Asean charts next growth phase with four key economic outcomes

New Straits Times

25-05-2025

KUALA LUMPUR: The Asean Economic Community (AEC) has achieved four key outcomes that signal the regional bloc's readiness to deepen economic integration and confront global uncertainties with renewed strategic focus.
Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said the council acknowledged that Asean would need to break away from a "business-as-usual" approach.
Instead, he said the bloc should adopt bolder, more agile and forward-looking strategies to safeguard and advance the bloc's socio-economic interests.
"We reaffirmed that Asean's centrality, non-alignment, neutrality and unity remain the bedrock of our resilience and success," he said after chairing the 25th Asean Economic Community Council (AECC) meeting.
"The region's diversity, collective economic strengths, political stability and shared commitment serve as foundational building blocks to successfully navigate current and future challenges," he added.
The meeting was held today, in conjunction with the 2025 Asean Summit, attended by economic ministers and delegations from Asean member states and Timor Leste.
Tengku Zafrul shared that the AEC Council welcomed the full completion of Lao's Priority Economic Deliverables (PEDs) for 2024 through the adoption of the Roadmap on Digital Trade Standards, reflecting the continued commitment in advancing the regional's digital economy agenda.
The secound outcome is the progress on Malaysia's 18 PEDs with the completion of two of the PEDs which is the upgraded Asean-China Free Trade Area 3.0 and Asean Trade in Goods Agreement (ATIGA).
Tengku Zafrul said both upgraded agreements are scheduled to be signed at the sidelines of the upcoming 47th Asean Leaders' Summit in October 2025.
"The successful conclusion of these negotiations is expected to enhance the region's economic integration and generate significant economic benefits for Asean, as we continue to navigate an increasingly volatile global economic landscape.
"In particular, ATIGA — long regarded as the cornerstone of Asean's economic integration — will now feature forward-looking and commercially meaningful provisions aimed at further boosting regional trade, enhancing supply chain resilience and promoting deeper economic integration within Asean," he added.
The third achievement is the conclusion of negotiations on the enhanced memorandum of agreement on the Asean Power Grid (APG) which is scheduled to be signed at the 43rd Asean Ministers on Energy Meeting in October 2025.
The power grid is a strategic initiative in strengthening Asean's regional energy security, connectivity, and sustainability.
In this context, Tengku Zafrul said the AEC also welcomed ongoing work towards the establishment of the APG financing facility framework, which will enhance cross-border flows of foreign direct investments and new funding opportunities for regional energy-related projects.
He said the AEC Council full support for the convening of a joint meeting between Asean's Energy, Finance and Economic Ministers in August 2025.
The fourth outcome is related to the AEC Blueprint 2025, which is now in its final year of implementation.
As of April 2025, the roadmap achieved a strong overall implementation rate of 97 per cent, with 75 per cent of the measures completed and 22 per cent currently in progress.
Tengku Zafrul said that iver the past decade, it has served as the strategic roadmap for building a highly integrated and cohesive Asean economy, promoting inclusive and innovation-led growth and deepening regional connectivity and competitiveness.
"This impressive 97 per cent implementation rate not only demonstrates Asean's collective commitment to economic integration but also reinforces the region's ability to respond to global uncertainties in a cool, calm and calculated manner.
"The key learnings and progress under the AEC Blueprint 2025 will serve as a solid foundation for the development of the AEC Strategic Plan 2026–2030, which will chart the region's next phase of economic growth and transformation," he added.
The AEC Council looks forward to the Regional Socialisation of the AEC Strategic Plan on June 12, which will serve as a key platform to engage multiple stakeholders and highlight the economic benefits of the plan.
The council also discussed and reaffirmed support to facilitating and accelerating Timor-Leste's accession to the required Asean's Economic Agreements (AEAs), as outlined in the Roadmap adopted by Leaders in 2023.
"We shared our strong view that Timor-Leste's entry as Asean's 11th Member State will further strengthen our region's economic growth and potential," Tengku Zafrul said.