ASEAN Must Unlock Geo-Economic Potential To Narrow GDP Gap With Global Blocs - NCCIM
By V. Sankara
KUALA LUMPUR, May 26 (Bernama) -- ASEAN must capitalise on strategic initiatives such as the ASEAN Geo-economics Task Force and the Digital Economy Framework Agreement (DEFA) to narrow its economic gap with major global blocs like the European Union.
National Chamber of Commerce and Industry of Malaysia (NCCIM), vice-president Datuk Dr A T Kumararajah told Bernama that the region, with a combined population of 680 million — more than that of the EU — currently commands a gross domestic product (GDP) of only around US$4 trillion, compared to the EU’s US$20 trillion.
"Despite our demographic strength, ASEAN has yet to realise its full geo-economic potential. That is why the launch of the ASEAN Geo-economics Task Force is a critical move to provide strategic response mechanisms, including in response to external pressures such as the recent imposition of unilateral tariffs by the United States,” he said in response to Prime Minister Datuk Seri Anwar Ibrahim’s opening remarks at the 46th ASEAN Summit here today.
The ASEAN Economic Ministers’ special meeting on April 10 approved the establishment of the ASEAN Geo-economics Task Force to assess the risks and opportunities from the current global trade shifts.
The DEFA, expected to be the world’s first region-wide digital economy agreement, seeks to integrate Southeast Asia as an innovative, interoperable and investable region in the digital age.
The DEFA remains under negotiation, with member states aiming to finalise the agreement by the end of the year.
Kumararajah said Malaysia had previously formed its geo-economic task force within days of the US tariff announcement on April 2, and is now sharing this model with ASEAN to address broader global trade disruptions collectively.
He also highlighted that ASEAN’s pivot towards closer cooperation with the Gulf Cooperation Council (GCC) countries and China presents a significant growth opportunity, stressing that the inaugural ASEAN-GCC-China-Summit, which runs concurrently with the 46th ASEAN Summit in Kuala Lumpur, reflects the bloc’s expanding influence in a multipolar global order.
“In terms of GDP size, the ASEAN-GCC-China platform is comparable to the Regional Comprehensive Economic Partnership (RCEP), and can be a vital engine of growth. These trilateral summits represent ASEAN’s strategic clarity and cohesiveness in forging partnerships that reflect current geopolitical realities,” he said.
He added that Malaysia, being ASEAN chair, has taken steps to ensure the outcomes of such engagements benefit ordinary citizens and businesses.
“Prime Minister Anwar’s speech clearly stated that sustainable and equitable growth must reach the grassroots, including the 1.2 million SMEs that employ over 60 per cent of Malaysia’s workforce. We cannot allow mega summits to remain disconnected from the people,” he said.
The 46th ASEAN Summit and its related meetings, held under Malaysia’s 2025 chairmanship theme “Inclusivity and Sustainability”, will bring together Southeast Asian leaders for high-level discussions focused on regional cooperation, economic integration, and geopolitical stability.
It will see participation from the heads of government of all ASEAN member states, except Myanmar, with Timor-Leste attending as an observer.
Proceedings began with the 46th ASEAN Summit Plenary, chaired by Anwar, where leaders deliberated on a range of key regional issues, including trade and investment, maritime security, climate change, and the digital economy.
This year marks Malaysia’s fifth chairmanship, having held the chair in 1977, 1997, 2005, and 2015.
In conjunction with the summit, two pivotal high-level engagements will be convened, the 2nd ASEAN-GCC Summit and the inaugural ASEAN-GCC-China Summit, serving as strategic platforms to advance regional and inter-regional cooperation.
-- BERNAMA