Malaysia

ASEAN charts path to digital, sustainable growth under Malaysia’s 2025 chairmanship

The 26th ASEAN Economic Community Council sets tone for next decade with major trade, digital and sustainability initiatives ahead of 47th ASEAN Summit in Kuala Lumpur

Updated 9 months ago · Published on 24 Oct 2025 3:20PM

ASEAN charts path to digital, sustainable growth under Malaysia’s 2025 chairmanship
Out of Malaysia’s 18 Priority Economic Deliverables (PEDs) for 2025, seven have been fully achieved and another five are expected to be delivered by the ASEAN Summit next week (File pic) - October 24, 2025

ASEAN has taken decisive steps towards deepening regional economic integration and shaping its post-2025 growth agenda, following the conclusion of the 26th ASEAN Economic Community (AEC) Council Meeting under Malaysia’s chairmanship on Thursday.

Chaired by Minister of Investment, Trade and Industry Tengku Zafrul Abdul Aziz, the meeting gathered AEC Council Ministers from the ten ASEAN Member States, Timor-Leste as an observer, and the ASEAN Deputy Secretary-General for the Economic Community.

The ASEAN Economic Community (AEC) Council Ministers are senior officials from each of the ten ASEAN member states tasked with steering and coordinating the region’s economic integration efforts.

Typically drawn from the finance, trade, or economic ministries, these ministers represent their countries in the AEC Council.

The ten ASEAN member states are Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam.

The Council meets regularly to formulate and implement policies, initiatives, and agreements aimed at deepening economic integration, facilitating cross-border trade and investment, promoting sustainable growth and competitiveness, and harmonising economic regulations across the region.

Through these coordinated efforts, the AEC Council seeks to realise a single market and production base in line with the goals set out in the AEC Blueprint 2025 and the broader ASEAN Community Vision 2045.

The discussions focused on finalising the AEC Blueprint 2025 and advancing preparations for the next phase of ASEAN’s economic integration — the AEC Strategic Plan 2026–2030 — in line with the ASEAN Community Vision 2045.

“Under Malaysia’s leadership this year, we have significantly strengthened the ASEAN foundation and ensured continuity to advance our economic integration efforts,” the Chair said.

“All these are key towards realising ASEAN’s goal of being a prosperous, stable and resilient economic bloc — and becoming the fourth largest economy globally by 2030.”

Of Malaysia’s 18 Priority Economic Deliverables (PEDs) for 2025, seven have been fully achieved and another five are expected to be delivered by the 47th ASEAN Summit next week, bringing the total to 12. The remaining six PEDs are expected to be completed by year-end.

Key outcomes include the signing of two major economic agreements: the Second Protocol to Amend the ASEAN Trade in Goods Agreement (ATIGA) and the ASEAN-China Free Trade Area 3.0 Upgrade Protocol.

These, the Chair said, “will future-proof ASEAN’s trade architecture and reaffirm our commitment to an open, inclusive, and rules-based trading system.”

ASEAN Ministers also signed the enhanced ASEAN Power Grid Memorandum of Understanding and the ASEAN Framework Agreement on Petroleum Security, supported by financing from the World Bank and the Asian Development Bank. These initiatives aim to build a sustainable and interconnected regional energy network.

In support of the region’s green agenda, Ministers adopted the ASEAN Sustainable Investment Guidelines to promote responsible, inclusive, and carbon-conscious investment practices.

The meeting also endorsed the ASEAN Framework for an Integrated Semiconductor Supply Chain to strengthen ASEAN’s role in the global semiconductor market, which is projected to reach USD1 trillion by 2029.

A major milestone was the substantial conclusion of negotiations on the ASEAN Digital Economy Framework Agreement (DEFA) — the first of its kind in the region.

“DEFA aims to facilitate the seamless and secure flow of goods and services, with data security at its core,” the Chair noted, adding that it would lay the groundwork for a comprehensive digital transformation strategy across ASEAN.

Several declarations are set to be adopted by ASEAN Leaders at the 47th Summit, including the ASEAN Minerals Development Vision, the ASEAN Leaders’ Declaration on Quality Tourism, the Vision for Food, Agriculture and Forestry Towards 2045, and the Declaration on the Establishment of an ASEAN AI Safety Network (ASEAN AI SAFE).

“These initiatives will strengthen ASEAN’s position as a hub for sustainable development, quality tourism and food security, while the AI Safety Network will promote responsible and ethical use of artificial intelligence across the region,” Tengku Zafrul said.

As the bloc approaches the conclusion of the AEC Blueprint 2025, implementation is projected to reach nearly 90 percent by December 2025.

The meeting also reviewed recommendations from the end-term assessment and agreed to enhance institutional mechanisms, monitoring and evaluation, and policy coordination.

“The AECC Meeting reaffirmed ASEAN’s commitment towards a resilient, sustainable and inclusive regional economy,” the Chair concluded. “We look forward to a successful 47th ASEAN Summit and a shared, prosperous future for all.” - October 24, 2025

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