Kuala lumpur: Prime Minister Datuk Seri Anwar Ibrahim’s initiative to introduce ASEAN Business Entity (ABE) status in the 2026 Budget underscores a significant effort to enhance regional integration, reinforcing Malaysia’s role as the ‘gateway to ASEAN’. Tan Sri Nazir Razak, Chairman of the ASEAN Business Advisory Council (ASEAN-BAC) Malaysia, commended this strategic move, expressing hope that it will foster the emergence of more ‘ASEAN champions’ headquartered in Malaysia.

According to BERNAMA News Agency, the special ABE status aims to empower publicly listed and mid-sized companies to expand their operations across the Southeast Asian region. Nazir Razak, who initially proposed the ABE framework, lauded Malaysia for taking a leadership role in its introduction, viewing it as a pivotal step towards greater regional integration.

Nazir emphasized that the ABE initiative marks a bold strategy by the Malaysian government under Anwar’s leadership, with Anwar currently serving as ASEAN’s chair. While the primary focus of ABE is to facilitate the flow of talent throughout ASEAN, the framework holds the potential to streamline capital movement and operational functions within companies across borders.

He further explained that establishing ABE status would mitigate dis-synergies for ASEAN multinationals and promote the development of intra-ASEAN supply chains. Dis-synergies occur when collaborative efforts by companies result in a performance that is less than the sum of their individual outputs.

Nazir expressed optimism that this landmark initiative will not only pave the way for more ASEAN champions based in Malaysia but will also inspire other ASEAN nations to adopt similar measures, ultimately transforming the region into a unified production base for businesses.

Anwar, who also serves as the Finance Minister, revealed during the Budget 2026 announcement that the ABE status would be coordinated by the Securities Commission Malaysia (SC). This move is expected to facilitate the movement of skilled talent, bolstering the growth of Malaysian companies within ASEAN.

Anwar specified that the ABE status would be awarded to publicly listed companies with substantial market presence in ASEAN and to mid-sized companies with expansion potential, thereby supporting their growth and operational reach within the region.