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THERE exists a critical role of collaboration needed between ASEAN and the United Kingdom in shaping a sustainable, digital, and an inclusive future.
Speaking at the UK-ASEAN Business Forum 2025, Investment, Trade, and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz, highlighted key discussions from the 31st ASEAN Economic Ministers (AEM) Retreat held in Johor, Malaysia, just a week prior.
The retreat addressed pressing regional challenges, notably the impact of geopolitical tensions on ASEAN’s economic stability. ASEAN’s trade value in 2023 reached USD3.5 trillion, with a surplus of USD96.7 billion, underlining the region’s interconnectedness in global markets, he said.
“Despite increasing trade protectionism and geopolitical shifts, ASEAN remains committed to remaining agile and strategic, with a clear goal of becoming the world’s fourth-largest economy by 2030.
“This vision includes strengthening the Digital Economy, Green Economy, and expanding partnerships with emerging markets to enhance global supply chains,” he said.
At the forum, held at HSBC’s offices in London, which provided a platform for industry leaders from both ASEAN and the UK to discuss shared goals and economic opportunities, Tengku Zafrul said, as ASEAN Chair in 2025, Malaysia will spearhead the Priority Economic Deliverables (PEDs), aiming to enhance economic integration, support sustainable growth, and accelerate digital transformation.
“Key initiatives include upgrading the ASEAN Trade in Goods Agreement (ATIGA), strengthening supply chains in sectors like semiconductors, renewable energy, and tourism, and advancing the Green Economy with frameworks for sustainable investment and electric vehicle adoption.
The Minister stressed ASEAN’s commitment to balancing economic growth with sustainability is exemplified through Malaysia’s initiatives, such as the ASEAN Sustainable Investment Guidelines (ASIG) and the ASEAN Center of Excellence for MSMEs in Green Transition.
Tengku Zafrul noted the importance of the UK’s leadership in green finance, with institutions like the UK Center for Greening Finance and Investment (CGFI) offering invaluable expertise to accelerate ASEAN’s green finance strategies.
The event, themed "Growing Together: Connecting a Sustainable, Digital, and Shared Future," aligns with Malaysia’s vision for its 2025 ASEAN Chairmanship, centered on inclusivity and sustainability.
Tengku Zafrul expressed his appreciation for the chance to address such a distinguished audience, noting that Malaysia’s chairmanship will place a strong focus on advancing ASEAN’s economic integration and resilience.
A top priority, he expressed, for Malaysia’s ASEAN Chairmanship is advancing digital transformation across the region.
Tengku Zafrul outlined plans for the Digital Economy Framework Agreement (DEFA), which aims to harmonise regulations and facilitate cross-border digital trade. With the potential to double ASEAN’s Digital Economy to USD2 trillion by 2030, DEFA has already attracted significant interest from UK tech companies and global players.
The Minister welcomed further collaboration with the UK, particularly in digital governance and standards, noting the UK’s expertise and ongoing engagement with the ASEAN Secretariat and DEFA negotiating committee.
Reflecting on the progress made over the past decade under the ASEAN Economic Community (AEC) Blueprint 2025, Tengku Zafrul highlighted major achievements in trade liberalisation, services sector liberalisation, digital economy advancements, and infrastructure improvements.
“These accomplishments have strengthened ASEAN’s global position, particularly through the Regional Comprehensive Economic Partnership (RCEP), which has enhanced economic relationships with key trading partners, the minister said.
“Looking ahead, ASEAN is preparing to adopt the AEC Strategic Plan 2026-2030, which will build upon the current Blueprint’s successes and guide ASEAN’s economic priorities for the next five years.
“This strategic plan aligns with the ASEAN Community Vision (ACV) 2045, aiming for a more integrated, resilient, and future-ready ASEAN economy,” he added.
Tengku Zafrul emphasised the importance of continued engagement between ASEAN and the UK to deepen economic ties and foster a business-friendly environment.
He encouraged further collaboration at all levels, from governmental to business partnerships, and stressed on the role of ASEAN’s Senior Economic Officials and the ASEAN Business Advisory Council (ASEAN BAC) in strengthening ASEAN-UK trade and investment. – March 11, 2025
