The U.S. and China are usually top of mind when it comes to artificial intelligence and generative AI. But Southeast Asia’s small businesses have huge potential that shouldn’t be ignored, experts say.

In fact, it’s a matter of survival, according to Jochen Wirtz, a professor of marketing at the National University of Singapore Business School, who said those that fall behind will be “moved into a franchise business or will be pushed out of the market by bigger players who do it.”

“Either you grow and adopt, or you die,” he added.

AI and genAI will contribute about $120 billion to the region’s gross domestic product by 2027, Boston Consulting Group projected in an April report titled “Unlocking Southeast Asia’s AI Potential,” which cited the technology’s potential to “redefine business processes and unlock new revenue streams.” And Google’s e-Conomy SEA 2024 report found that Singapore, the Philippines and Malaysia are ranked among the top 10 globally for AI-related searches and demand, indicating “curiosity” and an “active interest” within the region.

Youth is an advantage. Among surveyed countries in the Asia-Pacific, Vietnam, Malaysia and the Philippines have the highest percentage of business owners or leaders under 40 years of age, according to CPA Australia’s Small Business Survey 2024-25.  

For countries such as Vietnam, “the future is bright because ... it’s a very young population, is a very internet-savvy population,” said Soumik Parida, associate program manager of the professional communication program at RMIT University Vietnam’s School of Communication and Design. “They are starting to have a global voice and they’re very easy to adapt any new technology,” he added.

Here’s how some of the region’s businesses are using it to stay on top of the competition — as well as the opportunities and roadblocks they face.

Most popular use cases

Customer service is the leading use case in Southeast Asian e-commerce, followed by marketing and advertising, according to a joint report by Lazada and Kantar about AI adoption trends in the six largest economies in Southeast Asia. Also known as the ASEAN-6, they comprise Singapore, Malaysia, Vietnam, Indonesia, the Philippines and Thailand.

A McKinsey survey released in March revealed a similar trend: Companies have adopted genAI for marketing and sales, with tech companies leading the charge. It also showed that most adopters are using the technology to generate text, with 63% of surveyed companies reporting that they do so.

GenAI presents a unique boon for a region as linguistically diverse as Southeast Asia: Aside from writing personalized marketing messages, it can also translate promotional texts into different languages.

For example, Lita Global, an Indonesia-based social media platform for gamers, is benefiting a lot from that. Since integrating OpenAI’s models in the second half of last year, it said, it has been able to host almost twice as many online gaming events monthly, thanks to greater efficiency.

That’s a big boost for its business, since every event can raise weekly revenues by an average of 20%, the company said. 

With genAI, employees can quickly translate announcements about events from English to Southeast Asian languages, such as Vietnamese and Thai, to reach more users in the region. And that frees them up — time originally used for writing, translating and formatting promotional text can now be used for organizing more revenue-generating events, according to Lita Global.

The company also uses genAI in its chat function to recommend responses to users. Lita Global is a social platform where users can hire other gamers to play with them online.

Gamers for hire typically chat with users before an order is placed for a gaming session. But that can be difficult when demand for gamers is high and gamers for hire are busy with other matches. Gamers for hire who use the AI-recommended responses have seen a 10% to 20% uptick in orders, said Lita Global’s CEO Yihao Zhang.

“So we’re using AI to really help them to improve their efficiency, to help them to be more available to the users,” Zhang said.

Another way Southeast Asian MSMEs (micro, small and medium enterprises) can use genAI in marketing is through AI livestreaming. Google’s SEA e-Conomy report noted that live shopping has become more popular in the region. Live shopping, or livestreaming, usually involves a host showcasing the products for sale. Not only does this include clothing try-ons, but shoppers can also ask questions in the comments section, which are answered in real time.

While livestreams are traditionally hosted by humans in studios, MSMEs may lack the funds or technical know-how to execute regular livestreams to boost sales. AI livestreaming can open doors to new opportunities for sellers, said Jensen Wu, CEO of TopviewAI.

TopviewAI says on its website that its AI livestreaming services can cost around $1 per minute. Instead of spending on studio rental, samples of the merchandise and labor of human hosts, companies can have one person monitor the livestream, Wu said. That helps lower costs while boosting sales, making for a “pretty good” return on investment, he added.

The problem of costs

The efficiency boost doesn’t come cheap, however.                             

That’s why small businesses are limited to adopting AI on a small scale for now. Using AI chatbots for relatively simple tasks, for example, can reduce labor costs as subscriptions for such services tend to be inexpensive. On top of that, with a variety of third-party tools available on the market, business owners can also have their pick, according to RMIT Vietnam’s Parida.

