Former Indonesia president Yudhoyono urges Asean to strengthen investment strategy amid global shifts
[JAKARTA] South-east Asia must strengthen its efforts to attract long-term investment by enhancing trust, improving human capital and building a more compelling regional narrative, former Indonesian President Susilo Bambang Yudhoyono said, warning that rising geopolitical tensions and economic realignments are reshaping the global investment landscape.
Speaking at the Asia Economic Summit 2025 in Jakarta on Thursday (June 26), Yudhoyono said the region faces both opportunities and risks as industries increasingly shift out of China in response to global trade tensions, particularly between the US and China.
'As some industries begin to relocate from China, South-east Asia has a real chance to position itself not just as a destination for low-cost labour, but as a strategic hub for innovation, logistics and regional integration,' he said.
However, he cautioned that seizing this moment will require agility and diplomatic balance. 'As we see China as an important source of technological capital, we also see the US and the West as indispensable sources of financial capital, therefore we need to maintain relationships with both with respect, mutual trust and mutual benefit.'
The former president, who led Indonesia from 2004 to 2014, emphasised that to remain competitive, South-east Asia needs to expand its fiscal space; improve financial intermediation, particularly for small and medium enterprises; and invest heavily in education and skills training to prepare workers for an increasingly automated, AI driven future.
His remarks come at a time when several South-east Asian economies have been impacted by elevated tariffs under US President Donald Trump's administration.
A NEWSLETTER FOR YOU
Friday, 8.30 am Asean Business
Business insights centering on South-east Asia's fast-growing economies.
Sign Up
Sign Up
In response, some have entered negotiations with Washington in hopes of easing trade pressures and preserving export competitiveness.
Amid mounting global volatility, from the wars in Ukraine and Gaza to intensifying strategic rivalries between major powers such as US, China and Russia, Yudhoyono urged South-east Asia nations to project a united and dependable front to international investors.
'Investors want to know that our rules are stable, our systems are fair, and our societies are resilient,' he said. 'Trust between governments, with the private sector, and with citizens, is fundamental in attracting long-term capital.'
Yudhoyono also urged South-east Asian nations to tell a more unified and compelling story on the global stage. 'The world often views South-east Asia through a fragmented lens. We must shift that perception. Diplomacy and storytelling are strategic capital.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Times
an hour ago
- Business Times
S-E Asia's e-commerce platform gross merchandise value growth rate eases: report
[SINGAPORE] South-east Asia's total e-commerce platform gross merchandise value (GMV) grew at a slower rate of 12 per cent year on year in 2024, as the leading platforms focused on a more rational and sustainable trajectory. Despite decelerating from the 15.2 per cent growth in 2023, the e-commerce platform GMV rose to US$128.4 billion in 2024 from US$114.6 billion in the year before, estimated consultancy firm Momentum Works in a report released on Thursday (Jun 26). With infrastructure maturing, 'efficiency, customer experience and service level have become a bigger focus for the ecosystem', it added. The GMV estimation covers transactions on only Shopee, Lazada, Tokopedia, TikTok Shop, Bukalapak, Tiki, Blibli, and Despite the easing growth rate, most South-east Asian countries still achieved double-digit growth year on year, with Thailand and Malaysia being the key drivers for the region's e-commerce GMV expansion, stated the report. Thailand recorded the highest GMV percentage increase, with a 21.7 per cent rise from US$19.3 billion in 2023 to US$23.5 billion the following year. Malaysia had the second-highest growth, going up 19.5 per cent from US$9.6 billion in 2023 to US$11.5 billion in 2024. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Singapore, on the other hand, registered the second-lowest GMV growth rate of 12 per cent, increasing from US$4.4 billion in 2023 to US$4.9 billion in 2024. Indonesia had the lowest GMV growth rate of only 5 per cent year on year, expanding from US$53.8 billion in 2023 to US$56.5 billion in 2024. Despite the slowdown, Indonesia remains the largest market in South-east Asia by contributing 44 per cent of the region's platform GMV in 2024, down from 52 per cent in 2022. Consolidation in the market led to the moderation of growth in the meantime, noted Momentum Works. E-commerce giant Shopee increased its regional market share to 52 per cent in 2024 from 48 per cent in the previous year. It had a market share of more than 50 per cent in all countries in South-east Asia, excluding Indonesia, where it had a 46 per cent share. TikTok Shop held the second-highest market share by GMV in the region. The report added that while TikTok Shop has gained market share, its top-line growth has moderated compared with previous years. This was attributed to a deliberate adjustment of strategy. The report also noted the completed back-end integration of TikTok Shop and Tokopedia, which TikTok Shop had acquired in December 2023. 'As a result, Tokopedia no longer needs to artificially boost GMV.' Lazada held the third-highest market share by GMV in the region, according to the report. 