PRAXIS 2024 for ASEAN's Growth and Regional Integration

Kuala Lumpur, 13 August 2024: Dr Lili Yan Ing, ERIA's Senior Economist and the IEA's Secretary General, was invited to deliver a speech at PRAXIS 2024, themed 'For a Better Future.' The event was hosted by the Institute of Strategic and International Studies (ISIS) Malaysia in collaboration with the Malaysian government, marking Malaysia's upcoming ASEAN Chairmanship in 2025. The Chairman of ISIS Malaysia, Datuk Prof Dr Mohd Faiz Abdullah, delivered the welcome address, followed by a special message from the Prime Minister of Malaysia, YAB Dato' Seri Anwar bin Ibrahim. Keynote speeches were given by YB Senator Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz, Minister of Investment, Trade and Industry, and YB Tuan Sim Chee Keong, Minister of Human Resources, during the Trade and Human Capital sessions, respectively.

In the first spotlight session, moderated by Jaideep Singh, Dr Ing discussed how Southeast Asia, particularly Singapore, Malaysia, and Viet Nam, might benefit from global geopolitical uncertainty and US-China tensions. She noted that Southeast Asia could experience short-term gains from import diversification and foreign direct investment (FDI) relocation. Dr Ing highlighted that ASEAN exports to the US increased from US$185 billion in 2018 to US$270 billion in 2023, driven mainly by machinery, electronics, and semiconductors that substitute Chinese products. However, she cautioned that persistent US-China tensions could pose long-term challenges, such as increased production costs and inflation, potentially reducing overall welfare. This perspective was shared by ISIS Malaysia's Senior Fellow, Arividya Arimuthu, and MITI's Director of Strategic Negotiations, Rozieyanahayu Ab Rahman.

In response to a question about ASEAN's internal competition, particularly in the semiconductor industry, and how ASEAN can advance regional integration, Dr Ing acknowledged that while ASEAN nations compete in various sectors such as palm oil, mining, agricultural products, automobiles, electronics, and semiconductors, healthy competition is beneficial if it remains 'fair and square'. She pointed out that in the semiconductor industry, ASEAN countries collaborate within a conducive regional production network. Singapore specialises in wafer fabrication, contributing about 11% of global wafer fabrication exports in 2023; Malaysia focuses on assembly, testing, and packaging (ATP), accounting for 5% of global ATP in the same year; and Viet Nam is an emerging player.

Looking ahead to Malaysia's ASEAN Chairmanship in 2025, MITI's Director, Rozieyanahayu, emphasised the importance of increasing awareness of RCEP and CPTPP, focusing on sustainability, and promoting inclusive growth. Dr Ing suggested two key priorities: first, developing a long-term vision for ASEAN with annual targets and a progress evaluation system, and second, considering the establishment of an 'ASEAN Digital Community' to reflect the growing importance of digitalisation, industrial robots, and AI in the region.

Photos Credit: PRAXIS

Dr Lili Yan Ing's Presentation

Publication: Robots and AI (A New Economic Era)

Publication: ASEAN Digital Economy 2045