IPO reforms among 12 proposals Asean-BAC to present at May Summit
Asean-BAC chairman Tan Sri Nazir Razak said the council meeting will coincide with the Asean Leaders' Summit, scheduled for May 26 and 27.
"There will be an Asean-BAC Council meeting, and at the same time, an Asean Leaders' Summit. We will be presenting these initiatives, as well as various reports we have prepared," he said during a media briefing here today,.
He said the council has already briefed Asean economic ministers, finance ministers and the respective governments.
"I think the proposal was very welcomed. I think that it was good that there were comments and I always worry that people won't comment.
"We had some good constructive comments from them and we will also be discussing with the Asean secretariat at the same time.
"So when we present to Asean leaders, we will be able to get direct comments from them," he added.
Nazir said each workstream will follow its own timeline and outcome this year, with reports such as the Asean Philanthropy Framework and private markets projects to be submitted to the leaders.
"We expect that the leaders will review them with their teams, and if they find value in the proposals, they may proceed to implement them within their respective countries.
"On the other hand, initiatives like the Asean initial public offering prospectus and the ABE framework require policy changes in each member country. If the leaders approve, we hope their respective ministries will begin the necessary work," he said.
Nazir said the council is particularly focused on the ABE framework, which proposes a new regional business category to give companies more operational flexibility across Asean.
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The Sun
25 minutes ago
- The Sun
Rubio's Asean mission undermined
THE public relations angle on the US Secretary of State's website and Western media's foreign affairs and business coverage of Marco Rubio's recent visit to Southeast Asia was, unsurprisingly, predictable. His mission was to: Reaffirm US commitment to the Indo-Pacific by countering skepticism about President Donald Trump's 'America First' approach and to show that the US views the region as central to American interests and national security; Bolster security ties and boost anti-China sentiment, particularly on the South China Sea disputed issues; Promote the US as an economic partner and a better alternative to China for investment and growth. In his initial remarks on meeting with counterparts from Asean countries, Rubio said: 'We've been engaged for a very long time. We have strong partnerships, we have no intention of abandoning but rather strengthening and building upon.' From most accounts, he was not convincing or successful. Rubio and Trump: Uneasy relationship Everyone in high places of the US foreign affairs knows that Rubio does not have the full confidence or support of Trump for personal reasons. Their rocky relationship goes back a long time with Rubio's denunciations of Trump, prominently displayed during the 2016 Republican presidential primaries. Rubio criticised Trump's foreign policy understanding, calling him a 'touchy and insecure guy', and stating that Trump 'doesn't know anything about policy'. Rubio also quipped: 'You know where Trump would be if he hadn't inherited US$200 million (RM851 million)? Selling watches in Manhattan' and he publicly warned voters, 'friends do not let friends vote for con artists', directly targeting Trump's credibility. Rubio has since eaten humble pie and made peace with Trump. Though rewarded with a powerful position in the US administration, his role has been constrained by competing power centres in Washington, ideological shifts and his own apparent lack of alignment with Trump's agenda. This was evident when Rubio was bypassed for key special envoy roles – with Steve Witkoff appointed as Trump's envoy to the Middle East, tasked with high-stakes negotiations like the Gaza ceasefires and Russia-Ukraine talks – while Rubio was assigned to less challenging assignments. At the same time, key decisions – such as imposing tariffs on allies and publicly rebuking Volodymyr Zelensky – originated from Trump and Vice President JD Vance. Rubio was visibly sidelined during the publicly disastrous Zelensky meeting, where he was described as passive and 'slumped' on a couch throughout the meeting. Mediocre diplomatic appointments Meanwhile, Rubio also appears to have been left in the cold in various ambassadorial appointments made by Trump in the countries that the US wants to see its flag flying higher. This includes the latest appointments in Singapore and Malaysia, with foreign policy analysts from leading US supportive media and independent commentators from social media panning the two nominations. The nominee for Singapore is a former physician specialising in orthopaedics and sports medicine with no prior diplomatic experience while the appointee to Malaysia has been described as a self-proclaimed 'alpha male', with a reputation for courting public attention and engaging in sensationalist behaviour. The primary qualifications Dr Anjani Sinha and Nick Adams bring to their appointments seem to be