Asean’s challenge is becoming resilient, or risk absorbing global shocks: former Indonesia trade minister
Ongoing US-China tensions, Strait of Hormuz crisis and AI developments change the game, she says at AmChamSG event
Former Indonesian Trade Minister Dr Mari Elka Pangestu addressed the challenges facing ASEAN at the 2026 American Chamber of Commerce in Singapore Regional Economic Conference. She emphasized that ASEAN must strive for its own resilience, rather than simply absorbing global shocks. Until 2016, ASEAN benefited from a multilateral trading system, but recent developments such as tensions between the US and China, the Strait of Hormuz crisis, and rapid AI developments have shifted the landscape.
Dr Pangestu highlighted the increasing unilateralism as a major concern, as it threatens the region's growth model that relies on openness and a rules-based global order. She noted that Asean has shown adaptability by adjusting to new trade disruptions and accelerating the production of renewables. However, she warned that certain countries are turning to trade restrictions and industrial policy to secure economic interests, which could lead to over-securitization.
To address this, she proposed a six-layer strategy for evaluating trade flows, with the final layer determining economic security risk. Dr Pangestu cautioned that Asean nations must carefully manage their relationship with China, particularly in areas such as electronics manufacturing and electric vehicles. She also pointed out the investment flux caused by increased relocation of Chinese companies to ASEAN.
As for AI, she stated that nearly all manufacturers have some form of AI policy, but many struggle to integrate it into their operations. Dr Pangestu emphasized that Asean should not be forced to choose sides in the AI debate and should instead seek to benefit from both approaches.
Written by urgent.news from The Business Times - Singapore's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
