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

KUALA LUMPUR, Oct 1 — Malaysia and Singapore are seeking to strengthen their business ties within the Association of Southeast Asian Nations (Asean) to increase intra-Asean trade, according to Johari Abdul Ghani, Malaysia’s Minister for Investment, Trade, and Industry. During the Third Annual Ministerial Dialogue between Malaysia’s Miti and Singapore’s Ministry of Energy, Trade, and Industry (Meti), Johari highlighted their potential to leverage supply chains, the digital economy, and key industries to boost trade and connectivity within the region.

He noted that Asean's total trade among its 11 member countries stands at US$4.37 trillion, but intra-Asean trade accounts for only about US$800 billion to US$900 billion. Johari emphasized that the ultimate goal was to see half of the total Asean trade conducted within the region, with Singapore taking the initiative as the current Asean chair.

He also mentioned the Asean Digital Economy Framework Agreement (DEFA), a strategy proposed by Malaysia during its Asean chairmanship in 2025, which could further enhance intra-Asean trade. Johari highlighted that Asean could focus on leveraging stronger regional connectivity across various sectors, including supply chains, food security, and electrical and electronics (E&E).