Latest news with #DEFA
The Sun
3 days ago
- Business
- The Sun
Malaysia champions regional digital trade under 2025 Asean Chairmanship
KLANG: Malaysia is leading efforts to boost digital trade as the 2025 Asean chair and support the region's economic recovery. Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said under Malaysia's leadership, Asean is poised to address critical challenges such as supply chain disruptions, digital transformation, and climate change. He stated that the country is collaborating closely with regional partners to implement the Asean Comprehensive Recovery Framework (ACRF), which aims to ensure a robust and sustainable recovery from the economic impacts of recent global crises. 'One of Malaysia's key priorities is to enhance the Asean Single Window, a digital platform that streamlines trade processes across member states. 'By reducing bureaucracy and improving trade efficiency, the ASW will play a pivotal role in strengthening regional supply chains and boosting intra-Asean trade, which currently accounts for nearly 25% of total Asean trade,' he said at the groundbreaking ceremony of YCH Group's RM500 million supply chain city Malaysia (SCC MY). Additionally, he said Malaysia is championing the development of the Asean Digital Economy Framework Agreement (DEFA), which seeks to harmonise digital trade regulations and promote cross-border e-commerce. 'This initiative will not only enhance digital connectivity but also create new opportunities for businesses and consumers across the region,' he said. The Asean Comprehensive Recovery Framework (ACRF) is a strategic initiative adopted by the Association of Southeast Asian Nations (ASEAN) during the 37th Asean Summit on November 12, 2020. It serves as the region's consolidated exit strategy from the Covid-19 crisis, aiming to guide Asean's recovery efforts across various sectors and stages of recovery. The framework emphasises that digitalisation will be crucial to ensuring continuity in trade and services, particularly during crises. It calls for wider acceptance of digital documents, simplified customs procedures, and increased use of local currencies to reduce transaction costs and enhance financial integration. To support this, several Asean member states have begun relaxing documentation requirements and adopting digital platforms such as the Asean Single Window for customs declarations and certificates of origin, although inconsistencies remain between countries and agencies. Efforts are also underway to address gaps in infrastructure, data governance, cybersecurity, and legal frameworks—critical enablers for a seamless, secure regional digital economy under DEFA.
Zawya
5 days ago
- Business
- Zawya
ASEAN leaders renew commitment to addressing global trade turmoil
KUALA LUMPUR -- Leaders of the Association of Southeast Asian Nations (ASEAN) adopted a statement at the end of their 46th summit in Kuala Lumpur on Tuesday to reaffirm commitment to collective action to address the economic uncertainty and trade instability around the globe. They expressed concern over the increasing unilateral trade measures and punitive actions, including the reciprocal tariffs and protectionist restrictions on investment, which risk undermine the world economic system. Those actions have direct adverse impacts on the ASEAN economies, according to the statement issued by the host Malaysian Ministry of Foreign Affairs. The leaders agreed to stand as up as one to protect the regional economic stability, enhance economic resilience and sustainable development. They stressed the importance of maintaining constructive dialogue and mutual respect based on the rules of the international law and the Treaty of Amity and Cooperation in Southeast Asia (TAC). The leaders agreed to speed up the implementation of ASEAN Digital Economy Framework Agreement (DEFA) and update the ASEAN Trade in Goods Agreement (ATIGA) with a view to speeding up regional integration and creating a stable and competitive business environment. They also agreed to update the ASEAN+one free trade agreements (AFTAs) with dialogue partners - such as China, India, Japan and South Korea, so as to boost bilateral trade, control instability in supply chains, and expand the prospects of cooperation with new partners, including the Gulf Cooperation Council (GCC) member countries. To support internal coordination, the leaders launched the ASEAN Geo-economics Task Force and tasked the competent ministers to keep watch on global economic developments and draw up a single strategy for response to emergencies. Reaffirming commitment to a global multi-lateral trade system based on transparency, justice and indiscrimination, the leaders stated readiness to engage in constructive dialogue with other members of the World Trade Organization and push for substantive reforms that could better preserve the credibility and resilience of the global trade system. As the ASEAN Economic Community 2025 enters its final stage, the leaders adopted "the ASEAN Community Vision 2045: Our Shared Future." The new ambitious 20-year vision and its strategic plans aim to ensure seamless coordination across pillars and sectors and cross-sectoral strategic measures. The ASEAN leaders stressed the importance of cooperation with regional partners to ensure stability and peace in the Indo-Pacific region based on transparency and rule of law. Founded in 1967, the ASEAN is made up of Brunei Darussalam, the Kingdom of Cambodia, the Republic of Indonesia, the Lao People's Democratic Republic, Malaysia, the Republic of the Union of Myanmar, the Republic of the Philippines, the Republic of Singapore, the Kingdom of Thailand, and the Socialist Republic of Viet Nam. All KUNA right are reserved © 2022. Provided by SyndiGate Media Inc. (
Malaysian Reserve
5 days ago
- Business
- Malaysian Reserve
ASEAN reaffirms unity and centrality as key to regional peace and prosperity
