Kuala Lumpur (VNA) - ASEAN cannot grow purely on a foreign direct investment (FDI) model but must grow and invest in the region's technology companies to move forward.
Deputy Investment, Trade and Industry Minister Liew Chin Tong of Malaysia, ASEAN Chair in 2025, said there may be a misconception that technology has to come from outside and that ASEAN is just a production site.
At a press conference following the establishment of the ASEAN Private Market Council, he stressed the need to change this perception. With greater investment, local companies could grow into influential firms not only within the region but also globally.
He also underlined the importance of linking finance, technology and industrial policy to build a strong regional market. The ASEAN Private Market Council was established under an initiative led by the ASEAN Business Advisory Council (ASEAN-BAC) to address structural barriers in private capital development.
In a statement, ASEAN-BAC said these barriers include fragmented regulatory frameworks across member states, underdeveloped local fund managers, limited opportunities for large-scale capital deployment, a shallow and underperforming exit environment, and a decline in fundraising from global investors.
Liew said the creation of APMC is to unlock regional investment potential, including investing in ASEAN's technology sector and to create or achieve public purposes in the region.
He hoped to see this investment eventually play a role in the green transition of ASEAN, whether in terms of technologies, creating new solutions, experimenting with processes, or other innovations for green transition.
ASEAN-BAC Malaysia chairman Tan Sri Nazir Razak, who is also APMC protem committee chairman, cited a Mckinsey study showing that ASEAN private markets make up only 0.5% of gross domestic product (GDP) against a global average of 1.5% of GDP.
Nazir estimated that up to 60 billion USD in capital should be flowing into ASEAN private equity and venture funds to achieve the global average GDP growth of 1.5%./.
