Good afternoon,
His Excellency Dr. Kao Kim Hourn, Secretary-General of ASEAN,
Media friends and colleagues,
Ladies and gentlemen
Malaysia hosted the 31st Retreat of the ASEAN Economic Ministers (AEM)today. This is the first ASEAN Economic Ministers’ meet-up of this year, under Malaysia’s 2025 Chairmanship of ASEAN. My sincerest thanks to the Economic Ministers and their delegation from all the ASEAN Member States, including Timor-Leste, that had participated in the successful convening at this year’s Retreat. Our gratitude also goes out to the state of Johor, for their excellent facilitation and co-hosting of this Retreat.
As we all know, this Retreat is an important forum for ASEAN Economic Ministers to discuss our priorities and key initiatives in the ASEAN Economic Community (AEC), including setting the Priority Economic Deliverables (PEDs) of the year. It is also key to facilitating a candid exchange of views on the regional and global economic outlook, taking into consideration current geopolitical developments, which could have an impact on ASEAN’s growth.
Bagi pihak Kerajaan Malaysia, saya bersyukur Pemukiman Menteri Ekonomi ASEAN ke 31 telah berlangsung dengan jayanya. Ini merupakan pertemuan pertama Menteri Ekonomi ASEAN dalam tahun Kepengerusian ASEAN oleh Malaysia.
Setinggi-tinggi penghargaan dan terima kasih kepada Kerajaan Negeri Johor dan khususnya YAB Menteri Besar sendiri, Dato’ Sri Onn Hafiz Ghazi, yang bekerjasama menjayakan pemukiman di Desaru, Johor ini. Semestinya, kita juga berterimakasih kepada Menteri-Menteri Ekonomi ASEAN dan delegasi masing-masing yang telah menjayakan Pemukiman Ini.
Pemukiman ini merupakan platform yang penting untuk membincangkan Keberhasilan Utama Ekonomi (PEDs) tahun ini; serta bertukar pandangan tentang situasi terkini ekonomi serantau dan global, dan juga tentang pelbagai inisiatif untuk memperkasa Komuniti Ekonomi ASEAN.
Allow me to share the key outcomes of our meeting today. I will then invite the Secretary-General of ASEAN to add on his views as well.
First, under Malaysia’s ASEAN Chairmanship’s theme of “Inclusivity and Sustainability”, we introduced 18 Priority Economic Deliverables (PEDs) in various sectors under the AEC, such as trade in goods, investment, financial and capital markets, agriculture, energy, MSMEs, tourism, semiconductors, as well as engagements with our Dialogue Partners.
All ASEAN Economic Ministers collectively supported , to endorsed nine (9) PEDs which fall under their direct purviewof the ASEAN Economic Ministers , which are:
a. Conclusion of the Negotiation and Signing of the 2nd Protocol to Amend the ASEAN Trade in Goods Agreement (ATIGA) A
b. Signing of the ASEAN-China Free Trade Area 3.0 Upgrade Protocol
c. Substantial Conclusion of the Review of ASEAN-India Trade in Goods Agreement (AITIGA)
d. Joint Declaration on Economic Cooperation between the Association of Southeast Asian (ASEAN) and the Gulf Cooperation Council (GCC)
e. Adoption of the ASEAN Sustainable Investment Guidelines (ASIG)
f. Development of Policy Recommendation and Guidelines to Support ASEAN EV Implementation Roadmap
g. ASEAN Centre of Excellence for MSMEs in Green Transition
h. ASEAN Framework for Integrated Semiconductor Supply-Chain (AFISS)
i. Substantial Conclusion of the ASEAN Digital Economy Framework Agreement (DEFA) Negotiation
The other nine PEDs are on areas such as climate financing; development of ASEAN capital markets; energy cooperation; agriculture; critical minerals; tourism; tech start-up; AI safety network and payment connectivity.
As the Chair, Malaysia would like to thank all ASEAN Member States for their expressed support and commitment to ensure the timely implementation of these PEDs.
We also discussed our plans and visions for the next phase of ASEAN economic integration post-2025, namely the development of the AEC Strategic Plan 2026-2030.