by FARAH SOLHI ASEAN member countries have reaffirmed their stance of practising unity and centrality as the key to regional peace, stability and prosperity After the conclusion of the 46th ASEAN Summit on May 27, the association collectively stated that it remained committed to being a reliable economic partner to all, that will continue to advance its regional economic integration while strengthening and expanding its existing economic partnerships. Apart from this, the association members will continue to seek opportunities for economic cooperation with new partners that are anchored in mutual respect, shared values and a common goal of peace and prosperity. 'We stand ready to work constructively with all partners to advance and support a resilient, inclusive and rules-based multilateral trading system for the benefit of our people and economies. 'We stress our strongest resolve to stand together, as ASEAN, in safeguarding the region's economic stability, resilience and long-term growth trajectory,' they said in a joint statement. They also emphasised that unilateral and retaliatory trade actions are counterproductive and risk exacerbating global economic fragmentation, especially when these actions create indirect impacts on ASEAN. The members have instructed their respective officials to monitor the potential risk of trade diversion and to engage with partners through established platforms to seek constructive solutions, while remaining committed to a peaceful and constructive resolution through consultative dialogue, mutual respect and adherence to international law. These are in line with the fundamental principles under the Treaty of Amity and Cooperation in South-East Asia. 'To this end, we reaffirm ASEAN's commitment towards regional unity, economic stability and practical cooperation in navigating external challenges,' they said in the statement. ASEAN is also committed to maintaining an open and secure trade flow, as well as working with partners to strengthen supply chains resilience and promote sustainable development, in recognising that business certainties and resilient supply chains are crucial for global economic stability and recovery. The member countries also adopted several shared commitments to strengthen ASEAN's resilience by deepening intra-regional trade and investment, including by accelerating priority initiatives such as the ASEAN Digital Economy Framework Agreement (DEFA) and the upgrade of the ASEAN Trade in Goods Agreement (ATIGA). They expressed confidence that these efforts will reinforce regional integration, boost business certainty and competitiveness, and ensure ASEAN remains cohesive, agile and responsive to emerging challenges. 'We affirm shared resolve to leverage, modernise and upgrade ASEAN Plus One Free Trade Agreements (FTAs) and the Regional Comprehensive Economic Partnership Agreement (RCEP) in mitigating the risk of global trade uncertainties and supply chain disruptions, while ensuring they remain modern, comprehensive, inclusive, whilst, in parallel, strengthen and boost intra-ASEAN trade and investment, and responsive to 21st-century economic realities.' ASEAN is also committed to intensify its economic engagements by deepening cooperation with external partners and expanding engagement with new and emerging partners, including region-to-region linkages such as with the Gulf Cooperation Council (GCC). 'Together, these efforts will reinforce ASEAN's resilience, expand and enhance economic opportunities, and secure its position as a dynamic and forward-looking hub of global trade and investment,' the member countries added. ASEAN will also enhance its internal coordination, making full use of existing cross-sectoral mechanisms and the newly established ASEAN Geoeconomic Task Force. To this end, the association had tasked relevant ministers to monitor the current global economic challenges and to coordinate as appropriate for a strategic and coherent ASEAN response. It has also avowed to undertake timely and targeted domestic measures to mitigate the impact of high tariffs, including safeguards to support the region's industries and workers more broadly, especially those who are vulnerable to trade disruptions. 'At the same time, we will work collectively to ensure that ASEAN is well prepared to embrace future, transformative change that drives innovation, foster resilience and enhance regional competitiveness. 'In doing so, we are determined to ensure that no one is left behind in our journey towards a more inclusive, sustainable and digitally empowered ASEAN.' ASEAN, which stands for the Association of South-East Asian Nations, also reiterated resolute pledge to upholding the multilateral trading system, as it underscores the importance of predictable, transparent, inclusive, free, fair, sustainable and rules-based multilateral trading system with the World Trade Organisation (WTO) at its core. The bloc is ready to engage constructively with WTO members to advance necessary reforms and ensure that the global trading system remains predictable, transparent, non-discriminatory, open and capable of addressing contemporary challenges. 'As the ASEAN Economic Community (AEC) Blueprint 2025 enters its final phase, we reaffirm our unwavering commitment to delivering and advancing a bold and forward-looking ASEAN Community Vision 2045. 'We are determined to leverage the full benefit of our economic integration to reinforce regional resilience and act collectively in the face of external disruptions, including unilateral trade measures that threaten the integrity and stability of the global trading system.' The member states also acknowledged the ASEAN Outlook on the Indo-Pacific (AOIP) as a vital instrument and primary framework that guides ASEAN's engagement of all its partners with openness, inclusivity, transparency and resilience in accordance with international law. The 46th ASEAN Summit took place on May 26 and 27 at the Kuala Lumpur Convention Centre (KLCC) alongside the second ASEAN-Gulf Cooperation Council (GCC) Summit and the inaugural ASEAN-GCC-China Summit.
