Vietnamese PM Chinh concludes official visit to Malaysia
SEPANG: Vietnamese Prime Minister Pham Minh Chinh departed for home today after concluding a five-day official visit to Malaysia in conjunction with the 46th ASEAN Summit in Kuala Lumpur.
The special aircraft carrying Chinh, his wife Le Thi Bich Tran and the Vietnamese delegation took off from the Bunga Raya Complex at Kuala Lumpur International Airport (KLIA) at 1.40 pm.
The First Battalion Royal Ranger Regiment (Ceremonial) mounted a guard of honour for Chinh and his wife in a send-off ceremony.
National Unity Minister Datuk Aaron Ago Dagang and Vietnam's Ambassador to Malaysia Dinh Ngoc Linh were also present to bid farewell to the delegation.
On Sunday, Prime Minister Datuk Seri Anwar Ibrahim and his Vietnamese counterpart witnessed the exchange of three documents between Malaysia and Vietnam, aimed at strengthening cooperation in energy, education and regional integration.
Malaysia and Vietnam elevated their bilateral ties to a Comprehensive Strategic Partnership in November 2024.
In 2024, Vietnam ranked as Malaysia's 11th-largest trading partner globally and the fourth-largest among ASEAN member states.
Trade between Malaysia and Vietnam stood at RM83.11 billion, with Malaysia's exports valued at RM53.86 billion and imports at RM29.25 billion.
Malaysian companies have undertaken more than 700 projects in Vietnam across various sectors, with cumulative investments currently valued at over USD13 billion (RM55 billion).
The 46th ASEAN Summit and Related Summits concluded yesterday after a series of high-level engagements aimed at reinforcing regional cooperation and strategic partnerships.
Held under Malaysia's 2025 ASEAN Chairmanship, themed 'Inclusivity and Sustainability', the two-day summit and related meetings included the 2nd ASEAN-Gulf Cooperation Council (GCC) Summit, the inaugural ASEAN-GCC-China Summit and the 16th Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT) Summit.
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The Star
4 hours ago
- The Star
From shophouse to global hub: Malaysia's automotive journey
Asia's very first automotive assembly activities date back almost one hundred years. The pioneers in local assembly used to be Ford, when in 1926 was incorporated in Singapore as Ford Motor Company of Malaya Ltd. Operating from a small shophouse garage, it began with wheel-fitting and touching up early Model-T kits sourced from Ford England and Canada. A far cry from the state-of-the-art assembly plants that can push out thousands of units a month today. The first fully-fledged automobile assembly plant was set up in Singapore by Ford, with production facilities of completely knocked-down (CKD) vehicles. During the Japanese occupation, the plant was used to produce military trucks. In the post-war years, as newly independent nations began charting their economic futures, industrialisation – and with it, automotive manufacturing – became a natural focus. The Asean blueprint for development post-independence has been largely industrialisation-focused and began to look at reducing their reliance on imported vehicles. Over time, the most critical starting point is to upskill the talent, implement government policies and incentives, and build local infrastructure to support it. The automotive supply chain has grown tremendously, a spark that has ignited investments, skills development, and technology transfers – powering hundreds of thousands of livelihoods. As the supply chain became more embedded, global brands began to eye countries like Thailand, Indonesia, and Malaysia as suitable hubs for regional expansion. Initially manufacturing for the domestic market, post-war economies were flourishing, and mobility was an essential part of this growth. The following decades saw the automotive industry evolve organically, gradually increasing the local content component in alignment with national policies, attracting interest and investment from European and Japanese brands, who saw Asean as an attractive hub for regional expansion. The era of complex automotive supply chains Digitalisation, trading blocs, and supply chain-related technologies gave the world a massive boost when it came to regional integration. Cars were now being built with content from multiple countries, with each component being optimally sourced at the best quality and price from vendors across the region. This allowed for increasingly resilient supply structures, with better flexibility and scalability. Toyota, with its