Small businesses in the fashion, and food and beverage industries in Vietnam, for example, have begun using chatbots to manage inquiries and orders, Parida said.

“Anything beyond that requires a lot of expense” he said.

While larger companies can hire software companies to develop sophisticated systems customized to a business’ needs, it’s a luxury not many can afford.

Even companies that have the expertise to integrate AI themselves pay a premium to do so.

Lita Global, for example, spends about $2,000 on AI every month, part of which goes to purchasing tokens for OpenAI’s application programming interface (API). APIs allow companies to build upon OpenAI’s models, instead of requiring companies to build the AI model from scratch.

However, as AI improves, the cost to use it is expected to drop. Research and advisory firm Gartner predicted in February that by 2027, the average prices of application programming interfaces for genAI will fall to less than 1% of the current average price for the same technology.

That could mean even greater affordability for smaller businesses adopting AI for their businesses.

Outlook for the region

In emerging markets such as those in Southeast Asia where labor costs are low, companies may feel less motivated to boost efficiency through adoption of technology. But technology can provide “much better [outcomes]” for existing business practices, said NUS Business School’s Wirtz. AI is just another way to adopt technology.

He compared it to the popularization of e-hailing services, which reduced the risk of tourists getting scammed by taxi drivers in foreign countries, as e-hailing apps could estimate the price of a journey.

And with a tech-savvy population of entrepreneurs in economies such as Vietnam, where labor costs are low, the excitement to adopt AI remains high, according to Parida.

“It’s a very hungry young people,” he said.

Source: CNBC (Southeast Asian small businesses using AI to stay competitive)

Published 25 Jun 2025

Solar and wind energy are expected to power up 30% of Southeast Asia’s data centres in 2030, without the need to rely on battery storage.

According to energy think tank Ember, six major economies in the region —Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam—are emerging as global data centre hotspots, with 2.9 gigawatts of new capacity currently in the pipeline.

Malaysia is projected to see the fastest growth in data centre electricity use, with demand expected to rise to 68 terawatt-hours (TWh) in 2030 from 9 TWh in 2024.

Emissions from Malaysia’s data centres could increase sevenfold, reaching 40 MtCO2e by 2030, the highest in the region. The Philippines is projected to see a rise of up to 14 times in emissions, whilst Indonesia’s could quadruple.

Ember said that there is a need for “the right mix of policy support, market access and infrastructure planning” to power data centre growth without driving up emissions.

“Prioritising solar and wind power, as well as energy efficiency, supported by strong policies, a national framework for data centres and collaboration, would help ensure data centres drive sustainable digital growth rather than deepen reliance on fossil fuels,” said Shabrina Nadhila, Electricity Policy Analyst for Southeast Asia at Ember.

Whilst large tech companies rely on power purchase agreements (PPAs) to secure clean electricity, smaller operators need better access to flexible options like virtual PPAs and green tariffs. These can also support storage, helping manage the variability of renewables.

“National frameworks, stronger collaboration and better transparency are critical to ensuring that ASEAN’s digital growth also drives progress,” Nadhila said.

Source: Asian Business Review (Solar and wind seen to energise 30% of ASEAN’s data centres in 2030 | Asian Business Review)

Asean must double down on economic integration so that it can better withstand growing global headwinds, including rising protectionism and geopolitical uncertainty, said Singapore’s Foreign Minister Vivian Balakrishnan on July 11.

Speaking to Singapore media after the 58th Asean Foreign Ministers’ Meeting in Kuala Lumpur, Dr Balakrishnan said the grouping’s response to recent developments, including new tariff announcements from the US, must be to press ahead with internal reforms and strengthen ties with external partners.

“Remember, our overall vision ultimately is to make Asean a single production zone, a single investment zone. And that means bringing down barriers, not just tariff barriers but non-tariff barriers as well,” he said.

Dr Balakrishnan noted that the overall tone of the week-long meetings that he had with Asean as well as its key partners was “sober”, shaped by multiple crises worldwide.

He pointed to the wars going on in Europe and the Middle East, and highlighted how the US tariff announcements had occurred “rapid-fire”.

US President Donald Trump had from July 8 started announcing levies of between 25 per cent and 40 per cent on eight of the 10 Asean nations, which are slated to take effect in August.

Singapore and Vietnam, however, have yet to receive any formal notification from the White House.

