At the opening of the Joint ASEAN Economic Ministers (AEM)–ASEAN Foreign Ministers (AMM) Meeting in Kuala Lumpur today, Malaysia’s Minister of Investment, Trade and Industry Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz called on ASEAN member states to strengthen cross-pillar coordination and anchor the region’s economic future on security and resilience amid rising global uncertainty.
Welcoming delegates to Malaysia, Tengku Zafrul emphasised that the meeting — held on the sidelines of the 47th ASEAN Summit — comes at a “pivotal moment” for the region as it grapples with heightened geopolitical and economic headwinds.
“Every economic policy carries political weight, just as every political decision has significant economic consequences,” Tengku Zafrul said. “Strengthening synergy between ASEAN’s economic and political-security pillars is essential as the region navigates an increasingly complex and uncertain global landscape.”
Global Economic Fragmentation: A Defining Challenge
Tengku Zafrul highlighted that rising protectionism, technological decoupling, and strategic rivalry between major powers have intensified the risks of global economic fragmentation — a trend he described as “one of the defining challenges of our time.”
“What began as trade disputes has now expanded to logistics, technology, and critical supply chains,” he noted. “This reshaping of the global trade landscape is testing the resilience of interconnected economies like ours.”
He warned that these developments could erode the decades of progress ASEAN has made through open trade, regional integration, and industrial cooperation — achievements that have lifted millions out of poverty and positioned Southeast Asia as a key hub in global value chains.
Anchoring ASEAN’s Response: Openness with Security
Outlining ASEAN’s strategic response, Tengku Zafrul urged the region to focus on two key pillars — economic security and economic resilience.
He stressed that ASEAN’s concept of economic security should not equate to isolationism but rather to “remaining open yet secure.”
“Our focus should be on protecting the stability of regional and global supply chains, securing access to critical goods, energy, and technologies, and reducing overdependence on any single market or production source,” he said.
He added that resilience requires ASEAN to diversify markets, deepen intra-regional trade, and forge stronger ties with trusted partners, ensuring that the region maintains its strategic autonomy and competitiveness amid global uncertainty.
Reinvigorating Multilateralism and Regional Cooperation
Tengku Zafrul reaffirmed ASEAN’s commitment to a rules-based multilateral trading system, saying that global stability and shared prosperity depend on the credibility and functionality of such frameworks.
He called on ASEAN to push for high-impact reforms at the World Trade Organization (WTO), particularly in areas such as subsidy transparency, digital trade governance, and dispute settlement reform — to restore trust in international trade institutions.
“ASEAN must remain steadfast in upholding multilateralism while strengthening our regional capacity to anticipate, manage, and respond to emerging economic and political risks,” he said.
ASEAN Geoeconomics Task Force: Charting the Future
Tengku Zafrul also underscored the importance of the newly established ASEAN Geoeconomics Task Force (AGTF), which has been tasked with providing strategic recommendations to help the region navigate shifting global economic dynamics.
He noted that the AGTF had presented preliminary findings earlier this year and was expected to deliver “clear, practical, and forward-looking recommendations” during the meeting to guide ASEAN’s next phase of economic cooperation.
“As one of the world’s major regional blocs, ASEAN must remain united, proactive, and forward-looking,” Tengku Zafrul concluded. “Our collective resilience will define our ability to thrive in this new era of global uncertainty.”
