Small, pragmatic steps best for Asean integration, says Nazir

Free Malaysia Today

27-05-2025

Asean-BAC chairman Nazir Razak speaking to FMT during the 46th Asean Summit and related summits in Kuala Lumpur.
KUALA LUMPUR : Asean should focus on practical, incremental steps rather than grand ambitions to strengthen regional economic integration, says Asean Business Advisory Council (Asean-BAC) chair Nazir Razak.
Speaking to FMT on the sidelines of the 46th Asean Summit and related summits here, Nazir said he was initially inspired by the bold aspirations laid out in the Asean Charter when it was adopted in 2007.
But over time, he came to believe that a more modest and targeted approach would work best for the region.
'We thought that when Asean grows up, we'd want to be like the European Union, but it's not the right model for us,' he said.
'Asean works best when you don't go for giant, ambitious leaps and achieve very little. Instead, you go for concrete, small steps and move forward progressively.'
Nazir's remarks come amid growing global uncertainty, with rising protectionism and the threat of tariffs which the US began introducing in April.
Businesses across the region have raised concerns about mounting barriers to trade and investment, and are calling on governments to present clear plans for navigating geopolitical rifts, particularly those forcing companies to choose between US and Chinese markets.
'I think the world now accepts that completely unfettered free markets are no longer a reality, and we accept that within Asean, we all have our domestic political priorities,' Nazir said.
'There will be restrictions, (but) those are accepted now, more than ever.'
Still, he said that negotiating the right trade deals, including with the US on non-tariff barriers, was an important strategy to address these risks.
'It's a question of negotiating the right deals, and even in the case of Malaysia-US relations, there are conversations around the various non-tariff measures and how to bring them down,' he said.
These restrictions and pressures have also prompted Asean members to rethink their reliance on traditional partners and explore more intra-Asean trade and South-South cooperation.
In terms of strengthening the regional economy, Nazir said Asean was becoming a very attractive destination, especially given the changing world order.
He urged businesses to diversify their markets, particularly as traditional partners like the US begin imposing new trade barriers.
'We have all taken for granted that we've got this big US market, and perhaps because of that, we have not fully explored other opportunities,' he said.
'Not just China, but also India, the Gulf Cooperation Council and other areas of the South.'
While governments can help pave the way through diplomacy and trade agreements, he said that 'ultimately it's up to the private sector to go and search for new markets as one closes'.