Asean must deepen integration as its export-led model loses steam: Panel

Forces like US tariffs, tech disruption, the rise of Al are reshaping global trade flows

- Hariz Baharudin

Asean must start taking itself more seriously and move beyond being a production hub for others if it is to thrive in a world marked by rising protectionism and shifting global power, said observers at the Asia Future Summit on Oct 9.

At a panel discussion on the region’s economic future, they cautioned that Southeast Asia’s longstanding export-led model, which powered its growth for decades, is losing momentum.

This comes amid US tariffs, technological disruption and the rise of artificial intelligence — forces that are reshaping global trade flows.

One of the three panellists was Malaysia’s Deputy Minister of Investment, Trade and Industry Liew Chin Tong.

He said the region must start imagining a future - say, in 20 years’ time — where it is not merely a manufacturing hub for the world but also a significant consumer of goods and services.

“IT want Asean to take Asean very seriously. I want Asean to believe in Asean more, and to believe in our own companies a lot more, to believe in our people a lot more,” said Mr Liew.

He was responding to a question from The Straits Times foreign editor Li Xueying, who moderated the discussion on the present reality of Asean and what the grouping could become.

The Asia Future Summit was a thought leadership conference jointly presented by SPH Media flagship titles The Straits Times, Lianhe Zaobao and The Business Times, with OCBC Bankas the presenting sponsor. The two-day event was held at The Ritz-Carlton, Millenia Singapore.

The other two panellists were Mr Teo Siong Seng, Pacific International Lines executive chairman and Singapore Business Federation chairman, and Dr Yose Rizal Damuri, executive director of Indonesia‘s Centre for Strategic and International Studies.

Mr Liew said the economic model of export-led industrialisation to the US, which has served the region well for half a century, “is coming to an end”.