Your Excellency Dato’ Mohammad Faiz Azmi, Executive Chairman, Securities Commission Malaysia,

Tan Sri Andrew Sheng, Distinguished Fellow, Asia Global Institute, University of Hong Kong,
 
Excellencies, Distinguished Guests, Ladies and Gentlemen, 

A very good morning to all of you. I extend my sincere appreciation to the Securities Commission Malaysia for convening this gathering of investors, corporations, and policymakers from across ASEAN. The theme “Connecting Capital, Unlocking Opportunities, and Driving Sustainability” aligns perfectly with Malaysia's 2025 ASEAN Chairmanship focus on Inclusivity and Sustainability. 

This conference comes at a particularly critical juncture—an opportunity to renew our collective resolve, reinvigorate our spirit of collaboration, and reaffirm our commitment to a resilient, future-ready ASEAN Economic Community. As we brace for mounting global headwinds marked by resurging economic nationalism and protectionism, deepening our regional bonds is no longer a choice—it is a strategic imperative. 

Excellencies, Ladies and Gentlemen, 

Just days ago, US President Trump unveiled a sweeping set of tariffs affecting all ASEAN Member States, with some reaching as high as 49%. These measures have sent shockwaves through the global trading system and strike at the very foundation of open trade and investment that has underpinned ASEAN’s growth and prosperity for decades. We have always understood that interdependence brings vulnerability. But rarely have we seen such stark exposure—so sudden, so destabilising, and so real. 

We now find ourselves navigating an era of profound economic disruption, fragmentation, and volatility. In the face of these headwinds, ASEAN must hold firm to its founding ethos: openness, resilience, and unity. We need to deepen our regional bonds, tap into the inherent strength of our 678 million people, unlock the full breadth of our shared potential, and diversify our markets and partners. With this in mind, allow me to share three reflections on how we can meaningfully strengthen ASEAN connectivity and catalyse sustainable, inclusive investments across our region—investments that will carry us not just through today’s storms, but into a more resilient tomorrow. 

My first reflection, enhancing Connectivity for an Integrated ASEAN Economic Community (AEC). ASEAN Connectivity is multi-dimensional, with physical connectivity forming its backbone. Through the Master Plan on ASEAN Connectivity (MPAC) 2025, we have prioritised 19 strategic infrastructure projects across transport, energy, and digital sectors—laying the foundation for our businesses to go regional and global. But 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. Together, these elements shape the engine of our economic development, and are carried forward through three key strategies. 

First, ASEAN's vision to become a global supply chain hub is built on our transformation into a single market and production base. Over many decades, ASEAN has actively eliminated tariffs and non-tariff measures, fostering a harmonized trade and investment regime through the ASEAN Trade in Goods Agreement (ATIGA), the ASEAN Trade in Services Agreement (ATISA), and the ASEAN Comprehensive Investment Agreement (ACIA). These agreements have lowered cross-border transaction costs, enhanced production factor mobility, and strengthened resilience by leveraging complementarities between our economies. Today, ASEAN stands as the world's third-largest trading bloc with total goods trade reaching USD 3.8 trillion in 2024, and ranks among the top recipients of foreign direct investment globally—second only to the US and first among developing economies—attracting USD 234 billion in 2023. 

Second strategy, the Global ASEAN Strategy is essential for deepening our trade and investment ties with the world economy. ASEAN has successfully established Free Trade Agreements (FTAs) with major Dialogue Partners, including China, Japan, Korea, India, Australia, New Zealand, and Hong Kong (China), alongside the Regional Comprehensive Economic Partnership Agreement (RCEP). To keep pace with evolving modern business dynamics, we remain committed to upgrading existing FTAs to ensure they remain fit-for-purpose and relevant. The first Upgraded FTA, the ASEAN-Australia-New Zealand FTA (AANZFTA), will enter into force on 21 April 2025. Additionally, ASEAN is working toward signing the upgraded ASEAN-China FTA 3.0 (ACFTA) and finalizing the Review of the ASEAN-India Trade in Goods Agreement later this year. 

Finally, digital connectivity serves as a powerful catalyst for growth. Since 2021, ASEAN has implemented the Bandar Seri Begawan Roadmap (BSBR) for Digital Transformation to accelerate regional digital economy development. This Roadmap integrates major ASEAN initiatives to promote paperless trade, digital payments, cybersecurity, cross-border data transfer, and digital infrastructure.

Excellencies, Ladies and Gentlemen, 

Building on this momentum, ASEAN launched negotiations for the ASEAN Digital Economy Framework Agreement (DEFA) back in 2023 to develop a modern, comprehensive, interoperable, and inclusive regional digital economy. According to a BCG study, a robust and forward-looking DEFA could add up to USD 2 trillion to the regional digital economy by 2030. The DEFA, targeted for conclusion this year during Malaysia’s Chairmanship of ASEAN, marks a crucial policy paradigm shift, positioning ASEAN as a global digital hub and empowering individuals, communities, and nations to thrive in the digital future.