Dr Balakrishnan stressed that in talks with the US, he had always underlined that trade is strategic to Asean, and the flow of trade and investments is a key strategic focus for all governments in the region.

In terms of how the grouping is responding to what is happening to global trade as a result of the US tariffs, he said the Asean ministers have decided that the grouping will have to coordinate both foreign affairs and trade and economic development far more closely at the Asean level.

He said Asean will need to adjust how it operates, including how meetings are structured, to ensure that its foreign policy and economic agendas are better aligned.

But the most effective way the region can respond is to double down on its own integration, stressed Dr Balakrishnan, as that is under Asean’s control.

He gave examples of how the grouping must make sure that it removes every tariff and non-tariff barrier, and optimises its competitive position.

“That’s a path of no regret. And I would say the urgency and the salience of doing it now is so much more obvious,” he said.

Dr Balakrishnan also touched on recent developments in cross-border infrastructure, noting that projects such as the 

Johor-Singapore Special Economic Zone and the upcoming Rapid Transit System Link 

between Malaysia and Singapore could serve as models for wider regional cooperation.

“There are complementary strengths of both Johor and Singapore, and to the extent that we can bring these strengths together, we make ourselves more competitive,” he said.

He added that people “beyond” the two areas are observing the special economic zone project with interest.

The minister added that the region is also exploring how trilateral cooperation between Singapore, Malaysia and Indonesia could be scaled up, in line with the longstanding “Sijori” concept – a reference to Singapore, Johor and the Riau Islands.

The Sijori growth triangle was established in 1994 between the three countries – Indonesia, Malaysia and Singapore – to bolster economic links between them.

“We are also now looking for opportunities in which the three countries – Indonesia, Singapore and Malaysia – can do more in a synergistic and complementary way,” he said.

Singapore is pushing for greater connectivity within Asean in both figurative and literal terms, said Dr Balakrishnan. He cited the Asean Power Grid, which seeks to connect the region’s electricity networks and support the transition to sustainable energy.

The project has attracted strong interest from Asean’s external partners, including those with experience in clean energy and infrastructure, he added.

Other ongoing initiatives include the Asean Digital Economy Framework Agreement, which aims to enable seamless digital transactions, data flows and e-payments across borders.

The agreement was introduced in 2023 to boost the growth of digital trade and services in the region. Studies suggest it could double the projected value of Asean’s digital economy from US$1 trillion (S$1.3 trillion) to US$2 trillion by 2030.

But digital expansion also brings risks, and Dr Balakrishnan acknowledged how scams have become a problem, noting that people as far away as the US and Europe have fallen prey to some of them.

Some of these operations originate from within Asean, and there is a collective commitment by the grouping to try to root out these activities and deal with the criminal syndicates behind them.

Dr Balakrishnan also highlighted efforts to expand Asean’s network of external economic ties, pointing out that free trade agreements with Australia and New Zealand have already been upgraded.

Negotiations with China are near completion, and work with South Korea is expected to start soon.

These are efforts that Asean has made to expand its existing channels of trade and increase its resilience, which Dr Balakrishnan said was in line with Prime Minister Lawrence Wong’s recent comments about the grouping.

In a video message delivered on July 5, the Singapore Prime Minister urged the grouping to be bolder. He said Asean must become a more seamless and competitive single market if it wants to stay relevant in a changing global economy.

“Prime Minister Wong’s call for reform and that sense of urgency was very timely. People recognised that, and it gives an additional push to all these efforts at accelerating integration and expanding the network of ties with our Asean external partners,” said Dr Balakrishnan.

Source: The Straits Times (Asean must double down on economic integration to withstand external pressures: Vivian Balakrishnan | The Straits Times)

Published 11 Jul 2025

The ASEAN Climate Resilience Network highlighted that agriculture, including fisheries, along with forestry and land use, contribute between 13 to 21 per cent of global greenhouse gas emissions, said Minister of Primary Resources and Tourism Dato Seri Setia Dr Haji Abdul Manaf bin Haji Metussin.

He added that with aquaculture identified as a key emission source, the Net Zero AquaPV Project presents an opportunity to reverse the trend. The minister outlined this during the inauguration of Southeast Asia’s first net zero aquaculture and artificial intelligence (AI) integrated hub at Serasa Fisheries Hub yesterday.

Dato Seri Setia Dr Haji Abdul Manaf highlighted the facility marks the return of blue shrimp cultivation, now enhanced with clean energy solutions and AI-driven systems. It represents a new era of precision aquaculture, where enhanced productivity goes hand-in-hand with environmental responsibility and sustainability.

