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ASEAN poised to become the world's fourth-largest economy by 2030, but inclusive growth is key, says Nik Nazmi
Challenge lies not only in reaching this milestone but in ensuring that the economic growth ASEAN achieves leads to sustainable, equitable development that benefits all communities, particularly the most underserved.
ASEAN is on track to become the world's fourth-largest economy by 2030, but its growth must be inclusive to ensure that all communities across the region benefit, according to Malaysia's Minister for Natural Resources and Environmental Sustainability, Nik Nazmi Nik Ahmad.
While cities like Kuala Lumpur, Bangkok, and Jakarta are witnessing impressive GDP growth, significant disparities persist across ASEAN, especially in rural and underdeveloped areas, where many still face challenges such as limited access to electricity, education, and economic opportunities.
"We are currently the fifth-largest economy globally, but forecasts suggest that by 2030, ASEAN could rise to become the fourth-largest," Bernama quoted Nik Nazmi saying during a press briefing at the ASEAN Youth Economic Forum (AYEF) 2025 in Kuala Lumpur on Friday.
"However, our challenge lies not only in reaching this milestone but in ensuring that the economic growth we achieve leads to sustainable, equitable development that benefits all communities, particularly the most underserved."
Nik Nazmi stressed that economic progress should not be measured solely by GDP growth. Instead, the real measure of success will be how it improves the lives of people, especially in less-developed areas.
He pointed out that being the fourth-largest economy means little if large segments of the population still lack access to basic necessities like education, electricity, and equal opportunities.
"It’s not enough to say we are the fourth-largest economy if many people still face barriers to education or cannot access basic services. These are the issues that need urgent attention," he added.
The minister also highlighted the importance of ASEAN acting as a unified bloc to effectively influence global affairs. He pointed to the region’s collective role in shaping a common stance on issues such as climate change, noting ASEAN’s goal to present a unified position at the upcoming 2025 United Nations Climate Change Conference (COP30).
“If ASEAN were to act independently rather than as a collective bloc, our influence on global matters would be limited. That’s why we are coming together as a unified region, especially in areas like climate change, where our shared challenges demand coordinated efforts,” Nik Nazmi said.
The ASEAN Youth Economic Forum 2025, which takes place from February 14 to 16 at the Swiss Garden Hotel in Kuala Lumpur, serves as a key platform for young leaders from ASEAN, Japan, and Timor Leste.
This year’s forum focuses on “Climate Change and Building a Climate-Resilient Economy,” bringing together policymakers, industry leaders, and youth delegates to discuss strategies for strengthening economic resilience in the face of climate change.
ASEAN Youth Key to Driving Climate Solutions
In a related statement, Nik Nazmi stressed that ASEAN’s youth are crucial in driving effective climate solutions, given their growing awareness of the environmental challenges facing the region.
Young people in ASEAN are experiencing firsthand the effects of climate change, including rising air pollution, heatwaves, haze, and floods, making them particularly attuned to the urgency of environmental action.
"Youth in ASEAN are increasingly aware of the environmental challenges we face. They are witnessing the direct impact of climate change in their communities, from extreme weather events to pollution. They want to know how they can contribute and what kind of support they can receive from governments, businesses, and NGOs," Nik Nazmi said.
"However, while individual efforts are important, systemic changes require coordinated action at the governmental and corporate levels to create lasting impact."
Nik Nazmi highlighted the need to create platforms that amplify the voices of young people and provide them with the necessary resources and support to drive change. He also noted the importance of involving youth in the policymaking process and ensuring they have the tools to influence national and regional climate policies.
The ASEAN Youth Economic Forum 2025 brings together young leaders aged 18 to 35 from ASEAN Member States, Japan, and Timor Leste, many of whom have backgrounds in climate action, environmental policy, sustainability, and economic development.
Over the course of the three-day event, participants will engage in high-level panel discussions, policy workshops, and site visits to sustainable infrastructure projects across Malaysia.
The forum aims to strengthen collaboration between ASEAN and Japan on climate resilience, empower youth to shape policies, and promote green technology and sustainable infrastructure.
"The voices of young people are vital in shaping the future of ASEAN. Many may not fully realize the significance of ASEAN in their daily lives, but as the region faces increasing geopolitical tensions, environmental concerns, and economic challenges, ASEAN's role in addressing these issues is more critical than ever," Nik Nazmi said.
The event aligns with the ASEAN 2025 Chairmanship’s goals of fostering inclusivity and sustainability, with a strong focus on youth empowerment and building a climate-resilient economy. Through this forum, ASEAN aims to cultivate the next generation of leaders who will play a pivotal role in advancing sustainable development and climate adaptation strategies.
The ASEAN Youth Economic Forum 2025 represents a step forward in ensuring that the region's youth are not only participants but active leaders in the ongoing efforts to tackle climate change and drive economic growth that benefits all. – February 15, 2025
