ASEAN Offers Significant Opportunities For Chilean Businesses, Says Sec-gen

By Mohd Iswandi Kasan Anuar

JAKARTA, Sept 6 (Bernama) -- ASEAN presents significant opportunities for Chilean businesses, particularly in sectors where Chile has traditional strengths, such as mining, forestry, agriculture, manufacturing and the burgeoning digital economy sector, said ASEAN secretary-general Dr Kao Kim Hourn.

Speaking at the Commemoration of the 5th Anniversary of the ASEAN-Chile Development Partnership and the 57th ASEAN Day in Santiago, Chile, on Wednesday, Kao highlighted the region’s diverse markets, growing consumer base, and extensive network of free trade agreements.

“Engagement with ASEAN would promote the diversification of Chile’s economic relations, which would, in turn, reduce dependence on traditional markets and advance integration with the rest of the world,” he said.

Kao’s speech was published on ASEAN’s official website.

The secretary-general also urged Chilean businesses to take advantage of investment opportunities in ASEAN, pointing out that Chile’s foreign direct investment (FDI) inflows to ASEAN countries remain relatively small and stressing the need for continued collaboration.

Chile’s trade with ASEAN hit a record US$5.17 billion (US$1=RM4.33) in 2022, an 80.2 per cent increase since 2020, driven by key sectors including electrical machinery, vehicles and parts, and copper products.

Despite a slight dip to US$4.22 billion in 2023, according to the ASEAN Statistics database as of July 2024, trade remains robust and above the five-year average.

480 million active internet users in ASEAN

Touching on the digital economy, Kao said ASEAN has emerged as the third-largest digital economy globally, boasting over 480 million active internet users, with 80 per cent identified as digital consumers.

He pointed out that the region’s digital economy is expected to expand from the current US$300 billion to nearly US$1 trillion by 2030, with the potential to reach US$2 trillion if fully optimised.

“The digital economy will become a key driver of our growth for the region,” he said, adding that ASEAN aims to conclude the Digital Economy Framework Agreement (DEFA) by 2025, which will be the first of its kind globally.

Kao highlighted that over 60 per cent of ASEAN’s population is under 35, a young and tech-savvy group driving a thriving start-up scene and making the region a global innovation hub.

In addition to digital growth, sustainability will also drive ASEAN’s future development, with its strong potential in renewable energy and commitment to climate action and circular economy initiatives.

With a population of 671 million and a combined gross domestic product of US$3.8 trillion, ASEAN is currently the fifth-largest economy worldwide and is projected to become the fourth-largest by 2030.

“ASEAN stands as the world’s fourth-largest trade player, with a total trade volume valued at US$3.8 trillion, representing 7.8 per cent of global trade,” he said.

On the trade front, Kao added that ASEAN has seven bilateral Free Trade Agreements (FTAs) alongside the Regional Comprehensive Economic Partnership (RCEP) Agreement and is negotiating new FTAs with Canada and the Gulf Cooperation Council.

-- BERNAMA