Latest news with #ASEANEconomicCommunity
The Sun
8 hours ago
- Business
- The Sun
Sub-regional initiatives such as IIMT-GT, BIMP-EAGA have borne fruit while complementing ASEAN Economic Community ambitions
KUALA LUMPUR: Sub-regional initiatives such as the Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT) and the Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area (BIMP-EAGA) have not only borne fruit significantly but proven to be vital complements to the ASEAN Economic Community (AEC) in boosting trade, investment and regional connectivity. UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Mohd Sedek Jantan said while the AEC sets a broad macroeconomic framework, prioritising sub-regional areas have also addressed developmental disparities by targeting marginalised and less-developed areas while operationalising ASEAN's inclusive growth agenda. 'The IMT-GT hugs the Strait of Malacca, one of the world's busiest trade routes, while the BIMP-EAGA sits along the Sulu and Sulawesi Seas, a gateway for maritime connectivity, making them natural nodes for boosting trade, investment and connectivity across ASEAN and beyond. 'Their strength lies in their focus on what economists call 'spatial economics' — targeting lagging regions with tailored interventions,' he told Bernama. These sub-regions were not just random patches of land, but are strategically positioned along critical maritime corridors, he added. Elaborating, Mohd Sedek said IMT-GT leans into agro-processing and tourism, capitalising on the complementarities between southern Thailand, northern Peninsular Malaysia and Sumatra, while BIMP-EAGA plays to its strengths in fisheries, renewable energy and ecotourism. 'This is not a one-size-fits-all approach; it is about leveraging local advantages to plug into regional and global value chains,' he said. Both sub-regional initiatives will develop special economic zones (SEZs), which act as economic rocket fuels by attracting foreign investments, sparking industrial growth and creating jobs through incentives and streamlined regulations. In the IMT-GT, zones such as Medan and Bukit Kayu Hitam in Malaysia, or Sei Mangkei in Indonesia, are already humming with activity while BIMP-EAGA boasts over 60 SEZs from Bitung in Indonesia to Zamboanga in the Philippines. 'These zones are not just factories — they are engines of structural transformation, fostering 'agglomeration economies' — clusters where businesses, workers, and infrastructure feed off each other to drive growth. 'By linking these SEZs to cross-border trade and investment, IMT-GT and BIMP-EAGA are building bridges to ASEAN's broader economic cohesion,' he said. Winning sectors in IMT-GT and BIMP-EAGA regions Mohd Sedek said ASEAN could leverage IMT-GT and BIMP-EAGA in sectors such as tourism, agrobusiness, renewable energy and manufacturing. Tourism remains a high-impact sector with strong growth in eco and halal tourism. For example, IMT-GT is promoting cross-border tourism under its Vision 2036. BIMP-EAGA focuses on community-based ecotourism and multi-country tourism circuits aligned with ASEAN standards, with strategic sites such as the Heart of Borneo and the Sulu-Sulawesi Marine Ecoregion, further enhancing the value of regional tourism offerings. Mohd Sedek said both sub-regions aim to build integrated value chains in the agrobusiness sector, with IMT-GT leading in agro-processing like palm oil and rubber, while BIMP-EAGA serves as ASEAN's food basket (shrimp, rice and seaweed), adding that halal food industries also benefit from this regional complementarity. He highlighted the potential of geothermal energy in Kalimantan as well as ocean energy and biodiesel, saying that the clean energy transition is important due to rising energy costs, which could benefit other ASEAN countries. The same applies to the manufacturing sector, where export-oriented industries in SEZs such as Medan, Sei Mangkei and Lhokseumawe are driving structural transformation and deeper integration into regional value chains. IMT-GT and BIMP-EAGA advancing ASEAN Mohd Sedek said both sub-regions have become critical platforms for advancing ASEAN's inclusive development agenda by targeting economically lagging and geographically marginalised regions. He said their interventions have helped narrow intra-national development gaps and improve spatial equity as well as challenges not fully addressed by the AEC. 'For instance, IMT-GT's economic corridors such as the Penang-Medan corridor has facilitated US$4.2 billion (RM17.8 billion) in trade in 2024, while the Malaysia-Thailand cross-border infrastructure projects have significantly enhanced connectivity. 'Similarly, BIMP-EAGA's Vision 2025 has catalysed US$2.8 billion (RM11.87 billion) in infrastructure investments, including major upgrades to the Davao and Bitung ports, reinforcing regional resilience and supporting ASEAN's broader connectivity goals under the Master Plan on ASEAN Connectivity 2025,' he said. Beyond infrastructure, Mohd Sedek said both sub-regional initiatives have boosted local economies by developing SEZs and strengthening regional value chains. He cited Thailand's Southern Economic Corridor — supported under IMT-GT — which generated over 15,000 jobs in 2023, with projects that not only attract foreign investment and integrate entrepreneurs into regional supply chains but also promote sectoral complementarity in agriculture, energy and tourism. Their bottom-up, project-driven approach complements ASEAN's top-down mechanisms, acting as decentralised building blocks of integration. 'By reinforcing trade linkages, fostering human capital development and enhancing cross-border governance, IMT-GT and BIMP-EAGA help ASEAN hedge against global supply chain risks and advance a more resilient, balanced and people-centric regional growth trajectory,' he added.
