ASEAN Centrality Crucial Amid Major Power Rivalry – Tengku Zafrul
By Kisho Kumari Sucedaram
KUALA LUMPUR, Sept 26 (Bernama) -- ASEAN must remain united in upholding its principle of centrality to ensure that economic engagement with major powers does not undermine the grouping’s cohesion, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.
He said the matter was among the key concerns raised during the 57th ASEAN Economic Ministers’ Meeting (AEM) and related sessions, where ministers reiterated their commitment to act collectively.
According to Tengku Zafrul, ASEAN’s extensive dialogues with partners such as the European Union (EU), United States (U.S.), China, Australia and New Zealand demonstrate the grouping’s openness while safeguarding its collective interests.
“ASEAN also has its own Free Trade Agreements (FTAs), including the ASEAN-Australia-New Zealand FTA, and we are open to more partners. We must navigate this as a group with shared principles while continuing to support a multilateral, rules-based trading system with the World Trade Organisation (WTO) at its core,” he said.
On intra-ASEAN trade, Tengku Zafrul acknowledged that it has remained stagnant at around 22 to 23 per cent of total trade, which he said highlights the untapped potential of the regional market.
“That was also discussed. It means we have an upside. One of the reasons is that when it comes to intra-trade within ASEAN, we need to be more inclusive,” he pointed out.
He also emphasised the importance of including small and medium enterprises (SMEs), as well as micro-SMEs, in the regional trade ecosystem.
“One way is through the Digital Economy Framework Agreement (DEFA), which will give smaller companies opportunities to participate through e-commerce. At the same time, we need to upgrade the ASEAN Trade in Goods Agreement (ATIGA) to version 3.0, which will be completed by the end of October.
“This is crucial to harmonise standards and streamline regulations so that exporters do not have to repeatedly comply with different requirements,” he said.
He added that enhancing standards, regulations and cooperation in emerging areas such as digital and green growth will further support businesses across ASEAN.
Looking ahead, Tengku Zafrul said ASEAN is well positioned to become the world’s fourth-largest economy by 2030, provided member states maintain annual gross domestic product (GDP) growth in the range of four to five per cent.
“Today, ASEAN is the fifth-largest economic bloc. If we can sustain growth at four to five per cent, we will achieve that projection, but it requires trade and investment growth, not just consumption.”
That is why, the minister said, intra-trade and market diversification are critical, as well as upgrading FTAs such as ATIGA and the ASEAN-China FTA 3.0, both of which will be signed by our leaders in October.
On digitalisation, Tengku Zafrul noted that while DEFA is seen as a game-changer, some ASEAN countries need more time to be ready in certain areas.
He pointed out that capacity building, digital infrastructure, cybersecurity and data protection are areas where ASEAN members are progressing at different speeds.
“For businesses, payment systems and gateways also need more integration. These are being discussed, and we are calling for another meeting before the leaders’ summit just to focus on DEFA,” he added.
-- BERNAMA