Malaysia, Singapore eye stronger business links to boost intra-Asean trade

On October 1, Malaysia and Singapore discussed ways to strengthen business relationships and increase intra-Asean trade, during their Third Annual Ministerial Dialogue. The meeting, attended by Deputy Prime Minister Gan Kim Yong of Singapore, aimed to leverage the countries' strengths in supply chains, digital economies, and key industries.

Datuk Seri Johari Abdul Ghani, Malaysia's Minister of Investment, Trade, and Industry, emphasized the potential for greater trade and business linkages among Asean member states, with the long-term goal of increasing the share of intra-Asean trade. Currently, intra-Asean trade represents only about 50-60% of the total trade among the 11 Asean countries, valued at US$4.37 trillion.

Johari also highlighted the importance of the Asean Digital Economy Framework Agreement (DEFA), which Malaysia proposed during its Asean chairmanship in 2025. Singapore, as the current Asean chair, will take the lead in implementing DEFA as a strategy to boost intra-Asean trade.

Johari stressed that Asean could leverage stronger regional connectivity across various sectors, particularly supply chains, food security, and electrical and electronics (E&E). While not all industries are involved, focusing on these areas can benefit from Singapore's strong connectivity. The annual ministerial dialogue between Malaysia and Singapore serves as a platform to identify and address issues affecting bilateral trade, services, and economic activities.