From infrastructure integration to free trade deals and billion-dollar aid programmes, Southeast Asia is entering what could be seen as an era of reduced US economic engagement.
Among the key efforts gaining traction is the Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT), an initiative that Thailand’s foreign ministry spokesman Nikorndej Balankura said is showing renewed progress.
He said progress is now being driven by the IMT-GT Implementation Blueprint 2022–2026 and recent agreements such as the Framework of Cooperation (FOC) in Customs, Immigration and Quarantine (CIQ), signed in May.
“This framework aims to enhance border coordination, streamline border procedures, and promote recognition of border inspections and certifications to ease movements of goods and people,” he told FMT on the sidelines of the 58th Asean Foreign Ministers’ Meeting and Post-Ministerial Conferences (AMM-PMC).
Nikorndej said he expects faster customs clearance, more efficient immigration processing and pilot projects, ultimately lowering logistical costs and supporting local economic activity within the next two years.
In parallel, negotiations for the Asean-Canada Free Trade Agreement (ACAFTA) are moving forward, with both sides seeing opportunities in digital trade, artificial intelligence, clean energy and green technologies.
During today’s meeting here between Canada and Asean, foreign minister Anita Anand told Asean ministers that the FTA would help both sides adapt to “trade uncertainty and non-market practices” like dumping and economic coercion.
“So let’s ensure that our negotiators do not get distracted by policy uncertainty in other capitals. They need to work with alacrity and flexibility to finalise the FTA text soon,” she said in her opening remarks.
Separately, Australian foreign minister Penny Wong reaffirmed Canberra’s commitment to Asean, noting that the country is directing its A$1.28 billion development programme to meet the region’s highest needs.
“We know that there is uncertainty in development funding, and we are aware that the impact of global aid cuts is not yet entirely known,” she said during a keynote address at the ISIS Malaysia Forum this morning.
She added that Australian businesses recorded more than A$1 billion in trade outcomes across Southeast Asia last year, a 45% increase compared to previous years.
Under Malaysia’s chairmanship and the theme of “inclusivity and sustainability”, Asean is working to boost economic security by building new partnerships, such as through the Asean-GCC-China summit and a geoeconomic task force.