KUALA LUMPUR – Unity among Asean members will determine the success of the ten member states in weathering the US tariff storms that have severely impacted the region, says Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.
Therefore, he said, Asean member states must remain calm and collaborative to prepare the region better for the turbulent times ahead.
“Given the recent US tariff announcement, how Asean responds could make or break the steady growth trajectory that this region has enjoyed in the past decade.
“Asean member states need to unite more resolutely to forge ahead as one body, one voice, one negotiating party with whoever is open and progressive enough to see Asean’s real value as a trading and investment partner,” he said in his closing keynote address for the Asean Investment Conference 2025 today.
The event was held in conjunction with the 12th Asean Finance Ministers’ and Central Bank Governors’ Meeting (AFMGM) and related meetings.
Among the hardest hit were Cambodia which faced a basic and reciprocal tariff of 49%, Laos (48%), Vietnam (46%) and Myanmar (44%).
Meanwhile, Thailand faced a tariff of 36%, Indonesia 32%, Brunei and Malaysia at 24% each, the Philippines 17%, and Singapore at a basic tariff of 10%.
Asean is home to about 680 million people, more than the European Union, and third only to China and India. The combined gross domestic product reached US$3.6 trillion last year, making Asean the fifth largest economic bloc in the world.
Tengku Zafrul said Asean’s future growth is at risk of being seriously derailed.
He added that the recent US tariff announcement has roiled markets and created uncertainty, particularly for open trading nations and highly export-driven economies like Malaysia, Singapore, Indonesia, Thailand, Vietnam and the Philippines.
Hence, Malaysia will chair a Special Asean Economic Ministers’ Meeting on Thursday to craft a unified Asean response.
Tengku Zafrul said that as chair of Asean this year, Malaysia is helping Asean to navigate turbulent waters ahead, which is a huge responsibility.
“We take this responsibility seriously to ensure the continued economic prosperity and security of this peaceful region – everything that our forefathers had worked so hard to achieve.
“With the onslaught of US tariffs, there is even more reason to support micro, small and medium enterprises (MSMEs). Aside from the establishment of the Asean Centre of Excellence for Green MSMEs, we may have to also look at other ways to empower smaller businesses with the right support for their survivability in these trying times,” he said.
As its commitment to build on Asean’s industrial strength and capacity, he said Malaysia will also host the ASEAN+3 Dialogue on semiconductors and strategic supply chains later this year. – April 8, 2025