ASEAN Confidence Remains Strong Despite Heightened Regional Tension

KUALA LUMPUR, Dec 17 (Bernama) -- ASEAN confidence remains strong despite developments and heightened attention surrounding regional tension, including the situation between Thailand and Cambodia.

In a statement today, Malaysia-Cambodia Business Association (MCBA) president Datuk Seri Ricky Yaw said the fundamental structure and long-term attractiveness of the ASEAN Economic Community remain solid.

“Any moderation in investment pace reflects prudent risk management and diversification rather than a loss of confidence in the region.

bootstrap slideshow

“Businesses are less concerned about geopolitics itself and more focused on whether such developments could affect investment security, business stability, cross-border trade and supply chain execution,” he said.

Yaw said there has been no large-scale withdrawal of foreign investments from Cambodia or the ASEAN region, based on observations and feedback from member companies.

However, he noted that investors are adopting a more cautious approach when making new investment decisions, particularly those involving long-term capital commitments.

bootstrap slideshow

“Under the current environment, businesses are paying closer attention to practical operational risks, including cross-border logistics and customs efficiency, project execution and payment cycles, and currency fluctuations and cost volatility.

“These factors are prompting companies to reassess supply chain structures and regional operating strategies to enhance resilience and flexibility,” he added.

He said any slowdown in Thailand-Cambodia trade flows could lead to a redistribution of orders and investments, with MCBA members already evaluating alternative ASEAN locations.

“In this context, Malaysia is well-positioned — supported by political stability, mature institutions, a conducive business environment and strong bilateral relations with Cambodia — to capture new opportunities in manufacturing, logistics, professional services and regional coordination,” he said.

He reassured members that the current tension remains confined to specific border areas and has not affected major cities, business operations or commercial activities in Cambodia.

“While regional uncertainty presents challenges, it also reinforces the importance of sound risk management and long-term planning.

“As long as the situation does not escalate, ASEAN will remain a key region for global business expansion,” he said, adding that MCBA plans to organise an exhibition in Cambodia next year, providing Malaysian companies with a platform to showcase their products and explore new partnerships.

-- BERNAMA