Latest news with #AssociationofSoutheastAsianNations
Malaysia Sun
11 hours ago
- Business
- Malaysia Sun
Economic Watch: ASEAN integration drives development of independent regional financial system, analyst says
KUALA LUMPUR, June 28 (Xinhua) -- Greater economic integration among the members of the Association of Southeast Asian Nations (ASEAN) is accelerating efforts to build an independent and resilient regional financial system, aimed at reducing reliance on external currencies and enhancing monetary stability across Southeast Asia, according to a Malaysian analyst. These moves are not meant to target any specific country but rather reflect a desire to move away from external financial volatility and facilitate transactions using local currencies for intra-ASEAN trade, which will enable seamless cross-border transactions, provide greater market access for micro, small and medium enterprises (MSMEs), and also boost regional tourism, Lee Pei May, a political expert at the International Islamic University Malaysia, said in a recent interview with Xinhua. "The push for the use of local currencies has been ongoing for some time, as it helps strengthen the economic integration of ASEAN member states -- an important goal that ASEAN seeks to pursue. In fact, other regions are also moving away from relying too heavily on a single foreign currency, such as the U.S. dollar, as external interest rates and shifting government policies may cause significant volatility in currency exchange," she explained, adding that volatility is undesirable in any business. "Apart from the benefits of easier and faster transactions between businesses and banks of ASEAN countries through the use of local currencies, cross-border payments in local currencies can also help to avoid the volatility from outside the area," she said. Lee also said that allowing cross-border settlements in local currencies would be faster and cheaper, and singled out the tourism sector as a big winner, as tourists in the region will not need to go through the hassle of changing physical money when visiting other ASEAN states. "The Regional Payment Connectivity (RPC) initiative was first established to strengthen payment connectivity among the five ASEAN members, notably Malaysia, Thailand, Singapore, Indonesia and the Philippines. To date, the initiative has expanded to include central banks of Vietnam, Laos, Brunei and Cambodia," she said. "The participation would bring about seamless cross-border transactions and boost tourism in the region. Under the local currency settlement framework, many national payment systems have been linked, such as between Malaysia and Indonesia," she said. Lee also noted that the ASEAN push for local currencies and reduced dependency on external monetary systems has gained momentum amid growing awareness of the risks posed by relying on the U.S. dollar. "In the past, certain currencies were viewed as stable, but due to increasingly unpredictable global developments, this perception is shifting," Lee said, adding that if economic tools were to be used to exert pressure on policy differences, it could have negative implications. "Such risks, even if unlikely, remind us why building regional financial resilience is critical," she said.
New Straits Times
20 hours ago
- Politics
- New Straits Times
South Korea praises Malaysia's Asean Chair role in Myanmar crisis
KUALA LUMPUR: South Korea has praised Malaysia's active leadership as Chair of the Association of Southeast Asian Nations (Asean), highlighting its constructive role in promoting regional peace and stability. South Korea's Ambassador to Malaysia Yeo Seung Bae said that as Asean organises for peace and stability in Southeast Asia, Malaysia as the chair plays an important and active role, especially in addressing the ongoing crisis in Myanmar. "Prime Minister Anwar Ibrahim visited Bangkok a couple of months ago and met both the military leadership and the opposition leadership. "By doing this important role as Chair, Malaysia is making a positive contribution to regional peace and stability. "In that regard, Korea highly appreciates the role of Malaysia, and our government will continue to support Malaysia's active role as the Asean Chair," he told Bernama in an interview recently. In May 2025, Anwar initiated separate dialogues with Myanmar's junta leader Min Aung Hlaing and the opposition National Unity Government (NUG), marking a significant step towards fostering direct engagement between the conflicting parties. Subsequently, Foreign Minister Datuk Seri Mohamad Hasan said the Asean Foreign Ministers' Meeting (AMM 2025) held in May also agreed that Asean would undertake internal consultations on the proposal to appoint a permanent Asean Special Envoy on Myanmar for a three-year term, a move aimed at ensuring continuity and sustained engagement in addressing the protracted crisis. On June 22, Malaysia called for enhanced collaboration between Asean and the Organisation of Islamic Cooperation (OIC) to address the deteriorating situation in Myanmar, with a focus on ending violence, alleviating the humanitarian crisis, and supporting long-term peace in the country. Meanwhile, for the upcoming 58th Asean Foreign Ministers' Meeting (AMM) this July, Yeo reaffirmed South Korea's role as a responsible member of the international community and a strong supporter of Asean centrality, particularly in Malaysia's efforts to improve the security situation in the region. Korea is an active member of the East Asia Summit and the Asean Regional Forum, as well as being a key dialogue partner of Asean. "So definitely our new government places big importance on this July's Foreign Ministers' Meeting," he said. The 58th Asean Foreign Ministers' Meeting (AMM) will be held from July 8 to 11, 2025, at the Kuala Lumpur Convention Centre and will bring together the foreign ministers of all Asean member countries to review Asean's progress and unity, as well as discuss key regional issues. – Bernama
Fibre2Fashion
a day ago
- Business
- Fibre2Fashion
