Kuala lumpur: ASEAN’s neutrality offers a rare, viable platform for trade, technology collaboration, and investment with all major economic players, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz. He emphasized that ASEAN’s consistent engagement with both the United States and China, without aligning with any single strategic orbit, has preserved a policy space that many regions lack.
According to BERNAMA News Agency, Tengku Zafrul highlighted that this deliberate posture preserves autonomy while enhancing ASEAN’s economic appeal. During a talk on ‘Building Regional Strength through Smarter Fiscal and Trade Policies,’ he noted that over the past year, Malaysia has had the honour of chairing ASEAN amidst geopolitical fragmentation and great power rivalry. Despite these challenges, ASEAN demonstrated resilience, cohesion, and stability, reaffirming its role as a vital anchor of economic balance and strategic neutrality.
Tengku Zafrul pointed out that Malaysia’s ASEAN Chairmanship provided key insights into the region’s growing relevance amid intensifying global polarisation. As major powers recalibrate and supply chains realign around geopolitical shifts, ASEAN’s balanced and forward-looking stance has become a valuable stabilising force.
At the 47th ASEAN Summit, Malaysia, as part of ASEAN, signed the upgraded ASEAN-China Free Trade Agreement 3.0 (ACFTA), reinforcing the longstanding economic partnership with China. Additionally, the ASEAN Trade in Goods Agreement (ATIGA) Upgrade, concluded during Malaysia’s ASEAN Chairmanship, marked a pivotal step toward deepening regional economic integration.
In an era where resilience and agility increasingly determine competitiveness, the ATIGA Upgrade establishes the institutional foundation for the region to function as a more seamless, trusted single market, enhancing its appeal for investments. In 2024, ASEAN defied global trends with an 8.5 percent increase in foreign direct investment, reaching US$228 billion. With ATIGA’s upgrade, Tengku Zafrul expressed confidence that this momentum can be sustained.
He also discussed the ASEAN Digital Economy Framework Agreement (DEFA), projecting the ASEAN digital economy to reach US$1 trillion by 2030. With DEFA, advanced under Malaysia’s leadership, this figure is set to double to US$2 trillion.
On green transition and industrial decarbonisation, Tengku Zafrul noted that ASEAN has made progress on the ASEAN Power Grid, which will revolutionise and create closer integration in the regional energy sector.