ASEAN Economic Ministers Achieve Key Milestone By Endorsing Priority Economic Deliverables

By Niam Seet Wei, Norsyafawati Ab Wahab, Mohd Khairi Idham Amran, Ahmad Erwan Othman and Danni Haizal Danial Donald

KOTA TINGGI, March 1 (Bernama) -- The 31st ASEAN Economic Ministers' (AEM) Retreat, which ended Friday at One&Only Desaru Coast resort near here, achieved a significant milestone by endorsing a slew of economic initiatives, including all 18 Priority Economic Deliveràbles (PEDS) which are key towards achieving the ambitious ASEAN Economic Community.

It clearly reflected the joint commitment by Southeast Asian member states to deepen economic integration, promote inclusive growth, advance sustainability and expand the digital economy.

The PEDs will be presented at the 46th ASEAN Leaders’ Summit in November to be chaired by Prime Minister Datuk Seri Anwar Ibrahim in Kuala Lumpur.

The move by the region’s ministers at the AEM, as well as in other related meetings, to act decisively and swiftly comes amid uncertain geopolitical risks, notably the imposition of stiff American tariffs on the region’s trading partners with deep concerns they could ultimately affect their own economies.

The PEDS also included upgrading trade with major Asian partners China and India as well as boosting economic linkages with the six oil-rich Gulf Cooperation Council (GCC) countries.

It was a victory of sorts for Malaysia for being able to garner a consensus on the PEDS after having assumed the chairmanship of ASEAN just two months ago from previous chair Laos.

It was also a job well done for Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz who, in chairing the AEM Retreat, deftly managed to obtain regional consensus quickly.

He also welcomed potential new member Timor Leste to the retreat, with Dili expecting to be officially admitted into ASEAN during the leaders’ summit in May.

Further initiatives among the 18 PEDs included the conclusion of the negotiation and signing of the Second Protocol to Amend the ASEAN Trade in Goods Agreement (ATIGA) and signing of the ASEAN-China Free Trade Area (FTA) 3.0 Upgrade Protocol.

It also included the substantial conclusions of the review of ASEAN-India Trade in Goods Agreement (AITIGA) and the ASEAN Digital Economy Framework Agreement (DEFA) Negotiation, as well as the joint declaration on Economic Cooperation between ASEAN and the GCC countries.

Tengku Zafrul said the ASEAN-China FTA 3.0 upgrade negotiations are progressing well, with members expressing optimism the upgraded protocol will be signed later this year, following the ASEAN leaders' announcement of a substantial conclusion in 2024.

He is also optimistic that negotiations on upgrading the ATIGA could be concluded in March, following positive developments resulting from discussions with ASEAN regional partners.

Turning to DEFA, Tengku Zafrul stressed that it would be a landmark agreement and a new driver for socio-economic growth towards an ASEAN-wide digital economic transformation, which would bring immense benefits particularly to regional micro, small and medium enterprises.

“To that end, we agreed to redouble our efforts and explore alternative options to expedite the work,” he told a press conference after chairing the retreat Friday.

The AEM Retreat also discussed plans and visions for the next phase of ASEAN’s economic integration post-2025.

This included the development of the AEC Strategic Plan 2026-2030, which is now on track for adoption by the regional bloc’s leaders at the upcoming summit in May.

Elaborating, ASEAN Secretary-General Dr Kao Kim Hourn said the ASEAN AEC Strategic Plan 2026-2030 is on track to be concluded by March this year, paving the way for its adoption by leaders.

Tengku Zafrul said that during the retreat, the ministers had adopted several key regional initiatives, particularly the implementation of a roadmap for the ASEAN digital Unique Business Registration Numbers (UBIN) and guiding principles for negotiations for the ASEAN Framework Agreement on Intellectual Property Cooperation (AFAIPC) 2.0.

Another initiative adopted is the ASEAN Pharmaceutical Regulatory Framework Agreement (APRFA), which is up for signing at the 57th AEM meeting in September 2025, he said.

“All these documents lay important foundations in different areas of work to create a more competitive economy, as well as facilitate trade and business in the region,” he said.

On the progress of Timor-Leste’s ASEAN membership, Tengku Zafrul said members discussed the matter and reaffirmed their support to the country’s accession to the required ASEAN’s Economic Agreements (AEAs) as part of its overall process towards full ASEAN membership. 

“Malaysia expressed that Timor-Leste’s accession is a priority for our chairmanship in 2025, and we strongly view that with Timor-Leste’s entry as the full 11th member state, ASEAN’s regional potential and economic growth can be further strengthened,” he said.

The country was recognised as an ASEAN observer and joined the ASEAN Regional Forum in 2005 before officially applying for membership on March 4, 2011.

ASEAN ministers also engaged with the ASEAN Business Advisory Council (ASEAN-BAC), the Economic Research Institute for ASEAN and East Asia (ERIA) and global management consultancy McKinsey Friday where they discussed their work, suggestions and inputs regarding specific aspects of economic integration in the region.

The 31st AEM Retreat and its related meetings, held in Desaru from Feb 22 to 28, began with the 12th ASEAN Economic Community Working Group (WG-AEC) Meeting on Feb 22-23, followed by the High-Level Task Force on ASEAN Economic Integration (HLTF-EI) Meeting on Feb 24-25.

Subsequently, the Senior Economic Officials’ Preparatory Meeting (Prep-SEOM) took place from Feb 26-27, culminating in the AEM Retreat, which was held in conjunction with Malaysia's ASEAN chairmanship in 2025 and themed “Inclusivity and Sustainability.”

Among Malaysia's main thrusts as ASEAN chairman are expanding intra-ASEAN trade and investment and spearheading efforts to explore and expand economic cooperation and partnerships outside ASEAN.

-- BERNAMA