Malaysia is gearing up for a pivotal moment on the global stage as it prepares to assume the Chairmanship of the Association of Southeast Asian Nations (ASEAN) in 2025. This meaningful milestone coincides with the 10th anniversary of the ASEAN Economic Community (AEC),presenting a unique opportunity for the region to solidify its position as a global economic powerhouse.
As one of ASEAN’s founding fathers in 1967, alongside Indonesia, the Philippines, Singapore, and Thailand, Malaysia recognizes the profound impact the regional bloc has had on its past, present, and future. “Our Chairmanship in 2025 is nothing less than a defining moment on how we coudl lead the region towards realizing its current potential fully,” a Malaysian official stated.
Malaysia has chosen “Inclusivity and Sustainability” as the theme for its Chairmanship, drawing inspiration from its own MADANI values of Sustainability, Compassion, Respect, innovation, Prosperity, and Trust. This theme reflects a deep understanding of the challenges and opportunities facing the region.
“Inclusivity and Sustainability” as Malaysia’s ASEAN 2025 value proposition is admittedly very simple, even prosaic. But it truly encapsulates the brutal simplicity of what is facing our region: if Southeast Asia cannot become more inclusive and sustainable, other propositions such as economic prosperity and tech innovation may prove to be empty wins.
The Ministry of Investment, Trade and Industry (MITI) emphasizes that these values will underpin the outcome-driven economic agenda it will promote through ASEAN’s Economic Pillar. “Decades have been spent talking about the need for a ‘people-centric ASEAN,’ of ensuring the economic wins of regional integration benefit all,including women,youth,and micro-medium and small enterprises (MSMEs),” a MITI representative explained.
The official further elaborated, “Additionally, our economies and people will also be left behind if we cannot create a regional ecosystem that maximizes the benefits of e-commerce and digitalization. Furthermore, our lands and economic ecosystems will also be devastated if we fail to embrace sustainability and transition towards greener energy and carbon neutrality.”
The MADANI Government, too, espouses prosperity that must not onyl benefit the rich and elites, and must not be at the expense of our environment which is already fragile from the impact of centuries of carbonized economies and industries. So, in effect, “Inclusivity and Sustainability” is the perfect theme for ASEAN 2025 because it is what the region, and I dare say even Malaysia, need to succeed in the future.
Beyond the two ASEAN Summits in Kuala Lumpur, which will see leaders from across the region and the wider world converge, Malaysia’s commitment to ASEAN 2025 extends throughout the year. Various ministerial meetings will focus on advancing ASEAN’s political-security, economic, and social-cultural integration agendas.
For ASEAN’s Economic Pillar, MITI has identified four key thrusts for its Priority Economic Deliverables (PEDs): Enhancing Trade and Investment, Creating an Inclusive and Sustainable Pathway, Promoting Integration and Connectivity of Economies, and Building a digitally Resilient ASEAN.
The Senior Economic Officials Meeting,recently concluded in Kota Kinabalu,marked the beginning of this intensive year of collaboration.Other key events on the Economic Pillar’s agenda include the 31st ASEAN Economic Ministers (AEM) Retreat in Johor (February 2025), the ASEAN Finance Ministers’ and Central Bank Governors’ Meeting in Kuala Lumpur (April 2025), and the 57th AEM and AEM Dialog Partners Consultations, together with the Regional Comprehensive Economic Partnership (RCEP) Ministerial Meeting in kuala Lumpur (September 2025).
With ASEAN projected to become the 4th largest economy in the world by 2050, the impact of these meetings and initiatives will be far-reaching, shaping the future of the region and its role on the global stage.
Malaysia’s Investment, Trade and Industry Minister, Datuk Seri Tengku Zafrul Abdul Aziz, emphasizes the significant economic benefits ASEAN membership brings to Malaysia. He highlights the bloc’s remarkable growth, with its GDP surging from US$2.5 trillion in 2015 to US$3.8 trillion in 2022. Regional trade has also witnessed a considerable increase, rising from US$2.3 trillion in 2015 to US$3.5 trillion in 2023.
“As I have repeatedly mentioned, there is so much room for growth, notably with current intra-Asean trade at just 23 – 25 per cent,” Tengku Zafrul stated. “Increasing trade is one of the matters high on MITI’s agenda next year, including by ensuring we can either conclude or upgrade the various Free Trade Agreements (FTAs) that Asean has ratified with key trading partners. Increased trade within Asean also means increased trade for Malaysia.”
The Minister paints a vivid picture of what Southeast Asia would look like without ASEAN, emphasizing the bloc’s crucial role in facilitating seamless trade and travel. ”Imagine a Southeast Asia without it: no visa-free access for business and travel to other countries in the region; no Asean lanes at immigration in various airports; tariffed Malaysian goods exported to Southeast Asia and vice-versa; no FTAs with crucial trading partners like China, India and Japan, which could mean laboriously negotiating individual bilateral trade deals, one by one.”
