Latest news with #NazirRazak
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
4 days ago
- Business
- New Straits Times
Asean-BAC to establish Asean private markets association by year-end: Nazir Razak
KUALA LUMPUR: The Asean Business Advisory Council (Asean-BAC) is in the process of establishing the Asean Private Markets Association, expected to be formalised by year-end. Asean-BAC Malaysia chairman Tan Sri Nazir Razak said a pro tem committee comprising members from Malaysia, Singapore, Thailand and Indonesia is working towards the association's formal establishment. "The idea is to create a platform to advise governments on enhancing policies to develop the private markets industry, including venture capital and private equity, across Asean," he told reporters after delivering his welcoming address at the Asean Business Forum 2025 here today. Nazir said the association could help overcome market fragmentation issues and drive the region's industry development. "We estimate that up to US$60 billion (US$1 = RM4.26) in capital should be channelled to Asean private equity and venture funds, but certain reforms are needed to reduce market fragmentation and improve conditions for investment monetisation," he said. According to Nazir, the council conducted a research report with McKinsey, which shows Asean private markets are underdeveloped, estimated at only 0.5 per cent of gross domestic product (GDP), compared to the global benchmark average of 1.5 per cent of GDP. "The report shows that the private markets industry is extremely important to the economy but remains too small in Asean," said Nazir. On another note, Nazir said Asean stands at a pivotal moment and hopes the region can move forward with economic integration. "This year at Asean-BAC, our priorities and activities have been carefully designed to capture the essence of the current opportunities and challenges confronting us. "We have strived to facilitate dialogues, forge partnerships and propose actionable recommendations that will empower Asean businesses to capitalise on growing intra-regional collaboration, and to lead in adopting cutting-edge technologies and sustainable practices," he added.
The Star
4 days ago
- Business
- The Star
Asean-BAC to set up Asean private markets association by year-end, says Nazir
KUALA LUMPUR: The Asean Business Advisory Council (Asean-BAC) is in the process of establishing the Asean Private Markets Association, expected to be formalised by year-end, says Tan Sri Nazir Razak. The Asean-BAC Malaysia chairman said a pro tem committee comprising members from Malaysia, Singapore, Thailand and Indonesia is working towards the association's formal establishment. "The idea is to create a platform to advise governments on enhancing policies to develop the private markets industry, including venture capital and private equity, across Asean," he told reporters after delivering his welcoming address at the Asean Business Forum 2025 here Thursday (May 29). Nazir said the association could help overcome market fragmentation issues and drive the region's industry development. "We estimate that up to US$60bil (RM255bil) in capital should be channelled to Asean private equity and venture funds, but certain reforms are needed to reduce market fragmentation and improve conditions for investment monetisation," he said. According to Nazir, the council conducted a research report with McKinsey, which shows Asean private markets are underdeveloped, estimated at only 0.5% of gross domestic product (GDP), compared to the global benchmark average of 1.5% of GDP. "The report shows that the private markets industry is extremely important to the economy but remains too small in Asean," said Nazir. On another note, Nazir said Asean stands at a pivotal moment and hopes the region can move forward with economic integration. "This year at Asean-BAC, our priorities and activities have been carefully designed to capture the essence of the current opportunities and challenges confronting us. "We have strived to facilitate dialogues, forge partnerships and propose actionable recommendations that will empower Asean businesses to capitalise on growing intra-regional collaboration, and to lead in adopting cutting-edge technologies and sustainable practices," he added. - Bernama
The Sun
5 days ago
- Business
- The Sun
Nazir: Deeper Asean economic integration no longer optional – it's essential
KUALA LUMPUR: Asean stands at a critical juncture where accelerating economic integration is no longer optional – it is essential. In the face of a challenging and uncertain global environment, the region must urgently take concrete steps to strengthen internal collaboration. This means increasing trade and investment flows among member countries and creating a more unified economic front. Asean-BAC for Malaysia chairman Tan Sri Nazir Razak said despite significant progress in reducing tariffs – currently eliminated on 99% of goods within Asean – non-tariff barriers have been steadily rising. He said tackling these will require empowering Asean institutions to enforce rules more effectively and ensure greater compliance across member states. 'The message is clear: Asean must act decisively to deepen integration or risk missing a pivotal opportunity to secure long-term economic resilience. There is a need for stronger enforcement mechanisms and greater authority for Asean bodies to regulate and reduce trade barriers effectively. 