The bloc is actively working as an organisation to remove barriers to intra-regional trade
WHILE the world debates the next chapter of globalisation, it’s a case of full steam ahead in Asean markets.
Investors are flocking to the region, drawn by its trade links, digital transformation and the demand for sustainable infrastructure.
Less visible, but of vital importance, is the work that Asean is doing as an organisation to integrate its 10 member states.
Foreign direct investment (FDI) keeps flowing into the South-east Asian bloc, even as it has retreated in some other parts of the world. The region’s total FDI in 2023 was US$226 billion, second only to the United States. This represented a 17 per cent share of world FDI, compared to just 8.2 per cent in the years between 2015 and 2019.
As the International Monetary Fund reported in November, Asean members are expanding trade not only with the United States and China, but with the world more generally. We noted previously that Asean, through its membership in trade agreementssuch as the Regional Comprehensive Economic Partnership, is acting as a gateway between Asia and other regions, particularly for “South-South” trade.
Asean – the life within
However, in the view of Standard Chartered’s Future of Trade report, the fastest growing trade corridor is likely to be within Asean itself. We expect annual growth of intra-Asean trade to be the fastest of any such corridor in the world, averaging 8.7 per cent a year until 2030.
