In an era marked
by multipolarity, supply chain disruptions, geopolitical conflicts and growing
protectionism, it is a pivotal time to strive towards creating regional
industrial champions and advancing Asean-led development to deepen intra-bloc
integration.
Such sentiments
were shared by panellists on Thursday (Jul 3) at the Asean Conference, during a
ministerial dialogue titled “Asean integration in the multipolar world” with
Singapore Deputy Prime Minister Gan Kim Yong.
The day-long
event at the Resorts World Convention Centre was organised by the Singapore
Business Federation (SBF), alongside founding partners UOB, RSM Singapore and
Rajah & Tann.
The panel
featured Malaysian Deputy Minister of Investment, Trade and Industry Liew Chin
Tong, and Indonesian Deputy Minister for Investment Cooperation at the Ministry
of Investment and Downstream Industry Tirta Nugraha Mursitama.
The hour-long
session was moderated by SBF chief executive officer Kok Ping Soon, and
explored how each country interprets the mandate of an integrated Asean and
their plans to deliver on this.
Noting that now
is a difficult but interesting time for Asean, Liew posed the question: “Do we
still rely on a foreign direct investment-driven economic growth model
or an export-led industrialisation model where we export to the US – or do we
start thinking about growing Asean companies?”
The bloc has to
start thinking about growing regional giants and creating its own technologies
– with that, he said, intra-Asean cooperation, integration and trade will not
be too difficult because member states will have to work with one another.
On the way
forward, Prof Tirta said: “My optimistic way of thinking is that if we are
internally strong as Asean... we can create the idea of not state-led
development but Asean-led development.”
The Indonesian
minister called for stronger cooperation and communication between business and
government leaders.
Bilateral and
regional complementarity
On recent news
of Vietnam’s trade agreement with the US that supposedly culminated in a
lower-than-promised 20 per cent levy, SBF’s Kok noted that the world’s largest
economy is “obviously pursuing a divide-and-conquer strategy”.
On whether that
weakens Asean centrality, DPM Gan, who is also minister for trade and industry,
contended that, at the end of the day, tariffs have to be negotiated
bilaterally.
Nonetheless,
Asean member states have made a commitment to honour agreements signed with one
another, so as to ensure intra-bloc trade remains rules-based, he continued.
“Even while we
negotiate with the US separately and bilaterally, at the same time, at the back
of our minds, we remain committed to Asean cooperation and integration,” he
said.
His sentiments
were echoed by SBF chairman Teo Siong Seng, who highlighted the importance of
Asean’s collective response in his welcome remarks.
Known in the
shipping circles as SS Teo, the executive chairman of home-grown carrier
Pacific International Lines said: “At the enterprise level, many companies
initially adopted a wait-and-see stance, viewing themselves as price takers or
downstream in the supply chain, or assuming the tariffs were just a scare
tactic.”
But it has
become clear that action must be taken, he continued.
In an
environment characterised by trade realignment and uncertainty around capital
flows brought about by a shift in US trade policy, Teo noted: “Asean’s
collective response will be crucial (and) we are already seeing our community
step up.”
UOB deputy
chairman and CEO Wee Ee Cheong highlighted in his opening address the
opportunities from the rapidly expanding digital economy, and new investments
in climate and sustainability.
Artificial
intelligence and environmental, social and governance factors are now central
to government and business trends, added Wee, who urged small and medium-sized
enterprises to adapt their business models to compete and thrive.
“Let us all work
together to build (an) inclusive Asean, where every business – big or small –
has a stake in our shared success,” he said.
Deepening
cooperation
The conference
also saw UOB ink five memorandums of understanding with government agencies and
leading industry players across Asean and China.
The agreement
between the lender and Enterprise Singapore saw both parties pledging to
encourage partnerships between local enterprises and foreign companies seeking
to expand in the region.
A second deal,
with the Federation of Malaysian Manufacturing and Singapore Manufacturing
Federation, is aimed at facilitating business opportunities in the region.
The third pact
was between UOB Hong Kong and the Hong Kong Trade Development Council, and is
aimed at establishing a framework of cooperation to strengthen regional ties
and promote sustainable growth.
The fourth
agreement was signed by UOB China and ZGC International. It will see UOB China
providing complementary financial services and empowering the cross-border
development of companies in ZGC industrial parks.
The final
memorandum, which was between UOB, J-Will Corporation and Hildrics Capital, is
aimed at the joint development of business opportunities and supporting
Japanese companies entering the Asean market.
Noting that the
region remains an attractive destination for businesses despite global
tensions, Wee said: “As opportunities arise from the rewiring of global supply
chains, trade flows within Asean and between China and Asean are expected to
increase.”
Source: The Business Times (Ripe
time to grow regional industrial giants, work towards Asean-led development:
panellists - The Business Times)
3 Jul 2025
July 24, 2025
