Latest news with #Asean-wide
The Star
26-05-2025
- Business
- The Star
Removing barriers will hasten integration, say experts
PETALING JAYA: Asean countries must tackle persistent regulatory and financial barriers that continue to hinder regional economic integration, say experts. Economist Geoffrey Williams said there are still many trade barriers among Asean countries, especially for small and medium enterprises (SMEs). 'Asean needs to establish a framework to identify regulatory barriers across all areas. 'This process should systematically remove or harmonise regulations at the lowest cost,' he said when contacted. Williams said there are still many constraints on simple issues, such as setting up businesses, bank accounts, and even payment transfers. 'Harmonising regulations on payment transfers, reducing transaction costs and building common platforms for e-payments is essential,' he said. Asean countries still vary greatly in economic development, political systems, and economic self-interests. This variance, he said, is holding back closer integration. 'Tourism provides a good model because private-sector-driven business models make travel, accommodation and currency exchange easy. 'So integration is not impossible if it is market-driven, but it is proving difficult if it is government-driven,' he explained. He said Asean can follow a market-driven integration model using technology platforms and e-commerce which avoids brick-and-mortar business models and moves online. 'An Asean-wide digital nomad visa would be a good idea and would be attractive for the region as a whole while reducing competition between countries. 'Another Asean-wide entrepreneur visa would also be helpful in reducing costs, especially for the non-Asean business community. 'This would allow foreign investors to move easily around the 10 member states,' he argued. Centre for Market Education chief executive officer Carmelo Ferlito said going cashless can become a burden if a person needs to have a different app in each country. 'I travel often to Indonesia, and I struggled with their cashless system, which must be linked to a local bank. 'So I think having more integration is good, but in reality, it is better to increase options rather than reducing them,' said the economist. At a special media briefing on May 21, Prime Minister Datuk Seri Anwar Ibrahim outlined a strategic vision for Asean's next phase of growth. Under Malaysia's Asean chairmanship this year, he emphasized stronger economic integration, trade expansion, and cross-border energy connectivity as key pillars.
The Star
26-05-2025
- Business
- The Star
Address long-standing trade barriers, Asean members told
PETALING JAYA: Economists are calling for Asean countries to address long-standing barriers that hinder economic integration among member states. Despite close and strong cooperation, the situation can be improved by addressing key regulatory hurdles and inconsistent financial systems. ALSO READ: Asean leaders assemble in KL today for key summit, related meetings Economist Geoffrey Williams said there are still many trade barriers among Asean countries, especially for small and medium businesses (SMEs). "Asean needs to establish a framework to identify regulatory barriers across all areas and begin a process to systematically remove them or to harmonise regulations at the lowest cost," he said, when contacted yesterday. Malaysia, as Asean Chair is the host of 46th Asean Summit and Related Summits. Wisma Putra is taking the lead in organising these summits under Malaysia's Asean chairmanship this year with the theme 'Inclusivity and Sustainability'. Two other high-level meetings – the 2nd Asean-Gulf Cooperation Council (GCC) Summit and the Asean-GCC-China Economic Summit – will also be held. Williams said there are still many constraints on simple issues such as setting up businesses, bank accounts and even payment transfers. "So harmonising regulations on payment transfers, reducing transaction costs and building common platforms for e-payments is essential. "Even issues related to the free movement of workers are underdeveloped as Asean members protect their own labour markets," added Williams ALSO READ: Asean-GCC-China model will help forge inclusive, sustainable future, says Anwar Asean countries, said Williams, are still very different in terms of economic development, political systems and the economic self-interests of each country and this holds back closer integration. "Tourism provides a good model because private sector driven business models make travel, accommodation and currency exchange easy. "So integration is not impossible if it is market driven but it is proving difficult if it is government driven," he explained. He said Asean cannot follow the integration model