US firms may mull sourcing from suppliers other than China: McKinsey
Amid pressure on US-China trade, US companies may look to rearrange sourcing to alternative suppliers, and if they cannot, they may instead reduce purchases, replace imported products with something similar, or ramp up domestic production, according to McKinsey and Company. These alternatives require a combination of sacrifice, resources, know-how, and time, a recent research piece by McKinsey Global Institute said. The authors introduced a 'rearrangement ratio' to quantify how hard the change might be. Thirty-five per cent of US imports from China have a ratio less than 0.1, signifying a global available export market ten times larger than current US imports from China. Amid pressure on US-China trade, US firms may look to rearrange sourcing to alternative suppliers, or may reduce buying, replace imported products with something similar, or ramp up domestic production, McKinsey and Company said. Consumer goods are harder to rearrange than business inputs. Exports to the US from as many as 70 countries may rise by more than 10 per cent under such a condition. For higher ratios, rearrangement becomes harder, and for the 5 per cent of trade with a ratio greater than 1, US imports from China exceed available global exports, noted the authors. Consumer goods are harder to rearrange than business inputs. Sixty-one per cent of business input imports have a rearrangement ratio less than 0.1, versus 16 per cent of consumer goods. Europe emerges as the fulcrum of trade rearrangement. Across nine varied simulations, European imports from China and exports to the United States both go up by nearly $200 billion. As intra-European trade shifts to the United States, it leaves holes filled by increased Chinese exports—assuming Europe does not choose to alter its own trade policies. Others will be affected, too: exports to the United States from as many as 70 countries may increase by more than 10 per cent, the authors said. Strategies will need to handle continued uncertainty and ongoing shifts, they cautioned. Customers will buy new things from new sources and use them in new ways. Granularity is key. Shifts across many thousands of products will reshape the geometry of global trade. The average US China-rearrangement ratio is about 0.4, but the figure varies widely across sectors. It is mid-range for textiles. In general, apparel such as T-shirts, jerseys and trousers is exported by a wide range of economies, with rearrangement ratios generally less than 0.1. Indeed, China has been shifting away from this category and moved from representing nearly 45 per cent of global apparel exports in 2010 to 25 per cent in 2023. However, rearrangement ratios are greater than 0.5 for other products ranging from synthetic-fibre socks to face masks and surgical drapes. Members of the Association of Southeast Asian Nations (ASEAN) could also replace a substantial share of China's textile exports to the United States, but this is more dependent on the specifics of rearrangement, the article added. For example, with tariffs as outlined on April 2, 2025—which are typically higher for ASEAN members—a tariff-minimising approach results in US textile imports coming more from economies like Morocco and Turkiye. ASEAN members substitute only about 5 per cent of US imports from China. Conversely, under some rearrangement-minimising approaches, this share rises to nearly 40 per cent. Fibre2Fashion News Desk (DS)
Japan Today
a day ago
- Business
- Japan Today
Rubio's 1st visit to Japan being arranged for July
Japan and the United States are arranging for U.S. Secretary of State Marco Rubio to make his first visit to Japan early next month, a Japanese government source said Friday, with U.S.-imposed tariffs and the Middle East situation expected to be key topics. The trip is being arranged as part of Rubio's travel to Asia to attend a series of foreign ministerial meetings related to the Association of Southeast Asian Nations in Malaysia from July 8 to 11, according to the source. He also plans to visit South Korea. If the Japan visit is finalized, Rubio, who was sworn in in January as the top U.S. diplomat, is likely to hold meetings with Prime Minister Shigeru Ishiba and Foreign Minister Takeshi Iwaya. New tariffs imposed by the administration of U.S. President Donald Trump are certain to be discussed, with a 90-day reprieve from what the United States calls "reciprocal" tariffs set to expire on July 9. The talks in Tokyo are expected to cover the Middle East in the wake of the recent Israel-Iran conflict and subsequent cease-fire agreement. © KYODO
Kyodo News
a day ago
- Business
- Kyodo News
U.S. State Secretary Rubio's 1st visit to Japan eyed for July
KYODO NEWS - 9 hours ago - 19:00 | All, World, Japan Japan and the United States are arranging for U.S. Secretary of State Marco Rubio to make his first visit to Japan early next month, a Japanese government source said Friday, with U.S.-imposed tariffs and the Middle East situation expected to be key topics. The trip is being arranged as part of Rubio's travel to Asia to attend a series of foreign ministerial meetings related to the Association of Southeast Asian Nations in Malaysia from July 8 to 11, according to the source. He also plans to visit South Korea. If the Japan visit is finalized, Rubio, who was sworn in in January as the top U.S. diplomat, is likely to hold meetings with Prime Minister Shigeru Ishiba and Foreign Minister Takeshi Iwaya. New tariffs imposed by the administration of U.S. President Donald Trump are certain to be discussed, with a 90-day reprieve from what the United States calls "reciprocal" tariffs set to expire on July 9. The talks in Tokyo are expected to cover the Middle East in the wake of the recent Israel-Iran conflict and subsequent cease-fire agreement. Related coverage: Japan foreign minister stresses importance of Israel-Iran cease-fire Rubio says U.S. to "aggressively" revoke visas of Chinese students Japan, U.S., South Korea voice "serious concerns" over North Korea moves
