Kuala lumpur: ASEAN has expressed its readiness to upgrade its free trade agreement (FTA) with Japan, signalling a desire to bring the decades-old pact into the modern economic era.

According to BERNAMA News Agency, Deputy Secretary General for the ASEAN Economic Community, Satvinder Singh, highlighted the growing urgency and opportunity to refresh the ASEAN-Japan Comprehensive Economic Partnership (AJCEP) signed in 2008, aligning it with new economic realities. “The agreement that we have today, the FTA that Japan has with ASEAN, was framed decades ago. And I think I agree that timing-wise, it may be like how we have upgraded the agreements with some of our large dialogue partners,” he stated at a joint media conference with Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

He pointed to ASEAN’s recent success in updating economic agreements with China, Australia, New Zealand, and India, incorporating critical new pillars such as e-commerce, innovation, global supply chain resilience, and sustainability. “So clearly, Japan should also be one of the priorities for ASEAN in the coming years. But again, I think on the ASEAN side, we are kind of ready to engage Japan when Japan is ready,” he added.

Satvinder further commented on the value of harnessing this agreement upgrade amid geoeconomic challenges and disruptions. “I think with the diversification of Japan’s own needs on the global stage, ASEAN probably is one of those key partners that fits very nicely into Japan’s strategy and interests, especially in the global supply chain support,” he opined. He also noted the strong interest by Japanese companies in reconfiguring their business operations in the ASEAN region.

Meanwhile, Tengku Zafrul remarked that Expo 2025 Osaka offers a timely platform for ASEAN to showcase its identity, diversity, and unity to the global community. “We look forward to welcoming Japan to the ASEAN Economic Ministers’ Meeting in September and also of course the ASEAN Leaders’ Summit in October. I believe that it is through constant dialogue that we build trust, and that trust will build a much better ASEAN and much better Asia for our future generations,” he expressed.