of the EU for example because that is government driven but it can follow a market driven integration model using technology platforms and e-commerce which avoid brick-and-mortar business models and move online. "An Asean-wide digital nomad visa would be a good idea and would be attractive for the region as a whole while reducing competition between countries. "Another Asean-wide entrepreneur visa would also be helpful in reducing costs, especially for the non-Asean business community allowing foreign investors to move easily around the 10-member states," he argued. Centre for Market Education chief executive officer Carmelo Ferlito said forcing cashless can become a burden if a person needs to have an app in each country, but instead such initiative can be linked with a local bank account. "I travel often to Indonesia and I struggled with their cashless system, which must be linked to a local bank. "Some places do not accept any other form of payment. "So I think having more integration is good but in reality it is better to increase options rather than reducing them," said the economist. He also said that abolishing barriers to entry was much more effective rather than thinking about cashless. "Good infrastructure and fast procedures, this is what travellers want. Cashless is an option but not a game changer. More tourism or travel affects the generality of the economy," said Ferlito. At a special media briefing on May 21, Prime Minister Datuk Seri Anwar Ibrahim outlined a bold strategic vision for Asean's next phase of growth, emphasising stronger economic integration, trade expansion and cross-border energy connectivity as key pillars under Malaysia's Asean chairmanship this year. Responding to questions on the direction of the regional bloc amid growing global geopolitical competition, Anwar said Malaysia is determined to drive Asean beyond its traditional role as a neutral platform towards becoming a more cohesive, values-driven force in the Indo-Pacific. "As part of our thrust this year, we are focusing on strengthening Asean's cohesiveness, increasing economic interest and trade, and boosting investments among member countries," he said.
New Straits Times
17-05-2025
- Business
- New Straits Times
Anwar: Malaysia, regional partners target 20pct of trade in local currencies
KAZAN: Malaysia and several regional partners are targeting to conduct up to 20 per cent of their trade in local currencies, said Prime Minister Datuk Seri Anwar Ibrahim. He said this signalled a regional push to strengthen monetary autonomy and reduce overdependence on the United States (US) dollar. In an exclusive interview with international broadcaster TV BRICS, Anwar said the shift includes trade with China, Thailand and Indonesia, covering transactions worth "billions of dollars". "This shows that where we can, we should proceed," he told TV BRICS host and international cooperation director Darya Ivankova. The interview took place on the sidelines of the KazanForum 2025, on the final day of Anwar's four-day official visit to Russia, which concluded on May 16. "It's not about replacing the dollar, which remains dominant globally, but about creating buffers to protect our national interests," he said. Anwar added the effort forms part of broader regional cooperation under frameworks like the Chiang Mai Initiative. Under the initiative, Asean+3 economies are deepening collaboration among their central banks and promoting cross-border settlements in domestic currencies. He said discussions have also touched on reviving the concept of an Asian Monetary Fund, not as a competitor to existing institutions, but as a strategic buffer. "This isn't about challenging anyone," he said. "It's about mitigating shocks and building regional resilience. This is especially important for trade-focused economies like Malaysia." Digital transformation and AI leadership Anwar said Malaysia's broader economic strategy is anchored in digital transformation, energy transition and food security, areas where partnerships with BRICS and Global South countries have become increasingly vital. He pointed to Malaysia's emerging role as a regional hub for semiconductors, artificial intelligence (AI) and data centres, supported by the government's National Semiconductor Strategy. "We have attracted massive investments from global leaders, Google, Microsoft, Nvidia and Infineon from Germany," he said. "The next phase is about increasing efficiency, scaling up our talent and making the country even more competitive." Energy transition and regional power grid Highlighting Asean-wide energy cooperation, Anwar cited the Asean power grid project as a milestone initiative to support energy sharing across the region. "It's a phenomenal shift, from fossil fuels to hydro, gas and renewable