The global economy is undergoing a period of profound transformation, and the Association of Southeast Asian Nations (ASEAN) is positioning itself at the centre of this change. At the United Overseas Bank (UOB) Gateway to ASEAN Conference 2025, deputy chairman and chief executive officer Wee Ee Cheong and head of group wholesale banking and markets Frederick Chin described how deeper integration, innovation and collaboration support the region’s resilience. They presented UOB’s view of regional connectivity and sustainable advantage, reflecting the broader industry focus on turning ASEAN’s economic frameworks into business strategies that produce measurable growth. The event took place during a phase of active regional cooperation, with ASEAN members progressing initiatives such as the forthcoming China–ASEAN Free Trade Agreement (FTA), which seeks to modernise trade rules, expand market access and strengthen supply chain connectivity. The ASEAN Digital Economy Framework Agreement (DEFA) is also advancing, aiming to harmonise digital trade standards and support cross-border digital growth. These initiatives are expected to improve trade facilitation, digital integration and energy connectivity, reinforcing ASEAN’s ambition for greater economic alignment. Integration as the foundation of competitiveness In his opening address, Wee emphasised that ASEAN’s long-term growth requires policy alignment and structural reform. He noted the region’s appeal for businesses diversifying their supply chains and production bases. “Even amid global headwinds, ASEAN has continued to grow and attract investment,” he said. “In a multipolar world, ASEAN is more relevant than ever.” Wee pointed out that shifts in global production are accelerating investment into ASEAN. He explained that geopolitical dynamics are encouraging stronger alignment across the region, fuelling greater collaboration and capital movement. He outlined three priorities shaping ASEAN’s competitiveness over the coming decade: enhancing the ASEAN Trade in Goods Agreement (ATIGA) to grow intra-regional trade, advancing the DEFA to unlock up to $2 trillion in digital value by 2030, and expanding cross-border renewable energy sharing through the ASEAN Power Grid (APG). “We need to continue lowering non-tariff barriers, improve the ease of doing business and make the region more attractive for investment,” Wee said. “We also need pro-innovation policies to support emerging ASEAN enterprises.” He cited regional success stories in ride-hailing and e-commerce to demonstrate how public-private collaboration helps firms compete globally. He explained that ASEAN’s ability to progress depends on innovation, integration and consistent cooperation across sectors, framing policy alignment as a foundation for sustainable and inclusive growth. Wee outlined a regional growth vision that prioritises strategic policy action, digital innovation and practical cooperation. His address highlighted how ASEAN’s economic ambitions are beginning to take shape through investment, trade and financial connectivity, forming the groundwork for deeper integration across the region. Moving from policy vision to business outcomes Frederick Chin expanded on these themes during the “Unlocking ASEAN’s Growth Potential” panel and media question and answer session. He outlined how enterprises and investors are converting ASEAN’s integration agenda into tangible results. “ASEAN remains one of the fastest-growing regions, with a combined gross domestic product (GDP) of about $3.7 trillion and on track to become the world’s fourth-largest economy by 2030,” Chin said. He added that ASEAN continues to attract strong foreign investment. According to UOB, regional foreign direct investment (FDI) was more than $225 billion in 2024 and is projected to reach $370 billion by 2030. Chin explained UOB’s strategic role in this process. “We want to be the number one cross-border trade bank for ASEAN, and we have invested heavily to connect all ten ASEAN markets with Greater China,” he said. “Over the past five years, we have supported more than 5,000 companies investing over SGD 50 billion ($36 billion) across the region.” He explained that these investments reflect growing client demand for regional partnerships and advisory support in emerging industrial corridors. Resilience through diversified supply chains Chin explained that geopolitical tensions, trade disruptions, lessons from the pandemic and rising demand for speed and sustainability are reshaping global production models. “After COVID, the supply chain shifted from cost and efficiency to being resilient and responsive,” he said. “Continuity and security will take priority over cost, at least initially.” He said businesses are now adopting multi-market production models to increase resilience. ASEAN continues to attract long-term investment due to its political stability, skilled workforce and infrastructure development. Chin noted that this transformation is increasing demand for integrated logistics, transport networks and financial services that support regional operations. He stated that stronger financial linkages allow firms to manage capital, hedge risks and operate more efficiently across borders, demonstrating ASEAN’s advancement towards deeper economic cohesion. Four drivers of ASEAN’s evolving growth model Chin identified four structural forces behind ASEAN’s trajectory: manufacturing capability, expanding trade corridors, the energy transition and digital transformation as an enabler. He described how the region’s industrial base is forming a broader network for storage, fulfilment and distribution powered by e-commerce. He used Indonesia’s nickel industry to illustrate the impact of regional alignment on global supply chains. “Chinese investment has transformed the industry, as upstream and downstream are now connected through shared infrastructure,” he said. He explained that Indonesia’s development of a battery ecosystem has become essential to the supply chain for China’s electric vehicle (EV) sector, highlighting how cross-border capital and industrial partnerships are deepening production links across Asia. Chin underscored that the green transition will shape ASEAN’s future. “Investing in environmental, social and governance standards is not only a moral responsibility; it is a key differentiator for attracting capital, talent and market access,” he said. He pointed to increasing cooperation in renewable energy and low-carbon production as signs that ASEAN is becoming a strategic partner for international investors seeking sustainability outcomes. He observed that digitalisation, industrial transformation, trade integration and ESG priorities are converging to create a more resilient growth platform. Strengthening trade and financial connectivity Chin highlighted that intra-ASEAN trade accounts for about 20% of the region’s total trade volume. “There is enormous room for growth if governments can lower non-tariff barriers and promote cooperation,” he said. He explained that improvements in customs efficiency, technical standards and interoperable payments are essential to building regional scale. ASEAN’s location between China, India and Western economies gives it competitive advantages in global value chains. Chin stated that improving operational alignment, together with more effective financial integration, will support ASEAN’s next phase of growth. Financing collaboration and enterprise growth Chin said UOB’s regional strategy centres on helping firms realise opportunities through structured collaboration. “Memoranda of Understanding (MOUs) provide a structured way to identify opportunities and work with governments and partners so that ideas become tangible for clients,” he said. He described how UOB’s FDI Advisory Unit links international investors with local partners to strengthen supply chains and support mutual growth. Chin highlighted the role of small and medium-sized enterprises (SMEs) in this strategy. He said that supplier development and SME inclusion are vital to creating robust business ecosystems and new jobs across ASEAN. He stated that cross-sector partnerships create commercial outcomes by aligning enterprise goals with government priorities. This approach is contributing to a more competitive and integrated regional economy, where financial cooperation plays a central role in advancing development. Chin concluded by emphasising the importance of execution. “ASEAN is at a defining moment,” he said. “We have been talking for 40 years about integration. It is time to act on it.” He called on both policymakers and businesses to follow through on regional plans, stating that ASEAN’s competitiveness depends on sustained action and coordinated priorities. From vision to value ASEAN’s growth story continues to develop through strategic cooperation, digital innovation and sustainable development. Wee outlined a policy direction focused on integration and innovation, while Chin illustrated how firms are deploying investment, nearshoring and infrastructure to implement this agenda. Their perspectives show how financial institutions are applying ASEAN’s policy direction in their market strategies. Regional financial institutions and regulators are increasing collaboration on cross-border payments, sustainable finance and market connectivity. ASEAN’s ability to convert integration into competitiveness depends on consistent implementation and close cooperation across sectors. Delivering on these priorities will shape ASEAN’s global position and demonstrate the region’s capacity to generate long-term, inclusive growth.