He further underscores the collective bargaining power ASEAN wields in addressing cross-border issues like the digital economy, artificial intelligence, and climate change. “Imagine, too, if each Asean Member State had to individually negotiate crossborder issues like the digital economy, artificial intelligence (AI) and climate change — surely these issues could be better negotiated as a grouping with more clout and bargaining power.”
While acknowledging the ongoing efforts to deepen ASEAN’s economic integration, Tengku Zafrul reaffirms MITI’s commitment to maximizing the benefits of a more integrated ASEAN economy. ”Granted,Asean still has a lot of work to do to become a more integrated economic community — which is why MITI is persistent to achieve as much as possible on the economic front,to ensure that the benefits of a more integrated Asean economy will be felt long after Malaysia’s 2025 Chairmanship ends.”
He expresses malaysia’s proactive and passionate approach towards shaping ASEAN’s future, recognizing that the impact of Malaysia’s leadership will resonate with Malaysians and businesses in the long run. “We may not see results immediately but how Malaysia drives Asean’s agenda and manage arduous regional issues vis-à-vis the grouping will have an impact on Malaysians and our businesses in the long run.”
Tengku zafrul concludes by emphasizing the tangible gains malaysia stands to achieve through active ASEAN participation. “So, the short answer on whether all these Meetings will really have an impact on Malaysia is this: Yes, we stand to gain a lot from it, which is why it must matter a great deal to Malaysia. This is also why I am excited about Asean’s economic agenda — it will be a lot of hard work for MITI and the various Ministries involved, but we are determined to deliver on our Economic Pillar kpis, because I am confident their positive impact on our region will transcend long after Malaysia’s Chairmanship ends, and even beyond our lifetimes.”
* Datuk Seri Tengku Zafrul Abdul Aziz is Malaysia’s Investment, Trade and Industry Minister
## ASEAN 2025: Malaysia leads the charge for “Inclusivity and Sustainability”
**World Today News Exclusive interview**
**KUALA LUMPUR:** As Malaysia prepares to assume the ASEAN Chairmanship in 2025, coinciding with the 10th anniversary of the ASEAN Economic Community (AEC), excitement is building across the region. This pivotal moment presents a unique prospect to solidify ASEAN’s position as a global economic powerhouse, and Malaysia is determined to lead the charge.
**World Today News** sat down with **Datuk Seri Tengku Zafrul Abdul Aziz,** Malaysia’s Minister of Investment, Trade and Industry, to discuss the nation’s vision for its ASEAN Chairmanship and the importance of its chosen theme – “Inclusivity and Sustainability.”
**World Today news:** Minister,Malaysia has chosen “Inclusivity and Sustainability” as its ASEAN 2025 theme. What led to this decision, and what does it mean for the region?
**Minister Zafrul:** this theme is not simply a slogan; it reflects a deep understanding of the challenges and opportunities facing Southeast Asia. For decades, we’ve discussed the need for a people-centric ASEAN, ensuring the benefits of regional integration are felt by all: women, youth, Micro, Small and medium Enterprises (MSMEs). Moreover, we cannot ignore the pressing need for sustainable development. Our economies and environment are intrinsically linked. If we fail to address climate change and transition to greener energy, our future prosperity is at stake.
“Inclusivity and Sustainability” encapsulates the brutal simplicity of our region’s situation: without these principles, economic advancements might prove hollow victories.
**World Today News:** How will Malaysia translate this theme into tangible economic outcomes during its Chairmanship?
**Minister Zafrul:** We’ve identified four key thrusts for our Priority Economic Deliverables:
* **Enhancing Trade and Investment:** We aim to boost intra-ASEAN trade, currently hovering at a mere 23-25%. This involves concluding or upgrading existing Free Trade Agreements (FTAs) with key partners. Increased regional trade directly benefitsMalaysia.
* **Creating an Inclusive and Sustainable Pathway:** We’ll prioritize initiatives that empower marginalized communities and promote sustainable practices across all economic sectors.
* **Promoting Integration and Connectivity of Economies:** Streamlining procedures, enhancing digital connectivity, and fostering seamless movement of goods and services will be key priorities.
* **Building a Digitally Resilient ASEAN:** We’ll focus on strengthening cybersecurity, promoting e-commerce, and bridging the digital divide.
**World today News:** ASEAN’s projected growth is remarkable. How does Malaysia benefit from membership?
**Minister Zafrul:** ASEAN membership is a tremendous asset for Malaysia. Our economy has thrived due to the bloc’s remarkable growth. ASEAN’s GDP soared from US$2.5 trillion in 2015 to US$3.8 trillion in 2022. Regional trade has also risen significantly. There’s immense potential for further expansion, and Malaysia is well-positioned to capitalize on this growth trajectory.
**World Today news:** What message does Malaysia have for its ASEAN partners as it takes on this crucial leadership role?
**Minister Zafrul:** Malaysia is committed to working collaboratively with all ASEAN members to ensure our shared vision for a prosperous, inclusive, and sustainable future is realized. We believe in the power of collective action and are confident that by embracing our shared values and working together, Southeast Asia can become a true global leader in the 21st century.