Toyota Production System, pioneered manufacturing and logistical processes that are emulated globally, optimising complex supply chains to clockwork precision. Today, your car could be designed in Japan, made in Malaysia, with tyres from Thailand, brakes made in Indonesia and seats from Vietnam – a truly Asian testament to integration – and Malaysia played the role of quiet architect. Working fantastically together, with each component coming together at the right time and in the right specification on the final assembly line. Domestic or export? Why not both? Export-oriented hubs that also serve the local economy are a great move forward. Jobs created, skills enhanced, technology infusion, and the local market gains access to more advanced cars – the economic benefits multiply. Whilst the world's leading car brands do not originate from Asean, the region remains a strong manufacturing base and a key source of growth, ensuring their significant and enduring presence here. The rise of xEV and China In more recent times, the rapid growth of electrification has shifted the technological focus, attracting big leaps in investment, technology, and upskilling. One cannot talk about electrification without mentioning China. China is integral to electrification. Supported by a thriving local economy, the country has been able to grow the local infrastructure exponentially in developing batteries, their component technologies, and raw material extraction and refinement, and is now the linchpin of critical technologies in the pursuit of a green future. It is a space that is rapidly evolving, too, as governments increasingly view energy transition as a matter of national security and critical industries. New iterations of batteries and platforms continue to leapfrog previously cutting-edge technologies. Can Asean keep up with this pace of evolution? While no one region can match China's scale overnight, Asean's opportunity lies not in direct competition – but in complementing the ecosystem. In a world of shifting alliances, agility and trust matter more than sheer volume. Supply chain interdependencies and geopolitical conditions will make alliances and partnerships a critical, if not essential, pathway to joint prosperity in the region. Asean member countries make up 670 million people, making it the fifth most populous region. Collectively, they produce around 4.5 million cars annually, making it the fifth largest sub-regional market. Global brands recognise the potential, catapulting Asean as a hub for manufacturing, exports, and component supply. Asean's generally trade-friendly policies also make it favourable for manufacturers looking to access markets they otherwise cannot. This cushions the impact of geopolitical tensions, like the tariff wars. Malaysia, Indonesia, and Thailand are well-positioned to capitalise. In the process of building these support networks for car brands, we continue to grow and flourish. Our talent pool, technology and training skills, research and development, and production capabilities continue to expand. From a humble shophouse to regional relevance, Malaysia's journey reflects the power of steady progress. And our future – built on talent, trust, and tenacity – is going strong.
Malaysia Sun
11 hours ago
- Malaysia Sun
Economic Watch: ASEAN sees necessity to expand LCS to enhance integration, prevent external risks
HONG KONG, June 13 (Xinhua) -- During the 46th Association of Southeast Asian Nations (ASEAN) Summit concluded last month in Malaysia, leaders of the 10-member bloc agreed to expand and strengthen regional payment connectivity and promote local currency settlement (LCS). Adopted by the 46th ASEAN Summit, the ASEAN Economic Community Strategic Plan 2026-2030 pledged that ASEAN will "promote the use of local currencies to reduce the region's vulnerability to exchange rate fluctuations and external economic and financial shocks, and to lower transaction costs associated with cross-border payments." FAST STEPS FORWARD In 2021, Thailand and Singapore linked their fast payment systems, a pioneering move allowing people to make real-time, low-cost mobile payments using just the recipient's phone number. In 2023, ASEAN leaders adopted the declaration on advancing regional payment connectivity and promoting local currency transactions, eyeing leveraging local currencies for cross-border payments and establishing a task force to develop an ASEAN local currency transaction framework. Since then, progress by 2025 has been both significant and