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Yahoo
05-07-2025
- Business
- Yahoo
Asean needs ‘bolder reforms' to attract investments in a more fragmented global economy: PM Wong
SINGAPORE – Asean must become a more seamless and competitive single market, one that attracts businesses and investments looking for alternatives in a more fragmented global economy. To get there, bolder reforms are needed, said Prime Minister Lawrence Wong in a video message posted on YouTube on July 5, adding that the association's 10 nations may be limited in scale individually but together have considerable weight. Asean today has 700 million people and it forms the fifth largest economy in the world, and is projected to be the fourth largest by 2030. The next decade will be critical to unlock its full potential, said PM Wong, who has just finished his introductory visits to Asean's capitals, with the exception of Myanmar, which he said he hopes to visit 'when the situation is more conducive'. PM Wong said: 'Continued peace, stability and growth in Asean will transform our entire region – and this will translate to better jobs, opportunities and living standards for all our peoples.' The key to achieving this lies in closer integration amongst Asean economies. PM Wong noted that supply chains across the bloc already span multiple countries, leveraging their complementary strengths. He gave the example of cotton from the Philippines. This could be spun in Thai factories, dyed and sewn in Vietnam and exported to the world. 'This is the kind of cooperation we must strengthen,' he said. To become a more seamless and competitive single market, Asean needs to reduce trade and investment barriers and make it easier for companies to operate across borders, PM Wong said. It also means negotiating a digital economy agreement across the bloc, and linking payment systems Singapore, Malaysia and Thailand have done, he added. The seven other countries in the bloc are Brunei, Cambodia, Indonesia, Laos, Myanmar, Philippines and Vietnam. Physical infrastructure including rail and power grid connections must also be enhanced and Asean must also deepen its partnership with the rest of the world, PM Wong said. It already has seven Free Trade Agreements with external partners, including the Regional Comprehensive Economic Partnership (RCEP) – the world's largest trading bloc, he noted. These existing agreements will be upgraded, and Asean is exploring new ones such as with the Gulf Cooperation Council (GCC) and the European Union. These agreements open doors for businesses and make Asean more connected to global markets, he noted. PM Wong said Malaysia – this year's Asean chair – has been pushing for these reforms and Singapore fully supports these efforts. He added: 'The momentum will continue with the Philippines as chair next year, and when Singapore takes over as chair in 2027 – a milestone year marking ASEAN's 60th anniversary'. PM Wong was most recently in Cambodia where the two countries on July 2 announced they will deepen their collaboration in several areas, including renewable energy, high-quality carbon credits and trade in food products. He prioritised visits to Asean capitals because they are in Singapore's immediate neighbourhood, he said. 'We have close bilateral ties with all its members. And it is in our shared interest to have a strong and united Asean,' he said, adding that Singapore will work closely with these countries as well as others around the world, to keep Asean strong, effective, and relevant for the future. He encouraged all Singaporeans to be 'part of this journey' and to learn more about the region, understand their neighbours and build connections. 'Because Asean's future is our future – and everyone has a role to play,' he said. The world is going through profound changes and geopolitical tensions are rising. But this is not the first time the region has faced uncertainty, PM Wong noted. When the bloc was formed in 1967, the world was also in turmoil – right in the middle of the Cold War, a conflict between the United States and the USSR and their respective allies. PM Wong said: 'Our founding leaders knew we were better off facing challenges together rather than alone.' He quoted Mr S. Rajaratnam, Singapore's first Foreign Minister, who said 'if Asean does not hang together, we will hang separately'. He said: 'So we came together – respecting each other's sovereignty and focusing on mutually beneficial cooperation. 'That unity helped lay the foundations for peace and stability in our region.' The region has seen conflict before and was once an arena for proxy wars by major powers, PM Wong said. 'We do not want that to happen again. Neither can we afford to have disputes divide us,' he added. Instead, Asean must work together to preserve peace and stability and to keep the bloc open and inclusive – a region that is not dominated by any single power, but where all the major powers are engaged and invested, he said. Source: The Straits Times © SPH Media Limited. Permission required for reproduction Discover how to enjoy other premium articles here
Malay Mail
28-06-2025
- Business
- Malay Mail
Analyst: Asean integration fuels push for independent regional financial system
KUALA LUMPUR, June 28 — 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), as well as boost regional tourism, Lee Pei May, a political expert at the International Islamic University Malaysia, said in an 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 US 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 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,' Lee stated. She 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 US 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.' — Bernama-Xinhua