their unfamiliarity with their assigned countries and their eagerness to put Trump on a pedestal – proving that political sycophancy can be rewarding. Apart from marginalised political and mediocre diplomatic leadership, the biggest obstacle to Rubio's efforts to persuade Southeast Asian governments of the US's good intentions is the widening credibility gap between its rhetoric and actions. This gap is being fuelled by political inconsistencies and economic engagement that treats the region more as a competitor or liability than a partner, all compounded by a fixation on the China threat that overshadows all other concerns. It is telling that just as Rubio tries to reassure Asean countries that the US is an enduring economic partner and a more reliable alternative to China – while hinting at the possibility of better tariff rates – Trump was simultaneously announcing new, enhanced tariffs on several Asean countries, including Malaysia. Asean officials and member countries remember the US's withdrawal from the Trans-Pacific Partnership during Trump's first administration as abandoning economic leadership in the region. They are also fully aware that the US's focus is not on Southeast Asia but on other regions and global crises, and that Asean is only a concern when countering China as the immediate goal. Foreign policy and economic interests Rubio's staff would do well to advise him of the following concerns of Asean countries when reviewing the outcome of his shortened time in Southeast Asia and before pitching any future policy: 0 Asean nations do not want to be used as pawns in a great power game that they see as contrary to their multipolarity principles. 0 Asean values its 'centrality'. US-led initiatives such as the Quad and Aukus are not only not helpful but also pose a threat to this centrality. 0 Asean nations will act strongly to safeguard their autonomy and non-alignment. US pressure for member countries to 'choose sides' between the US and China is counter-productive, will not bring about peace or security and will be rebuffed. 0 Asean wants a partnership, not alignment, against a neighbour that is also their largest trading partner. Finally, they should note that Asean foreign and economic ministers will be closely following the US-initiated global trade war and new uncertainties in the international economic landscape and rules of order. Rubio should use whatever influence he has on Trump and his colleagues in the US administration to emphasise that the unilateral action relating to tariffs and bullying efforts to 'rebalance' trade relationships at the expense of Asean countries will have a lasting negative impact on US-Asean relations.
Malaysian Reserve
2 hours ago
- Malaysian Reserve
RCEP and the future of ASEAN's economy: Between potential and pitfalls
THE Regional Comprehensive Economic Partnership (RCEP), signed on Nov 15, 2020 and entering into force on Jan 1, 2022, is the world's largest free trade agreement (FTA). It brings together all 10 ASEAN member states with five of their Free Trade Agreement (FTA) partners—China, Japan, South Korea, Australia, and New Zealand—into a comprehensive trade bloc encompassing around 2.2 billion people and 30% of the world's GDP and global trade. RCEP is a landmark ASEAN-led initiative that aims to harmonise and deepen existing ASEAN+1 FTAs under a unified, modern, and inclusive framework. With 20 chapters, including trade in goods, services, investment, intellectual property, e-commerce, competition, small and medium enterprises (SMEs) and dispute settlement, RCEP is expected to catalyse trade flows, strengthen regional value chains (RVCs) and boost post-pandemic economic recovery. But as ASEAN foreign ministers gathered in Kuala Lumpur for the 58th ASEAN Foreign Ministers' Meeting (AMM), urgent questions loom: Does RCEP genuinely empower ASEAN economies? Or does it risk reinforcing asymmetrical benefits that favour larger, more developed partners? What makes RCEP unique? Unlike agreements such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) or the EU Single Market, RCEP reflects ASEAN's distinct model of 'soft regionalism': voluntary, flexible and consensus-based. It is designed not to impose deep political integration or rigid regulatory convergence but instead to create a pragmatic and inclusive economic partnership adaptable to development diversity among member states. RCEP's key innovations include: Consolidated Rules of Origin (RoO): A single RoO framework that simplifies trade documentation and reduces compliance costs, thus enabling firms to source inputs from across RCEP countries without losing preferential access. Differential Tariff Concessions: These allow flexibility for countries to maintain sensitive sector protections while still advancing gradual liberalisation. Special and Differential Treatment (SDT): Targeted support for Least Developed Countries (LDCs) within ASEAN—especially Cambodia, Laos, Myanmar and Vietnam (CLMV)—to facilitate their integration into regional trade. Living Agreement Structure: RCEP includes institutional mechanisms (for example RCEP Joint Committee, subcommittees) to review and expand the agreement's scope to address emerging