Latest news with #CARIASEANResearchandAdvocacy
Barnama
14-07-2025
- Business
- Barnama
From Silos to Strategy: ASEAN Must Converge, Integrate and Lead
Sharing his views from London, Chairman of CARI ASEAN Research and Advocacy, Tan Sri Dr. Munir Majid, said the 32-page, 160-paragraph joint communique covered a wide range of issues. KUALA LUMPUR, July 14 (Bernama) -- The recently concluded 58th ASEAN Foreign Ministers' Meeting (AMM) was hailed as a significant step forward for the regional bloc, with the joint communique described as 'very comprehensive' and a much-needed response to the region's evolving political-security and economic landscape. This initiative, he added, acknowledges the reality that economic issues have increasingly become securitised, particularly amid global disruptions and trade tensions. What stood out most to Munir was the historic decision to initiate formal coordination between ASEAN foreign ministers and economic ministers : 'This is the first time. It's a very good thing because they have not been talking to each other very much. They've been working in silos'. 'The breadth and depth of the issues covered showed that ASEAN officials were seized of the matters at hand. However, there may be one or two little potholes you could identify; but overall, it was a good document," said the Visiting Senior Fellow at the Centre for International Affairs, Diplomacy and Strategy at the London School of Economics (LSE). But with ASEAN, commitments on paper must be matched by concrete national efforts. It is not enough to merely meet – the meetings must lead to outcomes. Munir argued that ASEAN should go further by launching a strategic project to converge the two major regional trade pacts: the Regional Comprehensive Economic Partnership (RCEP) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). "RCEP accounts for about 30 per cent of global gross domestic product, largely because of China. CPTPP, on the other hand, covers 18 per cent. Convergence between the two would be a major step towards regional economic integration," he told Bernama. He outlined two pathways for convergence: common membership and common standards. Countries like China, which is part of RCEP but not CPTPP, could be allowed into the latter if they meet required standards. "Let China join and fulfil them. Several CPTPP members have exemptions, so this shouldn't be used as a barrier,' said the ASEAN affairs analyst. Alternatively, both blocs could align on standards such as tariff rates and rules of origin, even if their memberships remain distinct. This, he said, is particularly necessary now, given the US's imposition of new tariffs and increasing controls on investment. ASEAN and its partners need to create new areas of growth among themselves. In April 2025, the US invoked its 'reciprocal tariffs' mechanism, announcing levies ranging from 24 per cent to 49 per cent on imports from ASEAN member states. Under this move, Malaysia was hit with a 24 per cent tariff, Cambodia 49 per cent, Vietnam 46 per cent, while Laos and Myanmar saw 40 per cent, among others. By July, the tariffs were clarified: Malaysia's rate was up by one per cent to 25 per cent, while Vietnam and Cambodia saw reductions (to 20 per cent and 36 per cent respectively), with Indonesia and Thailand remaining at 32 per cent and 36 per cent. Singapore, the Philippines, and Brunei were still awaiting official confirmation of their respective tariff rates. Nevertheless, the Asia-Pacific, Munir emphasised, remains the centre of global economic growth. 'While the US remains a critical player, if America chooses not to participate constructively, the region must move on,' he said. US Engagement: Interests, Investments, and Influence In this regard, Munir welcomed the participation of US Secretary of State Marco Rubio at the AMM and the East Asia Summit (EAS), calling it a sign of continued American interest in the region. He revealed that the EAS was an initiative championed by Malaysia's former Prime Minister, the late Tun Abdullah Ahmad Badawi, and it has grown to include 18 members. Rubio's presence, he noted, shows the US still wants to protect its massive investments in Southeast Asia. "People forget this – US investments in Southeast Asia are larger than in China, Japan, South Korea and India combined. That's a huge interest to protect. 'However, ASEAN must also articulate its own interests clearly. We recognise US interests, but we too must protect ours, without being intimidated by Trump-style tactics," he said, adding that Rubio appeared more accommodative and willing to listen. Addressing Difficult Regional Issues: Myanmar, Cambodia-Thailand and Maritime Security On humanitarian issues, Munir acknowledged ASEAN's efforts to support ceasefire calls in Gaza, though he noted the absence of any unified condemnation of Israeli actions. He acknowledged that there was no consensus in ASEAN on calling it genocide, probably because they wanted to prioritise humanitarian assistance and ceasefire efforts. The prominent ASEAN observer also addressed sensitive issues that were deliberately omitted or underplayed in the