Latest news with #regionalIntegration
Free Malaysia Today
3 days ago
- Politics
- Free Malaysia Today
Malaysia energetic, effective as Asean chair, says Singapore PM
Singaporean prime minister Lawrence Wong shakes hands with Prime Minister Anwar Ibrahim on the sidelines of the Asean Summit in Kuala Lumpur. (PMO pic). SINGAPORE : Malaysia has been an energetic and effective Asean chair, says Singapore's prime minister, Lawrence Wong. Wong, who is in Malaysia until Tuesday for the 46th Asean Summit and related summits, said Singapore will continue to work closely with Malaysia to advance Asean integration efforts. 'Caught up with Malaysian Prime Minister Anwar Ibrahim on the sidelines of the Asean Summit. I congratulated him on chairing a successful summit,' he posted on Facebook. Both leaders also took stock of various bilateral issues, he said. Wong said he looked forward to welcoming Anwar to Singapore later this week at the Shangri-La Dialogue, Asia's premier defence summit. Anwar is scheduled to deliver a special address at the dialogue, which will be held from May 30 to June 1. In a separate post, Wong said he had a fruitful meeting with Indonesian president Prabowo Subianto on the sidelines of the summit. He said they discussed global and regional developments as well as the importance of a strong and united Asean in these turbulent times. 'We also look forward to closer bilateral cooperation. The longstanding relationship between Singapore and Indonesia has served as an anchor of stability against geopolitical headwinds,' he said. Separately, Prabowo emphasised the need for Asean to become a stronger and more united regional bloc in facing global uncertainties, calling on all member states to strengthen regional cooperation. 'Asean must be stronger, more solid. The situation is uncertain, so we must work together more effectively,' he said.
Malay Mail
3 days ago
- Business
- Malay Mail
Kuala Lumpur Declaration sets Asean's long game for economic resilience, says PM Anwar
KUALA LUMPUR, May 26 — Prime Minister Datuk Seri Anwar Ibrahim today described the signing and adoption of the Kuala Lumpur Declaration on Asean 2045: Our Shared Future as a defining chapter in Asean's journey of regional integration. Stressing that Asean's future must rest on 'foundations of sustainability and inclusion,' Anwar said regional integration must be genuinely people-centred. 'That means closing development gaps, raising standards of living and investing in the human spirit and potential of all our citizens,' he said in his speech before the signing of the Kuala Lumpur Declaration on Asean 2045: Our Shared Future at the Kuala Lumpur Convention Centre here, today. The declaration, endorsed during the 46th Asean Summit, here, represents a significant milestone in the bloc's commitment to building a more resilient, innovative, dynamic and people-centred regional community. The new vision will succeed the current Asean 2025: Forging Ahead Together vision, which was adopted in 2015. — Bernama
Malay Mail
7 days ago
- Business
- Malay Mail
Asean Summit set to unlock RM300b in FDI, boosting Malaysia's economy, says Juwai IQI
KUALA LUMPUR, May 22 — The Asean Summit will be a platform to integrate regional economies and promote trade through potential agreements with an estimated RM300 billion in foreign direct investment (FDI) in the next five years, according to Juwai IQI. Its co-founder and group chief executive officer Kashif Ansari said in a statement today that it is important for Asean member countries to work together as the region faces a complicated world, with global strategic rivalries, new technologies, and artificial intelligence (AI) disruptions. 'The summit could boost Malaysia's economy through regional integration, Asean unity in global trade, and foreign direct investment. Changes in these three areas could mean hundreds of billions of ringgit in additional trade and capital over the coming years. 'The Johor-Singapore Special Economic Zone (JS-SEZ) is a prime example of integration, which could contribute as much as RM110.9 billion to Malaysia's economy annually by 2030,' he said. Kashif said a tighter-knit Asean could boost Malaysia's total trade volume significantly, to about RM3.87 trillion by 2027; exports could reach an all-time high of RM2.13 trillion in annual export volume by 2030. 'While the agreements coming out of the summit could have us shipping more goods out by 2030, we will also be receiving more inbound FDI, with that money going into local innovation, infrastructure, employment, and property,' he noted. In the property sector, based on IQI's analysis, FDI inflows during this period will generate at least RM15 billion in new real estate activities, which include industrial parks, commercial centres, logistics hubs, and housing developments, said Kashif 'With RM300 billion of FDI projected by 2030, we estimate RM15 billion, or five per cent, will be channelled into the real estate industry. 'We have estimated this five per cent ratio between FDI and real estate based on typical patterns seen across the region. The real number could be lower, or much higher,' he said. According to Kashif, global brands have built data centres, electric vehicle facilities, and logistics hubs over the past few years. These developments create high-quality property demand in the industrial sector and have a spillover effect on housing, office, and retail. 'This Asean Summit is a platform for improving Malaysia's future. If regional leaders can agree to deepen intra-Asean trade, harmonise regulations, and reduce trade barriers, Malaysia and all our partner nations will benefit,' he added. The Asean Summit will be held at the Kuala Lumpur Convention Centre on May 26 and 27, alongside the second Asean-Gulf Cooperation Council (GCC) Summit and the inaugural Asean-GCC-China Summit. This is the fifth Asean chair for Malaysia. Its previous terms were in 1977, 1997, 2005 and 2015. — Bernama
