Latest news with #StrategicPlan2026-2030
The Star
13-06-2025
- Business
- The Star
‘Asean offers what others cannot'
KUALA LUMPUR: Asean offers a stable and predictable environment for various businesses to thrive, says Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz. 'These are features that businesses and investors desperately need but other regions cannot easily replicate. 'Those attributes are set to help Asean become the world's fourth-largest economy by 2030,' he said in his speech at the Regional Socialisation of the Asean Economic Community (AEC) Strategic Plan 2026-2030 event yesterday. 'Regardless of where global trends lead, Asean member states remain committed to supporting a transparent, free, fair and inclusive rules-based multilateral trading system with the World Trade Organisation (WTO) at its core,' he added. Tengku Zafrul noted that globalisation, once the driving force behind Asean's integration into global value chains and economic growth, is being upended by recent geopolitical tensions, as well as trade and tariff wars. 'As the global order is being reshaped, the only certainty is uncertainty – of course, this is not conducive for business growth and investor confidence. 'This, in turn, poses serious risks to Asean's growth, resilience, security and long-term potential. 'Amid these challenges, Asean must recalibrate its post-2025 economic integration framework. Today's challenging landscape calls for agility over aggressive growth, and resilience over radical expansion,' he said. Tengku Zafrul added that the AEC Strategic Plan is key to realising the regional bloc's aspiration of becoming a single market and production base, driven by competitiveness, inclusivity and sustainable growth. 'Structured in five-year cycles until 2045, it will keep Asean's policies current and updated, so we can be more responsive to evolving business needs and emerging challenges,' he said. 'As the first instalment of this long-term vision, the AEC Strategic Plan 2026-2030 serves as a comprehensive roadmap outlining a clear and actionable path forward. 'This has been carefully developed to implement the economic aspects of the Asean Community Vision 2045, by harnessing Asean's vast opportunities and potential. 'Through the AEC Strategic Plan, Asean aspires to significantly enhance intra-Asean trade by boosting the interconnectedness of the single market for goods, services, and investments. 'By further reducing persistent non-trade barriers, we can realise the fuller potential of intra-Asean trade. 'This will strengthen Asean's competitiveness and build greater resilience against external shocks.' According to Tengku Zafrul, the plan demonstrates Asean's readiness to embrace transformation, enhance connectivity and promote innovation, anchored on the core principles of sustainability and inclusivity. It also emphasises establishing a forward-looking digital economic framework expected to double Asean's digital economy to reach US$2 trillion (RM8.4 trillion) by 2030. Despite isolationist policies by some parts of the global economy, the AEC Strategic Plan strongly reinforces the regional bloc's commitment to market openness and proactive engagement with external partners. 'Asean seeks to enhance engagements with not only traditional markets and established dialogue partners, but also new markets, for our goods, services and investments. This will reduce over-dependence on selected economies, thereby strengthening Asean's macroeconomic resilience,' he said. Dr Ahmad Zafarullah Abdul Jalil, director of the Asean Integration Monitoring Directorate, Asean Economic Community Department of the Asean Secretariat, said the AEC outlined six Strategic Goals, 44 Objectives and 192 Strategies. 'The strategic goals outline what kind of community we want to become by 2045. We want to become an action-oriented community; a sustainable community; an enterprising, bold and innovative community; an adaptable and pro-active community; a nimble and resilient community and an inclusive participatory and collaborative community,' he said during the context-setting session. 'The strategic plans outline the measures we need to take in order to achieve all these strategic goals,' he said, adding that documents would be released over the years to articulate in a more detailed manner how Asean would achieve these goals. At a press conference later, Tengku Zafrul said that despite the geopolitical tensions between the United States and China, there have been no cancellations of foreign investments in Malaysia. 'The ones already in Malaysia continue to stay, and those committed have not pulled out, but those yet to commit are now thinking,' he said. Tengku Zafrul, who is slated to visit the United States next week, said the main goal for Malaysia's negotiations with President Donald Trump's administration would be on reducing the 24% tariff on Malaysian goods exported to the United States. He added that the government also aims to negotiate for lower than 10% tariffs for exports from certain sectors. 'A lot of things we do actually strengthen and complement US businesses both in the United States and Malaysia. So, it is a win-win relationship,' he said.