communique, including the ongoing border dispute between Cambodia and Thailand. "It is not a domestic matter; it's an international one. But because it's so sensitive, ASEAN decided to call for a ceasefire without assigning blame," he explained. He also voiced concern over illegal ship-to-ship transfer activities, pointing out that these issues require serious enforcement and cooperation. Regarding Myanmar, Munir expressed mixed feelings. While he mentioned continued support for Tan Sri Othman Hashim's efforts as special envoy, Munir said that the region has not seen much progress. He welcomed Foreign Minister Datuk Seri Mohamad Hasan's confirmation that he and four other ASEAN ministers would visit Myanmar in September. "That's good. We have to be active in trying to heal this wound." Urgency for a South China Sea Code of Conduct On the South China Sea issue, Munir noted ASEAN's reference to the 2002 Declaration on the Conduct of Parties (DOC), and the "third reading" of the long-awaited Code of Conduct (COC). "It's been over two decades. I hope something actually materialises soon. Whether legally binding or not, a COC should govern behaviour. If you break the code, you break the code." Munir also stressed the need for ASEAN to step up its role in ensuring the region remains a nuclear weapons-free zone. "ZOPFAN was declared in 1971. Russia and China support this, but the US has yet to fully commit," he said. While Malaysia and the US have signed an MOU on peaceful nuclear energy, he urged Washington to match its economic engagement with security assurances. "We must ensure nuclear weapons don't creep into the region. The radiation effect knows no borders." He also lauded the accession of Algeria and Uruguay to the Treaty of Amity and Cooperation (TAC), which now has 57 signatories. Initiated in 1976, the TAC is ASEAN's umbrella for peaceful dispute resolution and non-interference; and therefore, with more countries joining, shows ASEAN's expanding diplomatic remit is a wonderful thing, he said. Looking Ahead: Priorities for the 47th ASEAN Summit As the region looks towards the 47th ASEAN Summit in October, Munir outlined three concrete hopes: a formal instruction for convergence between RCEP and CPTPP, a firm Code of Conduct on the South China Sea, and accelerated steps towards ASEAN economic integration. "We talk about digital economy and AI, but the free movement of skilled labour is still lacking. More advanced countries must help pull others forward," he said, stressing the potential for ASEAN to add US$3 trillion to its GDP by 2050. On tariffs, particularly the US' 25 per cent tariff on Malaysian goods, Munir urged pragmatism. "Yes, others like Vietnam negotiated better. But they made painful commitments to import more US goods and restrict transshipments. Malaysia must strike a balance between protecting national interests and offering trade-offs." He also cautioned against vilifying Malaysian negotiators. "It's tough. America moves the goalposts. One day it's about tariffs, the next it's about halal certification or AI chip leakages. Trump interferes in domestic policies too." Moving forward, Munir called on ASEAN to stay the course and build a resilient regional economy. "If globalisation has ended with Trump, let us preserve the good parts of it in our region. Let's build a platform for a new global economic order with ASEAN at its centre," he said. -- BERNAMA BERNAMA provides up-to-date authentic and comprehensive news and information which are disseminated via BERNAMA Wires; BERNAMA TV on Astro 502, unifi TV 631 and MYTV 121 channels and BERNAMA Radio on FM93.9 (Klang Valley), FM107.5 (Johor Bahru), FM107.9 (Kota Kinabalu) and FM100.9 (Kuching) frequencies. Follow us on social media : Facebook : @bernamaofficial, @bernamatv, @bernamaradio Twitter : @ @BernamaTV, @bernamaradio Instagram : @bernamaofficial, @bernamatvofficial, @bernamaradioofficial TikTok : @bernamaofficial
Malaysia Sun
13-06-2025
- Business
- Malaysia Sun
ASEAN poised for major global economic role, but challenges remain, experts say
KUALA LUMPUR, June 13 (Xinhua) -- ASEAN could emerge as the world's fourth-largest economy in the coming decades, experts say, but the regional bloc must accelerate integration, strengthen institutions, and adapt to global shifts to realize this potential. Experts also urge ASEAN to act collectively to solidify its global presence. EMERGING INDUSTRY FUELING COMMON FUTURE "ASEAN, presently with an economic size of 3.8 trillion U.S. dollars, could become the fourth-largest economy on an aggregated basis but of a smaller world," said Mohd Munir Abdul Majid, chairman of CARI ASEAN Research and Advocacy, in a recent email interview with Xinhua. Mohd Munir, who is also president of the ASEAN Business Club and a senior fellow at LSE IDEAS, said technology -- particularly artificial intelligence (AI) in the services sector -- will drive future growth. He emphasized that ASEAN's access to technology should be guided by cost and technical quality. "E-commerce could be a key catalyst for intra-regional trade," Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Berhad, said