BERNAMA – ASEAN Must Drive Innovation To Catalyse Economic Competitiveness

KUALA LUMPUR, Nov 5 (Bernama) — ASEAN must emerge as an innovation-driven region to strengthen its economic integration and competitiveness in the global market, said ASEAN Secretary-General Dr Kao Kim Hourn.

He said the foundation of a borderless ASEAN economy lies in three key areas — innovation, seamless connectivity, and a strong sense of trust, confidence, peace, and stability.

This is also in line with the ASEAN Plan of Action on Science, Technology and Innovation 2026-2030 (APASTI 2026-2030), which positions technology startups at the heart of the bloc’s economic development and sets ASEAN on course to become the world’s fourth-largest economy within the next five years, he added.

“Asia now commands 23 per cent of global venture capital and hosts 19 per cent of the world’s startups, demonstrating our expanding role in the global economy.

“Through initiatives such as ASEAN Talent Mobility, over 8,000 professionals across 66 countries are now connected, proving that when borders become irrelevant, ideas circulate freely and openly. Malaysia is leading by example,” he said in his keynote address at the closing ceremony of the Cradle LIVE! Startup ASEAN Summit 2025 at Zepp KL here on Wednesday.

Kao also commended Malaysia’s efforts through the ASEAN Startup platform, the region’s first online startup network connecting more than 4,000 startups with 1,000 investors and generating an ecosystem value of over US$131 billion, as well as the successful hosting of the recent 47th ASEAN Summit.

“I sincerely congratulate the Government of Malaysia for successfully hosting the 47th ASEAN Summit. The decisions made there are now being put into action, starting with today’s startup initiative.

“In addition, Thailand and Cambodia signed the Kuala Lumpur Peace Accord, strengthening bilateral relations and cooperation and making peace a top priority for the two neighbours, thus contributing to regional stability and investor confidence,” he said.

Kao said ASEAN continues to be a major destination for capital and confidence, capturing 15 per cent of global foreign direct investment (FDI) flows and maintaining its position as the leading investment destination among developing regions for four consecutive years.

He said a recent Boston Consulting Group survey found that over 60 per cent of regional firms plan to expand or maintain their ASEAN investments, demonstrated strong confidence in the region’s competitiveness, market potential, and long-term growth prospects.

“What distinguishes ASEAN is not just economic dynamism, but the trust and stability established through decades of peaceful cooperation and sustainable engagement, especially with our external partners.

“This trust drives investors, sustains growth, and positions ASEAN as a dependable and reliable hub amid global instability,” he added.

Also present were Science, Technology and Innovation Minister Chang Lih Kang, the ministry’s Secretary-General Datuk Seri Hasnol Zam Zam Ahmad, and Cradle Fund Group Chief Executive Officer Norman Matthieu Vanhaecke.

— BERNAMA

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