GEORGE TOWN (Jan 16): With global fragmentation and trade protectionism on the rise, Asean’s private sector body — the Asean Business Advisory Council (Asean-BAC) — is advocating for increased regional cooperation across the 10-member state bloc.

Towards that purpose, and to seize Asean's growing position as a prime investment destination amid increasing US-China trade tensions, Asean-BAC is renewing its push for the Asean Business Entity (ABE) initiative to facilitate easier regional business across the bloc.

The Asean-BAC has been promoting the initiative since 2023, under which it proposes that countries in the bloc identify or recognise companies that qualify as an ABE, based on their level of integration and operation within the region, and provide them with additional operational benefits, such as free cross-border movement.

This is crucial for building businesses that operate across Asean, according to Asean-BAC Malaysia chairman Tan Sri Nazir Razak.

"Politically, it (free cross-border movement) is difficult, but for us to build businesses that operate across Asean we need this," Nazir told a press conference here on Thursday.

"We can't tell investors that we're a single market if we cannot move people, move operations. How do we get around it? Well, we allow certain companies to tap on Asean's economies of scale. I think that would be the most meaningful thing to do."

Implementation of this initiative is entirely up to Asean leaders, said Nazir, as he noted Asean-BAC merely provides private sector feedback to the regional bloc.

"This is not up to us (Asean-BAC). This is something that Asean-BAC is putting forward to Asean leaders. It is quite simple. We're not dictating what the benefits are in each country, we just want the concept and then every country can decide what ABE means in their own country," Nazir said.

The ABE initiative revisits the goals of the Asean Economic Community 2015, which promised free movement of skilled labour, among others. It is one of 12 initiatives announced by Asean-BAC to underline its commitment to enhancing economic integration, inclusivity, and collaboration across the region.

There is a higher chance of successful implementation this time around because Asean-BAC is no longer "unrealistic in our expectations", said Nazir.

He also highlighted the "convergence of internationalist leaders in the region", citing as examples Ferdinand Marcos Jr in the Philippines, Prabowo Subianto in Indonesia, Datuk Seri Anwar Ibrahim in Malaysia, and Lawrence Wong in Singapore.

Meanwhile, Nazir said Asean-BAC members, especially those operating in countries highly integrated with the Chinese economy, have expressed concerns over the potential impact of new US tariffs from the incoming Trump administration.

"However, what we would say is, where the external environment is uncertain or hostile, it just becomes more important for us in Asean to trade together, invest together, to create value together," he added.

Other notable initiatives announced by Asean-BAC during the latest media briefing include:

Nazir said the Securities Commission Malaysia is also pushing for the Asean IPO Prospectus, but did not elaborate.

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