The Sun
8 hours ago
- Business
- The Sun
IMT-GT, BIMP-EAGA Boost ASEAN Trade, Investment, Connectivity
KUALA LUMPUR: Sub-regional initiatives such as the Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT) and the Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area (BIMP-EAGA) have not only borne fruit significantly but proven to be vital complements to the ASEAN Economic Community (AEC) in boosting trade, investment and regional connectivity. UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Mohd Sedek Jantan said while the AEC sets a broad macroeconomic framework, prioritising sub-regional areas have also addressed developmental disparities by targeting marginalised and less-developed areas while operationalising ASEAN's inclusive growth agenda. 'The IMT-GT hugs the Strait of Malacca, one of the world's busiest trade routes, while the BIMP-EAGA sits along the Sulu and Sulawesi Seas, a gateway for maritime connectivity, making them natural nodes for boosting trade, investment and connectivity across ASEAN and beyond. 'Their strength lies in their focus on what economists call 'spatial economics' — targeting lagging regions with tailored interventions,' he told Bernama. These sub-regions were not just random patches of land, but are strategically positioned along critical maritime corridors, he added. Elaborating, Mohd Sedek said IMT-GT leans into agro-processing and tourism, capitalising on the complementarities between southern Thailand, northern Peninsular Malaysia and Sumatra, while BIMP-EAGA plays to its strengths in fisheries, renewable energy and ecotourism. 'This is not a one-size-fits-all approach; it is about leveraging local advantages to plug into regional and global value chains,' he said. Both sub-regional initiatives will develop special economic zones (SEZs), which act as economic rocket fuels by attracting foreign investments, sparking industrial growth and creating jobs through incentives and streamlined regulations. In the IMT-GT, zones such as Medan and Bukit Kayu Hitam in Malaysia, or Sei Mangkei in Indonesia, are already humming with activity while BIMP-EAGA boasts over 60 SEZs from Bitung in Indonesia to Zamboanga in the Philippines. 'These zones are not just factories — they are engines of structural transformation, fostering 'agglomeration economies' — clusters where businesses, workers, and infrastructure feed off each other to drive growth. 'By linking these SEZs to cross-border trade and investment, IMT-GT and BIMP-EAGA are building bridges to ASEAN's broader economic cohesion,' he said. Winning sectors in IMT-GT and BIMP-EAGA regions Mohd Sedek said ASEAN could leverage IMT-GT and BIMP-EAGA in sectors such as tourism, agrobusiness, renewable energy and manufacturing. Tourism remains a high-impact sector with strong growth in eco and halal tourism. For example, IMT-GT is promoting cross-border tourism under its Vision 2036. BIMP-EAGA focuses on community-based ecotourism and multi-country tourism circuits aligned with ASEAN standards, with strategic sites such as the Heart of Borneo and the Sulu-Sulawesi Marine Ecoregion, further enhancing the value of regional tourism offerings. Mohd Sedek said both sub-regions aim to build integrated value chains in the agrobusiness sector, with IMT-GT leading in agro-processing like palm oil and rubber, while BIMP-EAGA serves as ASEAN's food basket (shrimp, rice and seaweed), adding that halal food industries also benefit from this regional complementarity. He highlighted the potential of geothermal energy in Kalimantan as well as ocean energy and biodiesel, saying that the clean energy transition is important due to rising energy costs, which could benefit other ASEAN countries. The same applies to the manufacturing sector, where export-oriented industries in SEZs such as Medan, Sei Mangkei and Lhokseumawe are driving structural transformation and deeper integration into regional value chains. IMT-GT and BIMP-EAGA advancing ASEAN Mohd Sedek said both sub-regions have become critical platforms for advancing ASEAN's inclusive development agenda by targeting economically lagging and geographically marginalised regions. He said their interventions have helped narrow intra-national development gaps and improve spatial equity as well as challenges not fully addressed by the AEC. 'For instance, IMT-GT's economic corridors such as the Penang-Medan corridor has facilitated US$4.2 billion (RM17.8 billion) in trade in 2024, while the Malaysia-Thailand cross-border infrastructure projects have significantly enhanced connectivity. 'Similarly, BIMP-EAGA's Vision 2025 has catalysed US$2.8 billion (RM11.87 billion) in infrastructure investments, including major upgrades to the Davao and Bitung ports, reinforcing regional resilience and supporting ASEAN's broader connectivity goals under the Master Plan on ASEAN Connectivity 2025,' he said. Beyond infrastructure, Mohd Sedek said both sub-regional initiatives have boosted local economies by developing SEZs and strengthening regional value chains. He cited Thailand's Southern Economic Corridor — supported under IMT-GT — which generated over 15,000 jobs in 2023, with projects that not only attract foreign investment and integrate entrepreneurs into regional supply chains but also promote sectoral complementarity in agriculture, energy and tourism. Their bottom-up, project-driven approach complements ASEAN's top-down mechanisms, acting as decentralised building blocks of integration. 'By reinforcing trade linkages, fostering human capital development and enhancing cross-border governance, IMT-GT and BIMP-EAGA help ASEAN hedge against global supply chain risks and advance a more resilient, balanced and people-centric regional growth trajectory,' he added.
