KUALA LUMPUR: ASEAN member countries are being encouraged to follow Malaysia’s example by incorporating sustainability elements into their renewed bilateral trade agreements, reflecting the evolving global investment landscape.

According to BERNAMA News Agency, Prof Jun Arima, Senior Policy Fellow for Energy and Environment at the Economic Research Institute of ASEAN and East Asia (ERIA), emphasized the benefits of integrating sustainability in trade agreements. Arima noted that such integration would enhance the presence of environmentally friendly goods and services in international trade. He suggested that other ASEAN countries could benefit from adopting Malaysia’s approach if it aligns with their national interests.

Arima’s comments came in response to a query about whether ASEAN nations should reevaluate their current trade agreements with Malaysia, aiming to include sustainability, renewable energy, and digital economy components. The emphasis on sustainability is expected to grow, especially with the increasing implementation of ESG (Environmental, Social, and Governance) standards across various sectors, including banking.

Malaysia has established and put into effect 16 Free Trade Agreements (FTAs), comprising seven bilateral and nine regional agreements. In October, Malaysia’s Investment, Trade and Industry Minister, Tengku Datuk Seri Zafrul Abdul Aziz, highlighted Malaysia’s intention to “upgrade” and finalize some existing FTAs with countries like China, India, and other ASEAN members. This move aims to capitalize on the shifting dynamics of the global economy, particularly with Malaysia set to assume the ASEAN chairmanship from Laos on January 1, 2025.