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The Star
07-05-2025
- Business
- The Star
Nazir: Let's review issue of non-tariff barriers
ASEAN BAC chairman Tan Sri Nazir Razak. KUALA LUMPUR: Strengthening economic integration and regional identity amid rising global uncertainty and disruptive megatrends will be the agenda of Asean Business Advisory Council (Asean-BAC) Malaysia for 2025, says council chairman Tan Sri Nazir Razak. Speaking ahead of the Asean Leaders Summit to be held from May 26-27, Nazir said Asean must remain united, broaden its economic partnerships, optimise intra-Asean trade and investment in the face of geopolitical tensions. 'We are optimistic about Asean's prospects in 2025. We have learned from past mistakes, we now have a generation of internationalist leaders across the region, and we have built a strong platform through Asean-BAC's work since 2023,' he told a press conference yesterday. On the issue of non-tariff barriers (NTBs), Nazir emphasised that they are a widespread problem across Asean. He pointed out the strong correlation between the reduction in tariffs and the rise of NTBs, with the latest count showing 9,642 NTBs across the region. 'There is no clear enforcement mechanism to bring them down,' Nazir said. 'There is a lot of frustration from the private sector with NTBs.' He noted that NTBs could be difficult to address without direct intervention. 'This is an opportunity for us to review NTBs,' he added. Nazir also revealed that Asean has a mechanism called the Asean Assist, which allows companies to report non-tariff barriers online. However, he acknowledged that the platform has seen limited engagement due to the perception that little can be done to address these barriers. 'This is why NTBs are an area that Asean has to focus on,' Nazir stressed. Asean-BAC Malaysia is also spearheading some initiatives this year, including legacy projects expected to span multiple years. Its flagship proposal is the Asean Business Entity (ABE) – a bold effort to bypass national-level bottlenecks and enable regional integration directly at the corporate level. 'In the past, Asean had this notion of an Asean Economic Community, where by 2015 there would be a single production base with free movement of capital, trade, and skilled labour,' said Nazir. 'When 2015 came, these were not achieved, because clearly they were overly ambitious. 'It was not what Asean wanted or had the political will to do. And so we accepted that we are unable to achieve this single production base in its full model.' According to Nazir, the ABE is a practical response to this limitation. 'Since we cannot do it at the country level, why not enable it at the company level? 'It will bring significant impact in terms of enabling companies to realise Asean economies of scale in their operations.' He added that implementation would be locally defined. 'We leave it to Asean countries to define what an Asean business entity is in your country.' Other initiatives led by Asean-BAC Malaysia include efforts to deepen private capital markets, advance digital trade, and enhance talent mobility within the region. They are complemented by proposals for a common carbon market framework and a regional philanthropy structure. Asean-BAC is also supporting the development of national artificial intelligence ecosystems, harmonised sustainability reporting standards, and cross-border business collaboration through platforms like B2B Connect. Separately, Nazir praised the government's response to the US tariff threat, describing it as 'very astute'. 'Malaysia has, firstly, stayed calm. Secondly, Malaysia has engaged to figure out what is rhetoric and what is reality on the US side. Three, Malaysia has gone back to strategise. Fourthly, Malaysia will go back and negotiate,' he said.
New Straits Times
06-05-2025
- Business
- New Straits Times
Malaysia got it right on tariffs, avoided hasty reaction — Nazir
KUALA LUMPUR: Asean Business Advisory Council (Asean-BAC) chairman Tan Sri Nazir Razak has commended the government for its measured and strategic response to tariff pressure from the United States (US). He said Malaysia had shown "astute" leadership by not reacting hastily or emotionally to the trade actions imposed by US President Donald Trump's administration. "Those who have covered me for a long time know that I do not compliment easily, but I really think that our government has been very astute in its handling of the tariff situation. "When you break it down, how has Malaysia's response been? First, Malaysia remained calm. Second, we engaged to identify whether this issue was mere rhetoric or something serious. "Third, we developed a strategy, and fourth, only then were we ready to negotiate. I think that is absolutely the right way to handle the situation," he said at Asean-BAC's media briefing on the progress of its 12 economic initiatives, here, today. Nazir said Malaysia's response stood in contrast to that of many other countries, which reacted too hastily or with excessive aggression. On non-tariff barriers, Nazir described it as a region-wide issue in Asean, pointing out a clear correlation between the decline in tariffs and the increase in non-tariff barriers. "I think at last count, there's something like 9,642 non tariff barriers across Asean, with one of the difficulties Asean always faces is that there's no clear enforcement mechanism to bring down non tariff barriers. "From the private sector, I agree that there are a lot of frustrations with non tariff barriers," he said. Nazir said that as Malaysia enters negotiations with the US, it presents an opportunity to revisit issues raised by businesses. He highlighted the existence of a mechanism called Asean Assist, which allows companies — including small and medium enterprises — to go online and report non-tariff barriers in any Asean country that they believe should not exist. "Unfortunately, the take up rate is very low. Why? Because there is no sense that something will be done about it," he added.
