Malaysia Should Be Bold In Re-energising ASEAN Economic Integration - Maybank IB

KUALA LUMPUR, Sept 11 (Bernama) -- Malaysia should be bold and lead by example when it comes to re-energising regional economic integration momentum and establishing a more dynamic and confident post-2025 ASEAN Economic Community (AEC) character, said Maybank Investment Bank Bhd (Maybank IB).

In a note today, the investment bank said that Malaysia assuming chairmanship next year will be a critical juncture as the region transitions from the final year of the AEC Blueprint 2025 to developing its post-2025 economic planning.

“While there are no quick fixes to stickier issues (non-tariff measures, human capital mobility, intra-ASEAN trade/foreign direct investment (FDI, ASEAN Qualifying Banks) hindering ASEAN integration and economic resilience.

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“The planned Johor-Singapore Special Economic Zone (JS-SEZ) is a unique opportunity for Malaysia to not only refocus a distracted ASEAN on regional initiatives and opportunities but also to lead by example in addressing aforementioned impediments,” it said. 

Maybank IB said the AEC’s post-2025 vision, whilst grounded on practical realities, will also have to be inclusive, ambitious yet pragmatic, and forward-looking, taking into account the continuously changing global and regional political-economic environments the region will face.

“As such, the AEC, along with the other pillars of ASEAN, is currently developing its strategic plans, which will be concurrently adopted with the ASEAN Community Vision 2045,” it noted. 

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On the business outlook for ASEAN operations, the bank also noted that of the foreign businesses surveyed, 64 per cent have indicated that ASEAN would be of increasing importance to their business operations over the coming years, while 32 per cent indicated that the region would be of similar importance.

It said that only three per cent indicated that ASEAN would be of declining importance.

“Furthermore, over 50 per cent of foreign businesses indicated increasing investment in their ASEAN operations over the next five years, with less than four per cent indicating a decrease in their investment, which reflects a positive outlook for ASEAN,” it added.

-- BERNAMA