KUALA LUMPUR, Sept 9 (Bernama) — ASEAN’s significant dependency on exports, especially in Malaysia and Singapore, presents challenges as China‘s economic slowdown begins to impact regional growth prospects, said an economist.
KSI Research & Advisory Services senior economic adviser Dr Anthony Dass said ASEAN’s close ties to China make the region vulnerable to economic shifts.
“We must recognise that ASEAN’s fortunes are closely linked to China, particularly at a time when the Chinese economy is slowing,” he said during the ASEAN CFO Sustainability Leadership Summit’s “Special Presentation: The Economic & Investment Outlook – What CFOs Should Look Out For?” here today.
Dass, who is also Kuala Lumpur Economic Club advisory council research director, said while China’s economy may slow to between two and three per cent in the coming years, Malaysia could still achieve growth of around four to five per cent, supported by domestic resilience.
However, he said that an over-reliance on headline gross domestic product (GDP) figures, which are often driven by large infrastructure projects, may not accurately reflect broad-based economic strength.
“ASEAN must actively look for alternatives beyond China. Trade integration initiatives such as the Regional Comprehensive Economic Partnership (RCEP) could help, but diversification remains critical,” said Dass.
He also said structural imbalances in global trade, including excess production capacity and subsidised labour, are distorting competition, making it difficult for ASEAN companies to compete on prices.
“These are real challenges. We should not be overly dependent on one particular country. You should always be diversifying,” said Dass.
He said ASEAN should not rely on a single growth engine. While India is emerging as a key driver, much like China in the early 2000s, he cautioned against depending solely on that market.
“India is important, but it should not be the only focus. ASEAN should diversify across multiple markets, with Indonesia and other rising economies also presenting strong opportunities,” said Dass.
— BERNAMA
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