Kuala lumpur: Deputy Investment, Trade and Industry Minister Liew Chin Tong has called on ASEAN to move beyond the traditional export-led industrialisation model, stating that it is no longer sustainable in the face of current global challenges.

According to BERNAMA News Agency, speaking at the Asia Future Summit, Liew emphasized that ASEAN should work towards shaping a new world order and focus on growing its own multinational technology companies. He expressed concerns that the existing economic model may not be viable for the future, suggesting that trade deals alone are insufficient. Liew proposed exploring a customs union and industrial policy as pivotal steps beyond mere trade agreements.

During the summit’s session on geopolitics, themed ASEAN’s Role in a New World Order, Liew also highlighted the necessity for a coordinated ASEAN position on the Global Minimum Tax (GMT). He argued that a unified tax approach would ensure uniform enforcement of tax rules across the region, thus avoiding a competitive ‘race to the bottom’ in attracting foreign direct investment.

Liew pointed out that higher tax contributions from investors could mitigate societal issues faced by Generation Z, such as depressed wages, which have sparked protests in multiple countries. He underscored the importance of building a substantial middle class and ensuring that the ASEAN population becomes significantly wealthier before it ages.

He concluded by stating that a large population of impoverished individuals does not create a thriving market. However, a middle class of 300 million would attract interest from American, European, and Chinese exporters, making ASEAN a lucrative market both internally and globally.