Kuala Lampur:Malaysia and Singapore are set to collaborate in enhancing business connectivity within ASEAN to boost intra-ASEAN trade, focusing on supply chains, the digital economy, and key industries.

According to BERNAMA News Agency, the collaboration was highlighted during the Third Annual Ministerial Dialogue between Malaysia's Ministry of Investment, Trade and Industry (MITI) and Singapore's Ministry of Energy, Trade and Industry (METI), represented by Deputy Prime Minister Gan Kim Yong. MITI Minister Datuk Seri Johari Abdul Ghani expressed that both nations could explore ways to facilitate greater trade and business linkages among ASEAN member states, aiming to increase the share of intra-ASEAN trade.

Johari pointed out that intra-ASEAN trade is not fully tapped, with total trade among the 11 ASEAN countries amounting to US$4.37 trillion. Currently, only about US$800 billion to US$900 billion of this trade occurs within ASEAN. He discussed with Singapore's Deputy Prime Minister the potential for enhancing business connectivity among all ASEAN countries, with a goal of conducting 50 percent of the US$4.37 trillion trade within ASEAN.

He also noted that the ASEAN Digital Economy Framework Agreement (DEFA) would be a crucial strategy to strengthen intra-ASEAN trade. Malaysia proposed DEFA during its ASEAN chairmanship in 2025, and Johari emphasized the importance of moving towards implementation, with Singapore taking the initiative as the current ASEAN chair.

Johari stressed the potential for ASEAN to leverage stronger regional connectivity across various sectors, particularly supply chains, food security, and the electrical and electronics sector. The annual ministerial dialogue between Malaysia and Singapore facilitates discussions between government and business representatives to address issues affecting bilateral trade and economic activities.