KUALA LUMPUR (May 26): Malaysia is hopeful the upgraded Asean Trade in Goods Agreement (ATIGA) will help liberalise the market and boost trade among its 10 member countries, Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said.

The enhanced agreement, which is expected to be signed in October this year, could have a positive impact beyond trade in goods, he told Bernama here on Sunday in an exclusive interview.

He said intra-Asean trade is currently at 20% to 24%, and it can be further increased, with the upgrade of ATIGA expected to play a pivotal role.

“In trade, more or less, we have liberalised already, but investment in strategic sectors will take flexibility for Asean countries to understand each other's position, especially when most countries also have to think of their strategic national interests,” he said.

“Malaysia, of course, has slowly been liberalising, and we don't have that condition anymore, unless it's subject to national interest [such as involving] insurance companies,” he said.  

As for non-tariff barriers (NTBs), particularly in financial services and banking, the member countries will need to continuously work on it, said Zafrul. 

While NTBs are a challenge, the minister said a bigger obstacle lies in making regional trade more accessible to micro, small and medium enterprises (MSMEs), which make up 99% of Asean’s business landscape.

He highlighted the importance of inclusive trade policies and support mechanisms such as capacity building, financial assistance and awareness programmes to help MSMEs access regional markets.

In addition, he said the Asean Digital Economy Framework Agreement (DEFA), which is expected to be concluded by the end of 2025, will be a more inclusive trade ecosystem.

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