challenges like digital trade, climate change and pandemics. However, RCEP remains modest in ambition in areas like labour protections, environmental standards, data flows and state-owned enterprise (SOE) disciplines—areas where the CPTPP sets higher benchmarks. Critics argue that without stronger commitments in these domains, RCEP's long-term contribution to sustainable development may be limited. Benefits and risks for ASEAN: Strategic leverage or unequal promise? In principle, RCEP offers numerous strategic advantages to ASEAN: Enhanced economic centrality: ASEAN remains at the centre of the agreement's architecture, reinforcing its convening power and diplomatic relevance in the Indo-Pacific. Trade and investment gains: According to CGE simulations (Itakura, 2022), ASEAN countries stand to experience notable gains in GDP, exports and welfare by 2035, especially under scenarios that include tariff reductions, trade facilitation and services liberalisation. SME and GVC participation: The agreement promotes inclusive integration by helping SMEs join RVCs through simplified customs procedures and regional trade facilitation. Yet, the benefits will be asymmetrical. Countries such as Singapore, Malaysia and Vietnam, already integrated into global value chains (GVCs) and possessing strong digital infrastructure, are well-positioned to benefit early and significantly. Conversely, CLMV countries with weaker institutional capacity, infrastructure deficits and limited trade readiness may struggle to fully leverage RCEP without capacity-building support. Moreover, the pandemic and the US-China trade war have exposed ASEAN's dependency on external markets. There is growing concern that RCEP could entrench such dependencies further, particularly on China, unless balanced by internal ASEAN Economic Community (AEC) integration. Key enablers of success for ASEAN To transform RCEP from a legal agreement into a transformative engine for inclusive growth, ASEAN must prioritise the following policy enablers. Domestic readiness and reform Upgrade trade infrastructure (ports, logistics) and adopt paperless trade systems. Strengthen digital and human capital, particularly for SMEs and underserved populations. Encourage private sector engagement and public-private partnerships (PPPs). 2. Deepening ASEAN Economic Community (AEC) Integration Eliminate non-tariff barriers (NTBs), harmonise standards and streamline customs procedures. Strengthen intra-ASEAN connectivity and production networks. Develop unified digital and green standards to align ASEAN with future trade demands. 3. Digital and Services Integration Expand the scope of digital trade rules within RCEP by advocating for stronger provisions on cross-border data flows, cybersecurity and digital inclusion. Enhance services liberalisation through a negative-list approach and stronger regulatory frameworks. Support skills upgrading for workers in ICT-enabled and high-value services sectors. 4. Institutional Governance and Implementation Monitoring Empower the RCEP Joint Committee and subcommittees to carry out robust implementation reviews. Create inclusive, transparent and participatory mechanisms to monitor RCEP's impact on SMEs, women, informal workers and rural communities. Provide technical assistance and dispute resolution access for smaller and less developed member states. ASEAN leadership at 58th AMM: What must be done As ASEAN Foreign Ministers gather at the 58th AMM in Kuala Lumpur, strong political direction is needed to steer RCEP implementation toward equitable outcomes. Recommended actions include: Establish a Regional RCEP Implementation Taskforce under the ASEAN Secretariat to assess commitments, facilitate peer learning, and enhance transparency. Create an ASEAN RCEP Transition Fund, contributed by more advanced economies, to support institutional capacity-building, regulatory reform, and infrastructure enhancement in CLMV countries. Reaffirm ASEAN Centrality in RCEP Governance, ensuring the ASEAN Secretariat works closely with RCEP institutional bodies to steer policy alignment and manage tensions between large partners. Mainstream Sustainability and Inclusivity, embedding Sustainable Development Goals (SDGs), gender equality, labour safeguards, and environmental sustainability into RCEP's evolving work programme. Between opportunity and test RCEP is a reflection of ASEAN's ability to lead regional integration in an era of fractured globalisation. It offers a unique opportunity to bridge development gaps, modernise economies and reassert ASEAN's relevance in global economic governance. But it also poses a test of political will and institutional coherence. Without urgent reforms, the agreement may inadvertently deepen regional inequalities and reinforce asymmetric dependencies. The success of RCEP, therefore, depends on ASEAN's commitment to leadership, solidarity, and shared prosperity. The message from Kuala Lumpur must then be bold and clear: ASEAN does not merely seek a seat at the table but it aims to lead, shape and humanise the future of regional economic integration. Nurul Amellya Azhar is a doctorate student in International Political Economy at Universiti Kebangsaan Malaysia.