Barnama
27-05-2025
- Business
- Barnama
- ‘Forging Ahead Together' Is Just The Start
Opinions on topical issues from thought leaders, columnists and editors. Formally launched in 2015, the AEC represents ASEAN's most ambitious push towards regional integration. This figure, while commendable, marks not an end, but a critical juncture to reflect, recalibrate, and reimagine ASEAN's economic trajectory in a far more complex global environment. As Malaysia is hosting the 46th ASEAN Summit, 2nd ASEAN GCC-Summit, and ASEAN-GCC-China Summit, a significant milestone has been announced: the ASEAN Economic Community (AEC) Blueprint 2025 has reached a 97 per cent implementation rate. Tools like the ASEAN Single Window have further facilitated cross-border trade, enhancing regional supply chain integration. ASEAN now stands as the fifth largest global economy and the second largest recipient of foreign direct investment. Intra-ASEAN trade, long criticised for its modest share of overall trade, has nonetheless grown substantially in value, increasing from US$353 billion in 2007 to over US$856 billion by 2022. Grounded in five interconnected pillars – economic cohesion, competitiveness and innovation, sectoral cooperation, inclusivity and resilience, and global engagement – the blueprint has guided the region through significant transformation. Even as ASEAN becomes more globally connected, the integration of its own markets still falls short of potential, revealing a paradox that demands urgent resolution. Yet these achievements obscure persistent structural gaps. Intra-regional trade remains proportionally low compared to blocs like the European Union (EU) or United States-Mexico-Canada Agreement (USMCA), reflecting fragmented regulations and non-tariff barriers that continue to undermine the promise of a truly unified market. Uneven progress in fostering competitive, innovative region Progress under the AEC's second pillar, that is fostering a competitive and innovative region, has also been uneven. All 10 ASEAN countries now possess competition laws and regulatory authorities, up from just five in 2014. Innovation capabilities, however, remain concentrated in a few member states such as Singapore, Malaysia and Vietnam. Others lag in research capacity, digital adoption, and skills readiness, highlighting widening disparities that could threaten the region's collective competitiveness in an era shaped by technological disruption, green transition demands, and intensifying geopolitical tensions. Without convergence in regulatory standards and innovation ecosystems, ASEAN risks falling behind. Connectivity access remains unequal Connectivity, both physical and digital, has improved markedly, but access remains unequal. While major infrastructure and logistics upgrades have reduced costs and streamlined processes, the digital divide continues to disadvantage marginalised populations and less developed economies. Bridging this gap requires not only expanded broadband access and affordability but also harmonised data governance, cybersecurity standards, and digital economy frameworks. Without these foundational reforms, ASEAN's ambition to become a global digital hub will remain aspirational. As the AEC Blueprint 2025 nears completion, ASEAN must look beyond the percentage of goals fulfilled. The 'ASEAN Post-2025: Reimagining the ASEAN Economic Community' report by The ISEAS – Yusof Ishak Institute, rightly points to a shifting context, one marked by climate volatility, inflationary pressures, geopolitical realignments, and vulnerable supply chains. In such a world, resilience must become the cornerstone of the AEC's next chapter. That means integrating climate risk into economic planning, embedding equity and social protection into regional frameworks, and developing agile institutions capable of collective crisis response. Institutional reforms, particularly in monitoring and dispute resolution, are essential to reposition ASEAN as a proactive, credible, and responsive economic bloc. Equally important is reaffirming ASEAN's people-first ethos. Economic integration must deliver tangible benefits to workers, small businesses, and communities, not just corporations or state actors. This calls for deeper cooperation in skills recognition, labour mobility, and digital upskilling, alongside expanded access to economic opportunities across all segments of society. Unlocking potential of the people Sustained prosperity will depend not only on growth rates or trade volumes, but on how inclusively ASEAN can unlock the potential of