By Siti Radziah Hamzah
KUALA LUMPUR, Feb 28 (Bernama) -- While the United States President Donald Trump is threatening to impose tariffs on both allies and rivals, an ASEAN’s top private sector official has cautioned Southeast Asian economies to increase trade and reinforce their centrality to shield themselves from such global uncertainties.
ASEAN-Business Advisory Council (ASEAN-BAC) chairman Tan Sri Nazir Razak said that although Southeast Asian nations are now off Trump’s radar, the regional economies must focus on achieving realistic targets and delivery.
“We can look to ways to collaborate to reduce trading costs and ease logistics to increase intra-ASEAN trade,” he told Bernama in an interview.
His remarks reflected concern over intra-ASEAN trade, which declined 10.1 percent to US$769.9 billion (US$1=RM4.45) in 2023 compared to 2022 due to global economic conditions and internal challenges within the ASEAN member states.
“There are too many restrictions on trade and cross-border operations.
“If we can bring down the barriers to trade and cross-border investments, then the extent of economic integration and the amount of intra-ASEAN trade and investment will go up,” added Nazir.
ASEAN-BAC has been mandated by the ASEAN leaders to provide private-sector feedback and guidance to boost the region’s efforts towards economic integration since 2003.
For this year, Nazir said ASEAN-BAC proposed 12 initiatives including the ASEAN Business Entity (ABE) and ASEAN Prospectus.
He said the proposed ABE status is designed to support qualified companies within ASEAN, offering them a range of operational flexibilities.
By enabling ASEAN member states to self-define the criteria for ABE, this initiative aims to foster greater business flexibility and regional growth, he added.
“It is for any company that the government wants to authorise. If you are an ABE, you can freely move people and capital within your company and the region,” he said.
Recalling his days as CIMB Group Holdings Bhd chairman and group chief executive officer, he said people could be automatically moved from Indonesia, Thailand, and Cambodia into Malaysia as there was free movement of people within CIMB.
“I am actually operating in an integrated ASEAN,” said Nazir.
However, he lamented that while ASEAN has been touted as having a populace of 670 million, “when I do business, it is 10 fragmented markets; so, actually at a company level (with ABE), it is not fragmented markets, it is actually one market.”
Nazir said he would be tabling the proposed ASEAN Prospectus at the 31st ASEAN Economic Ministers’ (AEM) Retreat in Desaru, Johor.
The three-day AEM Retreat will end today.
“I have discussed it with Malaysia’s Securities Commission and met with all the securities regulators in ASEAN. It looks like everyone likes the idea, but if we want to implement it, there will be a lot of changes in each country.
“So, it looks like the ASEAN Prospectus initiative will take time. I do not know how many countries can do it in 2025. But if there are two countries (open to listing their companies), it will be done,” he added.
Nazir pointed out that ASEAN should now focus on strengthening its regional economy and be realistic in setting its goals based on understanding its limitations.
“We should deliver. Rhetoric is too easy. You can say what you want but can you deliver?
“I hope ASEAN, after this experience (ASEAN Charter), doesn’t talk too much but focuses on delivery,” he added.
Nazir cited the ASEAN Charter in 2007 which was very much inclined towards establishing the Southeast Asian region akin to the European Union with a single production base and free movement of labour.
“But those were unrealistic goals,” he noted.
To criticism that ASEAN was slow and indecisive in responding to regional and global challenges, Nazir said Malaysia’s ASEAN chairmanship this year would meet with high expectations as the country is perceived to always “get things done.”
“Our Prime Minister (Datuk Seri Anwar Ibrahim) now has his circle of very experienced advisors in Thaksin and Hun Sen, which means he is listening to very experienced hands at ASEAN.
“Also, as I said, when people build high walls, we build longer negotiating tables,” he said.
-- BERNAMA