Malaysian Reserve
4 hours ago
- Malaysian Reserve
58th AMM: ASEAN pushes for deeper integration, strategic unity
The region's strength lies in its ability to act collectively, grounded in the principles of unity, neutrality and people-centred development by AKMAR ANNUAR ASEAN foreign ministers have reaffirmed their commitment to a more cohesive, resilient and strategically autonomous region during the 58th ASEAN Foreign Ministers' Meeting (AMM), held in Kuala Lumpur last week. Chaired by Foreign Minister Datuk Seri Mohamad Hasan, the meeting focused on advancing the ASEAN Vision 2045 roadmap, strengthening intra-regional cooperation and addressing key regional security and economic challenges amid growing geopolitical tensions. Mohamad, who also chaired the plenary session on July 9, urged ASEAN to stay united and resolute against external pressures, emphasising that 'strategic consistency and internal cohesion' are crucial as the region navigates a volatile global landscape. He underlined that ASEAN's strength lies in its ability to act collectively, grounded in the principles of unity, neutrality and people-centred development. Timor-Leste's Accession: Closing the Loop The meeting endorsed the Guidelines to Facilitate Timor-Leste's Accession to ASEAN Legal Instruments, encouraged the full completion of procedures before the 47th ASEAN Summit and supported the adoption of the ASEAN Declaration on the Right to a Safe, Clean, Healthy and Sustainable Environment. The foreign ministers reaffirmed their support for Timor-Leste's membership and called on member states to assist in fast-tracking the signing of ASEAN agreements. This would pave the way for the formal inclusion of Timor-Leste at the 47th Summit in October. UKM political analyst Dr Mazlan Ali said Malaysia's leadership as ASEAN chair has demonstrated the country's potential to drive positive outcomes for the region. 'Malaysia's political and economic stability gives it the credibility to influence key ASEAN directions. For example, Malaysia's diplomacy played a key role in persuading major powers to consider South-East Asia's 1995 nuclear-free agreement,' he told The Malaysian Reserve (TMR). Mazlan added that Malaysia's ability to avoid confrontation while pursuing dialogue with global powers like the US and China enables ASEAN to position itself as a balanced player. 'It is realistic for ASEAN to reduce reliance on external powers by strengthening internal trade and policy alignment. Malaysia plays a bridging role here,' he said. On Timor-Leste's accession, he warned that further delays could invite external influence. 'If ASEAN does not accelerate Timor-Leste's membership, there is a risk it becomes a pawn in major power competition,' he opined. People-first Diplomacy A central priority of the 58th AMM was for ASEAN to go beyond mere declarations and ensure that its frameworks and roadmaps deliver tangible, meaningful benefits to the people of the region. Mohamad repeatedly highlighted the importance of people-centred outcomes. 'What the people want is implementation, not just communiqués. We must match ambition with delivery,' he said at a press conference. Economist Assoc Prof Dr Aimi Zulhazmi Abdul Rashid said ASEAN must urgently act on its economic strategic plan. He said Malaysia needs to significantly boost intra-ASEAN trade, especially in food and essential goods, given the rising uncertainties from global protectionism. ASEAN has the potential to shift from being just a manufacturing base to becoming a high-tech hub. 'With nearly 700 million people and a GDP approaching US$4 trillion (RM17 trillion), ASEAN can leverage second-mover advantage, learn from China's path and enhance its value chain,' he told TMR. Aimi Zulhazmi said the bloc's economic plans must translate into real gains for ordinary people. This would translate into improved wages for workers, the creation of more employment opportunities and greater investment in connectivity infrastructure that could attract foreign direct investment (FDI) and help build a resilient middle class across the region. He also called for ASEAN economies to adopt a region-wide second-mover strategy. 'Learn from China, take the good parts and improve on the gaps. That is how ASEAN becomes globally competitive without reinventing the wheel.' Nuclear Cooperation: New Energy Diplomacy In a bilateral engagement on the sidelines, Malaysia and the US signed a memorandum of understanding (MOU) on strategic civilian nuclear cooperation. The agreement includes collaboration in areas such as human capital development, regulation and peaceful application of nuclear technology in agriculture and healthcare. Mohamad said the MoU marked Malaysia's 'readiness to explore clean energy pathways while maintaining a peaceful foreign policy doctrine.' Aimi Zulhazmi said Malaysia's credibility as a neutral and peaceful nation makes it well to engage responsibly in such programmes. 'This is not about military ambition. It is about securing long-term energy stability.' ASEAN should collectively explore peaceful nuclear applications. 'This should not be an exclusive West-aligned agenda. ASEAN should open dialogue with multiple partners like China, South Korea and the European Union (EU),' he added. Mazlan shared similar views, noting Malaysia's long-standing diplomacy track record. He said Malaysia has always been trusted globally. 