Latest news with #ASEANSingleWindow
Malaysian Reserve
3 days ago
- Business
- Malaysian Reserve
Tengku Zafrul urges ASEAN to focus on resilience, digital trade
By HIDAYATH HISHAM BUSINESSES must now incorporate resilience, agility and adaptability into their long-term strategies to navigate global supply chain disruptions. Investment, Trade and Industry Minister Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz said the increasingly volatile global landscape — driven by geopolitical tension — demands that regional cooperation play a central role in ensuring supply chain continuity. 'In today's globalised economy, supply chain disruptions resulting from geopolitical tensions have become the norm. Businesses must now plan for resilience, agilit and adaptability,' he said during the Supply Chain City Malaysia groundbreaking ceremony in Bandar Bukit Raja, Klang on Thursday. Tengku Zafrul said under Malaysia's leadership, ASEAN is poised to tackle key challenges such as digital transformation, climate change and ongoing recovery from global crises. He said Malaysia is working with its ASEAN counterparts to implement the ASEAN Comprehensive Recovery Framework (ACRF) — aimed at enabling a robust and sustainable economic recovery across the region. One of the core priorities under ACRF is strengthening the ASEAN Single Window (ASW), a trade facilitation platform that integrates and streamlines customs and clearance procedures across member states. 'By reducing bureaucracy and improving trade efficiency, the ASW will play a pivotal role in strengthening regional supply chains and boosting intra-ASEAN trade, which currently accounts for nearly 25% of total ASEAN trade,' he said. Malaysia is also pushing for the ASEAN Digital Economy Framework Agreement (DEFA), which aims to harmonise digital trade regulations and accelerate cross-border e-commerce adoption across the region. 'This initiative will not only enhance digital connectivity but also create new opportunities for businesses and consumers across ASEAN,' he added. Tengku Zafrul said the government remains committed to fostering stronger partnerships within ASEAN, citing the recently concluded ASEAN–GCC–China Summit as a key example of regional coordination. 'This summit sent a clear message to the world, that ASEAN is open for business and we are ready to lead in building a more resilient and interconnected global economy,' he said. He also mentioned ASEAN's growing significance in global trade, noting its combined GDP of over US$3.6 trillion (RM15.26 trillion) and population of more than 680 million people. 'As the world's fifth-largest economy, ASEAN is a critical player in the global supply chain, accounting for nearly 7% of global trade,' he added. Tengku Zafrul said the Supply Chain City Malaysia reflects Malaysia's aspirations to elevate its logistics industry through automation, artificial intelligence (AI)-driven systems and sustainable growth, while enhancing trade efficiency and connectivity across the region.
Malaysian Reserve
23-05-2025
- Business
- Malaysian Reserve
Samenta: No real ASEAN integration without MSMEs
by AZALEA AZUAR THE Small and Medium Enterprises Association Malaysia (Samenta) is urging ASEAN leaders to place micro, small and medium enterprises (MSMEs) at the forefront of discussions as Malaysia hosts the ASEAN Summit 2025. National president Datuk William Ng said the summit is expected to impact the region's support and scaling of its MSMEs. 'We call on ASEAN leaders to seize this moment: Reduce non-tariff barriers (NTB), leverage geopolitical shifts, invest in creative and digital sectors, and create a level playing field in trade and compliance. 'A resilient ASEAN must start from the ground up, with our small businesses at the core of our shared future,' he said in a statement. Ng stressed how MSMEs make up a majority (more than 97%) of all business in ASEAN and are responsible for 85% of employment in several member states. Despite their abundance, they only contribute 30% to 40% of the region's GDP and 22% of intra-regional trade due to structural barriers and limited scale, innovation and integration into regional value chains. Ng raised concerns regarding the low ASEAN trade levels as it represents a missed opportunity despite their proximity and cultural familiarity. ASEAN trade is important for MSMEs for internalisation but NTB such as inconsistent product labelling, cumbersome customs clearance and poorly coordinated regulations in the agrifood sector make it inefficient and costly. 'ASEAN must take bold steps to address these issues through enforceable agreements on NTB reduction, expanded mutual recognition arrangements (MRAs) and greater operationalisation of the ASEAN Single Window for MSMEs,' Ng said. Ng also advised ASEAN to present itself as a neutral and business-friendly bloc to absorb global investments and new manufacturing mandates as global supply chains are shifting and companies are diversifying away from single country dependencies. Therefore, he suggested enhancing the capacity of MSMEs to avoid entrenching economic dualism and widening inequality. 'ASEAN must also remain vigilant against rising protectionism in a fragmented world and ensure reciprocal market access is honoured. 'While large firms often have the resources to adapt or lobby, MSMEs are typically the first casualties of sudden tariffs, quota restrictions or import bans. 'ASEAN must be proactive in trade defence, making sure our MSMEs are not collateral damage in global economic disputes,' Ng said. ASEAN MSMEs face a middle-income trap due to low-value sectors, and for them to escape the trap, they need investment in innovation grants, regional research and development (R&D) centres, and cross-border talent and technology platforms. This is critical not only for income growth but also for building globally competitive MSMEs that can expand beyond their home markets. Moreover, the ASEAN Digital Economy Framework Agreement should promote inclusive platforms, cross-border e-commerce and data governance policies, while focusing on realistic environmental, social and governance (ESG) standards for smaller firms. Ng also acknowledged the high potential of the creative economy for MSMEs, noting that it is scalable, culturally rooted and has strong export prospects. 'ASEAN must include the creative economy in its regional economic integration strategy, with a focus on copyright and intellectual property (IP) protection for creators, market access and mobility for creative professionals and creative clusters and infrastructure, especially for youth and women-led enterprises,' he said.