The Star
12-06-2025
- Business
- The Star
Asean provides stable environment for business growth, says Tengku Zafrul
KUALA LUMPUR: Asean offers a stable, predictable environment for various businesses to thrive, says Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz. "These are features that businesses and investors desperately need, but features which other regions cannot easily replicate. Those attributes are set to help Asean become the world's fourth-largest economy by 2030," he said during his speech at the Regional Socialisation of the Asean Economic Community (AEC) Strategic Plan 2026-2030 event on Thursday (June 12). 'Regardless of where global trends lead, Asean Member States remain committed to supporting a transparent, free, fair, and inclusive rules-based multilateral trading system with the World Trade Organisation (WTO) at its core," he added. Tengku Zafrul noted that globalisation, once the driving force behind Asean's integration into global value chains and economic growth, is being upended by recent geopolitical tensions, as well as trade and tariff wars. "As the global order is being reshaped, the only certainty is uncertainty—of course, this is not conducive for business growth and investor confidence. This, in turn, poses serious risks to Asean's growth, resilience, security, and long-term potential," he said. Amid these challenges, Asean must recalibrate its post-2025 economic integration framework. Today's challenging landscape calls for agility over aggressive growth, and resilience over radical expansion." In achieving that aim, Asean Member States' collective response must be calm, collected, and calibrated. To that end, as Asean Chair, Malaysia has convened various engagement sessions with Economic Ministers and Dialogue Partners to chart a coordinated approach that will continue to shape Asean's external engagements," he said. He said that Asean has grown steadily over the past decade, with growth averaging 4.4% annually. Additionally, its 680-million strong market, rich natural resources, and young talent—coupled with principles of neutrality and centrality—position it for a bigger role in global supply chains and in driving global trade and attracting more investments. Tengku Zafrul added that the AEC Strategic Plan is key to realising the regional bloc's aspiration of becoming a single market and production base, driven by competitiveness, inclusivity, and sustainable growth. "Structured in 5-year cycles until 2045, it will keep Asean's policies current and updated, so we can be more responsive to evolving business needs and emerging challenges," he said. As the first instalment of this long-term vision, the AEC Strategic Plan 2026-2030 serves as a comprehensive roadmap outlining a clear and actionable path forward. This has been carefully developed to implement the economic aspects of the Asean Community Vision 2045, by harnessing Asean's vast opportunities and potential." "Through the AEC Strategic Plan, Asean aspires to significantly enhance intra-Asean trade by boosting interconnectedness of the single market for goods, services, and investments. By further reducing persistent non-trade barriers, we can realise the fuller potential of intra-Asean trade," he said. This will strengthen Asean's competitiveness and build greater resilience against external shocks," he added. He said the plan demonstrates Asean's readiness to embrace transformation, enhance connectivity, and promote innovation, anchored on the core principles of sustainability and inclusivity. It also emphasises establishing a forward-looking digital economic framework expected to double Asean's digital economy to reach US$2tril by 2030. Despite isolationist policies by some parts of the global economy, the AEC Strategic Plan strongly reinforces the regional bloc's commitment to market openness and proactive engagement with external partners. "Asean seeks to enhance engagements with not only traditional markets and established Dialogue Partners, but also new markets, for our goods, services, and investments. This will reduce over-dependence on selected economies, thereby strengthening Asean's macroeconomic resilience," he said.