“This project aligns with the Ministry of Primary Resources and Tourism’s mission to increase food production through the adoption of advanced technology and modern techniques, while upholding environmental sustainability goal in economic development,” he added.

The 10,000-square-metre pond, powered by photovoltaic panels, demonstrates a valuable example of ‘off-grid’ farming and efficient dual-use land management.

The system demonstrates the synergy between clean energy generation and sustainable aquaculture, serving as a blueprint for future farming models that reduce reliance on fossil fuels and advance the Sultanate’s commitment to achieving net zero by 2050. “More than boosting the shrimp production, this facility embodies a holistic approach that balances economic opportunity with environmental responsibility and sustainability,” said the minister.

“It is a bold move in line with Brunei Darussalam’s long-term development goals – supporting food security, energy transition and low-carbon growth.”

Source: Borneo Bulletin

Read the full article here

The signing of the Joint-Venture Agreement, Land Lease Agreement and Power Purchase Agreement (PPA) between the Government of His Majesty Sultan Haji Hassanal Bolkiah Mu’izzaddin Waddaulah ibni Al-Marhum Sultan Haji Omar ‘Ali Saifuddien Sa’adul Khairi Waddien, Sultan and Yang Di-Pertuan of Brunei Darussalam and Seri Suria Power (B) Sdn Bhd marks a major milestone in Brunei Darussalam’s renewable energy journey.

The agreements pave the way for the development of a 30-megawatt (MW) Solar Photovoltaic Power Plant (SPVPP) on a remediated landfill site in Kampong Belimbing – Brunei’s first large-scale solar project under a Public-Private Partnership (PPP) model.

This significant milestone was highlighted by Deputy Permanent Secretary (Energy) at the Prime Minister’s Office (PMO) Pengiran Haji Jamra Weira bin Pengiran Haji Petra, in his welcoming remarks during the signing ceremony held yesterday.

He shared that the journey began with a Request for Information (RFI) issued by the Department of Energy, PMO, aimed at assessing regional interest in transforming the former landfill site into a solar energy facility. Following the RFI, the project progressed to a Request for Proposal (RFP) stage in 2021 for the provision to invest, build, and operate the 30MW solar power plant. Upon completion, it will generate enough electricity to power approximately 23,000 homes, equivalent to four Class A LNG cargoes, and contribute to the avoidance of 670,000 tonnes of CO2 equivalent emissions over its 25-year operational lifespan.

Brunei Darussalam’s economic performance in 2024 demonstrated strength and positive development, having recorded a 4.2 per cent gross domestic product (GDP) growth, the highest since 1999.

The non-oil and gas sector significantly contributed to the economy, accounting for over 50 per cent of the GDP and 70 per cent of the total exports, said Minister at the Prime Minister’s Office and Minister of Finance and Economy II Dato Seri Setia Dr Awang Haji Mohd Amin Liew bin Abdullah in his keynote address at the Brunei Business Conference yesterday.

From the economic performance, he said, “It has shown encouraging signs and tangible proofs that the country’s efforts have yielded some positive results. However, while we acknowledge these ‘small-wins’, our commitment remains unwavering in ensuring sustained economic prosperity.”

Over the years, he noted that the Sultanate has undertaken significant steps to streamline policies and regulations to create a more investor-friendly environment. Today, he said, “we continue to maintain our status as a safe and politically stable country, strategically located in the heart of Borneo and offering favourable and attractive tax incentives. Building on this foundation, we are also guided by the Brunei Darussalam Economic Blueprint to drive our economic diversification agenda forward while continuing to foster growth, innovation and workforce development.”

Source: Borneo Bulletin

Read the full article here

[SINGAPORE] There is growing momentum among micro, small and medium-sized enterprises (MSMEs) in South-east Asia to adopt sustainability practices, but stumbling blocks such as financial constraints remain.

This issue was raised in a report by the Centre for Impact Investing and Practices (CIIP), titled Transforming for Sustainability: Driving Impact and Value through Supply Chain Action, released on Wednesday (May 7) at an Ecosperity Week event.

The report found that MSMEs in the region recognise the business value of adopting sustainability practices, with 39 per cent of respondents agreeing that they lower costs and improve long-term efficiency. Twenty-seven per cent believe these practices can attract or retain talent in a values-driven workforce.

This is a crucial trend as many multinational corporations are setting higher expectations across their supply chains in pursuit of their long-term sustainability commitments, the report noted.

