ASEAN MUST EXPAND ECONOMIC ZONES AT MEMBER STATE BORDERS - ECONOMIST

By Ahmad Erwan Othman and Norsyafawati Ab Wahab

KOTA TINGGI, Feb 26 (Bernama) -- Malaysia, as the chair of ASEAN 2025, needs to promote the establishment of cross-border economic zones among members to enhance economic potential among their neighbouring countries, similar to the Johor-Singapore Special Economic Zone (JS-SEZ) model.

Economist Prof Dr Barjoyai Bardai suggested that member countries like Indonesia could establish a special economic zone with Australia, while Thailand could collaborate with Cambodia, Laos, and Vietnam.

"Such initiatives could drive stronger regional economic growth, potentially surpassing other unions worldwide.

"If achieved, we will truly be able to highlight that ASEAN is a 'region', perhaps a larger area, with more robust growth compared to the European Union," he told Bernama when contacted during the 31st ASEAN Economic Ministers' Retreat (AEM) and related meetings held in Desaru from Feb 22 to 28.

Further commenting, Barjoyai noted that this initiative could reshape Western perceptions of ASEAN,  transforming it from merely 10 developing countries into a significant investment region.

"By prioritising economic cooperation and open borders among member nations, ASEAN can focus on industries that leverage regional advantages, particularly those involving natural resources and rare earths," he said.

In Malaysia, a special economic zone could also be developed in the northern peninsula, spanning Kelantan to Perlis along the Thai border, with potential zones that could also emerge in Kalimantan, Indonesia, and Brunei, which are near Sabah and Sarawak.

Barjoyai also highlighted that broader regional cooperation could help fulfil Prime Minister Datuk Seri Anwar Ibrahim’s aspiration to support ASEAN members with lagging economic growth.

"Rather than limiting agreements to bilateral deals, we should encourage region-wide cooperation among ASEAN countries. This approach would ensure that all ASEAN nations benefit equally, fostering a unified economic vision," he added.

The AEM retreat and its related meetings began with the 12th ASEAN Economic Community Work Group Meeting on Feb 22-23, followed by the High-Level Task Force on ASEAN Economic Integration Meeting on Feb 24-25.

The Senior Economic Officials' Preparatory Meeting takes place from Feb 26-27, culminating in the AEM Retreat on Feb 28, chaired by MITI Minister Tengku Datuk Seri Zafrul Abdul Aziz.

During the retreat, ministers are expected to discuss 18 Priority Economic Deliverables aimed at strengthening regional integration, enhancing inclusiveness, promoting sustainability, and stimulating digital trade in ASEAN.

More than 200 representatives from the 10 ASEAN member countries and observer nation, Timor-Leste are attending the event.

-- BERNAMA