Asean’s next chapter: From aspiration to action

At today’s inaugural Asean Inclusive Growth Summit organised by Mastercard in Kuala Lumpur, His Royal Highness Sultan Nazrin Muizzuddin Shah set a tone both reflective and forward-looking. His message was clear: the measure of Asean’s success will no longer be its ability to grow alone, but its ability to grow together.

Nearly six decades since its founding, Asean has evolved from a geopolitical bloc into one of the world’s most dynamic economic regions. Its combined GDP now approaches US$4trillion, with 700 million people contributing to what would be the fifth-largest economy on earth.

Yet, as Sultan Nazrin noted, progress is no longer assured. The same currents that propelled Asean’s rise — globalisation, technology, and open trade — are now being reshaped by new forces: geopolitical tension, climate change, ageing populations, and widening inequality.

Resilience amid turbulence

The region’s past crises — from the 1997 Asian financial meltdown to the pandemic — have tested Asean’s resilience. Each shock has forced painful introspection and, ultimately, adaptation. Today, Asean continues to grow at nearly 4 per cent a year despite headwinds. But Sultan Nazrin warned that resilience must not become complacency. “Complacency dulls innovation and risks detaching us from the values that brought us here,” he said.

The challenge for Asean’s next phase of growth lies not merely in recovering from crises but in ensuring that growth is inclusive — shared across borders, classes, and generations. Without inclusion, he cautioned, progress becomes fragile and institutions lose legitimacy.

Good governance as foundation

At the heart of inclusive growth lies governance. For Sultan Nazrin, good governance is not about bureaucratic formality but moral clarity: “doing what is right, even when no one is watching.” Across the region, citizens are demanding transparency, accountability, and institutions that act in the public interest. This demand, he suggested, is not a threat to leadership but an invitation to deepen it — leadership anchored in courage and integrity.

Malaysia’s own experience offers lessons. Reforms in procurement, public finance, and digital service delivery have strengthened citizens’ trust in institutions, turning abstract principles into tangible dividends. Similar efforts — from open-data initiatives to participatory budgeting — are unfolding across Asean, demonstrating how trust and transparency can be powerful economic multipliers.

Finance with purpose

The financial sector, too, has a pivotal role to play. Sultan Nazrin called for a shift from short-term profit to long-term purpose — a “triple bottom line” of people, planet and profit. Finance, when guided by ethics, becomes an engine of inclusion rather than exclusion.

In Malaysia, Islamic finance embodies this principle, connecting capital with conscience. Representing over 40 per cent of the nation’s financial system and more than US$5trillion globally, it exemplifies how markets can thrive while discouraging speculation and exploitation.

But purpose must go beyond the balance sheet. The Sultan reminded policymakers that millions in the region remain disconnected — not by choice but by poverty, weak infrastructure, and unequal access. Nearly 200 million Asean adults remain unbanked; broadband coverage in rural areas lags cities by up to 30%. Economic growth that bypasses these populations is growth without legitimacy. “A strong economy cannot exist in isolation from the welfare of its people,” he said.

The digital imperative

Asean’s twin transformations — demographic and digital — are reshaping what is possible. The digital economy links even the smallest enterprises to global markets, empowering artisans in rural villages to reach consumers continents away. Yet digitalisation is not inherently inclusive. Technology can deepen inequality if access, literacy, and trust do not keep pace.

Hence the Sultan’s call for balance. Investment must go beyond infrastructure to include systems and institutions that citizens can rely on. Cybersecurity, data privacy, and digital literacy, he argued, must be treated as public goods. Artificial intelligence — a transformative force — must be governed with transparency and accountability so that it augments rather than displaces human potential.

Trust: the currency of growth

Perhaps the most resonant theme of the Sultan’s speech was trust — the invisible infrastructure underpinning both governance and innovation.

“Digital progress without public trust is fragile,” he said. Trust, like capital, must be earned and invested wisely. In an age of misinformation and social polarisation, trust becomes not just a moral virtue but an economic necessity. When citizens believe their data, rights, and dignity are protected, they are more willing to participate, invest, and create.

This extends to civic culture. The Sultan urged Asean to cultivate a “civic culture that values and respects pluralism” — one that invites every voice to be heard, from urban youth to rural elders. Inclusion, in the digital age, means ensuring all citizens have the tools to participate and prosper. Diversity, he argued, is not a weakness but Asean’s greatest strength.

From aspiration to action

As policymakers, entrepreneurs, and civil-society leaders gathered in Kuala Lumpur, Sultan Nazrin reminded them that summits are only as meaningful as the actions they inspire. Conversations on entrepreneurship, financial inclusion, and regional cooperation should move the region “from aspiration to action.” The task ahead is to transform the ripples of dialogue into the tides of reform — to share what works, learn from what doesn’t, and forge new partnerships built on solidarity.

The Sultan concluded with a call to unity: to show the world that growth and inclusion are twin pillars of a vibrant and enduring Asean. In an era of fragmentation, his words were both a challenge and a compass — urging the region to harness its diversity, uphold its values, and steer its prosperity toward shared progress.

Dr Helmy Haja Mydin is Chairman of Social & Economic Research Initiative (seri.my)