Strength in unity: Kao speaking at the 12th Asean Finance Ministers and Central Bank Governors Meeting in Kuala Lumpur. — RAJA FAISAL HISHAN/The Star
KUALA LUMPUR: Describing the US tariff measures against Asean countries as a “wake-up call”, there must be collective action among member states to boost intra-regional economic integration or the region risk ceding its place in a fractured global economy, says Asean secretary-general Dr Kao Kim Hourn.
“The imposition of sweeping tariffs on Asean exports is certainly a wake-up call and lays bare the fragility of the open trading system that has sustained our prosperity over decades.
“Even as our tireless efforts over the decades have anchored Asean as a premier destination for global investment, a vital trade hub, a critical node in global supply chains and a dynamic centre of growth, the ground beneath us is shifting,” he said.
In his keynote address at the Asean Investment Conference, Kao said that Asean’s economic fortune, once buoyed by globalisation, can no longer be taken for granted.
“Without urgent and collective action to accelerate intra-Asean economic integration and diversify our markets and partnerships, we risk ceding our place in the fast-evolving global economy.
“To remain relevant and resilient in a world where economic chaos is fast becoming the new normal, we must act boldly, decisively, and together, to reaffirm Asean’s commitment to a stable, predictable, and business-friendly environment,” he added.
Saying that the region is now navigating an era of profound economic disruption and volatility, Kao said Asean must hold firm to its founding ethos – openness, resilience, and unity.
Enhancing connectivity for an Integrated Asean Economic Community (AEC) was key.
“Hardware alone is not enough. Coherent institutional and regulatory connectivity enabling the free flow of goods, services, capital and the facilitative movement of talent is equally vital,” he pointed out.
The Global Asean Strategy is essential for deepening trade and investment ties with the world economy and Asean would have to upgrade existing Free Trade Agreements (FTA) with its trading partners, he added.
“To keep pace with evolving modern business dynamics, we remain committed to upgrading existing FTAs to ensure they remain relevant and fit-for-purpose. The first upgraded FTA, the Asean-Australia-New Zealand FTA will enter into force on 21 April,” he said.
Asean is working toward signing the upgraded Asean-China FTA 3.0 and finalising the review of the Asean-India Trade in Goods Agreement review later this year, he added.