'After a major restructuring at the beginning of 2024, Lazada achieved positive Ebitda (earnings before interest, tax, depreciation and amortisation) and stabilised its GMV and regional market share.' Collectively, the top three regional platforms – Shopee, Lazada and TikTok Shop (excluding Tokopedia) – own more than 90 per cent market share in all markets, except Indonesia. The competition among South-east Asia's top platforms shifted from 'a race to the bottom' to a co-existence that is focused on return on investment, noted Momentum Works. It added that the region's e-commerce parcel volume is not that far behind the United States'. In 2024, South-east Asia shipped an average of 43.6 million parcels daily, close to the 61.3 million shipped daily by the US and significantly more than India, which ships approximately 15 million parcels a day. 'While still far behind China's 478 million, the region's e-commerce sector is already operating at a significant scale.' The report also noted that, in 2024, transactions worth approximately US$16.8 billion in GMV were carried out in South-east Asia outside of major platforms. This was the first time Momentum Works tracked non-platform e-commerce. These included transactions that happened on open-loop social platforms such as Facebook, multi-brand retailer sites, as well as orders placed via chat platforms such as WhatsApp. The total e-commerce GMV reached in the region was approximately US$145.2 billion, after accounting for non-platform GMV. 'Platform GMV is still decisively the majority of e-commerce in South-east Asia,' noted Momentum Works.
Straits Times
2 hours ago
- Straits Times
No clear link between social cohesion and governance model in S-E Asia, unlike Western research
Dr Leong Chan-Hoong, a senior fellow at RSIS and head of its Social Cohesion Research Programme, presented the findings at the International Conference on Cohesive Societies on June 25. ST PHOTO: LIM YAOHUI No clear link between social cohesion and governance model in S-E Asia, unlike Western research SINGAPORE – While Western research shows that democracies with more civil liberties tend to be more united, South-east Asia goes against the grain. Here, there is no clear link between social cohesion and type of government, a study has found. Instead, the quality of governance – especially traits such as integrity and being free from corruption – appears to play a more decisive role. This was among the findings of researchers from the S. Rajaratnam School of International Studies (RSIS) in their South-east Asian Social Cohesion Radar preliminary report released on June 26. The report, which covered all 10 Asean states, also made recommendations for countries to strengthen social cohesion. The region has a variety of governance structures, such as neo-liberal democracies and top-down paternalistic states, researchers noted. This difference from Western research findings reaffirms the need for research with a more local or regional lens, said Dr Leong Chan-Hoong, who hopes to conduct another iteration of the study in 2028. Dr Leong, a senior fellow at RSIS and head of its Social Cohesion Research Programme, presented the findings at the International Conference on Cohesive Societies on June 25. The conference invited participants from over 50 countries, including those in South-east Asia, to discuss multiculturalism. The study surveyed about 1,000 people each from the 10 Asean states, and compared each country's social cohesion score – calculated from responses to 60 statements – against various socio-economic factors. The score covers three areas – social relations, or the relationships between individuals and groups in society; connectedness, or the relationship between individuals, communities and the state; and focus on the common good, which covers solidarity, respect and civic participation. Researchers found that a higher gross domestic product per capita tends to mean a more cohesive society. But factors other than economic resources contribute to cohesion, Dr Leong told ST. This is why Singapore is an outlier where this trend is concerned – it has the highest GDP per capita but not the highest social cohesion score. It suggests a 'ceiling effect' at some point, where extra social and economic development may not mean more social cohesiveness. Dr Leong added that more detailed findings, expected by the end of 2025 , will focus on understanding these other factors that affect social cohesion. 'There are other cultural, symbolic aspects that we have to consider when we try to unpack an amorphous concept like cohesion,' he said. The report recommended that policymakers should proactively engage various communities. Countries should also harness the ties between ethnic groups, religious leaders and non-government organisations to strengthen links between communities and their leaders. It also suggested that countries develop policies to prioritise the common good, such as those that promote income equality, societal resilience and heritage preservation. This is the second iteration of the study. In 2022, a smaller version of the study surveyed 100 thought leaders – academics, policymakers – from each country. The 2025 sample was more representative. Dr Leong said there was some consistency across the two studies. The quality of social relations stayed generally robust and resilient across all countries, while levels of trust in institutions and perceived fairness continued to be lower. The focus on common good also remained more challenging. In the 2022 study, Singapore was ranked the most cohesive society, followed by Thailand. In the latest study, Singapore was