New Straits Times
28-05-2025
- Business
- New Straits Times
AEC's digital economy to hit US$1 trillion by 2030: strategic plan unveiled
KUALA LUMPUR: The impact of enhancing the digital economy via the Asean Economic Community (AEC) Strategic Plan 2026-2030 will be immense because the region's digital economy is projected to reach US$1 trillion by 2030, an economist said. KSI Strategic Institute for Asia Pacific economic advisor Dr Anthony Dass said this will be a key priority, and the newly binding Digital Economy Framework Agreement (DEFA) plays a significant role in increasing regional economic integration. "The digital economy contributes by facilitating cross-border trade, promoting innovation, enhancing connectivity and attracting investments into the region. A robust digital infrastructure fosters innovation, leading to new digital services, platforms, and business models that drive economic growth. "DEFA aims to address cross-border challenges and tackle issues like online fraud and misinformation, ensuring a safer and more trustworthy digital environment. Digitalisation will also streamline business processes, enhance productivity, and reduce operational costs across various sectors," he told Bernama. Nevertheless, Dass said significant differences in development levels, regulatory capacity, infrastructure, and digital skills across Asean member states pose challenges to the effective implementation and widespread benefits of DEFA. "Ensuring data free flow with trust while balancing data protection and national sovereignty is also a complex task," he said. Increase Asean economic resilience The potential of the AEC Strategic Plan to enhance regional economic integration is significant, given the lessons learned from the AEC Blueprint 2025, with its 97 per cent implementation rate. "The new plan is designed to be more dynamic and adaptable, moving beyond a 'business-as-usual' approach. By focusing on action-oriented, sustainable, dynamic, adaptable, agile, and inclusive strategies, the plan aims to create a more integrated and cohesive economy. "The emphasis on sustained growth and competitiveness, and the commitment to deeper integration through digitalisation, innovation, and sustainability, suggest a strong foundation for future progress," he said. He said the plan's effectiveness and potential impact will largely depend on the political will and implementation, and its adaptability to global shifts. Dass said its outline of six strategic goals, 44 objectives, and 192 strategic measures demonstrates a comprehensive and detailed approach to advancing regional growth. "While the plan is robust on paper, consistent political will and effective implementation across all member states are paramount. Past experiences show that disparities in development levels and regulatory capacities can hinder progress. "The current global economic landscape is characterised by rapid technological advancements, supply chain disruptions, and evolving trade dynamics. The plan's emphasis on 'agile and forward-looking strategies' suggests an awareness of this, but its actual ability to adapt to unforeseen challenges will be critical," he said. While the upgraded Asean Trade in Goods Agreement (ATIGA) is crucial for reducing trade barriers, he said the plan's effectiveness hinges on its ability to tackle persistent non-tariff barriers, particularly in critical services like finance and banking. "Additionally, the plan's development involved extensive engagement with various stakeholders. Continued engagement with governments, the private sector, civil society, and regional organisations will be vital for its successful implementation and to ensure that the benefits are widely distributed," said Dass. Shorter timeframe The AEC Strategic Plan, with its shorter timeframe of between 2026 and 2030, presents both opportunities and challenges. It allows the plan to quickly adapt to evolving global and regional dynamics. Hence, more responsive to emerging challenges and opportunities. "A five-year horizon can lead to concentrated efforts and a greater sense of urgency in achieving targets. Shorter cycles would allow for more frequent reviews and adjustments, ensuring the plan remains relevant and impactful," Dass said. Nevertheless, it is "highly ambitious" trying to achieve significant structural reforms and deep integration within a shorter period, given the diverse development levels among member states, he said. "Some initiatives, particularly those related to capacity building or institutional strengthening, may require a longer period to show their full impact. Maintaining consistent coordination and momentum across 10 diverse economies within a compressed timeline can be demanding. "Therefore, the effectiveness will ultimately depend on whether the shorter timeframe is utilised to foster greater dynamism and responsiveness, or if it leads to an overburdened agenda that struggles with comprehensive implementation," he said Strengthening MSME Participation The AEC Strategic Plan recognises Asean MSMEs as engines of growth and aims to strengthen their participation via various initiatives such as capacity building and digital readiness, access to finance and export markets and many