Malaysia Hopes Upgraded ATIGA Will Further Liberalise Southeast Asia’s Financial Services Sector - Tengku Zafrul 

By Karina Imran

KUALA LUMPUR, May 25 (Bernama) -- Malaysia is hopeful the upgraded ASEAN Trade in Goods Agreement (ATIGA) will help to liberalise further the region’s financial services sector, Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said.

The enhanced agreement, which is expected to be signed in October this year, will go beyond trade in goods to include critical services sectors such as energy, communications and financial services, he told Bernama here today in an exclusive interview.

“These sectors are all, understandably, (where) each country will have its position when it comes to investments in strategic sectors,” he said.

He said non-tariff barriers (NTBs), particularly in financial services and banking, continue to impede trade within ASEAN. 

“In trade, more or less, we have liberalised already, but investment in strategic sectors will take flexibility for ASEAN countries to understand each other's position, especially when most countries also have to think of their strategic national interests,” he said.

In addition, Tengku Zafrul said the ASEAN Digital Economy Framework Agreement (DEFA), which is expected to be concluded by the end of 2025, will be a more inclusive trade ecosystem.

“Intra-ASEAN trade is at 20 per cent to 24 per cent. I don't believe that we can't do more. That's why the upgraded ATIGA is important and we also have the DEFA that we want to conclude, which will be more inclusive,” he said.

As for NTBs in ASEAN, there are always countries that put in their positions when it comes to protecting their markets and industries, and financial services are one of them.

“Malaysia, of course, has slowly been liberalising and we don't have that condition anymore, unless it's subject to national interest (such as involving) insurance companies,” he said.  

While NTBs are a challenge, Tengku Zafrul said a bigger obstacle lies in making regional trade more accessible to micro, small and medium enterprises (MSMEs), which make up 99 per cent of ASEAN’s business landscape.

He highlighted the importance of inclusive trade policies and support mechanisms such as capacity building, financial assistance and awareness programmes to help MSMEs access regional markets.

-- BERNAMA