By Siti Radziah Hamzah
KUALA LUMPUR, Sept 23 (Bernama) — ASEAN is all set to roll out its priority economic deliverables (PEDs) under Malaysia’s chairmanship, with the 57th ASEAN Economic Ministers’ (AEM) meeting this week pushing trade upgrades, drawing up a US$2 trillion digital economy framework and forging new regional pacts on competition, energy and technology.
These PEDs initiated by Malaysia will drive regional economic integration, inclusivity, sustainability and digital trade towards realising the ambitious ASEAN Economic Community (AEC) and elevating ASEAN to emerge as the fourth-largest economic grouping by 2030 from fifth place now.
In the process, Southeast Asia would be able to position itself as a key global trade and investment destination and be well-positioned to attract foreign investments from all over.
Among Malaysia’s achievements as chair is having steered the conclusion of negotiations to upgrade the ASEAN Trade in Goods Agreement (ATIGA), with the Second Protocol to amend ATIGA scheduled for signing at the ASEAN Summit in October.
Another significant achievement is setting in motion practical measures to take trade with China to a significantly higher level and bolster digital trade and seamless financial transactions to broaden the regional economy.
To this end, Malaysia has led the way in taking the ASEAN-China Free Trade Area (ACFTA) 3.0 protocol, which has also been fully concluded, while the ASEAN Digital Economy Framework Agreement (DEFA) has reached substantial conclusion.
With a combined gross domestic product (GDP) of US$3.8 trillion, ASEAN is currently the world’s fifth-largest economy.
The region grew by 4.8 per cent in 2024, supported by steady household spending, while 2025 GDP growth is projected at 4.2 per cent amid global uncertainties.
DEFA is expected to unlock US$2 trillion in value by 2030, digitally enabling more than 70 million small and medium enterprises (SMEs), which make up 98 per cent of businesses in the region, and opening new opportunities across ASEAN supply chains.
More than an economic pact, DEFA serves as a strategic blueprint to ensure ASEAN’s 680 million people can access a digital future that is open, secure and inclusive.
Other PEDS under Malaysia’s leadership include the signing of the ASEAN Framework Agreement on Competition (AFAC), policy recommendations for the ASEAN electric vehicle (EV) roadmap, and the establishment of the ASEAN AI Safety Network (AI SAFE).
Ministers have also endorsed the ASEAN Power Grid (APG) Enhanced memorandum of understanding as part of the ASEAN Plan of Action for Energy Cooperation 2026–2030.
Progress has also been made on cross-border digital payments, with eight out of 10 member states adopting national QR code systems.
In 2023, digital payments accounted for about half of transaction value in Malaysia, Indonesia, Singapore, Thailand and the Philippines, with volumes expected to surge by 2028.
New frameworks have been introduced to catalyse climate transition financing, strengthen the regional semiconductor supply chain through the ASEAN Framework for Integrated Semiconductor Supply Chains (AFISS), and support technology startups via the ASEAN Technology Startup Ignite initiative.
Long-term visions are also set for agriculture towards 2045, mineral development as a sustainable investment hub, and a tourism outlook to 2030.
A centre of excellence for MSMEs in green transition is also being developed to help smaller firms pursue low-carbon growth.
These deliverables will lay the foundation for a more resilient, secure and inclusive future by strengthening SMEs, advancing digitalisation, enhancing energy cooperation and building new industries.
Deeper integration and harmonised regulations are expected to remain ASEAN’s shield against global uncertainties, with initiatives such as the ASEAN Single Window already saving more than US$6.4 billion and cutting clearance times by four days on average.
The AEC’s Strategic Plan 2026–2030 is now being finalised as a roadmap to make ASEAN the world’s fourth-largest economy by 2030, anchored on digital growth, regional connectivity and inclusive development.
— BERNAMA
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