tangible, particularly through the Regional Payment Connectivity (RPC) initiative, said Tasawan Khao-uppatum, a senior researcher at Kasikorn Research Center in Thailand. The RPC has rapidly expanded from five founding central banks in 2022 to nine ASEAN members by 2025, and it aims to build seamless regional payment systems through cross-border QR code payments, especially for tourism and retail, and account-to-account transfers that enhance financial inclusion, particularly for small- and medium-sized enterprises (SMEs), Tasawan said. Now, many national systems have already been linked, including Thailand's PromptPay, Indonesia's QRIS, Singapore's PayNow, Malaysia's DuitNow, and full ASEAN-wide interoperability is expected by the end of 2025, according to the expert. "In practice, Thai consumers can now use QR code payments abroad in countries such as Japan, Cambodia, Vietnam, Malaysia, Indonesia, Singapore and some other places. Additionally, cross-border transfers with Singapore can now be done using mobile phone numbers." ENHANCE REGIONAL INTEGRATION As intra-regional trade is rapidly growing, promoting LCS through the QR code-based payment systems simplifies transactions for tourists, expatriates and small businesses, promotes financial inclusion, and boosts local economic development. SMEs can use the system to conduct international trade with lower transaction costs. In ASEAN, the adoption rate of digital payments, especially QR code payments, has grown significantly. Mohammad Faisal, executive director at the Center of Reform on Economics Indonesia, said that for Indonesia, cooperation in the implementation of local currency transactions has started since 2017 with Thailand and then followed by several other countries including Malaysia, Singapore, Japan, South Korea, and China. Faster and more interoperable payment systems support seamless trade, investment, and tourism flows within the ASEAN bloc, said Tasawan, adding that in 2024, 25 percent of Thailand's exports were settled in local currency Thai baht, up from 14 percent in 2010. "For instance, the growth of cross-border QR payment systems makes it easier for Thai tourists to spend abroad, particularly within ASEAN. The number of Thai travelers to ASEAN countries increased from 4.5 million in 2013 to 6.7 million in 2023. Likewise, the number of ASEAN tourists entering Thailand rose from 7.38 million in 2014 to 10.6 million in 2024," said Tasawan. Vice President of National Chamber of Commerce and Industry of Brunei Darussalam Haji Halim Saim said the LCS will enhance trade and investment as well as economic activities in ASEAN region and boost ties with financial institutions. MITIGATE EXTERNAL RISKS Analysts also believe that ASEAN's push for a framework for trading in local currencies will enhance its resilience -- by promoting financial integration and the use of local currencies, ASEAN aims to avoid the volatility in global financial markets and possible disruptions caused by geopolitical events. Referring to the change of U.S. interest rate in the past years, Faisal said that every policy that comes from the United States related to monetary policy often greatly affects the emerging countries, including ASEAN, because of the large use of the U.S. dollar by ASEAN countries' trade. Therefore, it is necessary to reduce dependency on the U.S. dollar to make the ASEAN currencies more stable. The benefit of building regional payment connectivity for ASEAN is to make the ASEAN currencies more stable, stronger and more resilient against external shocks or changes in the global economy. It can also encourage an increase in intra-ASEAN trade and investment, Faisal added. By settling trade in local currencies, emerging markets aim to reduce their exposure to exchange rate volatility and external monetary shocks stemming from advanced economies' policy shifts, said Tasawan, adding that this trend signals a decentralization of global financial power -- moving away from a reliance on the U.S. dollar and toward a more balanced system where multiple currencies play significant roles regionally and globally. Experts suggest that by decreasing dependence on the U.S. dollar, ASEAN can gain greater control over its economic future and lessen its susceptibility to U.S. monetary policy. The growing trend of emerging markets shifting to local currency settlements in international trade reflects their increasing needs and awareness to have a more stable global economy and a more balanced global economic order, Faisal said.