that a robust digital infrastructure, including telecommunications and smart devices, is essential. Mohd Afzanizam also highlighted the importance of logistics to ensure speedy delivery, which necessitates efficient warehousing systems. He further emphasized that payment systems, such as QR code networks, are crucial to support micro, small, and medium enterprises (MSMEs) in expanding into international markets. Oh Ei Sun, principal adviser at the Pacific Research Center of Malaysia, stated that ASEAN should prioritize high-tech sectors that offer greater value-added potential. However, he told Xinhua that traditional commodities like palm oil and petroleum would remain vital as the region catches up in advanced industries. ASEAN INTEGRATION PROGRESSING STEADILY ASEAN's economic integration has been advancing gradually, with a strong emphasis on consensus and free trade, experts say. "ASEAN's economic integration has progressed steadily rather than hastily, grounded in a consistent commitment to free trade," said Mohd Munir. According to him, ASEAN's journey began with the ASEAN Free Trade Area in 1992, followed by the launch of the ASEAN Economic Community (AEC). The process is now guided by the Kuala Lumpur Declaration on ASEAN 2045, adopted at the 46th ASEAN Summit in May. "There is a lot happening. Not fast enough or optimally, but in a clear direction," he noted, adding that ASEAN has progressed based on consensus to deepen integration and free trade. Li Yuqing, assistant professor of Institute for International and Area Studies of Tsinghua University, said ASEAN's updates to the ASEAN Trade in Goods Agreement enhance regional trade and deepen integration, supporting its goal of becoming the world's fourth-largest economy. "Above all, ASEAN is a peaceful region, which makes it a conducive location for foreign direct investment and business ventures that can come from across the globe," Mohd Afzanizam said, highlighting initiatives such as the Johor-Singapore Special Economic Zone as evidence of strengthening regional ties. INSTITUTIONAL REFORMS, STRATEGIC CLARITY NEEDED Despite progress, experts pointed out that ASEAN faces institutional limitations. Mohd Munir said the bloc's decision-making structure remains slow, and the secretariat is under-resourced, despite the ASEAN 2045 vision calling for strengthening. "The point ASEAN must realize is that there is an urgent need to develop its strategic options in a changing world. It has taken a slow and steady course on increasing intra-regional trade, labor mobility and institutional implementation, emphasizing always on consensus," he said. "But there are now big issues for decision-making that cannot follow that route." Mohd Afzanizam warned that non-tariff barriers remain a key obstacle, as member states often act to protect their domestic industries. "Continuous dialogue, both government-to-government and government-to-business, is vital to identify and bridge these gaps," he said. Oh echoed those concerns, urging ASEAN to address internal development disparities. "ASEAN should focus on eradicating the abject poverty amongst itself for the least developed member states, and escaping the middle-income trap for the developing member states," he added. CHINA TIES OFFER CHANCE FOR COOPERATION Experts believe ASEAN-China relations are entering a new phase, driven by growing investment and strategic collaboration. Mohd Munir noted that ASEAN-China relations have been close in trade and, increasingly, in investment. In the context of global trade tensions, it would be good to deepen that relationship for mutual benefit. "For China, ASEAN's economic integration provides a relatively stable regional trade environment, helping China manage external trade risks and enhance economic resilience and stability," Li mentioned. She also noted that integration makes ASEAN's investment environment more stable and transparent, enabling businesses to better access the ASEAN market and achieve more efficient resource allocation. ASEAN countries may deepen cooperation with China in infrastructure development, which would accelerate progress in the digital economy and green transition, Oh suggested. GREATER INFLUENCE AMID UNCERTAINTY Regardless of whether ASEAN becomes the fourth-largest economy, its current size already warrants greater global influence, as the bloc is urged to exercise its weight in global affairs. "ASEAN needs to be less reticent about asserting its influence and initiating new ideas in a world marked by global disorder," he added. "Deeper ASEAN economic integration would strengthen the bloc's bargaining power," Li said, adding that it would enhance its role as a regional coordinator and allow it to play a more significant role. Mohd Afzanizam said that the shift toward a multipolar world provides more platforms for diplomatic solutions rather than unilateral decisions, especially from a single superpower, which can be disruptive. "This should resonate well with ASEAN as the region has always been peaceful. Certainly, ASEAN would want to advocate this at the global arena which is a universally accepted value," he added.
