Latest news with #AseanEconomicCommunity
South China Morning Post
28-05-2025
- Business
- South China Morning Post
South China Sea tensions ‘won't stop' Asean's blue economy growth, official says
Southeast Asia's plans to grow its blue economy – especially its fisheries sector – will not be hindered by tensions in the South China Sea , according to a senior Asean official, despite warnings from observers that ongoing maritime disputes with China could threaten the region's economic and environmental progress. Satvinder Singh, deputy secretary general of the Asean Economic Community, said disputes involving claimant states such as the Philippines and Vietnam would not hamper the bloc's efforts to grow the industry as part of a broader push to become the world's fourth-largest economy before 2045. 'Fisheries are one of the key sectors in the blue economy for the region,' Singh said at a Friday media briefing on the Asean Community Vision 2045 and the bloc's coming economic strategic plan. 'Those specific incidents that happen in the South China Sea are not going to stop the industry from progressing.' The blue economy – which encompasses maritime industries such as fisheries, tourism, offshore energy and marine transport – is a key component of the Association of Southeast Asian Nations ' push for sustainable development. According to Singh, it sits alongside other major regional initiatives, including the Asean Strategy for Carbon Neutrality and frameworks focused on circular economies, agriculture, energy and transport. Fishermen pull a net onto a beach in Banda Aceh, Indonesia. The blue economy is a key component of Asean's push for sustainable development. Photo: AFP Singh confirmed that the implementation plan for the Asean Blue Economy Framework, adopted in 2023, would be completed this year. The framework outlines regional cooperation on a sector projected by the United Nations Development Programme to generate US$3 trillion in economic value and 43 million jobs by the end of the decade.
New Straits Times
28-05-2025
- Business
- New Straits Times
AEC's digital economy to hit US$1 trillion by 2030: strategic plan unveiled
KUALA LUMPUR: The impact of enhancing the digital economy via the Asean Economic Community (AEC) Strategic Plan 2026-2030 will be immense because the region's digital economy is projected to reach US$1 trillion by 2030, an economist said. KSI Strategic Institute for Asia Pacific economic advisor Dr Anthony Dass said this will be a key priority, and the newly binding Digital Economy Framework Agreement (DEFA) plays a significant role in increasing regional economic integration. "The digital economy contributes by facilitating cross-border trade, promoting innovation, enhancing connectivity and attracting investments into the region. A robust digital infrastructure fosters innovation, leading to new digital services, platforms, and business models that drive economic growth. "DEFA aims to address cross-border challenges and tackle issues like online fraud and misinformation, ensuring a safer and more trustworthy digital environment. Digitalisation will also streamline business processes, enhance productivity, and reduce operational costs across various sectors," he told Bernama. Nevertheless, Dass said significant differences in development levels, regulatory capacity, infrastructure, and digital skills across Asean member states pose challenges to the effective implementation and widespread benefits of DEFA. "Ensuring data free flow with trust while balancing data protection and national sovereignty is also a complex task," he said. Increase Asean economic resilience The potential of the AEC Strategic Plan to enhance regional economic integration is significant, given the lessons learned from the AEC Blueprint 2025, with its 97 per cent implementation rate. "The new plan is designed to be more dynamic and adaptable, moving beyond a 'business-as-usual' approach. By focusing on action-oriented, sustainable, dynamic, adaptable, agile, and inclusive strategies, the plan aims to create a more integrated and cohesive economy. "The emphasis on sustained growth and competitiveness, and the commitment to deeper integration through digitalisation, innovation, and sustainability, suggest a strong foundation for future progress," he said. He said the plan's effectiveness and potential impact will largely depend on the political will and implementation, and its adaptability to global shifts. Dass said its outline of six strategic goals, 44 objectives, and 192 strategic measures demonstrates a comprehensive and detailed approach to advancing regional growth. "While the plan is