KUALA LUMPUR (April 8): Malaysia will lead discussions with Asean leaders on Thursday on crafting a unified regional response to the recent reciprocal tariff announced by US President Donald Trump, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

Underscoring the importance of collective regional action, the minister highlighted the potential impact of the sweeping US tariff, warning it could significantly disrupt Asean's decade-long trajectory of steady economic growth. 

"Today, Asean’s future growth is at risk of being seriously derailed. The recent US tariff announcement has rocked the markets and created uncertainty, particularly for open trading nations and highly export-driven economies like Malaysia, Singapore, Indonesia, Thailand, Vietnam and the Philippines," he said during his closing keynote address at the Asean Investment Conference 2025 on Tuesday.

Malaysia, as the Asean chair this year, has scheduled a Special Asean Economic Ministers' Meeting for Thursday morning to deliberate on a coordinated response. Zafrul confirmed that all Asean member states would be represented at the meeting.

"What we are planning to do is discuss and reach consensus decisions and recommendations in the spirit of Asean centrality. We will then bring it up to the Asean leaders for them to discuss, adopt and come up with a statement," Zafrul told reporters at the sidelines of the conference.

The minister added that the meeting would specifically address whether the US reciprocal tariffs announced on April 2 are "fairly reflective" of reciprocity principles. 

"That definitely will be one of the discussions; whether we think it's fair or not," he emphasised.

Additionally, discussions will focus on ways to enhance intra-Asean trade and investment to bolster the region's economic resilience. "It’s important that we find as many areas or issues of common interest when it comes to our approach with other groups, be it the US or China or India or even the EU [European Union] or other economic blocs," he said.

Asean, or the Association of Southeast Asian Nations, lists 10 member states, namely Malaysia, Brunei, Thailand, Vietnam, Cambodia, Lao PDR, Myanmar, the Philippines, Singapore, and Indonesia.

The association's Indo-Chinese member states were the hardest hit by the tariffs, with Cambodia slapped with baseline and retaliatory tariffs totalling 49%, followed by Laos (48%), Vietnam (46%), and Myanmar (44%).

Meanwhile, Thailand was hit with tariffs of 36%, followed by Indonesia (32%), Brunei and Malaysia (24%), the Philippines (17%), and Singapore at a baseline tariff of 10%.

Among measures underpinning Asean’s united stance against the US tariffs is the upgrading of the Asean Trade in Goods Agreement (ATIGA). 

Zafrul said the government is committed to advancing negotiations aimed at reducing non-tariff barriers, harmonising regulations, and enhancing transparent, efficient supply chains across the region.

“We also aim to finalise negotiations on the Asean Digital Economy Framework Agreement (DEFA) during Malaysia’s chairmanship year. This will be Asean’s first legally binding pact on the digital economy, covering data flows, cybersecurity, artificial intelligence (AI) governance and digital inclusion,” he said.

Another important measure is the upgrading of the Asean-China Free Trade Agreement (ACFTA) and the Asean-India Trade in Goods Agreement (AITIGA), which are expected to deepen and diversify Asean’s trade ties with two of the world’s most populous markets.

Zafrul further highlighted the importance of fully utilising the Regional Comprehensive Economic Partnership (RCEP), which brings together Asean with partners such as Australia, China, Japan, and South Korea — collectively representing about 30% of the global population and GDP.

Zafrul also noted that the regional bloc had previously established the Asean Geoeconomic Task Force at the Asean Economic Ministers’ Retreat earlier this year, consisting of deputy trade and economic ministers across the region, to address such challenges.

Domestically, under Prime Minister Datuk Seri Anwar Ibrahim's directive, Malaysia has activated the National Geoeconomic Command Centre (NGCC), Zafrul said. He described it as "a whole-of-government unit mandated to assess exposure, coordinate inter-agency responses, and protect national economic interests through clear, data-driven strategy."