MSMEs are often key suppliers for these global companies. Therefore, aligning themselves with the evolving standards is increasingly vital for these businesses to remain competitive and secure long-term growth opportunities, the study added.

Dawn Chan, chief executive officer of CIIP, said: “MSMEs are the backbone of South-east Asia’s economies and essential partners in advancing sustainable supply chains.”

The findings are based on a survey of more than 3,500 MSMEs from countries in the region – such as Indonesia and Vietnam – as well as interviews with about 85 organisations in Asia.

The report also revealed that 84 per cent of MSMEs have adopted at least one environmental, social and governance (ESG) practice, with social measures being the most common due to mandated employee protection policies in each of the countries studied.

However, financial constraints remain a key hurdle to adopting more of such practices, with many of the MSMEs surveyed citing high upfront costs. This is despite half of them planning to increase their ESG budgets by 2027.

Manpower also remains an issue, with 60 per cent of respondents reporting moderate to significant difficulties in hiring staff for sustainability or related roles.

Some also cited the inability to derive immediate benefits from embracing ESG practices. Thirty-two per cent said the ability to gain new clients or enter new markets would be an important motivating factor for the future adoption of ESG approaches.

Key enablers

To help MSMEs, the report identified five key enablers – among them is making the concept of ESG clear and simple. This would require the commercial benefits of ESG practices to be emphasised.

Another enabler is financing the change. While sustainability-linked loans are increasingly available, uptake by MSMEs remains low. This suggests that concessional rates alone are not enough, and investments in innovative MSME-targeted solutions are needed.

To this end, venture capital firms and impact investors are a third vital enabler. They play a crucial role in facilitating ESG adoption across supply chains by providing catalytic funding to incentivise innovation and reduce the barriers to adopting such practices.

These investors are particularly important in backing early-stage solutions and business models which are priced and designed for MSMEs.

“(These enterprises’) growing interest in ESG signals a real opportunity to unlock business resilience and long-term value,” Chan said.

“This report aims to provide a clearer view of what MSMEs need to succeed (in), and how ecosystem players, from industry leaders to governments and financial institutions, can work together to accelerate scalable, sustainable impact,” she added.

Themed “Impact for Outcomes – Perspectives from the Ground”, the Impact Investing Roundtable 2025 where the report was released was co-organised by CIIP and Temasek.

Fashioning a solution

In the same vein, CIIP on Wednesday signed a memorandum of understanding with the Singapore Fashion Council (SFC) to advance supply chain sustainability within the fashion industry – with a particular focus on empowering MSMEs.

Under the agreement, SFC will lead the development and implementation of three key initiatives to support the sustainability transformation of the fashion and textiles sector. CIIP will contribute insights and ecosystem-building support.

The initiatives comprise:

• a sectoral plan identifying the key challenges and strategic priorities for the local and regional fashion industries;
• a guidebook with resources and practical road maps to help companies at different stages of their sustainability journeys; and
• a digital toolkit providing MSMEs with access to ESG tools to facilitate decarbonisation and broader adoption of sustainability practices.

Zhang Ting-Ting, CEO of SFC, said: “The future of fashion lies not just on the runway, but in the roots of our supply chains. MSMEs are the heartbeat of Asia’s fashion industry – collective action and practical support are key to meaningful progress in sustainability.”

She added: “By partnering with forward-thinking organisations like Temasek Trust’s CIIP, we are bridging insight with implementation – empowering businesses with the tools and knowledge to future-proof their supply chains and thrive.”

Source: The Business Times (published 7/5/2025)

Enabling MSMEs to adopt ESG practices is key to sustainable supply chains: report - The Business Times

The regional bloc has concluded negotiations to upgrade agreements that target easier trade - not just within the grouping itself, but also with its top economic partner, China.

Easier trade among members of the Association of Southeast Asian Nations (ASEAN) as well as with the regional bloc’s top economic partner, China, is on the horizon as the grouping pushes ahead with “bolder” moves to stave off the threat of steep US tariffs.

ASEAN has concluded negotiations on upgrading the ASEAN Trade In Goods Agreement (ATIGA) and the China-ASEAN Free Trade Area (CAFTA), with the enhanced deals set to be signed in October, Malaysia’s Investment, Trade and Industry Minister Tengku Zafrul Abdul Aziz told reporters on Sunday (May 25) ahead of the 46th ASEAN summit.

“We remain confident that these milestones will serve as a pivotal enabler for ASEAN's sustained growth and competitiveness,” Tengku Zafrul said after chairing an ASEAN Economic Community Council Meeting.

