ASEAN MUST DIVERSIFY TRADE TIES AMID GLOBAL UNCERTAINTY, SAYS ECONOMIST

By Wan Muhammad Aslah Wan Razali

KUALA LUMPUR, April 24 (Bernama) -- ASEAN must urgently diversify its trade and investment relationships to strengthen resilience amid global uncertainty, said Senior Fellow at the ISEAS – Yusof Ishak Institute, Dr Jayant Menon, during the FPCI Forum on ASEAN Community Building: Road to ASEAN Vision 2045 held here on Thursday (April 24).

Menon, a veteran economist and former Asian Development Bank (ADB) official, said the region can no longer afford to rely heavily on any single economic partner, citing the increasingly erratic global trade environment, particularly recent efforts by the United States (US) to reshore industries and reduce foreign engagement.

“Being too heavily dependent on any one country is an issue. A crisis presents an opportunity to explore more varied trade and investment patterns that reduce the risk of country-specific shocks,” he said. 

Menon said ASEAN’s 2045 vision -- anchored on resilience, inclusion and sustainability -- requires urgent attention to structural reforms in labour mobility, human capital development, and climate action, areas where the region still lags.

“We have to bite the bullet. Labour mobility within ASEAN needs to be addressed properly before 2045. The work has to start now,” he stated.

On sustainability, Menon urged ASEAN to pursue green growth regardless of external political shifts, including the return of climate scepticism in the US. 

“We must not let that derail our efforts,” he said, stressing the importance of aligning economic development with environmental goals.

Touching on the challenges of intra-regional inequality, he said that while development gaps between ASEAN member states have narrowed, inequality within countries is growing across gender, ethnicity, and geography. 

He called for reforms that blend market principles with social protections, stating: “We need to change the face of capitalism, bring in aspects of socialism that are more inclusive, while not throwing out the whole system.”

Also speaking at the forum, Principal Advisor to the President of Timor-Leste, Nelson Santos, reaffirmed his country’s strong aspirations to join ASEAN, describing the regional bloc as a model of peace and stability that has inspired Timor-Leste’s nation-building journey.

“For us, ASEAN is not just a political or economic bloc. It’s an identity. We believe joining ASEAN will uplift Timor-Leste through deeper integration, political stability, and broader regional engagement,” he said.

Santos also stressed the importance of youth empowerment, citing that over 70 per cent of Timor-Leste’s population is under 30. 

He called for expanded ASEAN student exchange programmes and proposed transforming the East Asian Games into a broader ASEAN sports initiative to foster regional unity among the youth.

“We are dreamers, we dreamt of independence and achieved it. Now we dream of becoming a full member of ASEAN,” he said, adding that Timor-Leste has taken active steps to educate its citizens on ASEAN’s values and opportunities.

Organised by the Foreign Policy Community of Indonesia (FPCI), the one-day forum in Kuala Lumpur brought together students from various higher education institutions, young professionals, scholars, and members of the diplomatic community to assess ASEAN’s aspirations for 2045 against the current geopolitical and economic landscape.

Also present at the forum were Senior Political Secretary to the Prime Minister of Malaysia, Datuk Seri Shamsul Iskandar Mohd Akin, and Undersecretary for Civilian Security and Consular Affairs, Department of Foreign Affairs of the Philippines, Jesus “Gary” S. Domingo. 

-- BERNAMA