its people. Externally, ASEAN must continue to play a constructive role in shaping global trade and investment flows. Its central role in initiatives like the Regional Comprehensive Economic Partnership (RCEP) offers an avenue for reinforcing multilateralism and stabilizing regional architecture. But this outward posture must be matched by inward cohesion. ASEAN's credibility abroad will increasingly rest on its ability to deliver at home. From blueprint to breakthrough, the AEC has evolved from a set of frameworks into a platform of real consequence. But implementation alone is no longer sufficient. The challenge now is to build a bolder, more coherent vision. One that enhances integration, deepens trust, and places people at the centre. With 2025 on the horizon, ASEAN must move beyond box-ticking toward building a resilient, inclusive, and future-ready regional economy. -- BERNAMA Ahmad Faiz Yazid is a Graduate Executive Trainee at Permodalan Nasional Berhad (PNB), and part of the Secretariat under Yayasan Sukarelawan Siswa (YSS) for the ASEAN Summit 2025.
The Sun
26-05-2025
- Business
- The Sun
ASEAN businesses told to strengthen collaboration amid global uncertainty
KUALA LUMPUR: ASEAN businesses should strengthen collaboration and seize opportunities within the regional bloc amid global economic uncertainty, said ASEAN Business Advisory Council (ASEAN-BAC) Malaysia chairman Tan Sri Nazir Razak. The public and private sectors across ASEAN, as a region, must work together to capitalise on emerging prospects, he said. 'We all have to work together because we can do a lot more. Certainly, we take heed of what the government and the leaders are saying, and we want to do it. 'Of course, there are certain policy changes that would be helpful to us and that's what we're pushing for,' he told the media after the ASEAN leaders' interface with ASEAN-BAC representatives here today. The interface was held in conjunction with the 46th ASEAN Summit. Commenting on the interactions with the ASEAN leaders, Nazir said ASEAN-BAC has received positive responses from the member states on the 12 Priority Economic Deliverables (PEDs). 'These projects are going to take time because even if the leaders welcome the projects, the officials will have to go through the policy implications and policy changes,' he said. The PEDs are key economic initiatives designed to boost regional growth and integration, particularly under the ASEAN Economic Community (AEC) pillar. The 46th ASEAN Summit spans two days starting today, and Malaysia is also hosting two key high-level engagements that coincide with it — the 2nd ASEAN-Gulf Cooperation Council (GCC) Summit and the inaugural ASEAN-GCC-China Summit. This year marks Malaysia's fifth time as ASEAN Chair, having previously held the chairmanship in 1977, 1997, 2005, and 2015.
The Sun
26-05-2025
- Business
- The Sun
ASEAN businesses urged to unite in uncertain global climate
KUALA LUMPUR: ASEAN businesses should strengthen collaboration and seize opportunities within the regional bloc amid global economic uncertainty, said ASEAN Business Advisory Council (ASEAN-BAC) Malaysia chairman Tan Sri Nazir Razak. The public and private sectors across ASEAN, as a region, must work together to capitalise on emerging prospects, he said. 'We all have to work together because we can do a lot more. Certainly, we take heed of what the government and the leaders are saying, and we want to do it. 'Of course, there are certain policy changes that would be helpful to us and that's what we're pushing for,' he told the media after the ASEAN leaders' interface with ASEAN-BAC representatives here today. The interface was held in conjunction with the 46th ASEAN Summit. Commenting on the interactions with the ASEAN leaders, Nazir said ASEAN-BAC has received positive responses from the member states on the 12 Priority Economic Deliverables (PEDs). 'These projects are going to take time because even if the leaders welcome the projects, the officials will have to go through the policy implications and policy changes,' he said. The PEDs are key economic initiatives designed to boost regional growth and integration, particularly under the ASEAN Economic Community (AEC) pillar. The 46th ASEAN Summit spans two days starting today, and Malaysia is also hosting two key high-level engagements that coincide with it — the 2nd ASEAN-Gulf Cooperation Council (GCC) Summit and the inaugural ASEAN-GCC-China Summit. This year marks Malaysia's fifth time as ASEAN Chair, having previously held the chairmanship in 1977, 1997, 2005, and 2015.
