Kuala Lumpur: Malaysia is hopeful the upgraded ASEAN Trade in Goods Agreement (ATIGA) will help to liberalise further the region’s financial services sector, Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said. The enhanced agreement, which is expected to be signed in October this year, will go beyond trade in goods to include critical services sectors such as energy, communications, and financial services, he told Bernama here today in an exclusive interview.

According to BERNAMA News Agency, these sectors are all areas where each country will have its position when it comes to investments in strategic sectors. Non-tariff barriers (NTBs), particularly in financial services and banking, continue to impede trade within ASEAN. Tengku Zafrul noted that while trade has been largely liberalised, investment in strategic sectors requires flexibility for ASEAN countries to understand each other’s position, especially when national strategic interests are at play.

Tengku Zafrul also mentioned the ASEAN Digital Economy Framework Agreement (DEFA), expected to be concluded by the end of 2025, which will aim to create a more inclusive trade ecosystem. He expressed optimism about intra-ASEAN trade, currently at 20 to 24 percent, and stressed the importance of the upgraded ATIGA and the DEFA to foster a more inclusive trade environment.

The minister acknowledged that NTBs pose challenges, particularly as countries aim to protect their markets and industries. However, he noted that Malaysia has been gradually liberalising its own market, except in areas where national interest is involved, such as insurance companies.

A significant obstacle, according to Tengku Zafrul, lies in making regional trade more accessible to micro, small, and medium enterprises (MSMEs), which constitute 99 percent of ASEAN’s business landscape. He highlighted the need for inclusive trade policies and support mechanisms, including capacity building, financial assistance, and awareness programs, to help MSMEs access regional markets.