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New Straits Times
2 days ago
- Business
- New Straits Times
Malaysia, Indonesia push to realise untapped trade potential
KUALA LUMPUR: Prime Minister Datuk Seri Anwar Ibrahim and Indonesian President Prabowo Subianto have called for renewed focus on unlocking the vast, yet underutilised, potential in bilateral trade and investment between Malaysia and Indonesia. Speaking at a joint press conference during his working visit to Jakarta, Anwar said that despite close diplomatic ties and decades of cooperation, both countries have not fully capitalised on the many opportunities available across key sectors. "My friendship with Prabowo reflects the deep bonds between our nations. For nearly half a century, we have nurtured a close personal and familial relationship built on trust, mutual respect, and a sincere spirit of brotherhood. "The potential for greater economic cooperation is immense, particularly in trade and investment. However, we both agree that much of this capacity remains untapped. "There is ample room for us to optimise this potential in the shared interest of our people and our longstanding friendship," he said. Anwar said both governments are aligned in their political will to advance cooperation in areas such as the economy, education, research, culture, and investment. "We recognise our shared responsibility to uplift the standing of our nations, whether through trade, education, innovation, or cultural exchange. As President Prabowo mentioned earlier, these are all vital areas that have been discussed. "I fully support the President's call for pragmatic steps to enhance our country's performance, especially in the face of tariff-related challenges and global uncertainties. "We must strengthen our domestic foundations, while expanding bilateral and Asean-level cooperation," he said. Prabowo echoed the sentiment, affirming Indonesia's commitment to working closely with Malaysia. "On the bilateral front, we have agreed to accelerate cooperation across all sectors, especially key areas such as the economy, trade, education, and culture. "These are issues that both of us agree must be addressed promptly, in the interest of something far greater — the enduring friendship and close cooperation between two countries that share so much in common. "We have a shared history, similar cultures, and many of our people even practise the same faiths. These deep-rooted ties are a strong foundation for us to work from," he said. Anwar was on an official visit to Indonesia today, as part of the ongoing commitment by both nations to further deepen their close and longstanding bilateral relations at the highest leadership level. The visit also formed part of the preparations for the 13th Annual Malaysia–Indonesia Consultation, scheduled to take place later this year. During the visit, Anwar also had a private meeting with Prabowo to review key bilateral issues, follow up on the outcomes of the 46th Asean Summit, the 2nd Asean–GCC Summit, and the ASEAN–China–GCC Summit, as well as to exchange views on regional developments and global issues of mutual concern. He was accompanied by Foreign Minister Datuk Seri Mohamad Hasan; Investment, Trade and Industry Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz; Higher Education Minister Datuk Seri Dr Zambry Abdul Kadir; Communications Minister Datuk Fahmi Fadzil; and Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani. In 2024, Indonesia was Malaysia's sixth-largest trading partner globally, and the second-largest among Asean member states. Bilateral trade increased by 4.5 per cent to RM116.29 billion (US$25.5 billion), up from RM111.21 billion in 2023.
New Straits Times
19-06-2025
- Business
- New Straits Times
Malaysia strengthens Asean role
MALAYSIA recently reaffirmed its regional leadership by hosting the 46th Asean Summit, echoing its steadfast commitment to unity and cooperation across Southeast Asia. As one of Asean's five founding members in 1967, Malaysia has played a crucial role in shaping the regional bloc's direction, advocating values of peace, stability and mutual respect. Over the decades, this commitment has translated into real benefits that continue to uplift Malaysian lives and businesses. Malaysia's place at the Asean table has always been more than symbolic. As a founding member, the nation helped shape the bloc's identity, rooted in diplomacy, peace and cooperation. These core principles remain as relevant today as they were in 1967. The country's ongoing advocacy for regional stability is evident in initiatives like the Asean Power Grid, which strengthens cross-border energy infrastructure. By supporting renewable and stable energy sources, Malaysia reinforces both environmental sustainability and regional security. As the Asean chair for 2025, Malaysia is steering discussions on key priorities, including digital advancement, climate sustainability and inclusive growth. Malaysia has long been a driver of regional economic collaboration. Its role in launching the Asean Free Trade Area (AFTA) in 1992 marked a turning point for intra-Asean commerce, slashing tariffs and improving market access for businesses and consumers alike. This spirit of economic cooperation continued with the 2020 signing of the Regional Comprehensive Economic Partnership (RCEP) in Kuala Lumpur. As the world's largest trade pact, RCEP boosts job creation and investment across the region, further embedding Malaysia into global trade flows. Malaysia has also contributed to Asean's economic identity by leading the establishment of its first regional Halal standard. This move elevated the international profile of Malaysian Halal products, giving local businesses a competitive edge across Southeast Asia. MOBILITY & CONNECTIVITY Asean membership offers Malaysians visa-free access to nine other member states, facilitating easier travel for tourism, education and commerce. Malaysia's commitment to digital connectivity is another area of progress. By backing Asean-wide initiatives to reduce roaming charges, the country helps lower communication costs for travellers and expatriates. In the fintech space, Malaysia has emerged as a leader in digital payment innovation. With platforms like GrabPay, Malaysians can make secure and seamless transactions while abroad in Asean, reflecting the country's strong regional digital integration. WHAT IS KERANA ASEAN? To bridge the gap between policy and public understanding, the Kerana ASEAN campaign was launched in May 2025. Spearheaded by Grab Malaysia in partnership with the Foreign Ministry, the initiative showcases how regional cooperation directly benefits Malaysians — embracing inclusivity, innovation and sustainability. Throughout the year, the campaign will roll out a series of digital and on-the-ground activations, making Asean's initiatives accessible and relatable to everyday citizens.
