ASEAN Must Rethink Its Supply Chain, Strengthen Regional Economic Integration
KUALA LUMPUR, Nov 6 (Bernama) -- ASEAN must rethink its supply chains and strengthen regional economic integration amid an increasingly uncertain global trade environment, said Asia-Pacific Economic Cooperation former executive director, Tan Sri Dr Rebecca Fatima Sta Maria.
Sta Maria, who is also the Institute for Democracy and Economic Affairs (IDEAS) director, said ASEAN nations must be prepared to adapt to changing trade dynamics, which could either improve slightly or deteriorate further.
“We expect to live with this environment for a while. In fact, we will see how it will change, either it will get slightly better or it will just get worse,” she said during the 9th ASEAN Media Forum’s panel session on “Global Economic Dynamics and the Overall Impacts on ASEAN” here Thursday.
Despite ASEAN’s deliberate efforts to develop its supply chains and strengthen regional integration with dialogue partners, particularly China, the shifting global landscape now requires a review of its strategies, Sta Maria said.
She noted that ASEAN economic ministers had acted quickly to address the challenges when the United States President Donald Trump took office, forming the ASEAN Geoeconomics Task Force to chart strategic next steps.
“The task force just presented its findings to the economic ministers and foreign ministers at their meeting, their first meeting in 20 years,” she said, adding that this was one of the key takeaways from the recent summit.
Sta Maria said one of the areas that needs to be expedited is the ASEAN Digital Economy Framework Agreement, which was initially scheduled for completion this year but may only be ready for signing next year when the Philippines hosts the meetings.
She stressed that ASEAN needed to adopt new approaches, as the current environment was “not a hiccup” but a structural challenge.
“There is a need for structural change in ASEAN. Going forward, because of how interrelated politics, geoeconomics and geopolitics with security are, you need to have the two groups of ministers meet on a regular basis,” she said.
At the same time, she said ASEAN should consider introducing a common external tariff in selected sectors as a step toward deeper integration.
“Have common external tariffs for sectors that matter to us, whether it’s textiles or electrical and electronics (E&E),” she said.
She also urged researchers and think tanks to explore the idea further as a way to treat ASEAN as a single market, while emphasising the need to monitor the impact of implementation rather than just compliance.
Organised by the ASEAN Secretariat in consultation with Malaysia as ASEAN Chair, the one-day ASEAN Media Forum serves as a platform for open dialogue between ASEAN and the media across the region.
-- BERNAMA