more. "The plan likely includes measures to improve MSMEs' access to financing and connect them with regional and global export markets, overcoming existing limitations. "Addressing structural differences, inconsistent policies, and the absence of harmonised cross-border regulations that currently constrain MSME growth is crucial," he said, adding that financial assistance and awareness programmes are needed. The plan also focuses on promoting inclusivity among MSMEs to empower youth and women entrepreneurs, ensuring that the benefits of integration are shared widely. "Asean MSMEs will benefit from this plan because it increases competitiveness, expands market access, and promotes greater resilience, by displaying a diversification of markets and stronger support networks to help the MSMEs," said Dass. Measuring the progress Dass said Asean measures the progress of its strategic plans via a combination of mechanisms, drawing lessons from previous blueprints like the AEC Blueprint 2025, which include key performance indicators (KPIs). "The bloc assesses progress, its overall effectiveness, identifies challenges, and draws lessons from it at the end of a plan's cycle," he said. Asean will also conduct council meetings and other ministerial meetings to serve as platforms to review progress, discuss implementation issues, and provide guidance, he said. "These mechanisms ensure accountability, identify bottlenecks, and enable necessary adjustments to achieve its economic integration goals," he added. The leaders of the 10-member grouping recently adopted the AEC Strategic Plan to elevate the bloc's position as the world's fourth-largest economy. The plan will move to the implementation phase with each AEC sector developing its sectoral plans, translating strategic objectives into concrete actions, timelines and performance indicators. Investment, Trade, and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said the plan is a comprehensive roadmap that will be part of the overall Asean Community Vision 2045 (ACV 2045).
The Star
27-05-2025
- Business
- The Star
AEC strategic plan set to drive deeper regional economic integration, strengthen resilience, says economist
KUALA LUMPUR: The Asean Economic Community (AEC) Strategic Plan 2026-2030 is set to drive deeper integration and create prosperity across Southeast Asian economies while strengthening the bloc's resilience against external economic pressures, an economist said on Tuesday (May 27). University of Nottingham Malaysia assistant professor of business economics Dr Tan Chee Meng emphasised that Asean's vast growth potential and rising development levels could support less affluent member states such as Cambodia and Laos in achieving economic progress. "From that perspective, it is highly plausible that the regional bloc can achieve its status as one of the largest economies in the world," he said, commenting on Asean's quest to become the world's fourth-largest economy by 2045, as outlined in the Kuala Lumpur Declaration 2025 signed on Monday (May 26) at the 46th Asean Summit chaired by Malaysia. The economic blueprint adopted by Asean leaders on Monday is a comprehensive roadmap incorporating six strategic goals, 44 objectives, and 192 strategic measures, with a people-centred approach as one of its core thrusts. It was developed through a comprehensive consultative process involving all AEC sectoral bodies and inputs from other Asean Community Pillars, alongside consultations with 315 stakeholders' representatives from businesses, academia, civil society, parliamentarians, and more. A region-wide public survey involving 7,568 respondents from Asean member states and Timor-Leste was also conducted for this purpose. The strategic plan is one of four strategic plans under the broader Asean Community Vision 2045. However, Tan cautioned the region to address challenges that hinder Asean from achieving its goal, such as ensuring continued development in Cambodia, Myanmar, Laos, and Vietnam to reduce economic disparity among member states. "Asean could encourage growth throughout by increasing intra-regional trade and investment, as well as upskilling the workforce across the region," he said. Asean's total trade improved significantly to US$3.8 trillion in 2024 from US$2.3 trillion in 2015, but intra-Asean trade only increased to US$0.8 trillion from US$0.5 trillion during the period. Turning to the potential conclusion of the free trade agreement (FTA) between Asean and the Gulf Cooperation Council (GCC), he said it could significantly boost regional development. Tan pointed out that the GCC, which collectively manages sovereign wealth funds worth an estimated US$4.9 trillion, could play a major role in injecting capital into Asean economies. "If the FTA between Asean and the GCC can be concluded favourably, the injection could be a major contributor to the development of the region. "The same applies to Chinese investments, particularly through Beijing's Belt and Road Initiative (BRI)," he said. While deeper integration promises benefits, he acknowledged that it will take time and strong political will among member countries of the 57-year-old grouping. "This is where the AEC and its four pillars come in, namely, having