Second strategy, Strengthening Connectivity for a Greener Future of ASEAN. As climate change reshapes our economic trajectory, ASEAN is committed to reinforcing the foundation of connectivity for a green future through several key initiatives. ASEAN is developing the ASEAN Connectivity Strategic Plan (ACSP), which will integrate green transition into the region's connectivity efforts and ensure we remain forward-looking and resilient in the years ahead.

In 2023, ASEAN adopted the ASEAN Strategy for Carbon Neutrality as a comprehensive framework to accelerate the region's transition to a low-carbon and climate-resilient future. Full implementation could generate up to USD 5.3 trillion in additional value-added, attract up to USD 6.7 trillion in green finance, and create up to 66 million additional jobs in the region by 2050.

As a concrete step toward Carbon Neutrality, the upgraded ASEAN Trade in Goods Agreement (ATIGA), targeted for conclusion this year, will incorporate provisions on the free movement of remanufactured goods, paving the way for ASEAN to mainstream circular products into intra-ASEAN trade. This will foster green supply chains, enhance environmental protection, and mitigate waste in landfills. Another significant initiative is the ASEAN Power Grid (APG), which aims to enhance regional electricity interconnectivity. 

Through cross-border electricity trade, the APG addresses the region's rising energy demands and accelerates the integration of renewable energy sources. Realizing the APG vision requires an estimated total investment of USD 764 billion for power generation and transmission infrastructure.

Finally, ASEAN is investing in institutional capacity-building and knowledge-sharing to ensure a just and inclusive green transition through the establishment of the ASEAN Centre of Excellence for Green Transition and various capacity-building programs. These initiatives equip both public and private sector stakeholders with the necessary expertise to drive sustainability initiatives forward.

Excellencies, Ladies and Gentlemen, 

My third reflection, Financing ASEAN’s Transition Towards a Sustainable Future through Sustainable Investment Policy. These initiatives to deepen economic integration and advance sustainable development have driven the steady inflow of FDI into ASEAN, with growing investor interest in renewable energy and the electric vehicle (EV) value chain. By 2030, ASEAN will require approximately USD 2.8 trillion in infrastructure investments—equivalent to an annual average of USD 184 billion—to meet its decarbonisation commitments. Given the significant demand for a sustainable future, ASEAN must develop appropriate policies to channel financial resources into sustainability initiatives, including a sustainable investment policy. I would like to share three recommendations to help direct financing toward our sustainability agenda.

First, ASEAN must ensure the interoperability of national taxonomies to attract capital and unlock tremendous value for sustainable regional economic activities. The ongoing development of the ASEAN Taxonomy for Sustainable Finance provides an excellent opportunity to align ASEAN's framework with global taxonomies, providing investors and international donors with clear guidelines for sustainable investments in ASEAN.

Second, ASEAN must develop robust and innovative financial mechanisms to diversify capital resources from the private sector and international donors. This includes establishing capital markets to facilitate the exchange of sustainable bonds and make blended loans and other multilateral funds more accessible for sustainable investment projects. These efforts complement the ASEAN Green, Social, Sustainability (GSS+) and Sustainability-linked Bond Standards. Additionally, ASEAN must enhance collaboration with international partners and donors and the private sector to support existing initiatives like the ASEAN Catalytic Green Finance Facility (ACGF) to scale up bankable green projects.

Third, ASEAN must focus on projects that support supply chains in green industries such as electric vehicles, logistics, sustainable mining practices, and renewable energy. To this end, ASEAN is finalizing the Policy Recommendation on Guidelines to Support ASEAN EV Implementation Roadmap and the ASEAN Sustainable Investment Guideline (ASIG) in 2025. These initiatives are critical in shaping national investment and industrial policies that drive sustainable growth and contribute to the Sustainable Development Goals.

Excellencies, Distinguished Guests, Ladies and Gentlemen, 

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. 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. Our 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 a fractured and 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. With this, I would like to share that the ASEAN Economic Ministers will be holding a special meeting tomorrow, 10 April 2025, to assess the impacts of the sweeping tariffs on ASEAN, collectively and to each and every ASEAN Member State.

This is an opportune time for our region close ranks together to explore a wider network of trading partners and expand trade relations as a strategy to avoid the risks of the region's fragmentation. Furthermore, we should also strengthen the region’s trade policy tools through a regional mechanism that would enhance trade policy coordination to reduce the risk of intra-ASEAN trade friction. And on this sobering, yet hopeful note, I wish you a productive and forward-looking conference.

Thank you very much and good morning to all of you.

--BERNAMA