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The Star
3 days ago
- Business
- The Star
Forging a brave new world
POSTERITY, I dare say, will regard the recently concluded Asean-Gulf Cooperation Council (GCC)-China Summit in Kuala Lumpur on May 27 as a historic turning point. While the 46th Asean Summit and its related meetings like the 2nd Asean-GCC Summit were equally historic for their role in progressing Asean's agenda, current trade wars and geopolitical fragmentation have somehow made many quarters perceive the inaugural Asean-GCC-China Summit as the game changer during the recent gathering. Malaysia could stand proud not merely for arranging such a smoothly-run summit, but also for the bridging of minds that have arguably emerged as key voices of the newly resurgent Global South – particularly through the successful issuance of a joint statement, usually the most difficult feat in any multilateral meeting. As part of their joint statement, the Asean-GCC-China leaders condemned the continued atrocities on the people of Gaza and called for a ceasefire, echoing the sentiments of all right-minded peoples across the world. Tengku Datuk Seri Zafrul Tengku Abdul Aziz: Asean can be a strategic gateway to the East Asian markets. Beyond politics, a deeper trilateral economic integration makes perfect sense. For context, the combined numbers for Asean, the GCC and China speak for themselves: 2.15 billion people (or just over a quarter of the world's population) and a collective GDP of almost US$25 trillion. Figures for foreign direct investment (FDI) inflows, too, stack up nicely: In 2024, Asean attracted US$235bil in FDI inflows, representing about 17% of global FDI. China received US$114.76bil, while the GCC secured US$70bil. Collectively, these figures accounted for roughly 30% of global FDI inflows. From such data alone, the significance of this combined economic might was clear to the leaders from China and the two economic blocs. Asean can be a strategic gateway to the East Asian markets. Malaysia in particular – with our well-established trade and industrial ecosystem, rule of law and ease of investor journey – is also well poised to facilitate such investments into the broader Asean and East Asian markets. The GCC's economic dynamism, strategic location connecting Europe, Asia and Africa, and its shared religious and cultural values with Malaysia as well as Asean make it an ideal partner for deeper economic integration. Indeed, in 2023, Asean's trade with the GCC stood at US$130.7bil and FDI inflows were US$390.2mil. On a wider scale, China was Asean's largest trading partner with US$696.7bil in trade and US$17.3bil in FDI. China and the GCC are hence crucial economic partners for Asean and for Malaysia. It therefore is totally appropriate for us to want to engage with them, both on a bilateral and trilateral format. That is also why Malaysia will soon start negotiations for a free trade agreement (FTA) with the GCC, because there is so much potential to increase the current total trade of US$22bil. But I want to go a bit more granular and show how engaging on an Asean-GCC-China scale can benefit ordinary Malaysians, including the youth, women and MSMEs. Through the 18 Priority Economic Deliverables (PEDs) under the Economic Pillar of Malaysia's 2025 Asean Chairmanship, the Investment, Trade and Industry Ministry and other related ministries are working diligently to ensure substantial progress for these PEDs by year's end. Some of these are of course directly linked to the GCC and China. For instance, we have completed negotiations to not only upgrade the Asean Trade in Goods Agreement but also the Asean-China Free Trade Area 3.0. Both of these will be signed in October, boosting both intra-Asean and Asean's trade with China – which as we know will be key to tide our region over during this period of geopolitical instability. Separately, another of our PEDs, namely the Joint Declaration on Economic Cooperation Between the Asean-GCC was also completed in full. Through this, our two regions will explore new avenues of cooperation like market integration, sustainability, decarbonisation, digital transformation and inclusion, including for MSMEs. Sectorally, Asean's PED on the Development of Policy Recommendations and Guidelines to Support Asean EV Implementation Roadmap will benefit from China's global leadership in electrical vehicles (EVs). Accounting for more than 70% of global electric car production in 2024, China also produced more than 70% of all EV batteries ever manufactured. Consider also the Endorsement of the Asean Plan of Action for Energy Cooperation 2026-2030, which is clearly in alignment with the GCC's ramping up of its efforts to diversify its economies and energy mix away from oil and gas in pursuit of renewable energy (RE). They have pledged an US$100bil investment in RE by 2030 to transition to clean energy and reduce carbon emissions. There are, indeed, many synergies for economic integration. Development of Asean Tourism Outlook? China and GCC are key tourist markets for Asean. An Asean Framework for Integrated Semiconductor Supply-Chain? China is both a major chip buyer and maker. In conclusion, when Malaysia proposed the PEDs for its Chairmanship year, we were clear on how we could boost Asean's socio-economic dynamism and ergo, the Asean-GCC-China trilateral relationship can likewise contribute to this. Furthermore, global demand for halal products is currently valued at over US$3 trillion and will grow to US$5 trillion by 2030. This is a market Asean, GCC and China can collaborate to tap into and even corner