ASEAN must move beyond its reliance on foreign direct investment and channel more capital into homegrown technology companies to fuel sustainable growth, Deputy Investment, Trade and Industry Minister Liew Chin Tong said.
Speaking at the launch of the ASEAN Private Markets Council (APMC), Liew warned against the misconception that technology must come from outside the region.
“If we have a lot more investment going into ASEAN technologies, we will eventually see companies emerging as regional or even global multinational companies,” he said.
The APMC, an initiative under the ASEAN Business Advisory Council (ASEAN-BAC), aims to address structural barriers that have long hindered private capital development, including fragmented regulations, weak local fund managers and declining fundraising from global investors. Over 20 leading financial institutions across ASEAN are joining as founding members.
ASEAN-BAC Malaysia chairman Tan Sri Nazir Razak, who also chairs the APMC protem committee, noted that ASEAN private markets account for just 0.5% of GDP compared to the global average of 1.5%.
“That gap means ASEAN is operating at only one-third capacity in funding high-growth, innovative companies,” he said, adding that up to US$60 billion in capital needs to flow into regional private equity and venture funds.
Emphasising further, Liew said the APMC can play a key role in unlocking investment for the green transition, from new technologies and solutions to blended financing for the ASEAN power grid. “This will allow the region to grow in tandem and ensure even the least developed countries can progress in the next five, 10 or 15 years,” he said.
