Commenting on the ongoing trade talks between the US and Asean members, Asean Business Advisory Council (ABAC) chairman Nazir Razak said the “wish list” of businesses in Malaysia and across Asean was straightforward.
“They are very standard kinds of asks, essentially what we had before — access to US markets and minimising tariffs,” he told FMT.
But he cautioned that trade deals with Washington also needed to ease the demands on Asean member economies, especially since such agreements could not be viewed in isolation.
“There’s still a lot of grey (areas) in terms of the US on zero tariffs from outside, and what that means with other countries,” he said, pointing to the most-favoured nation (MFN) principle which requires Asean to extend the same tariff treatment to all partners.
Nazir also cautioned that Asean could face other knock-on effects. “With a less open US market, there’s a risk of a potential dumping of goods into the region, which in turn could affect ties with other partners.”
Dumping occurs when goods shut out of the US market are diverted into Southeast Asia at cheaper prices, undercutting local producers who may then push for trade restrictions with various partners to protect domestic industries.
“So I think we need to look at getting the best possible deal with the US, but never forget that there’s a bigger picture that has to be managed,” he said.
Deals and deliverables
At the Asean Economic Ministers Meeting in September, US trade representative Jamieson Greer noted that trade talks between the Trump administration and Asean members had gone smoothly.
But these are not the only deliverables arising from Malaysia’s 2025 Asean chairmanship.
This year, the grouping launched the inaugural Asean-Gulf Cooperation Council-China Summit and is preparing to launch the Digital Economy Framework Agreement at the 47th Asean Summit this month.
Nazir urged businesses to take advantage of work already done by ABAC during Malaysia’s chairmanship this year.
He cited examples where the council had helped close cross-border deals, such as a logistics facility in Malaysia developed through Sime Darby Property and YCH Group, and an agreement for a Malaysian company to grow Musang King durians in the Philippines.
“These were deals where companies wanted to move ahead but couldn’t close, so ABAC stepped in to facilitate,” he said.
Nazir added that foreign investors were already lining up meetings during the Asean Business and Investment Summit in October, with hopes that more business-to-business agreements would emerge.
Building momentum beyond one-year terms
He also pointed to longer-term initiatives seeded under Malaysia’s leadership, such as work on an Asean Business Entity framework and a regional initial public offering prospectus.
Acknowledging Asean’s structural problem where rotating chairs change priorities every year, Nazir said ABAC had deliberately chosen projects that could either be institutionalised or landed within 12 months.
“Otherwise, we pick projects that will carry momentum in some fashion,” he said, pointing to how the Asean Business Entity project had already been ingrained in government offices.
“Hopefully, it will continue in terms of policy development within governments,” he added.
“In terms of private markets, in terms of artificial intelligence, philanthropy, carbon markets – all four have been inherited by new councils or committees.”
These include an Asean Private Markets Council and a forthcoming Asean CSR Council.
Nazir said such platforms would give businesses the ability to continuously build on ABAC’s work, even as the chairmanship passes to the Philippines next year.