Asean has concluded the upgrade of two existing trade agreements on Sunday (May 25), and it is expected to be signed at the 47th Asean Summit in October this year, says Tengku Datuk Seri Zafrul Abdul Aziz.
According to the Investment, Trade and Industry Minister, this is the upgrade negotiations on the Asean-China Free Trade Area (ACFTA) 3.0 and the upgrade of the Asean Trade in Goods Agreement (Atiga).
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According to the Investment, Trade and Industry Minister, this is the upgrade negotiations on the Asean-China Free Trade Area (ACFTA) 3.0 and the upgrade of the Asean Trade in Goods Agreement (Atiga).
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NewsTranscript
00:00So let me share a few key outcomes of the 25th AEC Council meeting.
00:11First, the AEC Council welcomed the full completion of Lauer PDR's Priority Economic Deliverables for 2024.
00:21This marked the successful adoption of the roadmap on digital trade standards.
00:25The milestone reflects the continued commitment in advancing the ASEAN's digital economy agenda.
00:32Secondly, on the status of Malaysia's PEDs, the 18 PEDs, I am pleased to report that two of our PEDs for 2025 have been successfully concluded.
00:43These are, one, the full conclusion of the ASEAN-China Free Trade Area 3.0 upgrade negotiations.
00:51And we also have successfully concluded the upgrade of the ASEAN Trade in Goods Agreement, or ATIGA.
01:01So both upgraded agreements are scheduled to be signed at the sidelines of the upcoming 47th ASEAN Leaders Summit in October 2025, of course, here in Kuala Lumpur.
01:11We remain confident that these milestones will serve as a pivotal enabler for ASEAN's sustained growth and competitiveness.
01:18The successful conclusion of these negotiations is expected to enhance the region's economic integration and generate significant economic benefits for ASEAN as we continue to navigate an increasingly volatile global economic landscape.
01:34In particular, the ASEAN Trade in Goods Agreement, ATIGA, which long regarded the cornerstone of ASEAN's economic integration, will now feature forward-looking and commercially meaningful provisions aimed at further boosting regional trade, enhancing supply chain resilience, and also boosting deeper economic integration within ASEAN.
01:54Thirdly, we are also pleased to announce the conclusion of negotiations on the Enhanced Memorandum of Agreement on the ASEAN Power Grid.
02:04This is scheduled to be signed at the 43rd ASEAN Minutes of Energy Meeting in October 2025.
02:11So the ASEAN Power Grid, or we call it the APG, is a strategic initiative in strengthening ASEAN's regional energy security, connectivity, and sustainability.
02:22In this context, we also welcome ongoing work towards the establishment of the APG financing facility framework, which will enhance cross-border flows of FDI and new funding opportunities for regional energy-related projects.
02:37So the ASEAN Council has also expressed full support for the convening of a joint meeting between ASEAN's Energy, Finance, and Economic Ministers in August 2025.
02:49Fourth update, we wish to highlight the status of the ASEAN Economic Community Blueprint 2025, the ASEAN Blueprint 2025, which is now in its final year of implementation.
02:59We are pleased to report that as of April 2025, the overall implementation rate stands at a commendable 97%, comprising 75% completed measures and 22% currently in progress.
03:14The ASEAN Blueprint 2025 has played a pivotal role in shaping ASEAN's economic architecture over the past 10 years.
03:20It has served as a strategic roadmap for building a highly integrated and cohesive ASEAN economy, promoting inclusive and innovation-led growth.
03:30So this blueprint, ASEAN has made significant strides in areas such as trade liberalisation, investment facilitation, SME development, especially micro-SME, digital transformation, and sustainable economic initiatives.
03:43So this implementation rate, when I mentioned 97%, not only demonstrates our collective commitment for economic integration,
03:52but also reinforced ASEAN's ability to respond to global uncertainties in a cool, calm, and calculated manner.
04:00The key learnings and progress under the ASEAN Blueprint 2025 will serve as a solid foundation for the development of the ASEAN Strategic Plan 2026-2030,
04:11which will charge the region next phase of economic growth and transformation.
04:15So in this context, the year 2025 marks another pivotal milestone for ASEAN,
04:20as we prepare to launch the successor to the ASEAN Blueprint 2025,
04:26which is the ASEAN Economic Community Strategic Plan 2026-2030.
04:31So this forward-looking document will be launched as part of the compendium with the overarching ASEAN Community Division 2045,
04:39ACV 2025, and the 46th ASEAN Summit.
04:42Tomorrow, we will witness the signing of the Kuala Lumpur Declaration.
04:46The ASEAN Council reaffirms support and commitment to the effective implementation of the ASEAN Strategic Plan,
04:55which will guide ASEAN's post-2025 Economic Integration Agenda.
05:00And the ASEAN Council also looks forward to the regional socialisation of the ASEAN Strategic Plan.
05:06This will be held on the 12th of June, so all of you are invited.
05:08This will serve as a key multi-stakeholder platform to socialise and share the economic benefits of the ASEAN Strategic Plan.
05:18The ASEAN Council also discussed and reaffirmed support to facilitating and accelerating Timor-Leste's accession
05:24to the required ASEAN Economic Agreements, as outlined in the roadmap adopted by leaders in 2023.
05:31As Chair, Malaysia expressed that Timor-Leste's accession is a priority for our chairmanship in 2025.
