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The Star
27-05-2025
- Business
- The Star
AEC strategic plan set to drive deeper regional economic integration, strengthen resilience, says economist
KUALA LUMPUR: The Asean Economic Community (AEC) Strategic Plan 2026-2030 is set to drive deeper integration and create prosperity across Southeast Asian economies while strengthening the bloc's resilience against external economic pressures, an economist said on Tuesday (May 27). University of Nottingham Malaysia assistant professor of business economics Dr Tan Chee Meng emphasised that Asean's vast growth potential and rising development levels could support less affluent member states such as Cambodia and Laos in achieving economic progress. "From that perspective, it is highly plausible that the regional bloc can achieve its status as one of the largest economies in the world," he said, commenting on Asean's quest to become the world's fourth-largest economy by 2045, as outlined in the Kuala Lumpur Declaration 2025 signed on Monday (May 26) at the 46th Asean Summit chaired by Malaysia. The economic blueprint adopted by Asean leaders on Monday is a comprehensive roadmap incorporating six strategic goals, 44 objectives, and 192 strategic measures, with a people-centred approach as one of its core thrusts. It was developed through a comprehensive consultative process involving all AEC sectoral bodies and inputs from other Asean Community Pillars, alongside consultations with 315 stakeholders' representatives from businesses, academia, civil society, parliamentarians, and more. A region-wide public survey involving 7,568 respondents from Asean member states and Timor-Leste was also conducted for this purpose. The strategic plan is one of four strategic plans under the broader Asean Community Vision 2045. However, Tan cautioned the region to address challenges that hinder Asean from achieving its goal, such as ensuring continued development in Cambodia, Myanmar, Laos, and Vietnam to reduce economic disparity among member states. "Asean could encourage growth throughout by increasing intra-regional trade and investment, as well as upskilling the workforce across the region," he said. Asean's total trade improved significantly to US$3.8 trillion in 2024 from US$2.3 trillion in 2015, but intra-Asean trade only increased to US$0.8 trillion from US$0.5 trillion during the period. Turning to the potential conclusion of the free trade agreement (FTA) between Asean and the Gulf Cooperation Council (GCC), he said it could significantly boost regional development. Tan pointed out that the GCC, which collectively manages sovereign wealth funds worth an estimated US$4.9 trillion, could play a major role in injecting capital into Asean economies. "If the FTA between Asean and the GCC can be concluded favourably, the injection could be a major contributor to the development of the region. "The same applies to Chinese investments, particularly through Beijing's Belt and Road Initiative (BRI)," he said. While deeper integration promises benefits, he acknowledged that it will take time and strong political will among member countries of the 57-year-old grouping. "This is where the AEC and its four pillars come in, namely, having a single market, being competitive, equitable development, and integration into the global economy," he said. Asean also aspires to be a prosperous single market with a highly-skilled and inclusive workforce, productivity and innovation-driven growth, while incorporating sustainability across and along the value chain through Asean Community Vision 2045 (ACV 2045). Tan said harmonising Asean economies into a single market is highly challenging given the significant differences in the economic structures of each member nation. "Convincing member states to form an economic union requires guarantees that the interests of the individual states do not become subservient to those of the more influential or powerful states within the bloc. "This is why equitable development that emphasises common or shared prosperity becomes a major point in ensuring that a single market could ultimately be achieved," he said. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid emphasised that now is the time to strengthen and enhance collaboration across the region. He noted that Asean has the scale and potential to emerge as a major force in global trade, investment, climate action, and security cooperation. This transformation, he said, could be catalysed by the upcoming AEC Strategic Plan, which is expected to guide the region's next phase of economic and structural growth. "The time for better and effective collaboration is now, as the global superpowers, such as the United States and China, will continue to be at loggerheads on many issues. "Asean as a region needs to be more proactive in promoting deeper integration across various areas, including economics, infrastructure, climate change, and security," he said. Mohd Afzanizam added that identifying the right industry niches and fostering collaboration—rather than competition—among member countries should serve as the guiding principle for effective regional cooperation. He said Asean must formulate a strategic framework for industrial development that enables member countries to complement one another within the supply chain and integrate more effectively with global markets. "Each member country has its own investment promotion agencies, special economic zones, customs procedures, and regulations that need to be harmonised for effective collaboration. "Some member countries are rich in natural resources, while others have strong financial markets," he said. – Bernama
Barnama
24-05-2025
- Business
- Barnama
Maiden ASEAN-GCC-China Summit Offers Opportunity To Deepen Economic Integration
By Anas Abu Hassan KUALA LUMPUR, May 24 (Bernama) -- The upcoming ASEAN–Gulf Cooperation Council (GCC)–China Summit presents a crucial opportunity for deeper economic integration between the 10-member ASEAN bloc and major global powers such as China and the GCC countries, especially in a time of heightened global uncertainty, said an economist. Established in Riyadh in 1981, the GCC comprises six member states -- Saudi Arabia, the United Arab Emirates, Qatar, Kuwait, Bahrain and Oman. Dr Tan Chee Meng, Assistant Professor of Business Economics at the University of Nottingham Malaysia, said that the summit, which represents nearly a quarter of the world's gross domestic product (GDP), can serve not only as a strategic platform for regional collaboration but also as a blueprint for broader global economic cooperation. 'This could be a working model that attracts other trading blocs to engage and collaborate more meaningfully in building a more interconnected and resilient global economy,' he told Bernama on the sidelines of the 46th ASEAN Summit and Related Meetings here. As the ASEAN Chair for 2025, Malaysia will host the 46th ASEAN Summit, 2nd ASEAN-GCC Summit and inaugural ASEAN-GCC-China Summit at the Kuala Lumpur Convention Centre on May 26 and 27. The ASEAN-GCC-China Summit, to be held on May 27 along with the ASEAN-GCC Summit, represents an important platform for expanded regional and inter-regional cooperation. ASEAN's neutral stance gives it the edge to attract other countries for constructive economic engagement.
