, restructuring or supply chain realignment. Considering current trade dynamics, Malaysia-based businesses are adapting their trade strategy to significantly increase connections with China (61%), South Asia (55%) and North Asia (44%). Beyond Asia, Malaysian businesses also plan to trade more with Europe and the United States (both 32%). HSBC Malaysia CEO and head of banking Datuk Omar Siddiq said despite the challenges posed by the uncertain tariff and trade landscape, businesses in Malaysia are demonstrating resilience and adaptability in the way they operate. 'While supply chains may be further reconfigured, there continues to be strong potential for local companies to leverage on Malaysia's strong trade ties, particularly in Asia. Having said that, it is key to note that markets like the US remain key trade destinations for Malaysia for high-value sectors such as electronics and semiconductors,' he said in a statement. While managing costs is top of mind for Malaysian businesses during this period of global uncertainty, the HSBC survey noted that companies are using the opportunity to innovate and adopt new technologies to boost operational efficiencies. It showed that 64% of Malaysian businesses have adopted new technology or digital platforms, while 48% have developed new products and services. Other growth opportunities that Malaysian businesses are considering include shifting their focus to domestic or regional growth (57%) and improving their internal efficiencies or changing their cost structures (54%). During the current period of trade disruption, Malaysian businesses find cash and liquidity management as the most helpful form of support in managing working capital (64%), followed by improved payment terms with buyers and suppliers (56%) and supply chain finance (55%). 'With over 70% of Malaysian businesses anticipating sustained cost increases from the impact of tariffs and trade uncertainty on the cost of doing business, and businesses facing an average 18% drop in revenue, the imperative for strategic adaptation is clear. 'Despite uncertainties, the world is also full of opportunities. Navigating this climate requires not only agility, but strong partnerships to ensure sustained growth in a shifting global economy,' Omar said.
The Sun
2 hours ago
- The Sun
Asean's ambition of being world's fourth biggest economy by 2030 well within reach: Tengku Zafrul
KUALA LUMPUR: Asean's ambition to become the world's fourth-largest economy by 2030 is well within reach, provided the region sustains an annual gross domestic product (GDP) growth rate between 4% and 5%. Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz highlighted the region's robust growth prospects at the official launch of the Asean Economic Community (AEC) Strategic Plan today. 'Our economists have thoroughly analysed the growth projections for all Asean economies under current conditions, and we are confident that the targets are indeed achievable,' he said. Tengku Zafrul noted that the Asean Secretariat projects regional GDP growth at 4.7% for 2025, as presented at the latest Asean Economic Ministers' Meeting. 'But things are very dynamic. It depends on the global economic situation. The IMF (International Monetary Fund) will also produce their forecast of global growth,' he said, stressing the need for vigilance amid shifting external factors. Tengku Zafrul emphasised the AEC Strategic Plan's role in keeping Asean's policies current and responsive to evolving business needs and emerging challenges. 'As the first instalment of this long-term vision, the plan serves as a comprehensive roadmap that outlines a clear and actionable path forward,' he said. The plan has been carefully crafted to implement the economic aspects of the Asean Community Vision 2045, leveraging the region's vast opportunities and potential. A key pillar of the plan is the establishment of a forward-looking digital economic framework, which is expected to double Asean's digital economy to US$2 trillion (RM4.5 trillion) by 2030. The focus on digital transformation, alongside sustained economic integration and resilience, positions Asean to not only achieve its growth targets but also to strengthen its global influence. On the domestic front, Tengku Zafrul sees positive signals from foreign investors in Malaysia, with no indication of existing investors withdrawing their commitments despite ongoing global uncertainties. 'So far, no existing investors have expressed any intention to exit Malaysia. They remain committed to their investments, and no cancellations have been announced.' However, he observed that new investors are adopting a more cautious, 'wait and see' approach, influenced by heightened geopolitical tensions – particularly between the United States and China – and broader global volatility. Looking ahead, Tengku Zafrul said his trade negotiations in Washington on June 18 will focus on reducing tariffs on Malaysian exports. 'The negotiations are essentially to address the current tariff structure, where the US has imposed a 24% tariff on Malaysia. Our first goal is to bring that down.' The second objective is to identify key sectors where Malaysia believes tariffs should be reduced even below the 10% floor, targeting industries important to both Malaysian exporters and the US economy. In April, the US government announced new tariff measures affecting more than 60 countries, including Malaysia. The implementation of these tariffs has been paused for 90 days to allow room for negotiations.
The Star
3 hours ago
- The Star
Reintroduce flat-rate GST in Sabah, urges accountants association
KOTA KINABALU: The government is being urged to consider reintroducing a simplified Goods and Services Tax (GST). This proposal arises from concerns that the upcoming expansion of the Sales and Services Tax (SST) could burden businesses and consumers, especially in Sabah. The Sabah Association of Professional Accountants (SAPA) suggested a flat-rate GST set at 3% to offer a fairer, more transparent, and efficient taxation model that could ease administrative burdens and reduce cost layering across industries. "We believe a modern GST system, with basic exemptions and simplicity, would better serve Malaysia's fiscal goals while protecting the vulnerable," stated SAPA president Datuk Tan Kok Liang on Thursday (June 12). SAPA expressed concern that the SST expansion, effective July 1, could disproportionately impact Sabah's fragile economy. The inclusion of construction services and commercial property leases under SST could lead to higher project and rental costs, particularly in rural and semi-urban areas. "In Sabah, infrastructure gaps and higher logistics costs already affect businesses. Adding tax pressure in areas like construction and shoplot rentals will further discourage investment and growth," said Tan. He noted that small and medium-sized enterprises (SMEs), considered the backbone of the state's economy, risk bearing the brunt of these changes, with higher costs likely passed down to tenants and consumers. Tan acknowledged positive elements in SST, welcoming exemptions such as residential property rentals, basic goods like rice and medicines, and the exclusion of private healthcare for Malaysian citizens. "These are thoughtful measures that protect lower- and middle-income groups from unnecessary financial strain," said Tan, adding that such exemptions demonstrate the government's effort to balance revenue and social protection. The association argues GST offers advantages over SST, including input tax credits that avoid cascading costs, better audit trails, and stronger alignment with international tax standards, crucial for boosting investor confidence. Tan said a simplified GST system could be tailored to Malaysia's needs and implemented without affecting essential goods and services. "A well-designed GST would be more equitable and sustainable in the long term, likely less burdensome to consumers than the current dual-rate SST," he said. SAPA also raised concerns about mandatory e-invoicing, noting many businesses, NGOs, and religious institutions in Sabah may lack the technical capacity or infrastructure to comply. Tan mentioned that a reintroduced GST would incorporate invoice tracking, making a parallel e-invoicing system redundant for compliance purposes. The group urged policymakers to adopt a more inclusive and consultative approach in tax reform discussions, especially considering regional disparities between Peninsular Malaysia and East Malaysia. "We are ready to work with the government through technical consultations to ensure Sabah's unique economic circumstances are properly represented," Tan said.