together. Also, as a combined market of more than two billion people, Asean, GCC and China should be regions where young Malaysian men and women, including those in small business, look for job or business opportunities. We are paving the way for all our Malaysian 'jaguh' to enter wider markets for their goods and services, while ensuring that their interests will always be safeguarded through well-negotiated FTAs. But one would argue that even spreading one's wings to Asean really is just a waypoint for the truly ambitious. While other regions may draw inwards, our three are seeking even greater connectivity for our people and businesses. The coming together of Asean-GCC-China's leaders signals that we refuse for our horizons to be limited – by ourselves or others – to our own borders or backyards. Indeed, deeper economic integration would do well to better support regional security, which feeds into Asean's Political Security deliverables. This is also why Asean – with its principles of centrality, neutrality, non-alignment – must matter to not only its member states, but also to partners like the GCC, China and indeed, other dialogue partners like Australia, Canada, the European Union, India, Japan, New Zealand, the Republic of Korea, Japan and New Zealand. Truth be told, what we can achieve together through this nascent Asean-GCC-China trilateral configuration is only limited by our imaginations. Tengku Datuk Seri Zafrul Tengku Abdul Aziz is the Investment, Trade and Industry Minister. The views expressed here are his own.
Business Times
4 days ago
- Business
- Business Times
Malaysia leads Asean summit as region faces tough choices
[KUALA LUMPUR] Malaysia stepped into the spotlight this week as it hosted a flurry of high-stakes diplomatic engagements, with Prime Minister Anwar Ibrahim leading regional efforts to future-proof Asean amid rising global headwinds. The 46th Asean Summit in Kuala Lumpur came at a tense moment, amid rising global rivalries, growing protectionism, and mounting pressure on the bloc to finally act on long-stalled integration plans, all while trying to stay neutral between global superpowers. Held alongside the Asean-Gulf Cooperation Council (GCC) and the inaugural Asean-GCC-China summits, the two-day gathering was a bid to put Asean back on the global map – this time with a long-term game plan rooted in pragmatism. Anwar set the tone at the summit's opening: 'The very foundations of Asean are being tested… From the Myanmar crisis to growing protectionism, we must act together, on our own terms.' Observers say Malaysia's chairmanship has re-energised Asean's often-fragmented diplomacy, offering a rare show of unity and purpose. 'This marks a shift for Asean, which is often perceived as a loose organisation where consensus is hard to achieve,' Dr Liew Wui Chern, a policy analyst and lecturer at Universiti Tunku Abdul Rahman told The Business Times. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up 'It demonstrates a growing realisation among members of the need for unity amid external uncertainties and a stronger global voice,' he added. All 10 member states jointly called for a ceasefire in Myanmar and made progress in long-stalled negotiations for a Code of Conduct in the South China Sea. That level of agreement, Dr Liew noted, is typically years in the making. Unity on paper – action to come The signing ceremony of the Kuala Lumpur Declaration on 'Asean 2045: Our Shared Future' during the 46th Asean Summit in Kuala Lumpur, on May 26. PHOTO: EPA-EFE At the heart of the summit was the adoption of the Kuala Lumpur Declaration, a foundational blueprint that launches Asean's Community Vision 2045 – a 20-year plan to make the bloc a more assertive global player and one of the world's top four economies by mid-century. The roadmap focuses on political stability, greener growth, better infrastructure, and tighter digital ties – plus a long-overdue push to turn big-picture plans into action. Asean Business Advisory Council chairman Nazir Razak said Malaysia has demonstrated tremendous leadership this year – a time when Asean truly needs it. During a panel discussion at the Asean Business Forum 2025, he highlighted the strong sense of camaraderie among leaders. 'The Prime Minister has cultivated robust bilateral relationships with fellow leaders, and this has been reflected in his chairmanship,' he said. Nazir said the momentum showed up even at the economic ministers' level and stressed that turning plans into action will be the real test for Asean, which hasn't always nailed execution. Business leaders and policymakers have been eager to reaffirm key priorities, especially with recent US tensions in play, he remarked. Laying the groundwork Speaking at the inaugural Asean-GCC-China Summit in Kuala Lumpur, Chinese Premier Li Qiang said: 'By fully connecting our markets, we will unleash powerful development potential.' PHOTO: AFP The summit also saw the endorsement of a five-year action plan aimed at removing regulatory bottlenecks to cross-border trade, improving the mobility of goods, services and talent, and attracting more foreign investment, particularly in sectors such as agriculture, mining and manufacturing. Malaysia, Singapore and Vietnam advanced this ambition further with a tripartite agreement to explore cross-border renewable energy trade. The proposed project involves transmitting offshore wind power from Vietnam to Peninsular Malaysia and Singapore via subsea and overland grids, marking an early win for the Asean Power Grid vision. 