New Straits Times
5 days ago
- 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
6 days ago
- Business
- The Sun
ASEAN members to monitor trade diversion risk, engage constructively with partners amid global uncertainty
KUALA LUMPUR: ASEAN leaders, in a united response to rising global economic and trade uncertainties, have directed relevant officials to monitor the risk of trade diversion and engage constructively with partners through established platforms. According to the ASEAN Leaders' Statement released at the conclusion of the 46th ASEAN Summit, member states reaffirmed their commitment to resolving trade issues through peaceful, consultative dialogue grounded in mutual respect and international law, consistent with the Treaty of Amity and Cooperation in Southeast Asia. 'To this end, we reaffirm ASEAN's commitment towards regional unity, economic stability and practical cooperation in navigating external challenges,' the statement said. Gathering in Kuala Lumpur on May 26, 2025, ASEAN leaders acknowledged the escalation of unilateral actions such as tariffs and trade restrictions, and the increasing risk of global economic fragmentation. They stressed the bloc's strongest resolve to safeguard regional economic stability, resilience and long-term growth, while calling out the counterproductive nature of retaliatory trade actions that could further impact ASEAN economies. In a joint call to action, ASEAN leaders outlined a series of commitments, starting with strengthening ASEAN's internal trade and investment. These efforts include fast-tracking key initiatives such as the ASEAN Digital Economy Framework Agreement (DEFA) and the upgrade of the ASEAN Trade in Goods Agreement (ATIGA), aimed at boosting business certainty and competitiveness. The bloc also committed to modernising ASEAN Plus One Free Trade Agreements (FTAs) and the Regional Comprehensive Economic Partnership (RCEP), while intensifying economic cooperation with existing and new partners. This includes region-to-region linkages such as with the Gulf Cooperation Council (GCC). 'We are determined to secure ASEAN's position as a dynamic and forward-looking hub of global trade and investment,' the leaders said. Internally, ASEAN pledged to enhance coordination by making full use of cross-sectoral mechanisms and the newly established ASEAN Geoeconomic Task Force. Relevant ministers were tasked with closely monitoring global economic conditions and coordinating strategic ASEAN-wide responses. In managing immediate impacts of high tariffs, the statement noted the need for targeted domestic measures, including safeguards to support industries and vulnerable workers ASEAN also aims to prepare for future transformative changes that drive innovation and competitiveness without leaving anyone behind. The bloc reaffirmed its firm support for the multilateral trading system, underscoring the importance of fair, inclusive, rules-based trade with the World Trade Organisation (WTO) at its core. 'ASEAN expressed readiness to engage with WTO members to pursue reforms and maintain a system that is transparent and capable of addressing modern challenges,' according to the statement. Meanwhile, with the ASEAN Economic Community (AEC) Blueprint 2025 nearing completion, the leaders pledged to advance the ASEAN Community Vision 2045, leveraging economic integration to reinforce resilience and confront external disruptions such as unilateral trade measures. The statement also reaffirmed ASEAN's Outlook on the Indo-Pacific (AOIP) as the region's guiding framework for partnerships, emphasising ASEAN centrality, openness, and adherence to international law. 'As we approach the 60th anniversary of ASEAN in 2027, ASEAN unity and centrality remain key to regional peace, stability and prosperity,' the leaders said. Despite global uncertainties, ASEAN remains committed to being a reliable economic partner to all, continuing efforts to deepen integration, strengthen existing ties and forge new economic partnerships based on shared values and mutual prosperity.