'We are not part of military alliances or arms races. That gives legitimacy to our pursuit of civilian nuclear development.' Rights, Environment and Digital Protection Another major outcome of the 58th AMM was the endorsement of the ASEAN Intergovernmental Commission on Human Rights' (AICHR) Priority Programmes for 2025 and its Five-Year Work Plan for 2026-2030. In layman terms, AICHR is ASEAN's official body responsible for promoting human rights in the region. It focuses on issues such as access to justice, the rights of vulnerable groups, digital protection and climate-induced displacement. The ministers expressed their full support for AICHR's plans, encouraging it to carry out its mandate in line with both ASEAN values and international human rights standards. This was complemented by the adoption of the ASEAN Declaration on the Right to a Safe, Clean, Healthy and Sustainable Environment. The declaration links human rights to environmental protection, signalling stronger cooperation on green policies, climate adaptation and disaster risk reduction. The bloc's economic plans must translate into real gains for ordinary people, says Aimi Zulhazmi (Pic courtesy of Aimi Zulhazmi) Realising ASEAN Connectivity Wisma Putra-Youth Diplomacy Task Force member Azwan Omar agreed that ASEAN must prioritise the removal of non-tariff barriers and accelerate banking integration. He said this will facilitate smoother capital movement and trade financing across ASEAN, adding that with better infrastructure and policy connectivity, intra-ASEAN investment could flourish. 'We need to grow our own demand base. That comes from a strong middle class and improved income distribution,' he told TMR. Azwan also welcomed Algeria and Uruguay's inclusion in the Treaty of Amity and Cooperation in South-East Asia (TAC), saying it reinforces ASEAN's non-aligned identity. 'This sends a signal that ASEAN is open for business, but not taking sides in global rivalries.' He also stressed the importance of translating strategic plans into action. 'Enough talk. Let's start building real ASEAN connectivity — roads, rails and digital infrastructure that people can see and feel,' he said. Azwan also supported the MOU on nuclear cooperation, calling it a long-term step toward energy security. To keep growing, Malaysia needs stable and excess electricity, which is critical for future investors. Reinforcing ASEAN's Geopolitical Identity With Algeria and Uruguay signing the TAC and Timor-Leste on track for accession, ASEAN continues to reinforce its identity as a neutral and non-aligned regional bloc. Experts say this gives ASEAN more geopolitical leverage in an increasingly divided world. Azwan said international recognition of ASEAN as a free and non-aligned region allows sovereign nations to conduct business and investment here without being drawn into US-China rivalry. Meanwhile, Mazlan said Timor-Leste's full inclusion would help secure the bloc's cohesion. 'ASEAN must not allow outside powers to influence member candidates. If we delay, others will step in.' Mazlan also cautioned that ASEAN's internal harmonisation of laws, especially in areas such as trade and cybersecurity, remains insufficient. The lack of legal alignment allows cyber-criminals to take advantage of regulatory gaps between member states, making it difficult to pursue enforcement. He pointed to the rising cases of digital scams and online fraud as pressing concerns, noting that some perpetrators operate from neighbouring ASEAN countries and evade prosecution due to overlapping jurisdictions and enforcement loopholes. Mazlan stressed that urgent reform is needed to implement synchronised digital laws and robust cross-border enforcement mechanisms across the region. Centrality in Global Disruption The 58th AMM also addressed regional responses to global instability. The ministers reaffirmed ASEAN Centrality and non-alignment as core principles amid ongoing tension in the South China Sea, protectionist trade policies and energy insecurity. TMR earlier reported that during the plenary session, Mohamad stressed that ASEAN will continue to deal with regional and strategic challenges in its own way — not mirroring other blocs or alliances. 'We need to reaffirm our strategic consistency and internal cohesion. If ASEAN is fragmented, external powers will exploit the vacuum,' he warned. The meeting's declarations and MOUs signal ASEAN's intent to position itself as a stabilising force, but analysts stress that success depends on follow-through before the 47th ASEAN Summit later this year. Aimi Zulhazmi said ASEAN's collective voice can only be strong if member states act as one. With a population of nearly 700 million and combined GDP of almost US$4 trillion, ASEAN has significant leverage. 'But that leverage is only real if it is coordinated,' he said. The Road to 47th ASEAN Summit While declarations were made on environment, human rights and nuclear energy, observers note that the region's credibility depends on delivery. Mohamad pointed out that the region is no longer insulated from global disruption. 'Whether it is trade wars, cybercrime, or climate shifts, ASEAN must be a source of certainty in an uncertain world,' he said. He reiterated that ASEAN must not only chart policy but materialise the spirit of its commitments. 'We must uphold the trust placed in us by the people.' As ASEAN moves towards the 47th Summit, focus will remain on the operationalisation of Timor-Leste's accession, the rollout of legal harmonisation frameworks, energy transition and accelerating intra-ASEAN trade mechanisms. Mazlan emphasised that ASEAN must move beyond being merely a platform for dialogue and instead evolve into a proactive, unified force that protects its people, promotes shared prosperity and upholds peace in a turbulent world. This article first appeared in The Malaysian Reserve weekly print edition
