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Business Times
3 days ago
- Business
- Business Times
Asean-BAC to launch private-markets association in bid to attract US$60 billion regional funding
[KUALA LUMPUR] The Asean Business Advisory Council (Asean-BAC) plans to establish a regional private-markets association by year end to unlock as much as US$60 billion in private equity and venture funding to support small and medium-sized enterprises and startups across South-east Asia. Speaking at the Asean Business Forum 2025, Asean-BAC Malaysia chairman Nazir Razak said the move comes amid growing concerns that Asean's private-capital ecosystem remains underdeveloped, representing just 0.5 per cent of the region's gross domestic product – far below the global average of 1.5 per cent. He noted that the council has been working with the governments of Malaysia, Singapore, Thailand and Indonesia to formalise the Asean Private Markets Association. The entity will serve as a platform to advise governments on policy reforms aimed at unlocking long-term capital. 'The idea is to help shape policies that support the growth of private markets in Asean,' Nazir told reporters on Thursday (May 29) after delivering his keynote address. 'Without reforms, capital will remain fragmented and difficult to monetise.' Beyond private markets, Asean-BAC is also pushing for the creation of an Asean Business Entity – a proposed classification that would allow companies to operate across member states with greater flexibility, said Nazir. He added that the new framework would facilitate cross-border outsourcing and mobility of talent, helping businesses tap the region's collective advantages. 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 Despite the ambitious plans and growing investor interest, panellists at the forum acknowledged that execution remains a major hurdle. 'When I mention the lack of execution in Asean, I'm not just pointing at governments or the regional organisation,' pointed out Nazir. 'The private sector has also fallen short. Are we doing the right deals – whether in mergers and acquisitions, supply chains, or trade? I don't think so.' He added that the momentum behind regional corporate champions has slowed since the late 2000s, raising questions about whether Asean is still fulfilling its potential to attract global capital. The evolving consensus-based model Khairy Jamaluddin, director of CGS International, said Asean's traditional model of consensus-based decision-making has long been a double-edged sword. 'There is no agreement until everyone agrees,' he noted, adding that such a move has slowed progress in many areas. However, Khairy said the region is beginning to evolve beyond rigid consensus. 'We're starting to see a 'consensus-plus' approach, where like-minded countries move forward together even if the full bloc isn't on board.' OCBC chief economist Selena Ling said this approach is already bearing fruit. She cited the Asean Power Grid and the Johor-Singapore Special Economic Zone (JS-SEZ) as examples of cross-border initiatives that demonstrate scalable cooperation among willing member states. 'Asean cooperation may be slow, but it is steady,' Ling noted. 'Intra-region trade is still relatively low – around 21 per cent of total trade, compared to 60 per cent in the European Union – but there's growing potential through cross-border investments and government-to-government partnerships.' The JS-SEZ, launched earlier this year, has created new economic opportunities for both Malaysia and Singapore, and is now being viewed as a potential template for broader regional collaboration. Singapore plays a key role in region In a separate panel discussion, Rachel Eng, council member of Asean-BAC Singapore, said the region's cohesion will be critical in navigating rising geopolitical and economic challenges. 'Singapore stands together with our Asean brothers and sisters. If others in the region suffer, we suffer too,' she added. Eng pointed out that while Singapore remains the largest recipient of foreign direct investment in the region, a substantial portion of that capital is routed to other Asean countries. She highlighted Singapore's strengths as an efficient financial centre, citing its 80-plus double-taxation agreements. 'It's very easy to set up a business here… we have no exchange controls, and our system is entirely rules-based. Yet, much of this capital finds its way into Malaysia, Vietnam, Indonesia, and our other neighbours.' Eng sees Singapore playing a critical role in facilitating stronger investment flows to Asean. 'Regardless of tariffs, we will remain open, transparent, and committed to deepening our financial ties with the region.' During the forum, China Galaxy Securities (CGS) and CGS International Securities Group signed five strategic memorandums of understanding with regional partners. Among them was a deal with Bursa Malaysia and Shanghai-based Fullgoal Asset Management to facilitate the listing of foreign-underlying exchange-traded funds on Bursa Malaysia, offering local investors broader exposure to global markets. CGS and CGS International also signed a letter of intent for the China-Asean Investment Programme aimed at establishing a private-equity fund to invest in high-growth sectors including healthcare, semiconductors, renewable energy and agriculture. The fund, with Malaysia as a key regional anchor, is designed to facilitate the transfer of technology and industry expertise from China to Asean.
New Straits Times
6 days ago
- Business
- New Straits Times
Stronger public-private partnership key to Asean's economic resilience
KUALA LUMPUR: Asean businesses need to strengthen collaboration across public-private partnerships and among enterprises throughout the region, especially in the face of ongoing global economic uncertainty. Asean Business Advisory Council (Asean-BAC) chairman Tan Sri Nazir Razak emphasised that working together unlocks significant potential and reaffirmed their commitment to turning government aspirations into tangible results. "Policy support in certain areas would certainly help accelerate this, and we are actively advocating for it," he said during a doorstep interview following the Asean Leaders' interface with the council. He said the council had a productive engagement with Asean leaders, during which they presented 12 priority areas that were met with a positive and supportive response. "Of course, while the projects will take time to materialise, and despite the positive reception, we will still need to navigate necessary policy changes. Nonetheless, I'm very happy with the outcome of our engagement," he added. In January, Asean-BAC launched 12 initiatives and unveiled 33 partnerships, including three memoranda of understanding (MOUs), underscoring its commitment to deepening regional economic integration. Among the key initiatives is the Asean Business Entity (ABE) framework, which urges Asean governments to establish a new business category that would provide selected companies with greater operational flexibility across the region. Other major initiatives include the Asean Private Capital Market Initiatives, Asean IPO Prospectus, Asean Talent Development and Mobility, Asean Common Carbon Framework, Digital Exchange Platform Malaysia, B2B Connect Initiative, Asean Identity Initiative, and the Asean Corporate Philanthropy Framework. The Asean-BAC agenda also features the Asean Diversity, Equity and Inclusion (DEI) Collective, the Asean Sustainability Reporting Advocacy Collaborative, and both Regional and National Artificial Intelligence (AI) Engagement Platforms.
