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Maritime Chain Crucial To ASEAN-GCC-China Economic Ties – ESCAP Official

Kuala Lumpur: A maritime value chain that facilitates shipping connectivity and secures sea lanes, along with the ability to counter disruptions, is vital for ASEAN, the Gulf Cooperation Council (GCC) countries, and China in their quest to consolidate tripartite economic cooperation and integration.

According to BERNAMA News Agency, ‘Comprehensive maritime connectivity is crucial in ASEAN, Asia and the Gulf where 90 per cent of regional trade relies on shipping,’ said Ang Chip Hup, former national consultant for the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP). Over 60 per cent of global maritime trade passes through ASEAN waters, including the Strait of Malacca and the South China Sea, making shipping and port infrastructure vital for economic growth.

Ang highlighted the potential for enhanced maritime connectivity by expanding into these regions through an ASEAN Single Shipping Network. ‘Such a move was possible by increasing feeder ports from China to the Gulf via ASEAN, thereby reducing congestion at major hubs,’ he stated ahead of the 46th ASEAN Summit, ASEAN-GCC Summit, and the ASEAN-GCC-China Summit in Kuala Lumpur from May 26 to May 27, 2025.

Malaysia, as this year’s rotating Chair of ASEAN, is hosting the inaugural trilateral summit with the GCC, China, and Southeast Asian nations under the Chairmanship theme of ‘Inclusivity and Sustainability.’ Amid disruptions to trade precipitated by debilitating tariffs imposed by US President Donald Trump, countries are looking to deepen integration to be self-reliant trade-wise.

Ang emphasized the importance of expanding Port Community Systems (PCS) for real-time cargo tracking and prioritizing green and efficient shipping. ‘We need to look into the ASEAN Green Lane for Shipping with fast-track eco-friendly vessels with lower port fees as well as policy harmonisation by allowing more intra-ASEAN vessel sharing to lower costs and standardised port fees and clearances,’ he said.

Expanding ASEAN maritime connectivity is critical for economic integration, supply chain resilience, and sustainable growth in these regions. Ang, who also served as a Senior Researcher in maritime economics and industries at the Maritime Institute of Malaysia (MIMA) and a retired naval officer, emphasized these points.

Currently, initiatives such as the ASEAN Single Window (ASW) aim to improve customs clearance and address non-tariff barriers, while the Master Plan on ASEAN Connectivity focuses on port modernization and seamless logistics.

Khazanah Research Institute’s chairman, Dr. Nungsari Ahmad Radhi, noted that ASEAN must further develop its movement of goods via sea and air. ‘There must be efficient movements of goods within ASEAN to bolster economic integration between ASEAN, East Asia, and China,’ he stated. Nungsari suggested that ASEAN should move towards becoming a customs union to allow free movement of goods within the bloc, benefiting Small and Medium Enterprises and making ASEAN an attractive market for investment.

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