Arabian Business
13-05-2025
- Business
- Arabian Business
UAE, Gulf supply chains go local despite easing global trade tensions: Experts
The increasing trend of supply chain localisation in the UAE and the region is predicted to see a major surge going forward, despite signs of easing of trade tensions globally following the dramatic thaw in the US-China tariff war, sector experts said. This is because the current shift, which is seen effectively as a stress-test for the global system, signals a broader move toward a multi-polar world, and the forces driving this change are not exclusively the result of US policy decisions, they said. The US and China on Monday announced a major climbdown in their posturing on the trade front, slashing tariffs to 30 and 10 per cent, respectively, signalling the US striking similar deals with other countries as well. How fast and smooth the transition will evolve in the region, however, will depend on the UAE's role in fostering local industry, diversifying its economy, and promoting regional integration – the key measures needed to help businesses to mitigate risks and seize new opportunities, experts said. The region's industries and businesses are also required to chip in with striking stronger local partnerships and tie-ups with regional producers instead of solely relying on global players, even if it means sacrificing some short-term economic benefits for long-term stability, they said. 'Trade tensions, today, are accelerating the trend toward supply chain localisation,' Andrey Chernogorov, co-founder of Zinit Tech, the Dubai-based AI-powered procurement platform, told Arabian Business. 'Unlike the previous era, which fostered total globalisation, we're seeing a shift toward stronger local partnerships and reliance on regional producers,' he said. Supporting Chernogorov's views, senior industry executives said the current shift towards supply chain localisation is actually the continuation of the global disruptions that began with the logistics crisis of 2019. These have evolved into ongoing geopolitical challenges, they said. The founder of Zinit Tech, which is set to launch operations in the UAE this year to tap the growing opportunities in the procurement sector, estimated to be worth $400 billion GMV (gross merchandise value), said while no one can predict the exact future, the fact that businesses are becoming increasingly resilient signals that the ongoing supply chain localisation drive is to gather more steam going forward. 'The recovery cycle post-pandemic took 1-1.5 years, but the recovery from the crises of 2022-2023 was only 3-6 months. I expect the current trade wars to follow a similar trajectory,' he said. Localising supply chains strategically Industry experts said the trend towards supply chain localisation will help businesses in a big way in the long run as it will lead to supply chains becoming leaner and more efficient as more intermediaries are phased out. Companies in the region should also focus on developing and nurturing local suppliers instead of solely relying on global players, they said. Chernogorov said companies should build a broad supplier funnel, starting with a wide range of pre-approved suppliers (10-15 per category), and narrow it down as needed. The key is balancing local and international suppliers – preferably on a 2-to-1 ratio, large and small businesses – again on a 2-to-1 ratio, and Eastern and Western vendors on a 1-to-1 ratio, he said. 'This diversification across many fronts reduces supply chain risk and ensures business continuity, allowing companies to maintain stability and scale,' he said. Chernogorov, however, said the procurement metrics could see delivery times increase by 10-30 per cent, cost bases rise by 5-15 per cent, and asset turnover worsen by 10-15 days. He, however, said this will be temporary, and to navigate these disruptions with minimal impact, companies should begin implementing procurement localisation, expanding their supplier pipeline, increasing competition in tenders and upskilling procurement professionals. 