New Straits Times
18-06-2025
- Politics
- New Straits Times
Malaysia strengthens ties with Timor-Leste, backs Asean bid
KUALA LUMPUR: Malaysia is committed to enhancing bilateral cooperation with Timor-Leste in various strategic areas and supporting the country's aspiration to become a full Asean member. Prime Minister Datuk Seri Anwar Ibrahim said this was discussed during a meeting with Timor-Leste President Dr Jose Ramos-Horta at his residence in Putrajaya today. "Received President Timor-Leste, Dr Jose Ramos-Horta, at my residence today, further strengthening the close ties between Malaysia and Timor-Leste," he said in a Facebook post. Anwar said Malaysia remains dedicated to playing a constructive role in supporting regional integration for shared stability and prosperity. At a press conference concluding the 46th Asean Summit here on May 27, Anwar said that Southeast Asian leaders agreed to admit Timor-Leste as the 11th member of the regional bloc at the Asean Summit in October, subject to fulfilling certain outstanding conditions for full membership. The Prime Minister said the leaders reached a consensus to support Timor-Leste in taking all necessary steps to achieve full membership in the regional bloc. Timor-Leste, which gained independence in 2002, formally applied to join Asean in 2011 and was granted observer status in 2022. – Bernama
Straits Times
15-06-2025
- Business
- Straits Times
Indonesia President Prabowo Subianto to make first state visit to Singapore on June 16
Prime Minister Lawrence Wong meeting Mr Prabowo Subianto, President of the Republic of Indonesia, on Oct 20, 2024. PHOTO: MDDI Indonesia President Prabowo Subianto to make first state visit to Singapore on June 16 SINGAPORE – Indonesian President Prabowo Subianto will make his first state visit to Singapore on June 16. Mr Prabowo, who took office in October 2024, will receive a ceremonial welcome at Parliament House, said Singapore's Foreign Affairs Ministry (MFA) on June 15. He will call on President Tharman Shanmugaratnam, who will host a state banquet in his honour. Mr Prabowo will also meet Prime Minister Lawrence Wong for the annual Singapore-Indonesia Leaders' Retreat. The two leaders have met several times since they each took over as heads of government. For PM Wong, that was in May 2024. PM Wong visited Jakarta in end-October to attend Mr Prabowo's inauguration and joined other invited leaders to personally offer his congratulations. He also made an introductory visit to Jakarta at the start of November. The pair also met recently on the sidelines of the 46th Asean Summit in May in Kuala Lumpur, Malaysia. MFA said that as the highest-level platform between the two countries, the annual meeting – in its eighth iteration this year – is 'testament to the excellent bilateral relations and strong interpersonal ties between our leaders'. This will be the first Leaders' Retreat for both men in their current capacities. They had attended the Leaders' Retreat hosted by Indonesia in April 2024, when PM Wong was still deputy prime minister, and Mr Prabowo was president-elect. MFA said PM Wong and Mr Prabowo will review the 'strong and substantive cooperation' between Singapore and Indonesia and chart the way forward. 'Singapore and Indonesia share a longstanding friendship and collaborate closely in key areas such as defence, the green economy, and connectivity,' said the ministry. Recent milestones include three key agreements to strengthen cooperation in clean energy and sustainable development. The memorandums of understanding were inked on June 13 during a visit to Jakarta by Dr Tan See Leng, Singapore's Minister-in-charge of Energy and Science and Technology, and Dr Bahlil Lahadalia, Indonesia's Minister for Energy and Mineral Resources. Three landmark pacts between the two countries also officially came into force on March 21, 2024. The three agreements – which deal with airspace management, defence cooperation and extradition – come under an expanded framework between the two countries. MFA said Mr Prabowo will be accompanied by Coordinating Minister for Economic Affairs Airlangga Hartarto, Minister of State Secretary Prasetyo Hadi, Minister of Foreign Affairs Sugiono and Minister of Defence Sjafrie Sjamsoeddin. He will also be accompanied by Minister of Energy and Mineral Resources Bahlil Lahadalia, Minister of Agriculture Andi Amran Sulaiman, Minister of Investment and Downstream Industry Rosan Roeslani, and Cabinet Secretary Teddy Indra Wijaya. Goh Yan Han is political correspondent at The Straits Times. She writes Unpacked, a weekly newsletter on Singapore politics and policy. Join ST's WhatsApp Channel and get the latest news and must-reads.
