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, Ang Chip Hup, a former national consultant for the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), emphasized the importance of comprehensive maritime connectivity in ASEAN, Asia, and the Gulf, where 90 percent of regional trade relies on shipping. Over 60 percent of global maritime trade passes through ASEAN waters, including the Strait of Malacca and the South China Sea, highlighting the necessity of robust shipping and port infrastructure for economic growth.
Ang noted the potential for enhancing maritime connectivity by expanding into these regions through an improved ASEAN Single Shipping Network. He suggested increasing feeder ports from China to the Gulf via ASEAN to alleviate congestion at major hubs. This proposal comes ahead of the 46th ASEAN Summit, ASEAN-GCC Summit, and the ASEAN-GCC-China Summit scheduled for May 26 to 27, 2025, in Malaysia, which is hosting the trilateral summit under the Chairmanship theme of ‘Inclusivity and Sustainability.’
In response to trade disruptions caused by high tariffs imposed by US President Donald Trump on 168 countries, including ASEAN countries and China, there is a growing need for deeper integration to achieve trade self-reliance. Ang advocated for the expansion of Port Community Systems (PCS) for real-time cargo tracking and emphasized the importance of green and efficient shipping practices.
He also proposed the introduction of the ASEAN Green Lane for Shipping, which would include fast-track eco-friendly vessels with reduced port fees. Additionally, policy harmonization could allow for more intra-ASEAN vessel sharing to lower costs and standardize port fees and clearances.
Ang, who has served as a Senior Researcher in maritime economics and industries at the Maritime Institute of Malaysia (MIMA) and is a retired naval officer with United Nations experience, highlighted the critical role of expanding ASEAN maritime connectivity in achieving economic integration, supply chain resilience, and sustainable growth.
Currently, initiatives like the ASEAN Single Window (ASW) and the Master Plan on ASEAN Connectivity aim to improve customs clearance, overcome non-tariff barriers, and modernize ports for seamless logistics.
Dr. Nungsari Ahmad Radhi, chairman of Khazanah Research Institute, stressed the need for further development in the movement of goods via sea and air within ASEAN to bolster economic integration with East Asia and China. He suggested that ASEAN should progress towards becoming a customs union to enable the free movement of goods within the bloc, thus allowing Small and Medium Enterprises to tap into a larger market and make ASEAN a more attractive investment destination.