KUALA LUMPUR, May 23 (Bernama) — Greater intra-ASEAN trade is essential to strengthening regional supply chains and economic resilience amid rising global uncertainty, an academic said ahead of Malaysia’s 2025 ASEAN Chairmanship.
Universiti Pendidikan Sultan Idris senior lecturer Dr Norazlan Hadi Yaacob said deeper intra-ASEAN trade ties could help shield the region from external shocks caused by geopolitical competition and conflicts.
“Although ASEAN is projected to become the world’s fourth-largest economy by 2030, intra-ASEAN trade remains low at 22.9 per cent, far behind the European Union (EU), where internal trade exceeds 50 per cent,” he said in a special broadcast aired on Bernama TV ahead of the 46th ASEAN Summit.
ASEAN, home to nearly 700 million people—about nine per cent of the global population—is currently the world’s fifth-largest economy, with a combined gross domestic product (GDP) of US$4.1 trillion in 2024.
Norazlan said over-reliance on external supply sources had left ASEAN economies vulnerable to disruptions and price shocks, particularly during conflicts such as the Russia-Ukraine war. He stressed that boosting trade within the region would enhance supply security.
“For instance, Thailand is a major paddy producer, while Malaysia and Indonesia lead in palm oil production. Strengthening such trade within ASEAN would help stabilise regional supply,” he said.
He expressed confidence that Malaysia’s 2025 ASEAN Chairmanship could act as a catalyst for greater regional unity and cooperation.
Currently, ASEAN conducts 14.8 per cent of its trade with China and the United States, nine per cent with the EU, 6.8 per cent with Japan, 5.8 per cent with Hong Kong, and 4.1 per cent with South Korea.
As a trade-dependent region, ASEAN remains vulnerable to global economic tensions, including retaliatory tariffs imposed by the United States.
On the geopolitical front, Norazlan described Malaysia as strategically positioned.
“We are a Commonwealth nation with no issues with Western countries or the United States. As a member of the Organisation of Islamic Cooperation (OIC), we also maintain strong ties with Muslim nations.
“Furthermore, our multicultural society fosters close relations with China and India,” he added.
The 46th ASEAN Summit begins today with a senior officials’ meeting, followed by a ministerial meeting on May 25 and a leaders’ summit on May 26.
Malaysia assumed the ASEAN Chairmanship from Laos on Jan 1, 2025, under the theme “Inclusivity and Sustainability”, aimed at building a united and prosperous regional community.
This marked the fifth time Malaysia has chaired ASEAN, following previous terms in 1977, 1997, 2005 and 2015.
ASEAN comprises 10 member states—Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam—while Timor-Leste is in the process of formal accession.
— BERNAMA