'These efforts are part of our broader goal to create a more resilient and sustainable energy supply for the region,' said Singapore's Prime Minister Lawrence Wong in his social media posting. Beyond internal goals, Malaysia also used the summit to position Asean as an attractive partner to external players. At the inaugural Asean-GCC-China Summit, Chinese Premier Li Qiang called for stronger trilateral ties, noting that China, the GCC and Asean collectively represent a quarter of global gross domestic product (GDP). 'By fully connecting our markets, we will unleash powerful development potential,' he said. Talks are also set to begin on a potential Asean-GCC free trade agreement – a move likely to attract investment into logistics, petrochemicals and halal supply chains. Still, some observers tempered expectations. 'I don't expect the summit to result in any significant near-term economic impact for member countries, as most of the discussions were focused on political strategy rather than direct policy outcomes,' said Nazmi Idrus, head of economics (equity research) at CGS International. But the summits held this week have sent a clear signal to the US 'that Asean has a choice to work with other economic blocs and to negotiate with other countries', he remarked. One bloc, many deals That signal comes amid growing unease over recent US tariff threats, which have disrupted regional supply chains and forced Asean states into difficult balancing acts. While Asean has reached internal consensus on collective negotiation with the US, an Asean-wide deal is unlikely, said Dr Oh Ei Sun, a senior fellow at the Singapore Institute of International Affairs. 'In reality, individual Asean countries are separately – and not so discreetly – racing to secure bilateral trade deals with the US, some even offering to reduce their tariffs on American goods to zero in hopes of securing better terms,' he said. Oh argued that Malaysia's chairmanship, while symbolically important, is unlikely to reverse entrenched dynamics within a single year. 'Expecting Kuala Lumpur to unify Asean on trade is like fishing in a tree – it's just not realistic,' he said. Road to October As Asean looks ahead to its next 47th Asean Summit in October, some issues remain outstanding. Questions remain over the full membership of Timor-Leste despite Malaysia and Indonesia's offer to assist in meeting accession requirements. While the country holds observer status, its full integration may still be years away, said observers. Some speculate that Kuala Lumpur may host a historic Asean-US-China trilateral dialogue, though the prospects of US President Donald Trump attending remain slim. Balancing acts Asean faces a tricky balancing act ahead – strengthening ties with China without pushing the US, a key export market, too far away. Speaking at the Asean Business Forum 2025, OCBC chief economist Selena Ling said while the US remains an important market, the region is fundamentally part of the same economic sphere as China. 'There is no decoupling between China and Asean; if anything, multinational corporations are increasingly adopting a strategy of producing in the US for the US market, in China for the Chinese market, and in Asean for the rest of the world,' she added. Still, Ling noted, Asean must tread carefully. 'While deepening ties with China is important, Asean cannot afford to antagonise the US. This highlights the need for a balanced approach in navigating these complex economic relationships,' she said. For Malaysia, it was a test of whether quiet diplomacy still works in a region facing louder challenges – an answer that may only emerge in the months ahead.
The Star
6 days ago
- Automotive
- The Star
The right legal framework vital for embracing new tech, says Gobind
KUALA LUMPUR: A supportive legislative framework is essential in building an ecosystem that can accommodate new and advanced technologies, says Digital Minister Gobind Singh Deo. Apart from ensuring adequate technological infrastructure, Gobind said there is a need to review legislation that may pose challenges in implementing new technological solutions. He said there is a unit in the National Artificial Intelligence Office (NAIO) looking into such matters. According to the minister, discussions on which laws may require amendments are already being held with various stakeholders. 'First of all, we need to look at technology, then ask ourselves if there are conflicts of law involved and how they can be dealt with. 'The NAIO has a unit to look into this. I am sure that in all industries, there will be such problems arising. 'We have to be prepared to face these problems and deal with them as and when necessary, so we can build an ecosystem not just in terms of infrastructure but also a ready legislative framework to move ahead,' he told reporters after speaking during the Asean-Gulf Cooperation Council (GCC) Economic Forum here on Wednesday (May 28). Citing the example of autonomous vehicle networks, Gobind said that in Malaysia, any vehicle on the road must have a licensed driver behind the wheel to adhere to legal requirements. 'When we talk about autonomous vehicle networks, we are looking at how cars can move on their own. 'We have also already seen autonomous buses in Putrajaya. 'The question is how we can prepare the legal framework for this,' he said. It was reported last year that an autonomous electric bus service trial will be rolled out in Putrajaya. Utilising 5G to navigate, the new buses are the result of a collaboration involving national 5G network provider Digital Nasional Bhd (DNB), Ericsson and local autonomous vehicle solutions developer eMooVit Technology Sdn Bhd.
