(Kuala Lumpur, 24th) ASEAN Business Advisory Council (ASEAN-BAC) Chairman Tan Sri Nazir pointed out that if ASEAN wants to maintain its competitiveness, it must drive structural reforms, strengthen private capital markets, and implement regulations on non-tariff barriers (NTBs).
He said that existing mechanisms such as the ASEAN Assist website are ineffective at addressing unfair trade practices or trade barrier issues because businesses generally fear retaliation and do not dare to file complaints.
"There is no shortcut; it depends on enforcement, but the issue now is that ASEAN lacks enforcement capability."
He made these remarks in an interview with Bernama during the 2025 ASEAN Economic Ministers' Meeting.
Nazir called for structural reforms to ensure action can be taken on complaints regarding non-tariff barriers.
On capital markets, he pointed out that, according to a joint study by the council and McKinsey, ASEAN private market development remains inadequate, accounting for only 0.5% of GDP—lower than the global average of 1.5%.
He called for reforms, including reviewing ownership rules and improving exit environments, as well as supporting initiatives such as an ASEAN IPO prospectus.
Nazir, who is also the chairman of the ASEAN Private Market Council, said these reforms would improve investment efficiency, enhance fund manager performance, and ultimately attract more regional capital.
The ASEAN Private Market Council was established under the initiative led by the ASEAN Business Advisory Council, aiming to address structural barriers to private capital development.
He pointed out that major funds such as Malaysia’s Employees Provident Fund (EPF) and Singapore’s Temasek typically deploy capital overseas rather than within ASEAN; therefore, more efforts must be made to channel regional savings into local growth.
He also emphasized the importance of retaining and attracting talent, and supported the ASEAN Business Entity Framework, which would allow certified enterprises to freely deploy staff and conduct business across the region.
Although ASEAN attracted US$226 billion (RM949.2 billion) in foreign direct investment last year, a 9% increase from 2023, Nazir believes the real challenge lies in competitiveness.
"The issue isn’t whether we are growing, but whether we are attractive enough to compete with other regions."
Regarding Malaysia’s role as ASEAN’s rotating chair, he said the country has shown leadership in tariffs, disputes, and gathering world leaders, and that the ASEAN Business and Investment Summit to be held in October will be the highlight of its term.
He said that existing mechanisms such as the ASEAN Assist website are ineffective at addressing unfair trade practices or trade barrier issues because businesses generally fear retaliation and do not dare to file complaints.
"There is no shortcut; it depends on enforcement, but the issue now is that ASEAN lacks enforcement capability."
He made these remarks in an interview with Bernama during the 2025 ASEAN Economic Ministers' Meeting.
Nazir called for structural reforms to ensure action can be taken on complaints regarding non-tariff barriers.
On capital markets, he pointed out that, according to a joint study by the council and McKinsey, ASEAN private market development remains inadequate, accounting for only 0.5% of GDP—lower than the global average of 1.5%.
He called for reforms, including reviewing ownership rules and improving exit environments, as well as supporting initiatives such as an ASEAN IPO prospectus.
Nazir, who is also the chairman of the ASEAN Private Market Council, said these reforms would improve investment efficiency, enhance fund manager performance, and ultimately attract more regional capital.
The ASEAN Private Market Council was established under the initiative led by the ASEAN Business Advisory Council, aiming to address structural barriers to private capital development.
He pointed out that major funds such as Malaysia’s Employees Provident Fund (EPF) and Singapore’s Temasek typically deploy capital overseas rather than within ASEAN; therefore, more efforts must be made to channel regional savings into local growth.
He also emphasized the importance of retaining and attracting talent, and supported the ASEAN Business Entity Framework, which would allow certified enterprises to freely deploy staff and conduct business across the region.
Although ASEAN attracted US$226 billion (RM949.2 billion) in foreign direct investment last year, a 9% increase from 2023, Nazir believes the real challenge lies in competitiveness.
"The issue isn’t whether we are growing, but whether we are attractive enough to compete with other regions."
Regarding Malaysia’s role as ASEAN’s rotating chair, he said the country has shown leadership in tariffs, disputes, and gathering world leaders, and that the ASEAN Business and Investment Summit to be held in October will be the highlight of its term.