Malaysia Calls For Stronger ASEAN Integration To Boost Manufacturing Competitiveness

By Anas Abu Hassan

SINGAPORE, July 31 (Bernama) -- Malaysia has called on ASEAN member states to strengthen regional integration and compete collectively with global manufacturing regions, instead of competing among themselves.

Malaysian Investment Development Authority (MIDA) Singapore director Vinothan Tulisinathzan said the dynamic shift in the global supply chain presents an opportunity for the bloc to position itself as the new leader of global manufacturing region.

“Rather than every country trying to do everything, ASEAN should leverage each other's competitive strength.

“Companies now want resilience, diversification, multiple supply sources; and that naturally favours ASEAN,” he said during a fireside chat at the breakout session, “Building Industrial Competitiveness: Powering Malaysia's Next Phase of Growth”, held in conjunction with the 10th ASEAN Conference on Friday.

The two-day event beginning Thursday, themed “ASEAN's Future in a Fractured World”, was organised by the Singapore Business Federation (SBF).

Vinothan emphasised that Malaysia has been playing its role to become one of the key orchestration hubs within the regional value chain.

To further boost intra-ASEAN trade, he urged member states to focus on making it easier for businesses to operate across borders.

“The next phase of ASEAN is not about reducing tariffs; it is about reducing friction,” he said, adding that Malaysia leads the way with the inception of the Johor-Singapore Special Economic Zone (JS-SEZ).

Meanwhile, Vinothan highlighted that Malaysia is now looking to improve the quality of investments coming into the country, as its investment paradigm has changed towards value creation.

He said Malaysia offers an integrated industrial ecosystem that enables investors to innovate, manufacture and scale up their operations while serving not only the regional market but also global markets through the country's established manufacturing network.

According to him, the integrated ecosystem is one of Malaysia's greatest competitive advantages in attracting high-quality investments.

“Malaysia offers investors an integrated ecosystem, where advanced manufacturing, digital infrastructure, sustainability, and talent also come together to support the long-term growth,” he added.

-- BERNAMA