Asean Sees Geopolitical Uncertainties As Opportunity To Accelerate Aviation Reforms
From Kisho Kumari Sucedaram
BANGKOK, May 13 (Bernama) -- ASEAN sees the current geopolitical and economic uncertainties affecting the aviation sector as an opportunity to deepen regional cooperation and accelerate long-pending aviation reforms, according to ASEAN Deputy Secretary-General for the ASEAN Economic Community Satvinder Singh.
These reforms and changes include liberalising air cargo services, harmonising regulations and accelerating the ASEAN Single Aviation Market (Asam), which could further strengthen Southeast Asia’s aviation sector.
He expressed optimism that the ongoing global challenges could ultimately strengthen ASEAN’s aviation sector over the next one to two years.
“I am hoping we can come back in one, two years to say the crisis was good and this is what has brought us together,” he said during a panel session at the Airports Council International (ACI) Asia-Pacific & Middle East Regional Assembly, Conference and Exhibition here today.
Singh said ASEAN member states are using the crisis as a catalyst to improve coordination, strengthen resilience and speed up reforms that had previously moved at a slower pace.
He revealed that ASEAN is finalising what he described as the world’s largest legally binding regional digital agreement, expected to be signed later this year in Manila.
The agreement is expected to support aviation and regional connectivity by improving payment systems, data flows, and e-commerce integration.
He noted that despite concerns over trade disruptions and geopolitical tensions, ASEAN entered 2026 from a position of strength, with the region’s gross domestic product (GDP) growing 4.9 per cent in 2025, surpassing earlier projections of 4.2 per cent.
Regional trade also expanded by 8.8 per cent, rising from US$3.8 trillion (US$1 = RM3.93) to US$4.3 trillion, while foreign direct investment (FDI) grew by about 10 per cent.
According to Singh, ASEAN leaders have demonstrated strong solidarity in addressing current challenges, including cooperation to ensure energy and aviation sector resilience.
He cited Thailand’s offer to support neighbouring countries with surplus jet fuel supplies as an example of the collaborative spirit emerging within the region.
At the same time, he said the crisis presents an opportunity to further strengthen intra-ASEAN travel and regional integration.
He stressed the importance of accelerating the ratification process of aviation agreements within ASEAN to enhance the implementation of the ASEAN Single Aviation Market (ASAM).
“We need to heighten the ratification processes in the region, use this occasion to get these agreements into full force,” he said.
Singh said ASEAN has already made significant progress in liberalising third- and fourth-freedom traffic rights and is continuing negotiations on air services agreements with key partners, including the European Union, Japan, South Korea and the United Kingdom.
However, he said more work remains, particularly in liberalising air cargo services, harmonising regulations and strengthening mutual recognition in aviation safety systems.
He pointed out the strategic importance of air cargo connectivity to ASEAN’s semiconductor industry, noting that the region produces between 60 and 70 per cent of global semiconductors, much of which relies on air freight services.
Beyond aviation liberalisation, Singh said ASEAN is also advancing broader regional initiatives in digitalisation and sustainability.
On sustainability, he noted that ASEAN countries are likely to intensify efforts in sustainable aviation fuel (SAF) and biofuel development, leveraging the region’s strong agricultural base and abundant agricultural waste resources.
He said while the current crisis has created operational challenges across the aviation sector, it has also reinforced the urgency for ASEAN countries to move faster on regional coordination, resilience and long-term transformation.
-- BERNAMA