Malaysia Sun
13-06-2025
- Business
- Malaysia Sun
Economic Watch: ASEAN poised for major global economic role, but challenges remain, experts say
KUALA LUMPUR, June 12 (Xinhua) -- ASEAN could emerge as the world's fourth-largest economy in the coming decades, experts say, but the regional bloc must accelerate integration, strengthen institutions, and adapt to global shifts to realize this potential. Experts also urge ASEAN to act collectively to solidify its global presence. EMERGING INDUSTRY FUELING COMMON FUTURE "ASEAN, presently with an economic size of 3.8 trillion U.S. dollars, could become the fourth-largest economy on an aggregated basis but of a smaller world," said Mohd Munir Abdul Majid, chairman of CARI ASEAN Research and Advocacy, in a recent email interview with Xinhua. Mohd Munir, who is also president of the ASEAN Business Club and a senior fellow at LSE IDEAS, said technology -- particularly artificial intelligence (AI) in the services sector -- will drive future growth. He emphasized that ASEAN's access to technology should be guided by cost and technical quality. "E-commerce could be a key catalyst for intra-regional trade," Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Berhad, said that a robust digital infrastructure, including telecommunications and smart devices, is essential. Mohd Afzanizam also highlighted the importance of logistics to ensure speedy delivery, which necessitates efficient warehousing systems. He further emphasized that payment systems, such as QR code networks, are crucial to support micro, small, and medium enterprises (MSMEs) in expanding into international markets. Oh Ei Sun, principal adviser at the Pacific Research Center of Malaysia, stated that ASEAN should prioritize high-tech sectors that offer greater value-added potential. However, he told Xinhua that traditional commodities like palm oil and petroleum would remain vital as the region catches up in advanced industries. ASEAN INTEGRATION PROGRESSING STEADILY ASEAN's economic integration has been advancing gradually, with a strong emphasis on consensus and free trade, experts say. "ASEAN's economic integration has progressed steadily rather than hastily, grounded in a consistent commitment to free trade," said Mohd Munir. According to him, ASEAN's journey began with the ASEAN Free Trade Area in 1992, followed by the launch of the ASEAN Economic Community (AEC). The process is now guided by the Kuala Lumpur Declaration on ASEAN 2045, adopted at the 46th ASEAN Summit in May. "There is a lot happening. Not fast enough or optimally, but in a clear direction," he noted, adding that ASEAN has progressed based on consensus to deepen integration and free trade. Li Yuqing, assistant professor of Institute for International and Area Studies of Tsinghua University, said ASEAN's updates to the ASEAN Trade in Goods Agreement enhance regional trade and deepen integration, supporting its goal of becoming the world's fourth-largest economy. "Above all, ASEAN is a peaceful region, which makes it a conducive location for foreign direct investment and business ventures that can come from across the globe," Mohd Afzanizam said, highlighting initiatives such as the Johor-Singapore Special Economic Zone as evidence of strengthening regional ties. INSTITUTIONAL REFORMS, STRATEGIC CLARITY NEEDED Despite progress, experts pointed out that ASEAN faces institutional limitations. Mohd Munir said the bloc's decision-making structure remains slow, and the secretariat is under-resourced, despite the ASEAN 2045 vision calling for strengthening. "The point ASEAN must realize is that there is an urgent need to develop its strategic options in a changing world. It has taken a slow and steady course on increasing intra-regional trade, labor mobility and institutional implementation, emphasizing always on consensus," he said. "But there are now big issues for decision-making that cannot follow that route." Mohd Afzanizam warned that non-tariff barriers remain a key obstacle, as member states often act to protect their domestic industries. "Continuous dialogue, both government-to-government and government-to-business, is vital to identify and bridge these gaps," he said. Oh echoed those concerns, urging