Malaysia is calling for a major reorientation of ASEAN’s economic strategy, urging member states to reduce reliance on foreign-led industrialisation and focus on developing homegrown multinationals, integrated infrastructure and a robust middle-class consumer base by 2045.
Speaking at the launch of the US-ASEAN Business Council White Paper, Investment, Trade and Industry Deputy Minister Liew Chin Tong laid out a four-point vision for ASEAN’s future, highlighting the need for structural reform, industrial capacity building and deeper regional economic integration.
“ASEAN must no longer see itself purely as a global production site. We must become a middle-class economic bloc, with 300 to 400 million consumers by 2045. To do that, we must pay better wages, innovate more and scale our own firms into ASEAN-headquartered multinational companies (MNCs),” said Liew.
Throwing his support behind the ASEAN Business Entity (ABE) concept and urging the region to go further by fostering ASEAN-grown MNCs, Liew said a shift away from a purely foreign direct investment-driven, export-led model is now essential, as traditional markets such as the US impose new trade restrictions.
“Export-led growth is facing structural limits. ASEAN must take the lead in shaping its own growth path. US companies can be key partners in this transformation,” he said.
Citing the ASEAN Power Grid as a test case, Liew called for blended financing frameworks combining private capital, government support and multilateral institutions to fund critical cross-border infrastructure.
“We have the agreements. What’s missing is real capital commitment. The power grid isn’t just about business, it’s about equitable development across ASEAN,” he said.
Liew also revealed that Malaysia and Indonesia are co-chairing a new ASEAN Geoeconomics Task Force tasked with shaping regional responses to global economic challenges, including the impact of recent US tariffs and supply chain realignments.
“Our current siloed structure limits policy agility. ASEAN needs a cohesive economic response mechanism that breaks past bureaucratic divisions,” he said, echoing recent remarks by Malaysian Prime Minister Datuk Seri Anwar Ibrahim.
Lastly, Liew invites US multinationals and investors to engage more deeply in ASEAN’s transition toward self-sufficiency and inclusive growth.
“The US has long been a strategic partner in ASEAN’s development. The next phase requires deeper collaboration to build regional capacity, scale innovation and shape a more balanced global economy,” he said.
With a projected 800 million citizens by 2045 and a rising appetite for economic self-determination, ASEAN, if it heeds Malaysia’s call, could evolve from factory floor to formidable economic force.