alternatives. It's our collective contribution to sustainability and climate action," he said. Malaysia as Asean chair and BRICS partner Asked about Malaysia's concurrent roles as Asean chair and a new BRICS partner country, Anwar said both platforms provide unique avenues to pursue inclusive, multipolar economic diplomacy. "Malaysia is a trading nation. Asean takes its position of centrality, which means we engage with everyone. BRICS offers a cohesive force within the Global South. We negotiate together and protect our turf together," he said. He noted that Malaysia will host the Asean-Gulf Cooperation Council (GCC) Summit at the end of May. This will be followed by the East Asia Summit and Heads of Government Meeting at the end of the year, offering critical opportunities to strengthen regional economic fundamentals. Free trade and fair growth Anwar also discussed Malaysia's push for more free trade agreements (FTAs), including with the United Arab Emirates, a BRICS member, and reaffirmed Malaysia's openness to future FTAs with BRICS+ countries. "FTAs remain one of the most practical tools to boost trade flows. We've signed them with the United Kingdom and reengaged with the European Union after past setbacks. We're pragmatic." He said what distinguishes BRICS is its focus on the specific challenges of the Global South. This includes food security, raw materials, petrochemicals and gas, areas that are often sidelined in traditional global market structures. Culture, equity and values Anwar concluded the interview by stressing that economic growth must be paired with human development, governance and justice. "To me, the role of women, culture, education and environmental protection are not side issues, they are central to progress," he said. "We can't keep being lectured by countries that haven't fulfilled their promises to the developing world. We have to move forward on our terms, fairly and sustainably."
Straits Times
08-05-2025
- Business
- Straits Times
Governments, insurers and innovative finance needed to reduce risks of Asean power grid
Energy Market Authority's assistant chief executive Low Xin Wei speaking at the Climate Group Asia Action Summit at the Mandarin Oriental on May 8. ST PHOTO: SHINTARO TAY SINGAPORE - An Asean-wide electricity grid could result in cheaper, cleaner electricity for people across the region. But poor grid connectivity between countries and the lack of demand for green electricity are among factors that could hinder investments in this area. South-east Asia faces a significant green investment gap of more than US$210 billion (S$272 billion) per year, amid the higher perceived risk in making green investments, said the Energy Market Authority's assistant chief executive Low Xin Wei on May 8. This higher perceived risk leads to a higher cost of capital for renewable energy projects in the region. Every 2 per cent increase in the cost of capital can raise the cost of producing electricity from solar and wind plants – across their lifetime – by more than 20 per cent, Mr Low said at the Climate Group Asia Action Summit. This is a key financing challenge that the region has to overcome before low-carbon electricity can be traded to help renewables-disadvantaged countries like Singapore reduce greenhouse gas emissions. Achieving the vision of trading renewables across Asean would first require efforts by governments, insurers and other innovative financing methods, to reduce the risks, so investors are more willing to take the plunge, said Mr Low, who oversees EMA's markets and systems division. Today, natural gas – a fossil fuel – accounts for around 95 per cent of Singapore's electricity generation. To meet its 2030 climate targets – which include the reduction of emissions to around 60 million tonnes – clean energy imports have been identified as an effective lever, alongside carbon capture and energy efficiency in industries. This is according to a climate report the Republic submitted to the UN in November 2024. This is why the Singapore Government has been actively championing the creation of an Asean grid for years, and recently entered into agreements with Cambodia, Vietnam and Indonesia to import 5.6 gigawatts of clean electricity from sources including solar, hydropower and wind. Electricity imports are expected to make up around a third of the country's energy needs by 2035. To lay the groundwork for the regional grid, Singapore is importing 200 megawatts (MW) of electricity via the Laos-Thailand-Malaysia-Singapore power integration project. Since October 2024, 100MW comes from hydropower in Laos, and the remaining 100MW has been topped up by Malaysia, which supplies from a mix of energy sources, including coal and natural gas. One way to close the investment gap for the regional power