United front: Tengku Zafrul said Malaysia and its regional partners must ‘reach Asean consensus’ when navigating economic challenges. — Bernama
PETALING JAYA: A strong and united Asean economy will be crucial in ensuring the region’s political stability even as global powers jostle for influence, says Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.
“It’s key that we continue to ensure that Asean itself remains strong. That’s why we talk about Asean centrality,” he said, stressing that the bloc’s economic resilience directly supports its political neutrality and security.
Speaking ahead of the upcoming Asean Summit, Tengku Zafrul said Malaysia and its regional partners must “reach Asean consensus” when navigating these economic challenges, as global geo-economic and geopolitical tensions continue to shape trade and investment flows.
He highlighted that current economic policy is inseparable from security considerations – a point that will take centre stage at the summit when, for the first time, Asean economic ministers sit together with their foreign and security counterparts.
“Our foreign minister, together with myself, will co-chair the meeting ... because they cut across economy and security,” he said.
Tengku Zafrul said Asean’s neutral stance has proven to be an advantage in attracting investments, particularly at a time when other regions face economic slowdown.
“For the United States, China, even Europe, they’re looking for countries that are neutral. And Asean as a neutral bloc, will definitely benefit from companies realigning their supply chain.
“Almost 30% of our trade is with these two big economies. So we need to ensure that Asean also continue to engage other blocs,” said Tengku Zafrul, adding that Asean’s growing economic clout is key to maintaining regional relevance and stability.
The GDP of Asean countries in aggregate is around 4% to 5%, making it the fifth largest economic bloc now, he said.
“If we continue to grow, we’re going to be the fourth largest economic bloc,” he said.
He added that a stronger Asean economy would benefit citizens directly by raising incomes and boosting domestic demand.
“Asean people can earn more. Their household income will go up. It will also be an opportunity for building new markets within Asean itself,” said Tengku Zafrul.
On its part, he said Malaysia supports ongoing efforts to enhance trade agreements within the region, including improvements to the Asean Trade in Goods Agreement and the Asean-China Free Trade Area, and the push to finalise the Digital Economic Framework Agreement to help small and medium enterprises.
“The Digital Economic Framework Agreement is meant to allow more participation of small medium enterprises in trade.
“It’s basically making sure that e-commerce between countries happens seamlessly,” he said.
Tengku Zafrul also underscored the importance of engaging emerging markets and economic blocs.
“We also need to look at how Asean engages with all these markets, sign FTAs, and open our market to them,” he said, pointing to opportunities in Africa, South America and the Middle East.
As Malaysia prepares to co-chair the joint Asean economic-security ministerial session, Tengku Zafrul said the guiding principle remains clear – Asean’s economic strength is the foundation of its political stability and its ability to chart an independent path in a divided world.
“We need to be firm on the principle of Asean neutrality, not just in politics and diplomacy, but also in the economy.
“And in this case, we are also talking about economic security,” he said.
