THE ASEAN-China Free Trade Agreement (ACFTA) 3.0 will be formally presented to regional leaders at the ASEAN Summit this October, Prime Minister Datuk Seri Anwar Ibrahim announced on Tuesday.
Speaking at the Boao Forum for Asia’s Asia-Pacific Regional Cooperation Roundtable in Kuala Lumpur, Anwar said the agreement represents a new phase in ASEAN-China relations, founded on principles of inclusivity, forward-looking cooperation, and rules-based engagement.
“This agreement demonstrates that negotiations with China can be conducted on the basis of rules, inclusivity, and a future-oriented framework,” he said.
ACFTA 3.0 is set to include provisions for the digital economy, green growth, supply chain connectivity, technical standards, and support for small and medium enterprises (SMEs).
“It reflects a new reality, that today’s prosperity is shaped not only by fair trade, but by data flows, digital platforms, and the transition to sustainable energy,” the Prime Minister added.
The upgraded agreement is expected to enhance economic integration between ASEAN and China, reflecting both sides’ commitment to modernising trade cooperation.
Anwar also emphasised that ASEAN must not limit its focus to bilateral arrangements, but must take a broader view of the Asia-Pacific economic architecture. He reaffirmed the importance of the Regional Comprehensive Economic Partnership (RCEP), which currently stands as the world’s largest free trade zone, covering around 30 per cent of global GDP.
However, he noted that RCEP requires renewed political will to meet its potential.
“To that end, Malaysia intends to host an RCEP Summit in October, in conjunction with the ASEAN Summit,” Anwar said.
“Our aim is to reassess progress, accelerate implementation, and demonstrate that Asia remains capable of leading on openness—even as others choose to turn inward.”
He further asserted that any revitalisation of ASEAN’s economic strategy must be anchored in the will and participation of its people.
“ASEAN reforms must continue to be driven by its citizens. Malaysia welcomes the support of all member states in pursuing this objective,” he said.
Anwar’s comments come as ASEAN and China prepare to mark a significant milestone in economic diplomacy, with ACFTA 3.0 signalling a shift towards sustainable and digitally driven trade frameworks across the region. - August 27, 2025