ASEAN to address internal development disparities. "ASEAN should focus on eradicating the abject poverty amongst itself for the least developed member states, and escaping the middle-income trap for the developing member states," he added. CHINA TIES OFFER CHANCE FOR COOPERATION Experts believe ASEAN-China relations are entering a new phase, driven by growing investment and strategic collaboration. Mohd Munir noted that ASEAN-China relations have been close in trade and, increasingly, in investment. In the context of global trade tensions, it would be good to deepen that relationship for mutual benefit. "For China, ASEAN's economic integration provides a relatively stable regional trade environment, helping China manage external trade risks and enhance economic resilience and stability," Li mentioned. She also noted that integration makes ASEAN's investment environment more stable and transparent, enabling businesses to better access the ASEAN market and achieve more efficient resource allocation. ASEAN countries may deepen cooperation with China in infrastructure development, which would accelerate progress in the digital economy and green transition, Oh suggested. GREATER INFLUENCE AMID UNCERTAINTY Regardless of whether ASEAN becomes the fourth-largest economy, its current size already warrants greater global influence, as the bloc is urged to exercise its weight in global affairs. "ASEAN needs to be less reticent about asserting its influence and initiating new ideas in a world marked by global disorder," he added. "Deeper ASEAN economic integration would strengthen the bloc's bargaining power," Li said, adding that it would enhance its role as a regional coordinator and allow it to play a more significant role. Mohd Afzanizam said that the shift toward a multipolar world provides more platforms for diplomatic solutions rather than unilateral decisions, especially from a single superpower, which can be disruptive. "This should resonate well with ASEAN as the region has always been peaceful. Certainly, ASEAN would want to advocate this at the global arena which is a universally accepted value," he added.
The Sun
12-06-2025
- Business
- The Sun
Economic Watch: ASEAN poised for major global economic role, but challenges remain, experts say
KUALA LUMPUR: ASEAN could emerge as the world's fourth-largest economy in the coming decades, experts say, but the regional bloc must accelerate integration, strengthen institutions, and adapt to global shifts to realize this potential. Experts also urge ASEAN to act collectively to solidify its global presence. EMERGING INDUSTRY FUELING COMMON FUTURE 'ASEAN, presently with an economic size of 3.8 trillion U.S. dollars, could become the fourth-largest economy on an aggregated basis but of a smaller world,' said Mohd Munir Abdul Majid, chairman of CARI ASEAN Research and Advocacy, in a recent email interview with Xinhua. Mohd Munir, who is also president of the ASEAN Business Club and a senior fellow at LSE IDEAS, said technology -- particularly artificial intelligence (AI) in the services sector -- will drive future growth. He emphasized that ASEAN's access to technology should be guided by cost and technical quality. 'E-commerce could be a key catalyst for intra-regional trade,' Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Berhad, said that a robust digital infrastructure, including telecommunications and smart devices, is essential. Mohd Afzanizam also highlighted the importance of logistics to ensure speedy delivery, which necessitates efficient warehousing systems. He further emphasized that payment systems, such as QR code networks, are crucial to support micro, small, and medium enterprises (MSMEs) in expanding into international markets. Oh Ei Sun, principal adviser at the Pacific Research Center of Malaysia, stated that ASEAN should prioritize high-tech sectors that offer greater value-added potential. However, he told Xinhua that traditional commodities like palm oil and petroleum would remain vital as the region catches up in advanced industries. ASEAN INTEGRATION PROGRESSING STEADILY ASEAN's economic integration has been advancing gradually, with a strong emphasis on consensus and free trade, experts say. 