Malaysia’s chairmanship is reported to focus on themes of inclusivity and sustainability, with four strategic thrusts and 15 Priority Economic Deliverables (PEDs). Malaysia will be looking at greater economic integration, a more digitally resilient ASEAN, a framework for semiconductors supply chain, an Outlook for ASEAN Tourism, among others. The country will also be hosting the second ASEAN-Gulf Cooperation Council (GCC) summit Malaysia and China will be attending the GCC for the first time. ASEAN-China FTA (ACFTA) Upgrade negotiations are also expected to be conclude during Malaysia’ host year.
Strategic Plans for the ASEAN Community Vision 2045
2025 marks the final year of the all-encompassing ASEAN Community Vision 2025 and the ASEAN Economic Community (AEC) Blueprint 2025. To ensure that lessons learned and experiences in the implementation of the AEC Blueprint and the Master Plan on ASEAN Connectivity 2025, ASEAN will develop Strategic Plans to implement the ASEAN Community Vision 2045 including coordination of cross-pillar and cross-sectoral issues.
Digital Economy Framework Agreement (DEFA)
ASEAN hopes to timely complete DEFA negotiations in 2025. Much is at stake as the ASEAN Digital Economy is expected to grow to US$1 trillion by 2030. ASEAN launched DEFA negotiations and aim to improve digital rules in key areas e.g. digital trade facilitation, payments, standards and data, and address emerging issues e.g. artificial intelligence. The 56th AEM tasked officials to expedite the negotiations to achieve a dynamic, comprehensive, forward-looking and future-proof DEFA that will seek to improve on existing commitments, with a view to realizing an ASEAN Digital Economy, where the seamless and secure flow of goods, services, and data is underpinned by enabling rules, regulation infrastructure, and talent as mandated by the ASEAN Leaders Statement on the Development of DEFA at the 43rd ASEAN Summit on 5 September 2023.
ASEAN Trade in Goods Agreement ATIGA Upgrade
ASEAN is currently negotiating the upgrade of the ASEAN Trade in Goods Agreement (ATIGA). It aims to eliminate 98.64% of all tariffs in the region, projecting ASEAN as the 4th largest single market in the world by 2030 behind the EU, U.S., and China. ASEAN officials aim to conclude ATIGA upgrade negotiations by the end of the first quarter of 2025, and for the agreement to be signed at the sidelines of the 57th AEM – 39th AFTA Council in September 2025. In the meantime, the full implementation of electronic Certificates of Origin (e-COs) started in January 2024. Traders should only submit e-COs through the ASEAN Single Window (ASW) to claim for preferential tariffs under the ATIGA, except in event of system downtime.
Trade Policy Review with India and Canada
ASEAN has ongoing negotiations to review the ASEAN-India Trade in Goods Agreement (AITIGA) and the ASEAN-Canada Free Trade Area (ACAFTA).
