KUALA LUMPUR – Intra-Asean trade holds immense potential for economic growth and regional cooperation, says Pahang Investment, Industrial Development, Science, Technology and Innovation Committee Chairman Datuk Nizar Najib.
Addressing the current state of Asean’s trade and future prospects, Nizar highlighted the region’s impressive growth trajectory and the need to strengthen internal trade mechanisms while exploring innovative industries.
Asean’s economic influence has expanded significantly over the years, driven by trade and strategic collaboration among member states.
“In 2000, the Japanese economy was eight times larger than Asean as a whole. Today, it’s only 1.1 times larger. Asean’s trade volume has surged from USD 68 billion to an astonishing USD 2.2 trillion,” he said in a seminar titled 'Global Markets and Malaysia: Shaping the next six months'.
While the region has made strides in removing trade barriers, with 99 per cent of tariffs eliminated for goods movement, Nizar pointed out the need to address non-tariff barriers.
“We’ve made significant progress, but we need to focus on eliminating non-tariff barriers to fully unlock intra-Asean trade potential,” he said.
As the current Asean chair, Nizar said Malaysia has been instrumental in driving collaborative efforts. He emphasised Malaysia’s role in advocating for a unified Asean delegation in discussions with global powers, particularly the United States.
“This year, as chairman, Malaysia is committed to meeting the US as one Asean delegation to establish a new framework for economic cooperation,” he stated.
Despite recent dips in intra-Asean trade, which has fallen from 25 per cent to 20 per cent, Nizar sees this as an opportunity for recalibration.
“This decline reflects Asean’s increasing trade with non-Asean countries. However, the potential for intra-Asean trade remains vast and we must seize these opportunities,” he added.
Nizar also shared insights about a proposed spaceport project in Pahang.
“Last year, a local consultant proposed a spaceport in Pahang. It’s an exciting opportunity that could symbolise the liftoff we need for innovation and economic diversification,” he revealed.The Global Markets & Malaysia seminar featured a panel discussion on how global market trends have impacted Malaysia’s economy. Experts reviewed key developments from the past six months and shared insights on what to expect in the coming half-year.