Zawya
05-06-2025
- Business
- Zawya
Nigeria: Minister urges stronger private sector role in boosting intra-African trade
Nigeria's Minister of Foreign Affairs, Ambassador Yusuf M. Tuggar, has made a clarion call for the private sector to play a central role in unlocking Africa's economic potential through intra-African trade. Speaking at the Private Sector Roundtable preceding the West Africa Economic Summit (WAES), held at the Metropolitan Club, Victoria Island, Lagos, Tuggar highlighted the urgent need for deeper economic integration across the continent. Addressing an audience of business leaders, diplomats, and policymakers, Tuggar emphasised that Africa stands at a critical juncture — one where business is no longer a peripheral concern but a strategic pillar of regional policy and diplomacy. 'This is the period in which the voice of business is not merely recognised at the margins, but is systematically institutionalised within the core processes of policy formulation and regional economic diplomacy. 'It reflects a deeper entanglement of corporate interests and statecraft, wherein the private sector emerges not as a peripheral stakeholder but as a central architect of economic governance frameworks,' Tuggar stated. While outlining the opportunities, the Minister also presented a stark picture of the current reality. Citing recent data, he revealed that intra-African trade accounts for only 15 percent of total trade on the continent, with the figure dropping to between 12 percent and 13 percent in West Africa. In contrast, intra-regional trade in Asia hovers around 60 percent, and Europe nears 70 percent, highlighting a significant gap. Tuggar pointed out that the constraints to West Africa's economic integration are not a matter of potential, but rather of practical shortcomings — infrastructure gaps, weak coordination, and a lack of sustained political commitment. 'The challenge lies not in envisioning a prosperous, interconnected region, but in establishing the institutional mechanisms, logistical frameworks, and governance consensus required to actualise that vision,' he said. Nevertheless, he acknowledged progress in recent years, citing efforts such as the ECOWAS Trade Liberalisation Scheme, the Abidjan-Lagos and Abidjan-Dakar transport corridors, SIGMAT, the West African Power Pool, and the planned African-Atlantic Gas Pipeline. 'These are not just abstract ideas — they are West-African-led initiatives that will prove advantageous to businesses across the sub-region in the near future,' he affirmed. Tuggar also expressed concern over rising global protectionism and the reordering of global tariff systems, noting that such developments make regional alignment even more essential. 'In a world witnessing protectionist tendencies from global market leaders, it is only right that neighbours and regional blocs align for the common good of their people. 'The West African response must be clear and deliberate, not reactionary and disjointed. That is why WAES is a timely and strategic platform,' he said. WAES, scheduled for June 20–21, 2025, in Abuja, is a flagship initiative championed by Nigeria's President and supported by other West African leaders. According to Tuggar, the Summit aims to shift the region from dependency to productivity, and from fragmented markets to integrated value chains. 'The idea is to use our size to generate efficient productivity in order to outcompete others in the global market,' he explained. 'A broader West African market will drive down costs and enable our businesses to scale up and compete internationally.' WAES is expected to bring together Heads of State, Ministers, investors, and key stakeholders from across West Africa, along with private sector leaders. The Minister underscored the importance of this inclusion, stating that business voices must directly influence policy decisions. 'When we succeed in integration, when we improve on policy predictability, secure property rights, and the effectiveness of contracts — investors will come,' Tuggar said. 'This is the largest market on the continent, and it must be leveraged.' He emphasized the need for candid conversations between the private sector and policymakers during WAES. 'We're bringing along the decision makers to hear directly from you — to understand the challenges, identify the low-hanging fruits, and even resolve some issues on the spot,' he said. Tuggar urged participants not to underestimate the impact they could have. 'Sometimes it just takes one phone call. We are serious about removing barriers to business so that commerce can thrive,' he said. 'It's not just about size, it's about scale — the kind of scale West Africa provides.' He commended Nigerian companies already operating across the sub-region — in banking, cement, fertilizer, fintech, and startups — as evidence that cross-border business is both viable and beneficial. He concluded by reinforcing the collective nature of the challenge: 'Let's not forget — it's not just Nigerian policymakers involved. Policymakers from other countries are also on board. Heads of State will be there. So let's work together to resolve the problems and build an integrated, competitive West African economy.' As anticipation builds ahead of the June 20–21 Summit in Abuja, Tuggar's message was clear: the future of Africa's economic strength lies in regional collaboration, and the private sector must lead the charge. Copyright © 2022 Nigerian Tribune Provided by SyndiGate Media Inc. (
Zawya
02-06-2025
- Business
- Zawya
Gulf economic "integration" step towards growth - Kuwait Min.
