Kuala lumpur: ASEAN should not be defensive but take bold decisions to liberalise rules to accelerate regional economic integration, said Capital A Bhd chief executive officer Tan Sri Tony Fernandes. He emphasized that the rise of low-cost carriers such as AirAsia, Lion Air, and VietJet has fostered a strong intra-ASEAN market, supported by the open skies policy and visa-free travel.
According to BERNAMA News Agency, Fernandes pointed out that small and medium enterprises (SMEs) are crucial in driving the economy, propelled by digital technologies that foster rapid business growth. Entrepreneurs contribute positively to the economic expansion of Southeast Asia, and to build on this success, policymakers should focus on opening additional sectors to similar advancements and integration.
Fernandes, in an exclusive interview on the sidelines of the ongoing ASEAN Economic Ministers’ Meeting 2025, called for ASEAN to be brave, put their defences down, and make bold decisions towards liberalisation. He acknowledged that while there might be winners and losers, overall economic integration has historically benefited everyone.
As a member of the ASEAN Business Advisory Council (ASEAN-BAC), Fernandes addressed concerns regarding unrest in some ASEAN countries, such as Indonesia, the Philippines, and between Thailand and Cambodia. However, he noted that demand for travel and tourism within the region remains resilient. He stressed that the market has become less reliant on the rest of the world, with travel and tourism emerging as key economic drivers.
Fernandes also highlighted the role of AirAsia’s logistics arm, Teleport, in enabling entrepreneurs to expand across the region through affordable cross-border delivery solutions. He emphasized that digital technology, combined with effective logistics, is unlocking opportunities for new entrepreneurs, with SMEs and micro-traders being pivotal to ASEAN’s economic vitality.
The chief executive officer also discussed the export of Malaysian pet food to Singapore and the reach of fashion businesses from smaller towns to regional markets, facilitated by e-commerce platforms and efficient logistics. He advocated for improved connectivity, citing rail links like the Johor-Singapore Rapid Transit System and potential high-speed rail projects as catalysts for boosting intra-ASEAN trade and economic growth.
Commenting on connectivity with China, Fernandes stated that AirAsia has resumed and expanded routes to the country, focusing on smaller cities that lack connectivity. He sees China as both a source of inbound tourists and a significant market for outbound travelers, including SMEs. He reiterated AirAsia’s strategy of offering competitive pricing to tap into the vast markets of China and India, which are characterized by a substantial number of small business owners.