robust on paper, consistent political will and effective implementation across all member states are paramount. Past experiences show that disparities in development levels and regulatory capacities can hinder progress. "The current global economic landscape is characterised by rapid technological advancements, supply chain disruptions, and evolving trade dynamics. The plan's emphasis on 'agile and forward-looking strategies' suggests an awareness of this, but its actual ability to adapt to unforeseen challenges will be critical," he said. While the upgraded Asean Trade in Goods Agreement (ATIGA) is crucial for reducing trade barriers, he said the plan's effectiveness hinges on its ability to tackle persistent non-tariff barriers, particularly in critical services like finance and banking. "Additionally, the plan's development involved extensive engagement with various stakeholders. Continued engagement with governments, the private sector, civil society, and regional organisations will be vital for its successful implementation and to ensure that the benefits are widely distributed," said Dass. Shorter timeframe The AEC Strategic Plan, with its shorter timeframe of between 2026 and 2030, presents both opportunities and challenges. It allows the plan to quickly adapt to evolving global and regional dynamics. Hence, more responsive to emerging challenges and opportunities. "A five-year horizon can lead to concentrated efforts and a greater sense of urgency in achieving targets. Shorter cycles would allow for more frequent reviews and adjustments, ensuring the plan remains relevant and impactful," Dass said. Nevertheless, it is "highly ambitious" trying to achieve significant structural reforms and deep integration within a shorter period, given the diverse development levels among member states, he said. "Some initiatives, particularly those related to capacity building or institutional strengthening, may require a longer period to show their full impact. Maintaining consistent coordination and momentum across 10 diverse economies within a compressed timeline can be demanding. "Therefore, the effectiveness will ultimately depend on whether the shorter timeframe is utilised to foster greater dynamism and responsiveness, or if it leads to an overburdened agenda that struggles with comprehensive implementation," he said Strengthening MSME Participation The AEC Strategic Plan recognises Asean MSMEs as engines of growth and aims to strengthen their participation via various initiatives such as capacity building and digital readiness, access to finance and export markets and many more. "The plan likely includes measures to improve MSMEs' access to financing and connect them with regional and global export markets, overcoming existing limitations. "Addressing structural differences, inconsistent policies, and the absence of harmonised cross-border regulations that currently constrain MSME growth is crucial," he said, adding that financial assistance and awareness programmes are needed. The plan also focuses on promoting inclusivity among MSMEs to empower youth and women entrepreneurs, ensuring that the benefits of integration are shared widely. "Asean MSMEs will benefit from this plan because it increases competitiveness, expands market access, and promotes greater resilience, by displaying a diversification of markets and stronger support networks to help the MSMEs," said Dass. Measuring the progress Dass said Asean measures the progress of its strategic plans via a combination of mechanisms, drawing lessons from previous blueprints like the AEC Blueprint 2025, which include key performance indicators (KPIs). "The bloc assesses progress, its overall effectiveness, identifies challenges, and draws lessons from it at the end of a plan's cycle," he said. Asean will also conduct council meetings and other ministerial meetings to serve as platforms to review progress, discuss implementation issues, and provide guidance, he said. "These mechanisms ensure accountability, identify bottlenecks, and enable necessary adjustments to achieve its economic integration goals," he added. The leaders of the 10-member grouping recently adopted the AEC Strategic Plan to elevate the bloc's position as the world's fourth-largest economy. The plan will move to the implementation phase with each AEC sector developing its sectoral plans, translating strategic objectives into concrete actions, timelines and performance indicators. Investment, Trade, and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said the plan is a comprehensive roadmap that will be part of the overall Asean Community Vision 2045 (ACV 2045).
