Malaysia set to position Asean as global hub for investment, trade & industry
27 Jan 2025
Malaysia’s Asean chairmanship is poised to position the region as a global hub for investment, trade and industry, a senior minster said.
Malaysia can leverage its standing to strengthen regional economic integration and expand the bloc’s cooperation with all nations focusing on building resilience in global supply chains, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.
In 2024, trade with Asean market improved 6.1 per cent to RM765 billion, accounting for 26.6 per cent of Malaysia’s total trade.
As a major regional export destination, exports to Asean increased 4.2 per cent to RM437.9 billion on the back of larger exports of machinery, equipment and parts, manufactures of metal as well as petroleum products.
The top three export destinations within Asean were Singapore, Thailand and Indonesia, accounting for 78.6 per cent of Malaysia’s total exports to the region.
Meanwhile, imports from Asean picked up by 8.9 per cent to RM327.17 billion with main imports being electrical and electronics products products, petroleum products as well as chemicals and chemical products.
Tengku Zafrul emphasised the pivotal role of Asean in Malaysia’s trade strategy, citing regional agreements as essential tools for navigating global economic uncertainties.
This includes Regional Comprehensive Economic Partnership and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership that enhance regional supply chains and expand market access for Malaysian businesses, providing a solid foundation for continued growth.
“Despite our prominent position within Asean, Malaysia’s neutral foreign policy stance help strengthens its trade relations with all trading nations. We believe that this neutrality will help mitigate any negative impacts of global trade uncertainties,” he said at a briefing today on Malaysia’s 2024 trade performance which was announced recently.
Within Southeast Asia, Tengku Zafrul said the nation stands to gain substantial benefits from its current position as a manufacturing and supply chain hub that makes it well-placed to capitalise from trade diversions and increased foreign investments.
Competitiveness will be further strengthened through digital economy including cross border e-commerce, whereby technologies and digital platforms provide local businesses with access to new opportunities in e-commerce, digital services and cross-border data flows.
Tengku Zafrul noted that the emerging markets continue to be a key focus with trade expansion efforts directed toward Africa, the Middle East and Latin America.
He said the efforts are evident in the growth recorded in 2024 in trade with African nations, such as Angola (59.3 per cent), Ethiopia (56.4 per cent), Egypt (53.6 per cent), Algeria (27.9 per cent) and Libya (19.7 per cent).
Malaysia is also diversifying within Asean, targeting rapidly urbanising cities like Medan (Northern Sumatra, Indonesia), Surabaya (Eastern Java, Indonesia), Da Nang (Central Vietnam), Hai Phong (Northern Vietnam) and Can Tho (Southern Vietnam).
This diversification strategy will be key for Malaysia to sustain its strong trade performance in the coming years.
Recognising the potential new challenges, including geopolitical risks and natural disasters, Tengku Zaful said the ministry and and its trade promotion agency Matrade committed at meeting their goals, despite changes in economic trends like Internet of Things, artificial intelligence and electric vehicles.
“Malaysia’s competitiveness will be further strengthened through digital economy including cross border e-commerce. Technologies and digital platforms provide Malaysian businesses with access to new opportunities in e-commerce, digital services and cross-border data flows,” he added.
Source: NST
