Kuala lumpur: ASEAN cannot grow purely on a foreign direct investment (FDI) model but must grow and invest in the region’s technology companies to move forward. Deputy Investment, Trade and Industry Minister Liew Chin Tong emphasized that there may be a misconception that technology must come from outside and that ASEAN is merely a production site.

According to BERNAMA News Agency, Liew stated that increased investment in ASEAN technologies could lead to the emergence of regional or global multinational corporations (MNCs). He conveyed these views at a press conference following the establishment of the ASEAN Private Markets Council (APMC). He highlighted the necessity of aligning funding, technology, and industrial policy to create a robust market within ASEAN.

The APMC, one of the 12 initiatives championed by the ASEAN Business Advisory Council (ASEAN-BAC), aims to address structural barriers that have historically hindered private capital development in ASEAN. ASEAN-BAC noted that these barriers include fragmented regulatory frameworks, underdeveloped local fund managers, limited opportunities for substantial capital deployment, a shallow exit environment, and a decline in global investor fundraising.

The statement added that over 20 leading private financial market institutions from key ASEAN economies are committed to joining APMC as founding members. Liew also pointed out that the creation of APMC is intended to unlock regional investment potential, particularly in ASEAN’s technology sector, and contribute to the region’s green transition.

ASEAN-BAC Malaysia chairman Tan Sri Nazir Razak, also the APMC protem committee chairman, referenced a McKinsey study indicating that ASEAN private markets comprise only 0.5 percent of the gross domestic product (GDP), compared to a global average of 1.5 percent. He stressed that this gap signifies ASEAN’s operation at only one-third of its capacity in funding high-growth and innovative companies.

Nazir stated that APMC’s mission is to bolster ASEAN’s standing as a globally recognized hub for private markets by enhancing capital flows, governance standards, and fostering innovation. He added that the council aims to promote ASEAN on the global stage, engage with capital allocators, persuade regulators to reduce friction, develop research and benchmarks, and broaden participation beyond primary hubs to include secondary cities and frontier markets.