The Sun
28-05-2025
- Business
- The Sun
Tackling economic shortfalls in Asean
AS Malaysia hosts the 46th Asean Summit, 2nd Asean GCC-Summit and Asean-GCC-China Summit, a significant milestone has been announced: the Asean Economic Community (AEC) Blueprint 2025 has reached a 97% implementation rate. While commendable, this figure marks not an end but a critical juncture to reflect, recalibrate and reimagine Asean's economic trajectory in a complex global environment. Formally launched in 2015, the AEC represents Asean's most ambitious push towards regional integration. Grounded in five interconnected pillars – economic cohesion, competitiveness and innovation, sectoral cooperation, inclusivity and resilience, and global engagement – the blueprint has guided the region through significant transformation. Asean now stands as the fifth-largest global economy and the second-largest recipient of foreign direct investment. Intra-Asean trade, long criticised for its modest share of overall trade, has nonetheless grown substantially in value, increasing from US$353 billion (RM1.49 trillion) in 2007 to over US$856 billion by 2022. Tools like the Asean single window initiative have further facilitated cross-border trade, enhancing regional supply chain integration. Yet, these achievements have obscured persistent structural gaps. Intra-regional trade remains proportionally low compared to blocs like the European Union or US- Mexico-Canada Agreement, reflecting fragmented regulations and non-tariff barriers that continue to undermine the promise of a truly unified market. Even as Asean becomes more globally connected, the integration of its markets still falls short of potential, revealing a paradox that demands urgent resolution. Progress under the AEC's second pillar, which is fostering a competitive and innovative region, has also been uneven. All 10 Asean countries now possess competition laws and regulatory authorities, up from just five in 2014. However, innovation capabilities remain concentrated in a few member states such as Singapore, Malaysia and Vietnam. Others lag in research capacity, digital adoption and skills readiness, highlighting widening disparities that could threaten the region's collective competitiveness in an era shaped by technological disruption, green transition demands and intensifying geopolitical tensions. Without convergence in regulatory standards and innovation ecosystems, Asean risks falling behind. Connectivity, both physical and digital, has improved markedly but access remains unequal. While major infrastructure and logistics upgrades have reduced costs and streamlined processes, the digital divide continues to disadvantage marginalised populations and less developed economies. Bridging this gap requires not only expanded broadband access and affordability but also harmonised data governance, cybersecurity standards and digital economy frameworks. Without these foundational reforms, Asean's ambition to become a global digital hub will remain aspirational. As the AEC Blueprint 2025 nears completion, Asean must look beyond the percentage of goals fulfilled. The Asean Post-2025: Reimagining the Asean Economic Community report by the ISEAS – Yusof Ishak Institute, rightly points to a shifting context, one marked by climate volatility, inflationary pressures, geopolitical realignments and vulnerable supply chains. In such a world, resilience must become the cornerstone of the AEC's next chapter. That means integrating climate risk into economic planning, embedding equity and social protection into regional frameworks and developing agile institutions capable of collective crisis response. Institutional reforms, particularly in monitoring and dispute resolution, are essential to repositioning Asean as a proactive, credible and responsive economic bloc. Equally important is reaffirming Asean's people-first ethos. Economic integration must deliver tangible benefits to workers, small businesses and communities, not just corporations or state actors. This calls for deeper cooperation in skills recognition, labour mobility and digital upskilling, alongside expanded access to economic opportunities across all segments of society. Sustained prosperity will depend not only on growth rates or trade volumes but on how inclusively Asean can unlock the potential of its people. Externally, Asean must continue to play a constructive role in shaping global trade and investment flows. Its central role in initiatives like the Regional Comprehensive Economic Partnership offers an avenue for reinforcing multilateralism and stabilising regional architecture. But this outward posture must be matched by inward cohesion. Asean's credibility abroad will increasingly rest on its ability to deliver at home. From blueprint to breakthrough, the AEC has evolved from a set of frameworks into a platform of real consequence. But implementation alone is no longer sufficient. The challenge now is to build a bolder and more coherent vision – one that enhances integration, deepens trust and places people at the centre. Asean must move beyond box-ticking and towards building a resilient, inclusive and future-ready regional economy. Ahmad Faiz Yazid is an executive trainee at Permodalan Nasional Berhad and part of the secretariat under Yayasan Sukarelawan