05:40We shared our strong view that Timor-Leste's entry as ASEAN 11th Member State will further strengthen our regional economic growth and potential.
05:49We also continued our exchange on economic outlook and continuing uncertainties due to the volatile geoeconomic situation
05:55and their likely impact to the region, taking note of the outcomes of Special AEM and the Special AEM Dialogue Partner Consultations,
06:04as well as the first ASEAN Geoeconomic Task Force meeting, which happened on 16th of May.
06:10The Council acknowledged the need for collective action to respond and address the disruptive global trade policies.
06:18So on that note, I would now like to open the sessions to questions from the media. Thank you.
06:23May we know what are the issues that, is there any issues that has been disagreed in the meeting?
06:29In the meeting, there is no issue that has been disagreed.
06:32The only concern is that we need to move faster on certain arrangements that we have agreed on,
06:40especially on the 18 PEDs. We have completed two, but we need to move faster,
06:45especially on our Digital Economic Framework Agreement, which we feel is a very important agreement to have it concluded,
06:53at least substantially concluded.
06:55And also, we are happy to note on the ASEAN-China progress of the ASEAN-China FTA,
07:03but we are concerned that the ASEAN-India FTA is not moving as fast as it should.
07:09Well, you mentioned that you had a discussion about Trump tariff,
07:14and how can you summarise the direction of the discussion concerning the Trump tariff,
07:22now that you have reached a conclusion about TIGA, as well as expanded by ASEAN-China FTA?
07:35So, on the completion, the conclusion, as I mentioned, we have concluded the discussion
07:43on the ASEAN-China FTA and also the ATIGA, and this will be signed during the meeting in October,
07:50the leaders' meeting in October.
07:53The discussion on Trump, there are many areas that we covered, which are quite important as well,
08:02and when we looked at the issues and the challenges faced by the global economies,
08:08we also looked at what are the challenges faced by the ASEAN economies.
08:13So, we all agreed, and we have already had many meetings on this.
08:17The first meeting was a meeting that we did on the 10th of April, where we came out with a joint statement,
08:24and subsequently, we had meetings with three other dialogue partners.
08:28We had meetings with last week, last Monday, or sorry, last Tuesday.
08:33We had meetings with China, with Japan, and as well as Australia and New Zealand.
08:40And today, we reiterated our positions, and we discussed that it's important that we continue to stand behind the principles of multilateralism,
08:50where we believe in the rule-based multilateral global trading order, with WTO at its core.
08:58We also discussed about the importance that we continue to have a dialogue with the United States,
09:03especially when it comes to engaging the current Trump administration and do not engage, or do not have a policy of retaliation.
09:15So, we don't plan to have any measures that will represent a retaliation to what has been introduced.
09:24And thirdly, we continue to engage our dialogue partners.
09:27You know, ASEAN, as a bloc, is looking at engaging other economic blocs and other plus-one.
09:34For example, we discussed about leveraging on ASEAN's relationship with EU, with CPTPP that we already have,
09:42and also, of course, we have RCEP, and how we can expand on the regional comprehensive economic partnership.
09:48And finally, we also discussed about how ASEAN can also improve the trade within ASEAN member states.
09:56The level today of trade within ASEAN member states is around 23%, so there's a lot of room for improvement.
10:04When we look at other economic blocs, they trade with each other internally more than what ASEAN is doing today.
10:10My question is, do you see bilateral negotiations between specific ASEAN countries and the United States as a possible stumbling block to a united position by ASEAN itself?
10:27And then secondly, you mentioned that ASEAN is also looking at other trading blocs as possible partners, for instance, the European Union.
10:38Can you tell me a little bit more about what specifically ASEAN would stand to benefit to establish links with the trading blocs such as the European Union and perhaps also the BRICS countries?
10:53Yeah. Thank you. So I'll answer the second one first, right?
10:57For ASEAN, as you know, we have various FTAs that we have signed.
11:01I mentioned the plus one, the current one that we have, the one that we want to upgrade.
11:05And it's for the same reasons why we want to try and conclude or at least start engaging, not just with EU, not just with members of CPTPP, which many ASEAN members are also.
11:21We also, like today, the whole idea is ASEAN and GCC.
11:24That's why we have the ASEAN GCC Summit and plus China as well.
11:28And many ASEAN members are also looking at joining BRICS.
11:32Indonesia, for example, is already a member of BRICS.
11:35So it's that for the same reason.
11:36The reason is we believe that a rule-based order, especially when it comes to global trading, will help bring growth in trade and in investment, which will result in prosperity and stability.
11:48So that is the reason.
11:50And we believe working with countries like EU, blocs like EU, and even blocs that already exist, which we are members of, we should expand on that.
12:01For example, on the RCEP, where we are members with other countries, we should also look at expanding that.
12:07So that is the main reason.
12:08So on the discussion, yes, of course, every country is a sovereign nation.
12:14Therefore, we will definitely support each other in ASEAN to continue their bilateral negotiations.
12:22What we have agreed on is what I said earlier, is that we all agree in ASEAN neutrality.
12:29We all agree on ASEAN centrality and the position that we continue to support the principle of multilateralism, and we continue to support the need for engagement.
12:39And every country will have its position vis-Ã -vis United States, and we welcome the engagement that has been done bilaterally by countries of ASEAN, ASEAN member states.
12:51But it is important that in all these meetings, we also reiterate the ASEAN's position when it comes to those factors I mentioned earlier.