'In the next 1-3 years, these metrics are likely to worsen. However, I view this as an opportunity for businesses and countries that can adapt to reach a new level of growth,' he said. Other sector experts also said they do not see the projected disruptions in procurement metrics as a local crisis that needs to be overcome, but more as a structural shift. Balancing global and local procurement With the surge in the drive for supply chain localisation, sector experts such as Zinit Tech are advising clients to rebalance supplier portfolios – global vs. regional vs. local – to hedge against potential tariffs and shipping disruptions. Chernogorov said there is not a one-size-fits-all solution and procurement for large corporations is complex and must be approached with category management in mind, he said. Industry players said historically, procurement followed a model like the 70-30-0 rule, where 70 per cent of volume went to the primary supplier, 30 per cent to a secondary supplier, and the rest was reserved for contingency. But given the current market volatility, geopolitical risks, and logistical disruptions, this model is no longer sufficient, they said. Chernogorov, however, said the UAE – and the wider regional market, still faces many barriers and challenges on digital procurement adoption. 'The barriers we see in MENA are common across many fast-growing economies. These include a low level of procurement maturity, limited culture of competitive tendering, closed supplier networks and deep resistance to changing old habits,' he said. He said Zinit Tech, however, views these barriers as major opportunities, and is scaling fast — entering a new market every two months — thanks to a flexible architecture and AI-powered multilingual support, including Arabic. 'Within three years, we aim to capture at least 10-15 per cent of the addressable GMV in this segment – which amounts to roughly $400 billion – by offering a smarter, more transparent alternative to outdated procurement processes,' he said.
Arab News
08-05-2025
- Business
- Arab News
Oil Updates — prices edge up on US-China trade talk hopes
IATA backs Saudi-led aviation surge amid regional integration push JEDDAH: The Middle East's aviation sector is pushing toward greater integration and collaborative innovation, with Saudi Arabia's rapid expansion positioning it as the region's benchmark, according to a senior International Air Transport Association official. Kamil Al-Awadhi, IATA's regional vice president for Africa and the Middle East, told Arab News that growth in the Gulf Cooperation Council is outpacing all other regions — and the Middle East could soon lead the global aviation industry. His remarks came during IATA Aviation Day MENA 2025 — held for the first time in Saudi Arabia in Jeddah from May 6 to 7 — where industry leaders gathered to explore how regional collaboration and harmonized regulation can unlock aviation's full potential. Al-Awadhi credited the region's resilience to unified political leadership and coordinated aviation strategies. 'After the COVID-19 pandemic subsided in 2022, airlines in the Middle East resumed smooth operations, as if airports had not been closed at all. In contrast, carriers in Europe and the US struggled for several months to return to normal operations,' he said. Al-Awadhi added: 'Saudi Arabia is not only expanding its aviation infrastructure, but it is also investing in its people. This is vital to meet the immediate skills requirements while developing a professional workforce able to deliver on Vision 2030.' The official acknowledged the region's operational strength but pointed to the lack of sufficient stakeholder dialogue. 'The main goal of this event is to bring the region's aviation sectors together to discuss their challenges and collectively work toward improvement,' the IATA official said. Nick Careen, IATA's senior vice president for operations, safety, and security, said the Middle East was poised to outpace global air traffic growth over the next two decades. 'Looking ahead, global air travel is set to grow at 3.3 percent per year for the next 20 years. But the Middle East will grow faster at 4.8 percent,' he said during his keynote. The event took place just days after IATA released its latest global passenger traffic data, showing industry-wide revenue passenger kilometers rose 3.3 percent year-on-year in March, reaching 738.8 billion — continuing the trend of subdued single-digit growth seen since 2023. Nick Careen, IATA's senior vice president for operations, safety, and security. Supplied Careen emphasized Saudi Arabia's pivotal role in the region's aviation transformation. 'The sector is not just moving forward — it's moving forward at speed. And that should make everyone in this room take notice.' He noted that aviation and aviation-related tourism contributed $90.6 billion to the Kingdom's gross domestic product — representing 8.5 percent — and supported 1.4 million jobs. 'More than 62,000 people are directly employed by airlines, and another 79,000 are working in the broader aviation ecosystem. In 2023, Saudi Arabia handled over 713,000 tonnes of air cargo,' he said. According to Careen, this progress is being driven by Crown Prince Mohammed bin Salman's Vision 2030 plan, which places aviation at the heart of economic diversification and international connectivity. 