The Sun
28-05-2025
- Business
- The Sun
ASEAN Economic Community Blueprint 2025 nears completion
AS Malaysia hosts the 46th Asean Summit, 2nd Asean GCC-Summit and Asean-GCC-China Summit, a significant milestone has been announced: the Asean Economic Community (AEC) Blueprint 2025 has reached a 97% implementation rate. While commendable, this figure marks not an end but a critical juncture to reflect, recalibrate and reimagine Asean's economic trajectory in a complex global environment. Formally launched in 2015, the AEC represents Asean's most ambitious push towards regional integration. Grounded in five interconnected pillars – economic cohesion, competitiveness and innovation, sectoral cooperation, inclusivity and resilience, and global engagement – the blueprint has guided the region through significant transformation. Asean now stands as the fifth-largest global economy and the second-largest recipient of foreign direct investment. Intra-Asean trade, long criticised for its modest share of overall trade, has nonetheless grown substantially in value, increasing from US$353 billion (RM1.49 trillion) in 2007 to over US$856 billion by 2022. Tools like the Asean single window initiative have further facilitated cross-border trade, enhancing regional supply chain integration. Yet, these achievements have obscured persistent structural gaps. Intra-regional trade remains proportionally low compared to blocs like the European Union or US- Mexico-Canada Agreement, reflecting fragmented regulations and non-tariff barriers that continue to undermine the promise of a truly unified market. Even as Asean becomes more globally connected, the integration of its markets still falls short of potential, revealing a paradox that demands urgent resolution. Progress under the AEC's second pillar, which is fostering a competitive and innovative region, has also been uneven. All 10 Asean countries now possess competition laws and regulatory authorities, up from just five in 2014. However, innovation capabilities remain concentrated in a few member states such as Singapore, Malaysia and Vietnam. Others lag in research capacity, digital adoption and skills readiness, highlighting widening disparities that could threaten the region's collective competitiveness in an era shaped by technological disruption, green transition demands and intensifying geopolitical tensions. Without convergence in regulatory standards and innovation ecosystems, Asean risks falling behind. Connectivity, both physical and digital, has improved markedly but access remains unequal. While major infrastructure and logistics upgrades have reduced costs and streamlined processes, the digital divide continues to disadvantage marginalised populations and less developed economies. Bridging this gap requires not only expanded broadband access and affordability but also harmonised data governance, cybersecurity standards and digital economy frameworks. Without these foundational reforms, Asean's ambition to become a global digital hub will remain aspirational. As the AEC Blueprint 2025 nears completion, Asean must look beyond the percentage of goals fulfilled. The Asean Post-2025: Reimagining the Asean Economic Community report by the ISEAS – Yusof Ishak Institute, rightly points to a shifting context, one marked by climate volatility, inflationary pressures, geopolitical realignments and vulnerable supply chains. In such a world, resilience must become the cornerstone of the AEC's next chapter. That means integrating climate risk into economic planning, embedding equity and social protection into regional frameworks and developing agile institutions capable of collective crisis response. Institutional reforms, particularly in monitoring and dispute resolution, are essential to repositioning Asean as a proactive, credible and responsive economic bloc. Equally important is reaffirming Asean's people-first ethos. Economic integration must deliver tangible benefits to workers, small businesses and communities, not just corporations or state actors. This calls for deeper cooperation in skills recognition, labour mobility and digital upskilling, alongside expanded access to economic opportunities across all segments of society. Sustained prosperity will depend not only on growth rates or trade volumes but on how inclusively Asean can unlock the potential of its people. Externally, Asean must continue to play a constructive role in shaping global trade and investment flows. Its central role in initiatives like the Regional Comprehensive Economic Partnership offers an avenue for reinforcing multilateralism and stabilising regional architecture. But this outward posture must be matched by inward cohesion. Asean's credibility abroad will increasingly rest on its ability to deliver at home. From blueprint to breakthrough, the AEC has evolved from a set of frameworks into a platform of real consequence. But implementation alone is no longer sufficient. The challenge now is to build a bolder and more coherent vision – one that enhances integration, deepens trust and places people at the centre. Asean must move beyond box-ticking and towards building a resilient, inclusive and future-ready regional economy. Ahmad Faiz Yazid is an executive trainee at Permodalan Nasional Berhad and part of the secretariat under Yayasan Sukarelawan Siswa for the Asean Summit 2025. Comments: letters@
