US TRADE MOVE SPARKS ASEAN ECONOMIC RESPONSE

BANDARAYA MELAKA, July 8 – The recent imposition of US trade tariffs has sparked economic shifts across Southeast Asia, placing ASEAN member states at the centre of a rapidly changing global trade environment.

Chairman of the Center for Economic and Sustainable Development Asia (CESDAsia), Adjunct Professor Datuk Lim Sue Beng, said the tariffs, while intended to protect domestic industries, have inadvertently triggered a restructuring of global supply chains.

Delivering his welcome address at the Asia Trade Conference 2025, Datuk Lim said the implications for ASEAN economies are multifaceted. While countries such as Vietnam, Malaysia and Thailand may experience short-term gains from redirected foreign investment, their export-dependent sectors are now facing heightened volatility and uncertainty.

“As policymakers and business leaders across the region weigh the consequences, ASEAN’s collective response will be crucial in shaping long-term resilience,” he said.

He added that regional frameworks such as the Regional Comprehensive Economic Partnership (RCEP) offer a strategic platform to cushion external shocks and to realign policies toward sustainable growth.

“In response to these shifting dynamics, ASEAN nations are already rolling out initiatives to enhance economic self-reliance. Indonesia is expanding its nickel downstreaming efforts, Singapore is positioning itself as a fintech innovation hub, and the Philippines is increasing investments in renewable energy, all part of a broader push toward value-added industries and future proof development,” he said.

“These efforts reflect ASEAN’s commitment to adaptability and unity, even as global economic challenges continue to intensify,” Datuk Lim noted.

Earlier, the conference was officiated by the Governor of the state of Melaka, Tun Seri Setia Dr. Mohd Ali Mohd Rustam.

The Asia Trade Conference 2025 attracted the participation of more than 100 delegates from within and outside the country.

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