ASEAN ‘compelling’ for businesses looking for long-term growth amid tensions: Tan See Leng
Singapore is due to take over the ASEAN chairmanship on Jan 1, 2027.
Businesses are increasingly considering ASEAN as a potential region for long-term growth and stability, despite global trade tensions, according to Singapore's Minister for Trade and Industry (Energy and Industry) Tan See Leng. Speaking at a US-ASEAN Strategic Business Forum on September 4, Tan emphasized ASEAN's resilience, deepening integration, and openness to the world as vital factors for businesses.
The region, which is the world's fourth-largest economy with a GDP of approximately US$4 trillion, accounts for around 700 million people, making it the third-largest population after China and India. Despite facing challenges in 2025, ASEAN's economy grew by about 4.5%, attracting nearly 15% of global foreign direct investment, valued at over US$240 billion.
Tan cited ASEAN's robust economic linkages, which enable companies to tap into regional production networks, capabilities, and consumer markets, offering opportunities for growth even during disruptions. He highlighted ASEAN's response to the recent energy crisis, where the region maintained open trade and avoided export bans on essential goods amid rising oil prices and strained supply chains.
ASEAN is also working towards enhancing its resilience by ratifying the ASEAN Petroleum Security Agreement and finalizing the ASEAN Trade in Goods Agreement by the end of 2026. Tan stressed that ASEAN's value lies in connecting its 11 economies, making it easier for goods, services, capital, data, energy, and people to move across borders, thereby reducing friction for businesses.
The region is actively working towards signing the Digital Economy Framework Agreement at the upcoming 49th ASEAN Summit in November, which aims to establish common rules on cross-border data flows, electronic payments, and cooperation in emerging technologies such as artificial intelligence. ASEAN remains open to established partners and is also building ties with new ones, as evidenced by recent upgrades to the ASEAN-Australia-New Zealand free trade agreement (FTA) and ongoing discussions with Canada for a free trade agreement and with South Korea to upgrade the ASEAN-Korea FTA.
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