a single market, being competitive, equitable development, and integration into the global economy," he said. Asean also aspires to be a prosperous single market with a highly-skilled and inclusive workforce, productivity and innovation-driven growth, while incorporating sustainability across and along the value chain through Asean Community Vision 2045 (ACV 2045). Tan said harmonising Asean economies into a single market is highly challenging given the significant differences in the economic structures of each member nation. "Convincing member states to form an economic union requires guarantees that the interests of the individual states do not become subservient to those of the more influential or powerful states within the bloc. "This is why equitable development that emphasises common or shared prosperity becomes a major point in ensuring that a single market could ultimately be achieved," he said. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid emphasised that now is the time to strengthen and enhance collaboration across the region. He noted that Asean has the scale and potential to emerge as a major force in global trade, investment, climate action, and security cooperation. This transformation, he said, could be catalysed by the upcoming AEC Strategic Plan, which is expected to guide the region's next phase of economic and structural growth. "The time for better and effective collaboration is now, as the global superpowers, such as the United States and China, will continue to be at loggerheads on many issues. "Asean as a region needs to be more proactive in promoting deeper integration across various areas, including economics, infrastructure, climate change, and security," he said. Mohd Afzanizam added that identifying the right industry niches and fostering collaboration—rather than competition—among member countries should serve as the guiding principle for effective regional cooperation. He said Asean must formulate a strategic framework for industrial development that enables member countries to complement one another within the supply chain and integrate more effectively with global markets. "Each member country has its own investment promotion agencies, special economic zones, customs procedures, and regulations that need to be harmonised for effective collaboration. "Some member countries are rich in natural resources, while others have strong financial markets," he said. – Bernama
The Sun
26-05-2025
- Business
- The Sun
Myanmar stays committed to ASEAN despite domestic challenges
KUALA LUMPUR: Despite grappling with ongoing domestic challenges, Myanmar continues to play an active and constructive role within the ASEAN framework, particularly in driving the region's economic agenda forward, ASEAN Deputy Secretary-General for ASEAN Economic Community (AEC) Satvinder Singh said. Speaking at a recent engagement, he emphasised Myanmar's unwavering commitment to ASEAN's initiatives, noting that the country remains an essential and cooperative member of the bloc. 'In the last couple of years, when they are undergoing so much turmoil domestically, it hasn't stopped them from contributing what they need to contribute in every single initiative of ASEAN. 'Even meetings, where they need to host, they have hosted when there are key agreements where they need to vote, they did - knowing that in ASEAN, if one country doesn't vote, the agreement doesn't pass through,' he said at a pre-event briefing on the AEC Strategic Plan 2026-2030 recently. Hence, Myanmar's contributions to ASEAN have not wavered, he said. Satvinder also praised the camaraderie and solidarity among ASEAN's economic leaders, including those from Myanmar, calling it a vital force behind the grouping's recent progress. 'When I sit next to the ASEAN Secretary-General, Dr Kao Kim Hourn, and watch how these leaders discuss and align on economic matters, the unity they show is remarkable. That solidarity is exactly what's powering the progress of the ASEAN Economic Community (AEC),' he said. He also noted that Myanmar's proactive stance on regional trade and development efforts deserves recognition, especially at a time when internal difficulties could have easily led to disengagement. 'Credit must be given where it's due. Myanmar hasn't just participated; they have contributed meaningfully,' he added. To recap, the 2021 military coup in Myanmar that deposed democratically elected National League for Democracy (NLD) leader Suu Kyi further worsened its situation, prompting the bloc to bar its junta leaders from its summits and ministerial meetings. Nevertheless, Myanmar's senior officials have continued to attend preparatory meetings for ASEAN summits, including the 46th ASEAN Summit. ASEAN Foreign Ministers have agreed that efforts to continue engaging with all stakeholders in Myanmar must persist to find a long-term solution to the protracted crisis in the country. Malaysian Foreign Minister Mohamad Hasan said that Malaysia, as ASEAN Chair, planned to visit Myanmar to formally present a 'wishlist' gathered from various stakeholders to the State Administration Council (SAC). ASEAN will also conduct internal consultation on the proposal for a permanent ASEAN Special Envoy to Myanmar, he said.