grid is through innovative financing methods like blended finance, said Mr Low. This refers to starting with public and philanthropic funding to make it easier for risk-averse private funding to come on board. Mr Low highlighted the Singapore-based Bayfront Infrastructure Management platform as a promising model. This platform pools together loans from completed infrastructure projects and turns them into tradeable investment products. This thus helps to recycle capital back to renewable project developers and allow investors to spread out their investments, he added. The insurance industry would also hold the key to de-risking projects for the Asean grid, said Mr Low at the Mandarin Oriental, Singapore. The Monetary Authority of Singapore has anchored a number of international insurance brokers, such as Marsh and Willis Tower Watson, to help people in the green finance scene navigate risks in energy transition investments and in the carbon markets. Pointing to Government support, Mr Low highlighted the $10 billion Future Energy Fund, which was created to support projects that may involve nascent technologies or require high upfront capital spending, as well as exposure to significant commercial and geopolitical risks. Such projects include subsea cables to trade low-carbon electricity and hydrogen terminals and pipelines, if Singapore decides to adopt and scale up the use of clean hydrogen fuel in the future. It was also announced at the Ecosperity sustainability conference on May 7 that Singapore will in the coming months be ready to deploy part of the US$500 million it had set aside as initial funding for green projects in the region. This initial injection of funds serves to increase funding from other sources. 'That said, de-risking can only take us so far,' said Mr Low, adding that companies and organisations must step up by committing to long-term contracts to buy imported green electricity. 'These (contracts) provide revenue certainty and enable developers to secure financing at lower cost. Without them, many bankable projects will remain stuck at the starting line,' he added. But Mr Low acknowledged that corporates are also restricted because major international standards do not recognise certificates from cross-border electricity trade outside of the European Union and North America. Companies need these certificates to be recognised so that they can disclose their carbon emissions and meet their sustainability goals over time. '(This means) energy that comes from an Indonesian island may be green, but they may not be considered green as far as accounting goes, and that's where the challenge arises. This is a key barrier preventing corporates from signing (purchase) agreements with electricity importers,' said Mr Low. Shabana Begum is a correspondent, with a focus on environment and science, at The Straits Times. Join ST's WhatsApp Channel and get the latest news and must-reads.
New Straits Times
08-05-2025
- Politics
- New Straits Times
MOHE urged to strengthen Asean awareness in higher education
SHAH ALAM: The Higher Education Ministry has been urged to prioritise Asean awareness at all institutions to equip Malaysia's future leaders with a deeper understanding of regional affairs. Dewan Rakyat Speaker Tan Sri Johari Abdul highlighted the importance of this initiative amid global changes, stressing that strong and stable partnerships are crucial for shared prosperity. "Asean must operate as a united bloc with mutual understanding. Our region holds immense potential, with nearly 700 million people, 40 per cent of whom are youth. Without cooperation, we risk losing the Asean spirit," he said. He warned that failing to foster unity could result in conflicts akin to those seen in the Middle East, Africa, or India-Pakistan tensions. Asean's 60-year foundation of peace and neutrality must be further strengthened. Johari shared his views after the 2nd Consultation Meeting Dinner of the Asean Inter-Parliamentary Assembly's Young Parliamentarians Caucus (YPA) last night, attended by notable figures including Youth and Sports Minister Hannah Yeoh, AIPA Secretary-General Siti Rozaimeriyanty Abdul Rahman, Selangor State Assembly Speaker Lau Weng San, and YPA Chairman Datuk Mohd Shahar Abdullah. Regarding the YPA meeting, Johari—who also serves as AIPA President—said discussions focused on enhancing engagement among member states, particularly through youth parliamentary networks. "Datuk Shahar will conduct an Asean-wide tour to foster sustained collaboration among young leaders beyond annual meetings," he added. The three-day YPA meeting addressed key issues such as strengthening youth participation in policymaking, tackling economic disparities, advancing digital transformation, and promoting inclusive development. - BERNAMA