'ASEAN's economic integration has progressed steadily rather than hastily, grounded in a consistent commitment to free trade,' said Mohd Munir. According to him, ASEAN's journey began with the ASEAN Free Trade Area in 1992, followed by the launch of the ASEAN Economic Community (AEC). The process is now guided by the Kuala Lumpur Declaration on ASEAN 2045, adopted at the 46th ASEAN Summit in May. 'There is a lot happening. Not fast enough or optimally, but in a clear direction,' he noted, adding that ASEAN has progressed based on consensus to deepen integration and free trade. Li Yuqing, assistant professor of Institute for International and Area Studies of Tsinghua University, said ASEAN's updates to the ASEAN Trade in Goods Agreement enhance regional trade and deepen integration, supporting its goal of becoming the world's fourth-largest economy. 'Above all, ASEAN is a peaceful region, which makes it a conducive location for foreign direct investment and business ventures that can come from across the globe,' Mohd Afzanizam said, highlighting initiatives such as the Johor-Singapore Special Economic Zone as evidence of strengthening regional ties. INSTITUTIONAL REFORMS, STRATEGIC CLARITY NEEDED Despite progress, experts pointed out that ASEAN faces institutional limitations. Mohd Munir said the bloc's decision-making structure remains slow, and the secretariat is under-resourced, despite the ASEAN 2045 vision calling for strengthening. 'The point ASEAN must realize is that there is an urgent need to develop its strategic options in a changing world. It has taken a slow and steady course on increasing intra-regional trade, labor mobility and institutional implementation, emphasizing always on consensus,' he said. 'But there are now big issues for decision-making that cannot follow that route.' Mohd Afzanizam warned that non-tariff barriers remain a key obstacle, as member states often act to protect their domestic industries. 'Continuous dialogue, both government-to-government and government-to-business, is vital to identify and bridge these gaps,' he said. Oh echoed those concerns, urging ASEAN to address internal development disparities. 'ASEAN should focus on eradicating the abject poverty amongst itself for the least developed member states, and escaping the middle-income trap for the developing member states,' he added. CHINA TIES OFFER CHANCE FOR COOPERATION Experts believe ASEAN-China relations are entering a new phase, driven by growing investment and strategic collaboration. Mohd Munir noted that ASEAN-China relations have been close in trade and, increasingly, in investment. In the context of global trade tensions, it would be good to deepen that relationship for mutual benefit. 'For China, ASEAN's economic integration provides a relatively stable regional trade environment, helping China manage external trade risks and enhance economic resilience and stability,' Li mentioned. She also noted that integration makes ASEAN's investment environment more stable and transparent, enabling businesses to better access the ASEAN market and achieve more efficient resource allocation. ASEAN countries may deepen cooperation with China in infrastructure development, which would accelerate progress in the digital economy and green transition, Oh suggested. GREATER INFLUENCE AMID UNCERTAINTY Regardless of whether ASEAN becomes the fourth-largest economy, its current size already warrants greater global influence, as the bloc is urged to exercise its weight in global affairs. 'ASEAN needs to be less reticent about asserting its influence and initiating new ideas in a world marked by global disorder,' he added. 'Deeper ASEAN economic integration would strengthen the bloc's bargaining power,' Li said, adding that it would enhance its role as a regional coordinator and allow it to play a more significant role. Mohd Afzanizam said that the shift toward a multipolar world provides more platforms for diplomatic solutions rather than unilateral decisions, especially from a single superpower, which can be disruptive. 'This should resonate well with ASEAN as the region has always been peaceful. Certainly, ASEAN would want to advocate this at the global arena which is a universally accepted value,' he added.