'We have seen it in the development of new airports, the digital push, the workforce development, and the launch of national carriers like Riyadh Air,' he said. Abdulaziz bin Al-Duailej, president of the General Authority of Civil Aviation, described the Middle East as an economy worth $9.48 trillion powered by a young population, adding: 'Aviation here is not only enabling growth; it is leading transformation through strategic investment and collaboration.' He continued: 'By 2024, passenger traffic across the Middle East exceeded pre-pandemic levels by 9 percent — more than double the global growth rate. While Saudi Arabia's civil aviation sector recorded a remarkable increase of over 24 percent compared to pre-pandemic levels.' Industry leaders gathered in Jeddah. Supplied The Kingdom's growth has been marked by major achievements. In 2024 alone, Saudi Arabia handled 128 million passengers, more than 900,000 flights, and 1.2 million tonnes of cargo. The government has ordered 500 new aircraft and attracted 21 new international airlines into its market. 'The Kingdom's aviation market is opening rapidly. In the past year alone, 21 new international airlines have entered the Saudi market, and in the first quarter of 2025, foreign carriers carried 63 percent of international passengers,' Al-Duailej said, reaffirming the Kingdom's willingness to engage globally to shape the sector's future. In its latest press release, IATA outlined three strategic priorities to help Saudi Arabia sustain its aviation gains: improving coordination with stakeholders, ensuring cost-effective infrastructure development, and building national talent. 'Given Saudi Arabia's important role in shaping regional aviation policies, continued collaboration and consultation with users and stakeholders, along with alignment to global standards and best practices, are vital,' the organization said. It also emphasized the need for cost-competitiveness. 'As Saudi Arabia makes significant investments in airport infrastructure and digitalization, it is critical to work with the industry to ensure cost competitiveness,' IATA added. On workforce development, the group noted: 'Ensuring a skilled workforce across all areas of aviation will enable the Kingdom to fulfill its potential as a regional and global aviation hub.' On the sidelines of the forum, IATA announced new training agreements with Saudi airlines, airports, and academic institutions. In the first phase, more than 1,000 graduates and aviation professionals will be trained in areas such as airport operations, safety, airline management, and ground handling. Riyadh Airports Co. and Qassim University joined IATA's network of regional training partners, alongside long-time collaborator Prince Sultan Aviation Academy. Together, the three will deliver over 60 programs covering technical, commercial, and interpersonal skills. 'The renewed agreement enables the academy to offer IATA training courses within the Kingdom and across the GCC region. All operational aviation requirements — including cabin crew, maintenance, ground services, and business training — are provided by PSAA,' said Khalid Bawazeer, the academy's director of continuous studies, to Arab News. 'This requires preparation to meet the demand for increased training programs, whether conducted internally by the academy or through external courses such as those offered by IATA,' he added. As part of the deal, sector awareness courses will also be offered to graduates of Riyadh Air and Saudia to nurture national talent for future leadership. Specialized Dangerous Goods training will be provided to operational staff from the Saudi Civil Aviation Academy. SAL Logistics Services Co. marks its new agreement at the event. Supplied In addition, SAL Logistics Services Co. has been accredited as a competency-based training and assessment center, and Saudi Ground Services has renewed its CBTA accreditation. The IATA's Careen acknowledged that despite the Kingdom's progress, aviation development remains uneven across the Middle East due to persistent geopolitical instability. He pointed to challenges in Yemen, Syria, Iraq, and Lebanon, where conflict and sanctions have suppressed growth. 'Where aviation continues to demonstrate remarkable resilience in the face of political instability, it does far better in countries that are stable, peaceful and open,' the official said. Careen called on governments and regulators to align efforts toward a more integrated and forward-looking aviation environment. 'A Middle East characterized by open skies, harmonized regulations, and shared innovation,' he said, is critical to long-term success. 'To every government, airline, and civil aviation authority in this room, your success is everyone's success. A rising tide lifts all boats, and in this case, all planes,' he said. Ibrahim Al-Omar, director general of Saudia Group, the host of the event, said the forum was a valuable opportunity to showcase how Vision 2030 is reshaping regional aviation. 'With safety, innovation, and sustainability driving our progress, IATA Aviation Day MENA is a valuable platform to showcase how the Kingdom's Saudi Vision 2030 is shaping the future of aviation not only across the Kingdom but the region and beyond,' he said in a statement released a day prior to the event.