The Star
13-06-2025
- Business
- The Star
Asean poised for major global economic role, but challenges remain, experts say
KUALA LUMPUR/MANILA (Xinhua) -- Asean could emerge as the world's fourth-largest economy in the coming decades, experts say, but the regional bloc must accelerate integration, strengthen institutions, and adapt to global shifts to realize this potential. Experts also urge Asean to act collectively to solidify its global presence. EMERGING INDUSTRY FUELING COMMON FUTURE "Asean, presently with an economic size of 3.8 trillion U.S. dollars, could become the fourth-largest economy on an aggregated basis but of a smaller world," said Mohd Munir Abdul Majid, chairman of CARI Asean Research and Advocacy, in a recent email interview with Xinhua. Mohd Munir, who is also president of the Asean Business Club and a senior fellow at LSE IDEAS, said technology -- particularly artificial intelligence (AI) in the services sector -- will drive future growth. He emphasized that Asean's access to technology should be guided by cost and technical quality. "E-commerce could be a key catalyst for intra-regional trade," Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Berhad, said that a robust digital infrastructure, including telecommunications and smart devices, is essential. Mohd Afzanizam also highlighted the importance of logistics to ensure speedy delivery, which necessitates efficient warehousing systems. He further emphasized that payment systems, such as QR code networks, are crucial to support micro, small, and medium enterprises (MSMEs) in expanding into international markets. Oh Ei Sun, principal adviser at the Pacific Research Center of Malaysia, stated that Asean should prioritize high-tech sectors that offer greater value-added potential. However, he told Xinhua that traditional commodities like palm oil and petroleum would remain vital as the region catches up in advanced industries. ASEAN INTEGRATION PROGRESSING STEADILY Aseans economic integration has been advancing gradually, with a strong emphasis on consensus and free trade, experts say. "Asean's economic integration has progressed steadily rather than hastily, grounded in a consistent commitment to free trade," said Mohd Munir. According to him, Asean's journey began with the Asean Free Trade Area in 1992, followed by the launch of the Asean Economic Community (AEC). The process is now guided by the Kuala Lumpur Declaration on Asean 2045, adopted at the 46th Asean Summit in May. "There is a lot happening. Not fast enough or optimally, but in a clear direction," he noted, adding that Asean has progressed based on consensus to deepen integration and free trade. Li Yuqing, assistant professor of Institute for International and Area Studies of Tsinghua University, said ASEAN's updates to the Asean Trade in Goods Agreement enhance regional trade and deepen integration, supporting its goal of becoming the world's fourth-largest economy. "Above all, Asean is a peaceful region, which makes it a conducive location for foreign direct investment and business ventures that can come from across the globe," Mohd Afzanizam said, highlighting initiatives such as the Johor-Singapore Special Economic Zone as evidence of strengthening regional ties. INSTITUTIONAL REFORMS, STRATEGIC CLARITY NEEDED Despite progress, experts pointed out that Asean faces institutional limitations. Mohd Munir said the bloc's decision-making structure remains slow, and the secretariat is under-resourced, despite the ASEAN 2045 vision calling for strengthening. "The point Asean must realise is that there is an urgent need to develop its strategic options in a changing world. It has taken a slow and steady course on increasing intra-regional trade, labor mobility and institutional implementation, emphasizing always on consensus," he said. "But there are now big issues for decision-making that cannot follow that route." Mohd Afzanizam warned that non-tariff barriers remain a key obstacle, as member states often act to protect their domestic industries. "Continuous dialogue, both government-to-government and government-to-business, is vital to identify and bridge these gaps," he said. Oh echoed those concerns, urging Asean to address internal development disparities. "Asean should focus on eradicating the abject poverty amongst itself for the least developed member states, and escaping the middle-income trap for the developing member states," he added. CHINA TIES OFFER CHANCE FOR COOPERATION Experts believe Asean-China relations are entering a new phase, driven by growing investment and strategic collaboration. Mohd Munir noted that Asean-China relations have been close in trade and, increasingly, in investment. In the context of global trade tensions, it would be good to deepen that relationship for mutual benefit. "For China, Asean's economic integration provides a relatively stable regional trade environment, helping China manage external trade risks and enhance economic resilience and stability," Li mentioned. She also noted that integration makes Asean's investment environment more stable and transparent, enabling businesses to better access the Asean market and achieve more efficient resource allocation. ASEAN countries may deepen cooperation with China in infrastructure development, which would accelerate progress in the digital economy and green transition, Oh suggested. GREATER INFLUENCE AMID UNCERTAINTY Regardless of whether Asean becomes the fourth-largest economy, its current size already warrants greater global influence, as the bloc is urged to exercise its weight in global affairs. "Asean needs to be less reticent about asserting its influence and initiating new ideas in a world marked by global disorder," he added. "Deeper Asean economic integration would strengthen the bloc's bargaining power," Li said, adding that it would enhance its role as a regional coordinator and allow it to play a more significant role. Mohd Afzanizam said that the shift toward a multipolar world provides more platforms for diplomatic solutions rather than unilateral decisions, especially from a single superpower, which can be disruptive. "This should resonate well with Asean as the region has always been peaceful. Certainly, Asean would want to advocate this at the global arena which is a universally accepted value," he added. - Xinhua
