Kuala Lumpur (VNA) – The Association of Southeast Asian Nations (ASEAN) must develop a parallel by engaging with major economies beyond the region, particularly Australia, to boost production and domestic consumption, enhancing its economic resilience.
This approach is vital for protecting the region from future shocks, including abrupt policy shifts in key markets like the US and the European Union, Malaysia Global Business Forum (MGBF) founding chairman Nordin Abdullah said in a recent interview granted to the press.
ASEAN must not only survive but thrive amid evolving global crises. Australia, as a fellow middle power, is an ideal partner in this effort, Nordin said.
Nordin also pointed to a worrying decline in Australian foreign direct investment (FDI) in Southeast Asia, which fell to 2.9% in 2022 from 6.3% in 2017, warning that this trend could undermine regional economic stability.
ASEAN and Australia have long maintained strong ties built on shared interests and diplomatic cooperation. Australia became ASEAN's first Dialogue Partner in 1974, a Comprehensive Strategic Partner in 2021, and implemented the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA) in 2010.
He emphasised that ASEAN must prioritise poverty eradication, energy security, and food security to absorb future shocks and ensure long-term growth.
At the ASEAN-Australia Special Summit in Melbourne last March, leaders adopted the ASEAN-Australia Joint Leaders’ Vision Statement and the Melbourne Declaration, aiming to foster an open, inclusive, and transparent region.
Australia has pledged to strengthen two-way trade and investment with ASEAN to create jobs and drive economic growth across the region. It also announced initiatives to implement recommendations from "Invested: Southeast Asia Economic Strategy to 2040," a blueprint for Australia’s long-term economic engagement with the region. This includes a 1.26 billion USD investment in critical sectors like infrastructure and clean energy.
Additionally, Australia extended its Partnerships for Infrastructure initiative to support regional development and reinforce its commitment to strengthening economic ties and fostering sustainable growth in ASEAN./.