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.
The Sun
06-05-2025
- Business
- The Sun
Malaysia's calm, strategic response to US tariffs 'absolutely the right way', says Nazir Razak
KUALA LUMPUR: Malaysia's calm and strategic response to the US tariffs situation is a model for Asean, said Asean Business Advisory Council (Asean-BAC) Malaysia chairman Tan Sri Nazir Razak. He said the way the government handled the situation is 'absolutely the right way' in contrast with the responses of several other countries, which he said 'reacted too quickly or were too aggressive'. 'Those of you who have covered me for a long time know that I don't compliment easily, but I really think that our government has been very astute in its handling of the US tariff situation,' he said in a media briefing on updates on Asean-BAC's 12 economic initiatives, new corporate partnerships announcement and progress on Asean Business and investment summit today. Breaking it down, Nazir said firstly, Malaysia remained calm; secondly, it engaged with the United States to figure out what is rhetoric and what is reality on the US side. 'Thirdly, Malaysia has then gone back to strategise, which we're doing now. And then fourthly, Malaysia will go back and negotiate.' At the same time, Nazir acknowledged that non-tariff barriers (NTB) are an Asean-wide problem, with the latest count showing 9,642 NTB across the region. 'Someone showed a chart where there's a strong correlation between the reduction in tariffs and the rise of non-tariff barriers.' He said one of the difficulties Asean always faces is the lack of a clear enforcement mechanism to bring down non-tariff barriers. 'There's a lot of this kind of non-tariff barrier. From the private sector, I can say there's a lot of frustration,' Nazir said, citing how even halal-certified food from Malaysia requires additional approvals to enter Indonesia or Brunei. He said that as Malaysia negotiates with the US, it may be a good time to review some of these non-tariff barriers. 'Sometimes, if you don't look closely, you don't even know why they're there. So it's an opportunity for us to review non-tariff barriers that are highlighted by the business sector.' Asean-BAC also shared updates on its 12 flagship initiatives as Malaysia reaches the halfway mark of its Asean chairmanship. The council, led by Asean-BAC Malaysia in 2025, meanwhile, introduced its strategic sponsors for the upcoming Asean Business and Investment Summit 2025 and Asean Business Awards 2025. These developments showcase growing momentum in Asean-BAC Malaysia's efforts to make progress in its chairmanship year, across Southeast Asia. Among the initiatives advocated is the flagship Asean Business Entity framework which calls for the creation of a regional business category to allow companies greater operational flexibilities across Asean markets. Meanwhile, the Asean Common Carbon Market initiative aims to address the lack of a unified carbon market in Asean. Through methodologies across countries and increased market efficiency, this initiative will support a well-functioning and liquid carbon credit market. As part of its efforts, Asean-BAC Malaysia has set up the Malaysia Carbon Market Association to collaborate with similar platforms in other Asean member states. The Asean IPO Prospectus initiative advocates the harmonisation of cross-border initial capital-raising to facilitate a wider pool of capital for regional enterprises. Also among the diverse range of initiatives is the proposal to rebrand the SEA Games as 'Asean Games'. 'Since their launch in January, our 12 flagship initiatives have been progressing steadily through ongoing formal consultations with Asean bodies. These consultations occurred at the 31st AEM Retreat and most recently at the 12th Asean Finance Ministers' and Central Bank Governors' Meeting. 'Asean-BAC will also be having a formal dialogue with Asean leaders at the upcoming 46th Asean Summit later this month,' said Nazir.
New Straits Times
06-05-2025
- Business
- New Straits Times
IPO reforms among 12 proposals Asean-BAC to present at May Summit
KUALA LUMPUR: The Asean Business Advisory Council (Asean-BAC) is set to present its 12 strategic initiatives, including the Asean Business Entity (ABE) framework to Asean leaders at the end of May. Asean-BAC chairman Tan Sri Nazir Razak said the council meeting will coincide with the Asean Leaders' Summit, scheduled for May 26 and 27. "There will be an Asean-BAC Council meeting, and at the same time, an Asean Leaders' Summit. We will be presenting these initiatives, as well as various reports we have prepared," he said during a media briefing here today,. He said the council has already briefed Asean economic ministers, finance ministers and the respective governments. "I think the proposal was very welcomed. I think that it was good that there were comments and I always worry that people won't comment. "We had some good constructive comments from them and we will also be discussing with the Asean secretariat at the same time. "So when we present to Asean leaders, we will be able to get direct comments from them," he added. Nazir said each workstream will follow its own timeline and outcome this year, with reports such as the Asean Philanthropy Framework and private markets projects to be submitted to the leaders. "We expect that the leaders will review them with their teams, and if they find value in the proposals, they may proceed to implement them within their respective countries. "On the other hand, initiatives like the Asean initial public offering prospectus and the ABE framework require policy changes in each member country. If the leaders approve, we hope their respective ministries will begin the necessary work," he said. Nazir said the council is particularly focused on the ABE framework, which proposes a new regional business category to give companies more operational flexibility across Asean.
