Asean-BAC to launch private-markets association in bid to attract US$60 billion regional funding

Business Times

29-05-2025

[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.
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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.