The Association of Southeast Asian Nations (ASEAN) is accelerating efforts to build a more self-reliant regional economy amid growing trade fragmentation, supply chain shifts and geopolitical uncertainty. The 2025 ASEAN Conference outlined a unified plan to mobilise investment, strengthen regulation and build institutional capacity to support long-term stability. Under the theme ‘ASEAN integration in a multipolar world’, political, financial and business leaders underscored the need to attract more private capital, align policies across borders and deepen regional cooperation. These priorities aim to strengthen ASEAN’s ability to manage global shocks while building a more resilient financial and industrial base. ASEAN’s strategy places the private sector at the centre of this transformation. Corporations, banks and small businesses are expected to shape the rules, production systems and infrastructure that will drive regional integration. Private capital as a lever for institutional resilience Teo Siong Seng, chairman of the Singapore Business Federation (SBF), urged businesses to take the lead in shaping ASEAN’s economic integration. “This moment calls for action. Businesses must act decisively, explore new partnerships and markets, leverage free trade agreements and adopt strategies to stay competitive,” he said. He highlighted the updated ASEAN–China Free Trade Agreement, one of ASEAN’s most significant regional trade pacts, and growing engagement with the Gulf Cooperation Council (GCC) as recent steps reflecting ASEAN’s commitment to integration and stability. He introduced the Centre for Future of Trade and Investment, a new platform that helps firms navigate the complexity of free trade agreements, customs and trade facilitation. “We help businesses turn challenges into opportunities and build resilience amid uncertainty,” he said. The centre aims to help companies engage more actively with ASEAN’s evolving trade landscape by navigating complex frameworks and supporting regional integration. As enterprises take on a more active role in ASEAN’s policy landscape, financial institutions are stepping in to support this shift through capital mobilisation, infrastructure finance and risk-sharing tools. Banks as facilitators of integration and risk alignment Wee Ee Cheong, deputy chairman and CEO of United Overseas Bank (UOB), emphasised the strategic role of financial institutions in ASEAN’s transformation. “Despite disruptions from tariffs and geopolitical tensions, ASEAN remains an attractive investment destination. Trade continues to be a major economic engine,” he said. He pointed to ASEAN–China infrastructure collaboration and digital connectivity as stabilising forces, supported by more than $10 billion channelled into artificial intelligence (AI), environmental, social and governance (ESG)-linked initiatives and cross-border digital infrastructure. Singapore’s plan to import six gigawatts of renewable energy from ASEAN countries reinforces regional collaboration and energy sustainability. These commitments align with the regulatory frameworks and institutional initiatives of member governments, reinforcing ASEAN’s goal of a fully networked economic zone. SMEs embedded into ASEAN’s industrial strategy Wee described UOB’s ecosystem banking model as a means to integrate small and medium enterprises (SMEs) into ASEAN’s industrial base. Through the Johor–Singapore Special Economic Zone (JB-SEZ), the bank has facilitated over $2.3 billion (SGD 3 billion) in investment for more than 45 companies. The bank also supports regional supply chain development and electric vehicle manufacturing across Thailand, Malaysia and Indonesia. “SMEs are the backbone of local economies. They must adapt to new business models to thrive and compete,” he said. UOB combines regulatory advisory services, sector-specific support, and regional connectivity. Its agreements with ASEAN partners help SMEs adopt new technologies, enter markets and align with industrial priorities. By embedding SMEs into cross-border capital and supply chains, ASEAN aims to broaden the regional industrial base. “Doing business in ASEAN can be complex. With strong partnerships, we can ensure that every business, no matter its size, has a stake in our shared future,” Wee added. Dual-track integration in response to global fragmentation As financial and business actors expand their roles, policymakers are updating trade and investment frameworks to support these changes. Gan Kim Yong, Singapore’s deputy prime minister, outlined ASEAN’s dual-track approach of linking domestic reforms with deeper trade integration. “The world is becoming more protectionist, but we are deepening our integration by upgrading the ASEAN Trade in Goods Agreement and broadening cooperation in areas such as energy and the digital economy,” he said. He cited the ASEAN Power Grid as a key project supporting regional energy trade and security. ASEAN is also strengthening links with the GCC and assessing entry into the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Gan reaffirmed Singapore’s support through its Economic Resilience Task Force, which is building shared investment platforms and risk-sharing tools. “Every crisis presents an opportunity. We are helping businesses explore new markets, apply AI and develop products, services and models suited to a fast-changing world,” he said. These efforts support regional openness and digital integration alongside private-sector initiatives. From foreign-led growth to industrial sovereignty Liew Chin Tong, Malaysia’s deputy minister for investment, trade and industry, positioned Malaysia’s upcoming ASEAN Chairmanship as a launchpad for ASEAN 2045, a long-term vision focused on integration, innovation and self-sufficiency. He argued that ASEAN must break from its dependency on foreign-led industrialisation. “Do we continue to rely on foreign direct investment and export-led industrialisation, or is it time to build our regional versions of Huawei, Samsung or Airbus?” he asked. His remarks underscored a broader shift in ASEAN discourse toward moving beyond low-cost manufacturing and building a stronger foundation of ASEAN-owned capabilities. He advocated for mobilising capital from within the region, transferring technology more effectively and using coordinated incentives to grow ASEAN-based companies. “The new era requires each region to secure its own logistics, energy, resources and innovation base,” he said. This signals a shift toward developing homegrown industries and supply chains managed within the region. Institutional reform as a catalyst for shared growth Tirta Nugraha Mursitama, Indonesia’s deputy minister for investment cooperation, called for equal public–private collaborations to build institutions that deliver long-term gains. He argued for a governance system based on clear rules, trust between countries and alignment over the long term. “We should stop debating whether ASEAN can follow the European Union (EU). What we need is a pragmatic, ASEAN-led system focused on delivering long-term gains rather than short-term politics,” he said. His remarks aligned with ongoing efforts in trade modernisation, infrastructure and institutional execution, reinforcing the need for deeper cooperation across governments and industries. Scalable integration through trilateral corridors Gan proposed expanding the JB-SEZ into Indonesia’s Batam–Bintan–Karimun region to establish a cross-border industrial corridor spanning Singapore, Malaysia and Indonesia. “Rather than viewing each economy separately, investors will see a connected landscape with greater scale, more options and enhanced competitiveness,” he said. Liew supported this corridor as a testing ground for joint industrial projects. “We should envision building the next Airbus in sectors where Malaysia, Singapore and Indonesia can combine capabilities,” he said. Tirta emphasised the importance of strong governance in supporting such integration. “We must establish governance structures that provide clarity, consistency and mutual trust. This is the time to collaborate,” he said. The corridor represents a model that could be applied across ASEAN to support coordinated growth and investment. By aligning investment, infrastructure and policy, these corridors offer a prototype for wider ASEAN integration. ASEAN’s future shaped by coordinated capital and institutional maturity The 2025 ASEAN Conference marked a significant shift in how the region plans its economic future. ASEAN is building a self-reliant, interconnected economy designed to weather global uncertainty. This transformation depends not only on strategic alignment but also on ASEAN’s ability to deliver tangible outcomes, including shared infrastructure, regulatory credibility and economic opportunities across all member economies. Malaysia’s 2025 chairmanship will be a key test of ASEAN’s ability to turn momentum into lasting reform in a volatile global environment. By embedding joint investment corridors, harmonised regulation and aligned industrial policy into common platforms, ASEAN can move from fragmented responses to a unified, self-sustaining growth model that strengthens its position in an uncertain global economy.
