Malaysia

ASEAN chairmanship drives regional integration, digital growth in 2025

Deputy Minister says the current tariff rate of 19 per cent—down from an initial 25 per cent—reflected successful negotiations under ART

Updated 11 months ago · Published on 30 Oct 2025 5:55PM

ASEAN chairmanship drives regional integration, digital growth in 2025
Eighteen Priority Economic Deliverables (PEDs), under MITI, aims to strengthen intra-ASEAN trade and enhancing the region’s global competitiveness - October 30, 2025

THE government will prioritise deeper regional integration, inclusive growth and sustainable development as Malaysia assumes the ASEAN Chairmanship in 2025, Deputy Minister of Investment, Trade and Industry Liew Chin Tong told Parliament during the 2026 Supply Bill winding-up session on Thursday.

The Ministry of Investment, Trade and Industry (MITI), as the lead for the ASEAN Economic Community (AEC) pillar, has outlined 18 Priority Economic Deliverables (PEDs) aimed at strengthening intra-ASEAN trade and enhancing the region’s global competitiveness.

“These include the signing of the Second Protocol to Amend the ASEAN Trade in Goods Agreement (ATIGA), which will catalyse regional integration, bolster supply chain resilience and improve ASEAN’s standing in the global economy,” the Deputy Minister said.

He added that the upgraded ASEAN-China Free Trade Agreement (ACFTA 3.0) would expand cooperation in key areas such as digital and green economies, supply chain resilience and micro, small and medium enterprise (MSME) development.

MITI has also achieved substantive progress in the Digital Economy Framework Agreement (DEFA), which aims to create an open, fair and secure regional digital market.

“This initiative is expected to elevate ASEAN’s digital economy value to USD 2 trillion by 2030,” Liew noted.

On investment incentives, MITI confirmed that the government remains committed to implementing the New Investment Incentive Framework (NIIF) under the New Industrial Master Plan 2030 (NIMP 2030).

“The pilot phase runs until the end of 2025 and will be fully implemented in the manufacturing sector by the first quarter of 2026, followed by the services sector in the second quarter,” he said.

Responding to a proposal to develop an industrial park in Kalabakan, Sabah, MITI welcomed the suggestion and said the Malaysian Investment Development Authority (MIDA) would collaborate with the state government and related agencies to conduct a feasibility study and identify potential investors.

On concerns over US tariff measures, the Deputy Minister said Malaysia’s current tariff rate of 19 per cent—down from an initial 25 per cent—reflected successful negotiations under the Reciprocal Trade Agreement (ART).

“Through this agreement, we gain certainty, market access and, importantly, we safeguard our national sovereignty. We did not bow to unilateral terms but engaged in dialogue to protect Malaysia’s interests,” he stressed, adding that Malaysia’s trade relations with the United States remain crucial while efforts continue to diversify into other markets, including ASEAN.

He also reaffirmed that Malaysia’s sovereignty, control over rare earth exports, and halal certification standards remain fully protected.

“The government reiterates there will be no compromise on JAKIM’s halal standards. Only products certified by recognised US halal bodies that meet Malaysian requirements will be allowed into the country,” he said.

Liew urged all Members of Parliament to continue supporting efforts to strengthen Malaysia’s economy in line with the Malaysia MADANI vision. - October 30, 2025

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