“The successful conclusion of these negotiations is expected to enhance the region's economic integration and generate significant economic benefits for ASEAN as we continue to navigate an increasingly volatile global economic landscape.Top of Form

Bottom of FormAs the rotating chair for ASEAN this year, Malaysia has urged the bloc to diversify its trading partners in the face of sweeping tariffs imposed by US President Donald Trump. 

Speaking on Sunday, Tengku Zafrul warned the bloc against staying still at a time of economic uncertainty.

“ASEAN would need to break away from a business-as-usual approach,” he said.

“We need to adopt bolder, more agile and more forward-looking strategies. We need to safeguard and advance ASEAN socioeconomic interests.”

ASEAN has reaffirmed its commitment to stand by the principles of multilateralism and a rules-based global trading order, even as it continues to maintain a policy of non-retaliation against the US tariffs, Tengku Zafrul said.

“We don't plan to have any measures that will represent a retaliation to what has been introduced,” he said.

Tengku Zafrul said every ASEAN member is a “sovereign nation” and should be supported in pursuing bilateral tariff negotiations with the US.

“But it's important that in all these meetings, we also reiterate the ASEAN position,” he added.

At the summit on Monday and Tuesday, ASEAN is expected to explore the expansion of regional free trade agreements alongside engaging other economic blocs and dialogue partners, measures which Tengku Zafrul said were discussed at the economic council meeting.

FACILITATING TRADE WITHIN ASEAN

“We also discussed how ASEAN can improve trade within,” the minister added, noting that intra-ASEAN trade accounts for approximately 23 per cent of the bloc's total trade.

“There's a lot of room for improvement. When we look at other economic blocs, they trade with each other internally more than what ASEAN is doing today.”

ATIGA is aimed at achieving a free flow of goods between ASEAN member states, resulting in lower business costs, increased trade, and a larger market and economies of scale for businesses.

The upgraded agreement targets the further lowering of tariffs and the removal of non-tariff barriers among member countries.

It will feature “forward-looking and commercially meaningful provisions aimed at further boosting regional trade, enhancing supply chain resilience, and also boosting deeper economic integration within ASEAN”, Tengku Zafrul said.

Singapore, which chaired the upgrade negotiations, said it will continue to work with ASEAN and global partners to secure the bloc's long-term growth, competitiveness, and shared prosperity.

The successful conclusion of the upgrade negotiations "demonstrates ASEAN’s commitment to building a more seamless and resilient economic region, as well as to preserve a rules-based trading environment to better support businesses’ operations in the ASEAN region amidst an uncertain global economic climate", Singapore Trade and Industry Minister Gan Kim Yong, also the country's deputy prime minister, said in a statement on Sunday.

Earlier on Sunday, Malaysia’s Foreign Minister Mohamad Hasan highlighted that ASEAN nations are among those most heavily hit by US tariffs.

“We must seize this moment to deepen regional economic integration, so that we can better shield our region from external shocks,” he said in opening remarks at a meeting of ASEAN foreign ministers.

The US-China trade war is “dramatically disrupting” production and trade patterns worldwide, Mohamad said, cautioning that a global economic slowdown was likely to happen.

TAKING ASEAN-CHINA TRADE FORWARD

ASEAN is China's largest trading partner, with the value of total trade reaching US$234 billion in the first quarter of 2025, according to Chinese customs data.

The so-called 3.0 version of CAFTA will "promote the deep integration of the production and supply chains of both sides", China's commerce ministry said in a statement on Wednesday, when it announced the completion of negotiations.

The upgraded pact will also “inject greater certainty into regional and global trade and play a leading and exemplary role for countries to adhere to openness, inclusiveness and win-win cooperation”, the ministry said.

China has intensified engagement with ASEAN since Trump announced hefty import tariffs on countries around the world and targeted China with even heavier levies. Some of the levies have since been delayed while China and the US agreed this month to pause some of their tariffs.

In his Sunday remarks, Mohamad described ASEAN as a region where geopolitical ambitions, as well as economic and security interests, intersect.

“External pressures are rising, and the scope of challenges has never had higher stakes,” he said, stressing that ASEAN unity is now “more important than ever”.

“It is therefore crucial that we reinforce the ties that bind us, so as to not unravel under external pressures.”

Source: Channel News Asia (published 25/5/2025)

ASEAN to sign improved China, internal trade deals as bloc weighs ‘bolder’ moves to tackle US tariffs