Aviation Supremo Tony Fernandes Urges ASEAN To Be Brave And Liberalise, Accelerate Regional Economic Integration
By Kisho Kumari Sucedaram
KUALA LUMPUR, Sept 24 (Bernama) -- ASEAN should not be defensive but take bold decisions to liberalise rules to accelerate regional economic integration, said Capital A Bhd chief executive officer Tan Sri Tony Fernandes.
He said the rise of low-cost carriers such as AirAsia, Lion Air and VietJet has fostered a strong intra-ASEAN market, supported by the open skies policy and visa-free travel.
“Small and medium enterprises (SMEs) are playing a crucial role in driving the economy, supported by digital technologies that foster rapid business growth. Entrepreneurs contribute positively to the economic expansion of Southeast Asia.
“To build on this success, policymakers should focus on opening additional sectors to similar advancements and integration,” said Fernandes in an exclusive interview with Bernama on the sidelines of the ongoing ASEAN Economic Ministers’ Meeting 2025, here today.
He calls for ASEAN to be brave, put their defences down and make some bold decisions towards liberalisation.
“There are going to be some winners, some losers, but overall economic integration has always made winners out of everybody,” he emphasised.
Fernandes, who is also an ASEAN Business Advisory Council (ASEAN-BAC) member, said that while unrest in some ASEAN countries, such as Indonesia, the Philippines and between Thailand and Cambodia, has raised concerns, demand for travel and tourism within the region remains resilient.
“I don’t see any reason why costs will go up. Travel and tourism are one of the winners of ASEAN. We have created, consciously or unconsciously, a market that is less reliant on the rest of the world,” he emphasised.
Fernandes said the rise of low-cost carriers such as AirAsia, Lion Air and VietJet has fostered a strong intra-ASEAN market, supported by the open skies policy and visa-free travel.
He also cited how AirAsia, through its logistics arm Teleport, is enabling entrepreneurs to expand across the region by providing affordable cross-border delivery solutions.
“The digital technology, coupled with great logistics, is going to open up a whole lot of new entrepreneurs. We (AirAsia) are definitely a driver of SMEs. The driver and energy of ASEAN are not big companies; it’s the SMEs, and I believe the micro-traders will play a big part,” said Fernandes.
He highlighted that Malaysian pet food is now being exported to Singapore, while fashion businesses in smaller towns are reaching regional markets with the help of e-commerce platforms and effective logistics.
Fernandes added that improving connectivity, including rail links such as the Johor-Singapore Rapid Transit System and potential high-speed rail projects, would further boost intra-ASEAN trade and economic growth.
“I was never afraid of high-speed rail. I think it’s good for the country, it’s good for the economy. Any form of connectivity, provided it’s priced properly, will open up so much along the way,” he said.
Asked about expanding connectivity to China, Fernandes said AirAsia has already resumed and expanded routes to the country despite perceptions that Chinese tourists are not returning in large numbers.
“Actually, they are in AirAsia. We have had no real problems because while others focus on the big cities, we focus on the smaller cities that do not have connectivity,” he said.
AirAsia views China not only as a source of inbound tourists but also as a key market for outbound travellers, including small business owners.
“If you go on a China flight, the number of SMEs that are on board is huge. Hence, we are going to continue increasing. China and India are big markets, as long as there are people and we give the right price,” said Fernandes.
-- BERNAMA