sixth, with Vietnam and Brunei having the highest scores. Dr Leong said the 2022 study participants likely knew more about Singapore's framework in managing diversity and may see Singapore as more resilient and cohesive, as compared to the ordinary Singaporean represented in the 2025 study. He added that comparisons across the region are challenging due to the countries' different stages of economic development. Singapore strongest in social relations, needs work on solidarity The study showed that Singapore was strongest in social relations, with 79 per cent of participants agreeing or strongly agreeing with statements in this domain. This was followed by connectedness (71.7 per cent) and focus on the common good (67.9 per cent). The overall social cohesion score was 73.1 out of a possible 100. It found that those who were younger or from lower-income groups reported lower social cohesion scores. Among the statements that Singaporeans agreed more with: 'People in my country are comfortable interacting with others who have a different religious identity' and 'People from diverse backgrounds in my country live together peacefully most of the time'. Both statements, which fall under the social relations domain, scored above 87 per cent. Among the lowest scoring statements were those about whether participants felt people here find it important to do community or voluntary work (48.9 per cent), or to donate to the poor (52.5 per cent). Both statements are under the common good domain. Dr Leong said that in an ultra-competitive environment, some people may consider contributing, giving back and volunteering as a hindrance to progress. Singapore needs a conversation to explore how to change this mindset because if the community as a whole falters, everyone would be affected regardless of economic success, he added. Under connectedness, which includes trust in institutions, only 51.3 per cent of respondents agreed with the statement that people feel their voices are heard when policies are made by decision makers. Dr Leong said researchers are still scrutinising this finding but noted that in the past year or two, there has been some disquiet in society arising from domestic and global challenges. 'It's normal to disagree, but (people) want to know that you have taken my feedback seriously with due consideration,' he added. More broadly, Dr Leong suggested that Singapore learn from other countries in the region, such as Myanmar or the Philippines, which face challenges such as civil war or natural disasters but have robust ratings on the focus on common good. There are other variables that affect how people feel about cohesion, and Singapore can learn from them on how to bring communities together. He added that Singapore is also a victim of its own success, with a strong and efficient government. People may feel they can leave things to the state, he said. 'We may have lost out on that initiative, as opposed to some other more economically challenged countries,' said Dr Leong. One area Singapore can look at is what are the areas the state can take a step back and allow communities to forge through their own initiatives, he added. Goh Yan Han is political correspondent at The Straits Times. She writes Unpacked, a weekly newsletter on Singapore politics and policy. Join ST's WhatsApp Channel and get the latest news and must-reads.
Straits Times
4 hours ago
- Straits Times
No plans to close Strait of Hormuz, regional trade route protected, says Iranian envoy to Malaysia
Trade passage through the Strait of Hormuz will remain open as Iran seeks to deepen its economic ties with Malaysia and the Asean members. PHOTO: REUTERS No plans to close Strait of Hormuz, regional trade route protected, says Iranian envoy to Malaysia - Trade passage through the Strait of Hormuz will remain open and unaffected as Iran seeks to deepen its economic ties with Malaysia and countries in Asean , said Iranian Ambassador to Malaysia Valiollah Mohammadi Nasrabadi. Mr Valiollah said Iran's assurance, despite its ongoing conflict with Israel, was to protect international trade and the economic interests of South-east Asian countries, like Malaysia, as reported by Sinar Harian. He also said that Iran currently had no intention to close the key trade route and will continue to maintain security for the strait. 'Iran does not restrict any trade routes and we want this region to remain open for trade and economic cooperation with neighbouring countries, as well as external partners like Malaysia,' he said in a press conference on June 26. He added that Malaysian Prime Minister Anwar Ibrahim and Iranian President Masoud Pezeshkian recently held discussions to ensure regional peace and establish a framework for trade cooperation between Malaysia and Iran. Mr Valiollah also expressed his gratitude to Malaysia for its support of Iran against Israel's recent military actions against them. 'Malaysia, as the current Asean chair, has a strong voice at the international level, including in the Organisation of Islamic Cooperation and the United Nations, to stop Israel. 'We believe Malaysia can play a role in urging the international community to put an end to any form of Israeli aggression against any country in the region,' he said. On June 22, Iran's Parliament approved a measure to close the Strait of Hormuz in response to the US' airstrikes on three of Iran's major nuclear sites. The Strait of Hormuz currently provides a vital gateway for oil transportation internationally, which Malaysia is a key stakeholder of. THE STAR/ASIA NEWS NETWORK Join ST's Telegram channel and get the latest breaking news delivered to you.
