Under Malaysia’s chairmanship, Asean has launched an ambitious roadmap with 18 Priority Economic Deliverables in a bid to build a more resilient, future-ready region.
Under Malaysia’s chairmanship, Asean has launched an ambitious roadmap to strengthen its role in the global economy.
The plan’s 18 deliverables span trade, technology, energy and sustainability – signalling a push for a more resilient and future-ready region.
ATIGA upgrade
At the core of this plan lies the upgraded Asean Trade in Goods Agreement (ATIGA) – the rulebook governing how goods move within the region.
The revised framework now covers remanufactured goods, green trade, and even humanitarian supply chains, ensuring that cross-border commerce remains stable in times of crisis.
The agreement is expected to boost intra-Asean trade, which currently stands at about 22%.
Asean Digital Economy Framework Agreement
With digital technology transforming how businesses operate, Asean is moving to bridge the gaps between its members through the Asean Digital Economy Framework Agreement (DEFA).
DEFA seeks to create a single digital market across the region – harmonising rules on payments, data privacy, e-commerce and artificial intelligence (AI).
The agreement, which aims to boost digital trade, strengthen online safety and involve more small and medium-sized businesses, could double Asean’s digital economy from the projected US$1 trillion in 2030 to US$2 trillion due to the agreement’s implementation.
Strengthening the Asean chip industry
Semiconductors power everything from smartphones to electric vehicles (EV) – but the pandemic showed how fragile global chip supply chains can be.
To maximise Asean semiconductor industry potential, the investment, trade and industry ministry, in collaboration with Universiti Kebangsaan Malaysia’s Institute of Malaysia and International Studies and the Economic Research Institute for Asean and East Asia (ERIA), developed the Asean Framework for Integrated Semiconductor Supply Chain (AFISS) as one of Asean PEDs.
The goal of AFISS is to create a framework to integrate all Asean Member States (AMS) into a semiconductor supply chain that manages end-to-end processes – from raw material supply and chip design to manufacture and packaging – and simultaneously to propose recommendations that can further develop the Asean semiconductor industry.
By coordinating these capabilities, Asean hopes to establish itself as a credible player in the global semiconductor industry.
Deepening economic ties with China
China remains Asean’s largest trading partner, with two-way trade volume reaching US$772.4 billion in 2024.
The two sides have strengthened their partnership through the Asean-China Free Trade Area (ACFTA) 3.0 Upgrade Protocol. The recently signed protocol expands cooperation into new areas such as the digital and green economies, supply chain connectivity, competition and consumer protection, and support for micro, small, and medium enterprises (MSMEs).
Building a regional EV ecosystem
The global shift toward electric mobility is also taking shape in Southeast Asia.
Under the bloc’s first EV Roadmap, Asean plans to develop regional charging networks, unlock financing for clean transport, and coordinate policies among member states.
The initiative aims to attract investment in battery production and renewable energy, while paving the way for a regional EV market.
What’s next?
Other projects – including the Asean Minerals Development Vision, Regional Energy Cooperation efforts, and the Instant Payment Connectivity initiatives – are also progressing steadily, reflecting Asean’s continued commitment to deepening economic integration and enhancing regional resilience.
Together, they form a blueprint for Asean’s economic transformation: a more integrated, sustainable and technologically advanced region that can withstand global shocks. - FMT
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