This Strategic Plan is now on track for adoption by ASEAN Leaders at the upcoming 46th ASEAN Summit in May this year, together with the overarching ASEAN Community Vision 2045. Developed from extensive engagements with a wide-range of stakeholders, the AEC Strategic Plan aims to attain an action-oriented, sustainable, enterprising, adaptable, nimble and inclusive AEC. Malaysia also expressed our support to the Regional Socialisation event that will be held in Kuala Lumpur on 17 June 2025, after its launching at the 46th ASEAN Summit.
During this meeting, we adopted several key initiatives of ASEAN, particularly the:
a. Implementation of a roadmap for the ASEAN digital Unique Business Registration Numbers (UBIN);
b. Guiding principles for negotiations for the ASEAN Framework Agreement on Intellectual Property Cooperation (AFAIPC) 2.0; and
c. ASEAN Pharmaceutical Regulatory Framework Agreement (APRFA) for signing at our 57th meeting.
All these documents lay important foundations in different areas of work to create a more competitive economy as well as facilitate trade and business in the region.
We further discussed and provided guidance to the outstanding issues in some key initiatives which we hope to complete this year. These include concluding the upgrade negotiations of the ASEAN Trade in Goods Agreement (ATIGA) and the substantially conclude negotiations on the ASEAN Digital Economy Framework Agreement (DEFA).
As the backbone of regional trade, the upgraded version of the ATIGA shall elevate trade relations between ASEAN Member States, especially against the backdrop of current global economic uncertainties. We encouraged the officials to continue their constructive negotiations and reaffirmed our commitment to conclude negotiations within this year. We antcipate the sigining of the upgraded ATIGA to be held during the 47th ASEAN Summit.
Next, on the DEFA. This will be a landmark agreement and a new driver for socio-economic growth towards an ASEAN-wide digital economy transformation. To that end, we agreed to redouble our efforts and explore alternative options to expedite the work.
[still on DEFA] Noting the immense benefits of DEFA particularly to ASEAN MSMEs, ASEAN Member States were urged to exercise flexibilities, considering the different levels of development and readiness under DEFA’s various obligations. ASEAN Member States expressed their confidence on the importance of DEFA to provide the necessary impetus to spur ASEAN’s digital transformation..
The Ministers also had a productive discussion on ASEAN’s economic relations with external partners. ASEAN will have its second Summit with the Gulf Cooperation Council (GCC) at the upcoming ASEAN Summit in May. We had a good exchange of views on how we could step up our economic engagement with them. Additionally, we will also convene the inaugural ASEAN-GCC-China Summit at the sidelines of the ASEAN Summit in May 2025. This is seen as a good way of engaging ASEAN’s external partners, by forging new collaborations that will be able to open up new opportunities in driving our economy.
Furthermore, we discussed the status of few remaining issues under the ASEAN-China FTA 3.0 Upgrade negotiations. This is following the announcement of substantial conclusion by ASEAN Leaders last year. We are optimistic that we will be able to sign the Upgrade Protocol later this year as one of the PEDs for our ASEAN Chairmanship.
Malaysia as the country coordinator for India as well as the ASEAN Co-Chair for the ASEAN-India Trade in Goods Agreement (AITIGA) review also updated the AEM on the progress of negotiations. As one of the PEDs for 2025, the AITIGA is set for a substantial conclusion this year.
The Ministers provided guidance to our officials to expedite their work in concluding these negotiations in a timely manner.
We also discussed and reaffirmed our support to Timor-Leste’s accession to the required ASEAN’s Economic Agreements (AEAs) as part of their overall process of full ASEAN membership. Malaysia expressed that Timor-Leste’s accession is a priority for our Chairmanship in 2025. Malaysia strongly views that – with Timor-Leste’s entry as the full 11th Member State – ASEAN’s regional potentials and economic growth can be further strengthened.
Finally, we had an opportunity to engage with the ASEAN Business Advisory Council (ASEAN-BAC), the Economic Research Institute for ASEAN and East Asia (ERIA), and McKinsey this morning. We discussed their work, suggestions, and inputs regarding specific aspects of economic integration in the region.
With that, I will now invite the Secretary-General of ASEAN to share his views and provide further updates from our meeting today.
Thank you.
