Assalamualaikum, Salam sejahtera, Salam Malaysia Madani and Salam ASEAN. Thank you, media friends, for coming to this PC. As AEM Chair, we just want to give a brief overview of events in the last two days. This is because there are over 20 meetings organised this week, so we feel it is important to provide some context to several of the meetings. Today, we convened the 57th ASEAN Economic Ministers Meeting. ASEAN Economic Ministers also covered the following:
- The 39th ASEAN Free Trade Area (AFTA) Council
- The 28th ASEAN Investment Area (AIA) Council
- Signing of ASEAN Framework Agreement on Competition (AFAC)
- Meeting with ASEAN-BAC
I want to start off by saying that given today's turbulent geopolitical and geoeconomic landscape, our collaborative platform called ASEAN has never been timelier or more pertinent, particularly given that our trading landscape and supply chains are fragmenting fast. However, through past and current challenges, ASEAN has always been guided by the spirit of ASEAN Centrality since its inception in 1967.
Broadly speaking, this week's events focus on charting ASEAN's course as we face the new global order. At the heart of this is the 18 Priority Economic Deliverables that the AEM adopted back in February 2025.
I will not go through all the PEDs. I will provide updates on several PEDs based on the 57th AEM meeting:
Second Protocol to amend the ASEAN Trade in Goods Agreement (ATIGA): This is expected to be signed at the sidelines of the 47th ASEAN Summit in October 2025. The upgraded ATIGA will incorporate new elements to address emerging issues, including remanufactured goods, trade and environment, trade in humanitarian crisis situations, and supply chain connectivity. The upgraded ATIGA reflects ASEAN's commitment to an open, inclusive and rules-based multilateral trading system.
ASEAN Digital Economy Framework Agreement (DEFA): The first of its kind in any regional framework, the AEM took note of the progress of the negotiations on DEFA. DEFA is expected to double ASEAN's digital economy to USD2 trillion by 2030. We are on track to substantially conclude this.
ASEAN Framework for Integrated Semiconductor Supply Chain (AFISS): We will seek to close critical gaps on talent, infrastructure and policy harmonisation across ASEAN. This will be partially concluded.
Upgrade of the ASEAN-China FTA (ACFTA) 3.0 Protocol: Another PED slated for signing during the Leaders’ Summit in October.
ASEAN EV Implementation Roadmap: In the immediate to medium term, we need to focus on developing our foundational infrastructure; mobilize targeted finance and technical assistance; and establish a Regional Coordinating Mechanism.
Other PEDs not under the purview of the AEM but under the Economic Pillar: We were informed that the following PEDs should be ready for delivery by end-October 2025:
- ASEAN Minerals Development Vision (substantial conclusion);
- Advancing ASEAN Energy Regional Cooperation through the Adoption of the ASEAN Plan of Action for Energy Cooperation (APAEC) 2035, Phase 1 2026 - 2030 and Endorsement for signing of the ASEAN Power Grid (APG) Enhanced MoU (partial conclusion); and
- Fostering Inclusive Instant Payment Connectivity in ASEAN (partial conclusion).
The 39th AFTA Council meeting also considered the importance of strengthening ASEAN's Customs Enforcement for Geoeconomic Resilience. These will, in turn, provide vital input for the ASEAN Geoeconomics Task Force to formulate policy recommendations in addressing geoeconomic challenges.
As for the 28th ASEAN Investment Area Council, insights shared include:
a. How investor confidence in ASEAN is rising. This clearly demonstrates the strength of ASEAN’s economy even amidst a turbulent economic landscape.
b. The 8% y-o-y increase of FDI inflow into ASEAN for 2024, accounting for 15% (or USD226 billion) of global FDI share in 2024. This is significant when we consider that global FDI dropped 11% in the same period.
c. FDI into manufacturing in ASEAN more than doubled year-on- year – from USD18 billion (2023) to USD44 billion (2024).
d. ASEAN must leverage on this momentum to push the region towards high-value growth in the long-run. Even so, we must remain wary of future exogenous shocks.
The 57th AEM also took note of progress of projects under the ASEAN Business Advisory Council (ABAC). This public-private partnership is vital as we engage and try to collaborate with industries and the private sector across ASEAN in addressing operational challenges for businesses.
In conclusion, in a world of fractured supply chains and rising protectionism, it has been a privilege for Malaysia, as Chair, to help ASEAN build resilience through integration—not isolation.
Whether as Chair or otherwise, Malaysia remains committed to be at the forefront of ASEAN’s economic growth agenda. Underscored by the principle of Centrality and Neutrality, we continue to engage all countries as part of our broader strategy to diversify markets, broaden partnerships, and manage risks to support ASEAN’s economic resilience and prosperity.
We look forward to productive meetings with ASEAN’s Dialogue Partners for the rest of the week. I now open the floor to questions.
--BERNAMA