The Star
6 days ago
- Business
- The Star
Timor-Leste to join Asean in October
Seeking solutions: Anwar (right) with Asean leaders attending the second Asean-Gulf Cooperation Council summmit at the Kuala Lumpur Convention Centre in Kuala Lumpur. — AZHAR MAHFOF/The Star KUALA LUMPUR: Timor-Leste's wait to be included in Asean will be over in five months, when they will be granted full membership at the next regional meeting, Datuk Seri Anwar Ibrahim announced. The Prime Minister said Asean leaders have agreed to accept Timor-Leste as the 11th member of the association at the next Asean Summit in October. He said Timor-Leste has been working hard to fulfil requirements to become an Asean member and Malaysia is satisfied with the country's efforts. 'Malaysia, Indonesia and a number of other countries have assisted in many ways to ensure that they meet this precondition. I would say we are quite satisfied. 'The decision is to agree that they will be accepted as a full member by the next session in October,' said Anwar during his exit press conference after the 46th Asean Summit and Related Summits yesterday. He said Timor-Leste has to fulfil 'one or two' economic preconditions to be admitted as a full member of Asean. 'The consensus is that we will do whatever is necessary to ensure that they come in by October as a full member,' he added. Current Asean members are Malaysia, Indonesia, Singapore, Brunei, Thailand, Vietnam, Cambodia, Laos, Myanmar and the Philippines. Timor-Leste was officially recognised by the United Nations in 2002, making it Asia's youngest democracy. The country officially applied for Asean membership in 2011 and was granted observer status in 2022. Its Prime Minister Kay Rala Xanana Gusmao, who was also in Kuala Lumpur to attend the Summit, was reported as being optimistic about securing the full membership by the end of this year. Meanwhile, Anwar said as Asean Chair this year, Malaysia is hoping to come up with tangible programmes that will benefit the people by October. Anwar said various ministries and officials will have to start working on these initiatives. 'So by October, we want to see the results. We want to see real change that will benefit the people,' he added. The Prime Minister said the Asean Summit and Related Summits achieved its objectives by successfully bringing together the Gulf Cooperation Council (GCC) and China at the same table, crediting the outcome to the strong spirit of unity and the unwavering support of all regional leaders. Reflecting on the engagements throughout the summit, Anwar said Malaysia's chairmanship had enabled deeper discussions with Asean's external partners. He also said discussions held throughout the summit had been fruitful. 'There is a dramatic change in terms of attitude. The South China Sea was discussed, and we also saw exchanges between the Philippines and China. 'I'm not saying these issues can be resolved, but at least there is meaningful and positive engagement. That is the spirit of Asean,' added Anwar. Malaysia is the Chair of Asean this year, having held the post in 1977, 1997, 2005 and 2015.
The Star
7 days ago
- Business
- The Star
Malaysia values China's commitment to strengthening regional cooperation, says Anwar
KUALA LUMPUR: Prime Minister Datuk Seri Anwar Ibrahim held a four-eye meeting with Chinese Premier Li Qiang to strengthen strategic cooperation through the Asean-GCC-China Summit for mutual interest. Anwar said Malaysia, as the Asean Chair in 2025, appreciates China's commitment to strengthening regional cooperation and bilateral relations, especially in facing current global challenges and geopolitical changes. "The synergy between the two countries is important to be enhanced, particularly in the fields of economy, technology, infrastructure and transportation projects such as the East Coast Rail Link, addressing disputes in the South China Sea, updating developments on the Asean-China Free Trade Area Protocol upgrade, the halal industry and trade," he said in a Facebook post on Tuesday (May 27). Anwar added that the Asean Summit 2025 reflects Malaysia's efforts in leading the grouping with the aim of strengthening integration, driving economic cooperation and addressing regional issues diplomatically and pragmatically. The 46th Asean Summit began at the Kuala Lumpur Convention Centre on Monday (May 26). Today's (May 27) highlights include two high-level meetings, namely the second Asean-Gulf Cooperation Council (GCC) Summit and the inaugural Asean-GCC-China Summit, which aim to strengthen regional and inter-regional cooperation. The Asean Summit brings together leaders from member states to deliberate on regional developments and chart the future direction of the regional grouping. This marks Malaysia's fifth time chairing Asean, following its previous terms in 1977, 1997, 2005 and 2015.