'Further, operational flexibility must be improved. We should allow companies to establish operations wherever it makes the most economic sense within the region, without unnecessary red tape or restrictions,' he told reporters at the curtain raiser to the Asean Business Forum 2025 (ABF 2025) today. Malaysian Investment Development Authority (Mida) deputy CEO for investment promotion and facilitation Sivasuriyamoorthy Sundara Raja said Southeast Asia has been one of the fastest-growing economic regions over the past two decades, recording an average growth rate of 5.3%. Within this, Asean has maintained a steady growth rate of around 4%, creating a favourable environment for investment across the region. As a result, Sivasuriyamoorthy said, Asean now attracts about 17% of total global foreign direct investment (FDI) inflows – roughly one-fifth of the global total. The strong performance is driven not only by the region's economic potential but also by the strategic framework provided by the Asean Economic Community Blueprint. This blueprint has positioned Asean as a single production base, enhancing regional integration and economic certainty. Such stability and coordination have made Asean – and Malaysia in particular – an attractive destination for investors seeking to establish or expand their operations, he said. 'Moving forward, we are very confident in our ability to attract even more investments into Malaysia. There are several new growth areas have been identified under the New Industrial Master Plan and the National Energy Transition Roadmap. These include front-end semiconductor manufacturing, green investments, hydrogen technology, carbon capture, and digital infrastructure. 'We are actively positioning Malaysia as a hub for global players in the digital space – whether in data centres, AI or digital construction technologies. In addition, we are exploring opportunities in sustainable aviation fuel, biofuels, and critical minerals. 'These are all emerging sectors, and in this context, I believe Malaysia is taking on a leadership role within Asean, helping to drive investments into this dynamic and fast-evolving region,' he said. Focusing on SMEs, MBSB Bank Bhd group chief strategy officer Datuk Azlan Shahrim said across Asean and beyond, the focus of ABF 2025 extends to Malaysian SMEs operating domestically with ambitions to export within the region. He said it also includes Asean-based SMEs looking to establish operations in Malaysia, as well as companies that are integral parts of the regional supply chain. 'One way we support SMEs is through our unique blended finance approach. MBSB Bak Bhd, with its 75-year legacy, has long provided regional financing in Malaysia and Singapore, often in partnership with SMEs. Today, with MIDF – the development finance arm now part of the MBSB Group – we are able to offer a more integrated solution. 'When an SME needs financing, we can provide a combination of government grants, government-backed financing schemes, and guarantees, up to 80%, and complement that with traditional commercial banking facilities. 'For example, if an SME requires RM50 million in funding, they might receive RM10 million in the form of equity financing, government support, and guarantees, with the remainder structured as commercial loans. 'This blended model results in a more attractive overall financing rate, enabling SMEs to be more competitive in the market,' he said. ABF2025 will be held on Thursday alongside the 46th Asean Summit and the Asean-GCC+China Summit. Themed 'From Vision to Reality – Asean Partnerships Fuelling Sustainable Growth', the forum will spotlight corporate engagement and business matchmaking among top 25 corporations and investors from Asean and China. Co-hosted by Mida and Asean-BAC Malaysia, ABF 2025 is expected to attract over 500 participants, including more than 200 local and international companies.
Barnama
5 days ago
- Business
- Barnama
Malaysia's Leadership Under PM Anwar Strengthens ASEAN Cooperation -- Nazir Razak
BUSINESS ASEAN-BAC Malaysia Chairman, Tan Sri Nazir Razak attends the ASEAN Leaders' Interface with ASEAN-BAC Representatives held in conjunction with the 46th ASEAN Summit at the Kuala Lumpur Convention Centre today. Prime Minister Datuk Seri Anwar Ibrahim, leading the Malaysian delegation, delivers his speech during the ASEAN Leaders' Interface with representatives of the ASEAN Business Advisory Council (ASEAN-BAC), held in conjunction with the 46th ASEAN Summit at the Kuala Lumpur Convention Centre on May 26. KUALA LUMPUR, May 27 (Bernama) -- Malaysia's leadership under Prime Minister Datuk Seri Anwar Ibrahim has been a unique strength in bringing ASEAN leaders together to discuss and address regional issues collaboratively. ASEAN Business Advisory Council (ASEAN-BAC) Malaysia chair Tan Sri Nazir Razak said that amid a sea change of leaders across ASEAN, Anwar seems very well connected with all of them. 'He (Anwar) is like the one person who's very close to all (ASEAN country leaders), and we look to that unique ability to bring them together so that we can close on some key decisions, such as bringing down non-tariff barriers, greater empowerment to the ASEAN Secretariat and policy changes. 'It can be done, but you need leaders, and sometimes they need to spend that political capital to get things done,' he said in a press conference at the ASEAN Business Forum 2025 Curtain Raiser here today. Nazir added that he is optimistic about ASEAN now, as the region currently has a new momentum. He said the external environment has given it more of a push, hence the ASEAN chairmanship is expected to produce many positive outcomes. According to a joint statement by the organisers, ASEAN Business Forum 2025, organised by CGS International Securities Malaysia Sdn Bhd in collaboration with MBSB Bhd and OCBC Group, will be held at the St Regis Hotel on May 29 in conjunction with the 46th ASEAN Summit 2025 and the ASEAN-GCC-China Summit 2025. Co-hosted with the Malaysian Investment Development Authority (MIDA) and ASEAN-BAC Malaysia, the forum is expected to draw more than 500 attendees, comprising over 200 foreign and local corporates, policymakers and corporate captains representing the region's largest companies of over RM1 trillion in market capitalisation. 'A key highlight of the forum is the corporate engagement and business exchange session designed to drive real business collaboration between pre-screened and pre-selected matching parties from the top 25 corporations and investors across ASEAN and China.
