46th ASEAN Summit cements Malaysia's status as regional leader and economic hub

Malaysian Reserve

24-05-2025

By AUFA MARDHIAH
MALAYSIA'S role as host of the 46th ASEAN Summit has reinforced its standing as a diplomatic and economic leader in the region, while bringing immediate benefits across tourism, trade, infrastructure, and international branding.
The gathering of regional leaders, government officials, business executives and foreign media has turned Kuala Lumpur into a temporary centre for high-level economic activity, said Universiti Malaya's Department of Social Science lecturer Muhammad Aiman Asyraf Hanafi.
'One of the most direct impacts was seen in the tourism and hospitality sector, where hotels, restaurants, transportation providers and event venues experienced a surge in demand.
'This concentrated activity boosts revenue in the services sector and generates short-term employment,' he said in a statement.
Additionally, local small and medium-sized enterprises (SMEs) also benefit from increased exposure through exhibitions, networking sessions and forums held on the sidelines of the Summit.
Entrepreneurs in halal food, digital services, green technology and manufacturing are given platforms to engage potential regional partners and expand export visibility.
'ASEAN events like this present valuable opportunities for Malaysian businesses to showcase their capabilities and forge cross-border collaboration,' Muhammad Aiman said.
In preparation for hosting duties, the government also ramps up infrastructure enhancements to meet global standards, including improvements in transport, broadband and urban facilities.
Universiti Malaya's Department of Social Science lecturer Muhammad Aiman Asyraf Hanafi
These upgrades, he said, leave a lasting legacy that benefits local communities and businesses well beyond the event itself.
Albeit, at the policy level, the Summit serves as a key venue for Malaysia to promote economic priorities, pursue trade agreements and secure bilateral investment commitments through official meetings and side engagements.
'These moves help position Malaysia as a competitive business destination within ASEAN and generate investor confidence,' he added.
Muhammad Aiman added that the event's international media coverage allows the country to amplify its global reputation and soft power.
Moreover, coordinated efforts by government agencies also help project Malaysia as a culturally rich, economically vibrant and diplomatically active nation.
However, Muhammad Aiman emphasised that despite the expenses involved in security, logistics, and organising the event, the overall benefits typically surpass the cost.
'The short-term rise in domestic consumption and service demand is matched by longer-term outcomes such as foreign direct investment, trade growth and regional influence,' he said.
Nonetheless, if fully leveraged, he believes the 46th ASEAN Summit could elevate Malaysia's position as a regional economic leader while delivering tangible benefits for the country.