Non-tariff barriers like export restrictions continue to be a challenge for boosting intra-Asean trade which has remained largely stagnant for over 25 years, economists said on Thursday.
Intra-Asean trade currently makes up just 21.2% of the region’s total trade in 2024. This falls far behind other blocs like the European Union, which sees an intra-trade level of 60%.
“We have export restrictions, we have export borders. In Malaysia, we have the Bumiputera policy. So, are you willing to remove certain policies to actually promote inter-regional trade? I don’t think that’s something members [are] currently looking into,” said Nazmi Idrus, head of research at CGS International Securities Malaysia, speaking at the Asean Business Forum 2025 .
Many Asean countries have built their economies to focus more on big markets like China, the US, and Europe rather than trading with each other, he said.
As Asean chair this year, Malaysia is pushing to boost trade within the region, especially with concerns about rising US tariffs affecting Asean economies. Prime Minister Datuk Seri Anwar Ibrahim urged Asean to rely more on itself by increasing internal trade and taking real action.
OCBC Malaysia chief economist Selena Ling said decision-making in Asean, which needs agreement from all members, often slows down progress on cooperation and integration. But she believes Asean still has great potential to work more closely together.
Ling pointed to the Johor-Singapore Economic Zone as a good example of successful government collaboration, which could inspire other Asean countries.
She also noted the growing middle class is driving future growth in Asean, making it a bigger market for consumer goods, digital services, and green sectors like renewable energy.
The Asean Business Forum 2025 focused on boosting Asean’s economy, cooperation, and investments in growing industries. It was co-organised by Asean-BAC Malaysia and the Malaysian Investment Development Authority, supported by partners, and attended by over 500 regional leaders and investors.
Source: The Edge Malaysia
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<p>Time: 2024 By: Ministry of Industry and Trade</p>