New Straits Times
27-05-2025
- Business
- New Straits Times
AEC achievement should spur Asean to greater integration
As Malaysia hosts the 46th Asean Summit, a significant milestone has been announced: the Asean Economic Community (AEC) Blueprint 2025 has reached 97 per cent implementation rate. This marks a critical juncture to reflect, recalibrate and reimagine Asean's economic trajectory in a far more complex global environment. Formally launched in 2015, the AEC represents Asean's most ambitious push towards regional integration. Grounded in five interconnected pillars—economic cohesion, competitiveness and innovation, sectoral cooperation, inclusivity and resilience, and global engagement—the blueprint has guided the region through significant transformation. Asean now stands as the fifth-largest global economy and the second-largest recipient of foreign direct investment. Intra-Asean trade, long criticised for its modest share of overall trade, has grown substantially in value, increasing from US$353 billion in 2007 to over US$856 billion by 2022. Tools like the Asean Single Window have further facilitated cross-border trade, enhancing regional supply chain integration. Yet intra-regional trade remains proportionally low compared to blocs like the European Union or United States-Mexico-Canada Agreement, reflecting fragmented regulations and non-tariff barriers that continue to undermine the promise of a truly unified market. Even as Asean becomes more globally connected, the integration of its own markets still falls short of potential, revealing a paradox that demands urgent resolution. Progress of the AEC's second pillar, the fostering a competitive and innovative region, has been uneven. All Asean members now possess competition laws and regulatory authorities, up from just five in 2014. However, innovation capabilities remain concentrated in a few member states, such as Singapore, Malaysia and Vietnam. Others lag in research capacity, digital adoption and skills readiness, highlighting the widening disparities that could threaten the region's collective competitiveness in an era shaped by technological disruption, green transition demands and intensifying geopolitical tensions. Without convergence in regulatory standards and innovation ecosystems, Asean risks falling behind. Connectivity, both physical and digital, has improved markedly, but access remains unequal. While major infrastructure and logistics upgrades have reduced costs and streamlined processes, the digital divide continues to disadvantage marginalised populations and less developed economies. Bridging this gap requires not only expanded broadband access and affordability, but also harmonised data governance, cybersecurity standards and digital economy frameworks. Without these foundational reforms, Asean's ambition to become a global digital hub will remain aspirational. As the AEC Blueprint 2025 nears completion, Asean must look beyond the percentage of goals fulfilled. The "ASEAN Post-2025: Reimagining the ASEAN Economic Community" report by the ISEAS-Yusof Ishak Institute rightly points to a shifting context, one marked by climate volatility, inflationary pressures, geopolitical realignments and vulnerable supply chains. In such a world, resilience must become the cornerstone of the AEC's next chapter. That means integrating climate risk into economic planning, embedding equity and social protection into regional frameworks, and developing agile institutions capable of collective crisis response. Institutional reforms, particularly in monitoring and dispute resolution, are essential to reposition Asean as a proactive, credible and responsive economic bloc. Equally important is reaffirming Asean's people-first ethos. Economic integration must deliver tangible benefits to workers, small businesses and communities, not just corporations or state actors. This calls for deeper cooperation in skills recognition, labour mobility and digital upskilling, alongside expanded access to economic opportunities across all segments of society. Sustained prosperity will depend not only on growth rates or trade volumes, but also on how inclusively Asean can unlock the potential of its people. Externally, Asean must continue to play a constructive role in shaping global trade and investment flows. Its central role in initiatives like the Regional Comprehensive Economic Partnership offers an avenue for reinforcing multilateralism and stabilising regional architecture. This outward posture must be matched by inward cohesion. Asean's credibility abroad will increasingly rest on its ability to deliver at home. From blueprint to breakthrough, the AEC has evolved from a set of frameworks into a platform of real consequence. The challenge now is to build a bolder, more coherent vision. One that enhances integration, deepens trust and places people at the centre. Asean must move beyond box-ticking towards building a resilient, inclusive, and future-ready. The writer is part of the Secretariat under Yayasan Sukarelawan Siswa for the Asean Summit 2025.