The Sun
12-06-2025
- Business
- The Sun
ASEAN poised for major global economic role, but challenges remain, experts say
KUALA LUMPUR: ASEAN could emerge as the world's fourth-largest economy in the coming decades, experts say, but the regional bloc must accelerate integration, strengthen institutions, and adapt to global shifts to realize this potential. Experts also urge ASEAN to act collectively to solidify its global presence. EMERGING INDUSTRY FUELING COMMON FUTURE 'ASEAN, presently with an economic size of 3.8 trillion U.S. dollars, could become the fourth-largest economy on an aggregated basis but of a smaller world,' said Mohd Munir Abdul Majid, chairman of CARI ASEAN Research and Advocacy, in a recent email interview with Xinhua. Mohd Munir, who is also president of the ASEAN Business Club and a senior fellow at LSE IDEAS, said technology -- particularly artificial intelligence (AI) in the services sector -- will drive future growth. He emphasized that ASEAN's access to technology should be guided by cost and technical quality. 'E-commerce could be a key catalyst for intra-regional trade,' Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Berhad, said that a robust digital infrastructure, including telecommunications and smart devices, is essential. Mohd Afzanizam also highlighted the importance of logistics to ensure speedy delivery, which necessitates efficient warehousing systems. He further emphasized that payment systems, such as QR code networks, are crucial to support micro, small, and medium enterprises (MSMEs) in expanding into international markets. Oh Ei Sun, principal adviser at the Pacific Research Center of Malaysia, stated that ASEAN should prioritize high-tech sectors that offer greater value-added potential. However, he told Xinhua that traditional commodities like palm oil and petroleum would remain vital as the region catches up in advanced industries. ASEAN INTEGRATION PROGRESSING STEADILY ASEAN's economic integration has been advancing gradually, with a strong emphasis on consensus and free trade, experts say. 'ASEAN's economic integration has progressed steadily rather than hastily, grounded in a consistent commitment to free trade,' said Mohd Munir. According to him, ASEAN's journey began with the ASEAN Free Trade Area in 1992, followed by the launch of the ASEAN Economic Community (AEC). The process is now guided by the Kuala Lumpur Declaration on ASEAN 2045, adopted at the 46th ASEAN Summit in May. 'There is a lot happening. Not fast enough or optimally, but in a clear direction,' he noted, adding that ASEAN has progressed based on consensus to deepen integration and free trade. Li Yuqing, assistant professor of Institute for International and Area Studies of Tsinghua University, said ASEAN's updates to the ASEAN Trade in Goods Agreement enhance regional trade and deepen integration, supporting its goal of becoming the world's fourth-largest economy. 'Above all, ASEAN is a peaceful region, which makes it a conducive location for foreign direct investment and business ventures that can come from across the globe,' Mohd Afzanizam said, highlighting initiatives such as the Johor-Singapore Special Economic Zone as evidence of strengthening regional ties. INSTITUTIONAL REFORMS, STRATEGIC CLARITY NEEDED Despite progress, experts pointed out that ASEAN faces institutional limitations. Mohd Munir said the bloc's decision-making structure remains slow, and the secretariat is under-resourced, despite the ASEAN 2045 vision calling for strengthening. 'The point ASEAN must realize is that there is an urgent need to develop its strategic options in a changing world. It has taken a slow and steady course on increasing intra-regional trade, labor mobility and institutional implementation, emphasizing always on consensus,' he said. 'But there are now big issues for decision-making that cannot follow that route.' Mohd Afzanizam warned that non-tariff barriers remain a key obstacle, as member states often act to protect their domestic industries. 'Continuous dialogue, both government-to-government and government-to-business, is vital to identify and bridge these gaps,' he said. Oh echoed those concerns, urging ASEAN to address internal development disparities. 'ASEAN should focus on eradicating the abject poverty amongst itself for the least developed member states, and escaping the middle-income trap for the developing member states,' he added. CHINA TIES OFFER CHANCE FOR COOPERATION Experts believe ASEAN-China relations are entering a new phase, driven by growing investment and strategic collaboration. Mohd Munir noted that ASEAN-China relations have been close in trade and, increasingly, in investment. In the context of global trade tensions, it would be good to deepen that relationship for mutual benefit. 'For China, ASEAN's economic integration provides a relatively stable regional trade environment, helping China manage external trade risks and enhance economic resilience and stability,' Li mentioned. She also noted that integration makes ASEAN's investment environment more stable and transparent, enabling businesses to better access the ASEAN market and achieve more efficient resource allocation. ASEAN countries may deepen cooperation with China in infrastructure development, which would accelerate progress in the digital economy and green transition, Oh suggested. GREATER INFLUENCE AMID UNCERTAINTY Regardless of whether ASEAN becomes the fourth-largest economy, its current size already warrants greater global influence, as the bloc is urged to exercise its weight in global affairs. 'ASEAN needs to be less reticent about asserting its influence and initiating new ideas in a world marked by global disorder,' he added. 'Deeper ASEAN economic integration would strengthen the bloc's bargaining power,' Li said, adding that it would enhance its role as a regional coordinator and allow it to play a more significant role. Mohd Afzanizam said that the shift toward a multipolar world provides more platforms for diplomatic solutions rather than unilateral decisions, especially from a single superpower, which can be disruptive. 'This should resonate well with ASEAN as the region has always been peaceful. Certainly, ASEAN would want to advocate this at the global arena which is a universally accepted value,' he added.
