With ASEAN member states signing the upgraded version of the ASEAN Trade in Goods Agreement (ATIGA), this marks an important step toward building a seamless single market and production base in the region, while also promoting trade and investment integration.
ASEAN Secretary-General Kao Kim Hourn said that as ATIGA comes into effect, ASEAN’s total economic output is approaching $4 trillion (1 USD ≈ 4.20 ringgit), and intra-regional trade accounts for 21.5% of total trade volume. Therefore, ASEAN leaders hope to further increase this proportion to foster deeper connectivity and business flows.
Speaking to reporters today (28th) on the sidelines of the 47th ASEAN Summit, he said that enhancing economic integration remains the key to ensuring the prosperity of ASEAN's 680 million people and consolidating ASEAN’s role as a pillar of global growth.
He said that ASEAN is positioning itself at the center of the rapidly expanding Regional Comprehensive Economic Partnership (RCEP), the world’s largest trading bloc, accounting for a third of global population and economic output, and that ASEAN is committed to admitting more countries.
“This morning, we just signed the upgraded ASEAN-China Free Trade Agreement 3.0 (ACFTA 3.0). We anticipate that trade between ASEAN and China will, for the first time this year, reach $1 trillion. This upgraded agreement will further fuel the growth of bilateral trade.”
“In addition, we just held the 4th RCEP Summit. RCEP essentially consists of ASEAN plus five partner countries. We also hope other economies will join; this means ASEAN, through RCEP, now has the world’s largest free trade agreement and aims for further expansion.”
Kao Kim Hourn emphasized that maintaining peace in Southeast Asia is the fundamental prerequisite for ensuring the flow of trade and investment, because businesses value stability and predictability.
“If this region is not peaceful, we cannot attract investment or expand trade, and people will not do business here. Therefore, I believe everyone needs to unite and work hard to preserve and promote peace and stability—this is very important.”
“Artificial intelligence (AI), emerging technologies, and digitalization... are expanding opportunities for us, but also come with significant risks and threats. Therefore, it is a pressing matter to ensure that people are protected, and that data and privacy are secured.”
As ASEAN accelerates trade integration, he said that the digital transformation under the ASEAN Digital Economy Framework Agreement (DEFA) will bring opportunities for businesses and the workforce, while also enhancing regional competitiveness.
“This year, we have made significant progress in DEFA, not only within ASEAN, but also in our extensive discussions with partners and the private sector. They are very interested in the digital economy because it will bring great opportunities.”
“Of course, we are currently carrying out digital skills training programs with partners, including tech giants. Therefore, we must continue to ensure that people, especially young people, receive upskilling and reskilling.”