KUWAIT -- Economic "integration" within Gulf Arab states is a major step forward towards sustainable growth, Kuwait's finance minister said on Sunday, citing the measure as a cornerstone of development plans. At a time of "grave" economic challenges, coupled with geopolitical tensions, it would behoove Gulf Cooperation Council (GCC) states to ratchet up their efforts in a bid to keep these difficulties at bay, Nora Al-Fassam told a gathering of the six-member bloc's financial and economic cooperation committee in Kuwait. As non-oil revenue continues to be on an upward trajectory, Al-Fassam, who doubles as state minister for economic and investment affairs, said that Gross Domestic Product in GCC member states was worth USD 2.2 trillion in 2024, while sectors ranging from tourism to energy continue to see palpable growth, she underlined. In terms of GDP value, the minister prognosticated that the economies of Gulf Arab states will be among the top 10 in the world in the coming years, while the primary objective for the committee gathering is to look into plans to bolster cooperation in the face of existential challenges, which was necessary to keep development steady, said the minister. In attendance amid the talks, the Riyadh-based bloc's secretary general Jasem Al-Bedaiwi said that the slew of accomplishments member states have amassed helped transform the region into a financial and economic hub, while steps are being taken towards the economic "integration" of GCC countries, he said. He went on to say that forging a solid rapport with international bodies and organizations was a "priority" moving forward, emphasizing that recent indicators point to the growing economic clout of Gulf Arab countries, whose stock markets rank seventh in the world in terms of market value, the bloc's chief added. On other accomplishments, he said the region's non-oil economic activity comprised 75.9 percent of total GDP last year, at a time where Gulf Arab states continue to push forward "economic diversification" plans, while the proper infrastructure is in place to accelerate a digital drive, said the official. All KUNA right are reserved © 2022. Provided by SyndiGate Media Inc. (
Reuters
27-05-2025
- Business
- Reuters
ASEAN unveils strategic plan to integrate its economies
KUALA LUMPUR, May 27 (Reuters) - The Southeast Asian bloc ASEAN on Tuesday announced an ambitious strategic plan that includes harmonising trade standards and greater financial integration in an effort to collectively become the world's fourth-largest economy. The five-year, 41-page plan for the 10-member Association of Southeast Asian Nations, released during a leaders' summit in Malaysia, calls for increased regional trade, freer movement of businesses and people, enhanced transparency and regulatory practices and sustainable mining, industry and farming policies to attract foreign investment. The plan said ASEAN countries - Indonesia, Thailand, Malaysia, Vietnam, the Philippines, Singapore, Cambodia, Laos, Myanmar and Brunei - must deepen their economic integration, pursue energy security, boost transport connectivity and strengthen supply chains. "Carrying on with business as usual will not suffice for this highly dynamic economic region," the plan said. "For ASEAN to become the fourth-largest global economy by 2045, countries in the region will need to deepen their economic integration and enhance their agility to address multifaceted challenges." The document identified several challenges for ASEAN's economic integration ranging from geopolitical tensions, shifting trade flows and technological transformation to climate change impacts and demographic shifts. Formed in 1967 initially as five members, ASEAN established an economic community in 2015 with the aim of integrating its economies and boosting the region's global standing. But despite rapid growth of its members economies in recent years and a collective GDP of $3.8 trillion, integration has been slow, with huge differences in its members' economies, political systems, population sizes and development levels, and no central authority to ensure compliance with ASEAN agreements and initiatives. The strategic plan said ASEAN's Economic Community Council would be be responsible for implementing the strategies while the ASEAN secretariat would monitor implementation. The ongoing tariff war between the United States and China and steep U.S. tariffs on Southeast Asian countries has created urgency for ASEAN to move towards regional integration faster, said Tricia Yeoh, Associate Professor of Practice at the University of Nottingham Malaysia. Yeoh said ASEAN countries must recognise the greater collective value of unified negotiations rather than pursuing bilateral agreements on their own. 'ASEAN needs to demonstrate efficacy in order for it to remain relevant. If they can't even achieve negotiating over Myanmar or the code of conduct with China on the maritime issue, people will question ASEAN's purpose,' she said, referring to two thorny political issues within the bloc.