Malaysia Sun
11 hours ago
- Malaysia Sun
ASEAN poised for major global economic role, but challenges remain, experts say
KUALA LUMPUR, June 13 (Xinhua) -- ASEAN could emerge as the world's fourth-largest economy in the coming decades, experts say, but the regional bloc must accelerate integration, strengthen institutions, and adapt to global shifts to realize this potential. Experts also urge ASEAN to act collectively to solidify its global presence. EMERGING INDUSTRY FUELING COMMON FUTURE "ASEAN, presently with an economic size of 3.8 trillion U.S. dollars, could become the fourth-largest economy on an aggregated basis but of a smaller world," said Mohd Munir Abdul Majid, chairman of CARI ASEAN Research and Advocacy, in a recent email interview with Xinhua. Mohd Munir, who is also president of the ASEAN Business Club and a senior fellow at LSE IDEAS, said technology -- particularly artificial intelligence (AI) in the services sector -- will drive future growth. He emphasized that ASEAN's access to technology should be guided by cost and technical quality. "E-commerce could be a key catalyst for intra-regional trade," Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Berhad, said that a robust digital infrastructure, including telecommunications and smart devices, is essential. Mohd Afzanizam also highlighted the importance of logistics to ensure speedy delivery, which necessitates efficient warehousing systems. He further emphasized that payment systems, such as QR code networks, are crucial to support micro, small, and medium enterprises (MSMEs) in expanding into international markets. Oh Ei Sun, principal adviser at the Pacific Research Center of Malaysia, stated that ASEAN should prioritize high-tech sectors that offer greater value-added potential. However, he told Xinhua that traditional commodities like palm oil and petroleum would remain vital as the region catches up in advanced industries. ASEAN INTEGRATION PROGRESSING STEADILY ASEAN's economic integration has been advancing gradually, with a strong emphasis on consensus and free trade, experts say. "ASEAN's economic integration has progressed steadily rather than hastily, grounded in a consistent commitment to free trade," said Mohd Munir. According to him, ASEAN's journey began with the ASEAN Free Trade Area in 1992, followed by the launch of the ASEAN Economic Community (AEC). The process is now guided by the Kuala Lumpur Declaration on ASEAN 2045, adopted at the 46th ASEAN Summit in May. "There is a lot happening. Not fast enough or optimally, but in a clear direction," he noted, adding that ASEAN has progressed based on consensus to deepen integration and free trade. Li Yuqing, assistant professor of Institute for International and Area Studies of Tsinghua University, said ASEAN's updates to the ASEAN Trade in Goods Agreement enhance regional trade and deepen integration, supporting its goal of becoming the world's fourth-largest economy. "Above all, ASEAN is a peaceful region, which makes it a conducive location for foreign direct investment and business ventures that can come from across the globe," Mohd Afzanizam said, highlighting initiatives such as the Johor-Singapore Special Economic Zone as evidence of strengthening regional ties. INSTITUTIONAL REFORMS, STRATEGIC CLARITY NEEDED Despite progress, experts pointed out that ASEAN faces institutional limitations. Mohd Munir said the bloc's decision-making structure remains slow, and the secretariat is under-resourced, despite the ASEAN 2045 vision calling for strengthening. "The point ASEAN must realize is that there is an urgent need to develop its strategic options in a changing world. It has taken a slow and steady course on increasing intra-regional trade, labor mobility and institutional implementation, emphasizing always on consensus," he said. "But there are now big issues for decision-making that cannot follow that route." Mohd Afzanizam warned that non-tariff barriers remain a key obstacle, as member states often act to protect their domestic industries. "Continuous dialogue, both government-to-government and government-to-business, is vital to identify and bridge these gaps," he said. Oh echoed those concerns, urging ASEAN to address internal development disparities. "ASEAN should focus on eradicating the abject poverty amongst itself for the least developed member states, and escaping the middle-income trap for the developing member states," he added. CHINA TIES OFFER CHANCE FOR COOPERATION Experts believe ASEAN-China relations are entering a new phase, driven by growing investment and strategic collaboration. Mohd Munir noted that ASEAN-China relations have been close in trade and, increasingly, in investment. In the context of global trade tensions, it would be good to deepen that relationship for mutual benefit. "For China, ASEAN's economic integration provides a relatively stable regional trade environment, helping China manage external trade risks and enhance economic resilience and stability," Li mentioned. She also noted that integration makes ASEAN's investment environment more stable and transparent, enabling businesses to better access the ASEAN market and achieve more efficient resource allocation. ASEAN countries may deepen cooperation with China in infrastructure development, which would accelerate progress in the digital economy and green transition, Oh suggested. GREATER INFLUENCE AMID UNCERTAINTY Regardless of whether ASEAN becomes the fourth-largest economy, its current size already warrants greater global influence, as the bloc is urged to exercise its weight in global affairs. "ASEAN needs to be less reticent about asserting its influence and initiating new ideas in a world marked by global disorder," he added. "Deeper ASEAN economic integration would strengthen the bloc's bargaining power," Li said, adding that it would enhance its role as a regional coordinator and allow it to play a more significant role. Mohd Afzanizam said that the shift toward a multipolar world provides more platforms for diplomatic solutions rather than unilateral decisions, especially from a single superpower, which can be disruptive. "This should resonate well with ASEAN as the region has always been peaceful. Certainly, ASEAN would want to advocate this at the global arena which is a universally accepted value," he added.
