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Latest ASEAN news

MedTech in ASEAN: The New Frontier

The UK Government, through the UK Foreign, Commonwealth & Development Office and in collaboration with ASEAN, has launched an online toolkit to encourage cross-ASEAN trade and investment to strengthen regional supply chains for medical technologies. The toolkit showcases the attractiveness of the ASEAN MedTech sector, complemented by interactive tools for MSME use.

 

ASEAN is among the world’s fastest-growing markets for MedTech, with a projected compound annual growth rate of 9.2% - faster than the global average of 6.8%. There are multiple advantages that make the ASEAN region ideal for MedTech investment: an attractive labour market, availability of raw materials, evolving infrastructural support, integrated supply chain and a growing and dynamic market have made ASEAN the top destination for both ASEAN & international investors, as evidenced by strong growth in foreign direct investments.

 

This toolkit:

  • Consolidates top of mind questions for MedTech MSMEs & global firms to explore pan-ASEAN investment
  • Serves as a knowledge base to understand incentives & regulations across MedTech opportunities
  • Discovery platform for MSMEs on supplier database and/or navigate suppliers in the region
  • Showcases case studies how global MedTech companies have leveraged strengths of each ASEAN country to set up a regional value chain.

Visit www.aseanmedtech.com to find out more.

Launched: ASEAN Intellectual Property (IP) Register

ASEAN and WIPO launched the ASEAN Intellectual Property (IP) Register at the 55th ASEAN Economic Ministers' Meeting. The Register, powered by a state-of-the-art information exchange system and maintained by WIPO, is a one-stop IP information portal that incorporates up-to-date IP data on patents, trademarks and designs from all ten ASEAN Member States (AMS). It enables all stakeholders from policy-makers to private sectors and innovators to conduct IP searches seamlessly for the ASEAN region.

Access the ASEAN IP Register here.

Source: ASEAN Secretariat

ASEAN Tariff Finder has been launched

ASEAN Tariff Finder is an online platform designed to support traders to maximise benefits from ASEAN’s free trade agreements. This is a tool to help businesses, especially Micro, Small and Medium Sized Enterprises to get the latest information on the preferential tariffs applied by ASEAN Member States under various multilateral/bilateral free trade agreements. It also sets out the rules of origin criteria used to determine a product’s eligibility for preferential tariff treatment. With this search engine, traders will save time and resources in their transactions, since all tariff information they need is now readily available on the website. 

Access the ASEAN Tariff Finder HERE

E-invoicing offers $95B in savings for MSMEs in ASEAN—report

The potential economic benefits of electronic invoicing or e-invoicing in the Association of Southeast Asian Nations (ASEAN) are immense, with estimated savings of US$94.55 billion for 70.6 million micro, small, and medium enterprises (MSMEs) in the region, according to new research.

A policy brief by the Economic Research Institute for ASEAN and East Asia (ERIA) says the ASEAN e-invoicing market has been experiencing significant growth in recent years. The market registered a compound annual growth rate (CAGR) of 15% from 2021 to 2028 and is projected to have a CAGR of 17.4% by 2030. The market value is expected to rise from $500 million in 2020 to $1.5 billion in 2028.

E-invoicing is a vital component of paperless trading, delivering substantial cost savings and efficiency gains for businesses. It significantly accelerates payments to businesses, saving up to $6 per invoice in processing costs, according to the brief. It also reduces invoice errors by 50%, minimizes disputes, and decreases invoice rejections.

Additionally, e-invoicing offers cost reductions ranging from $1 to $2.09 per invoice. This translates to potential processing cost savings of up to 70% compared to manual or PDF-based invoice processing.

The ERIA policy paper notes that the notable growth of the ASEAN e-invoicing market is being spurred by initiatives from tax authorities, public procurement agencies, and business digitalization programs.

Among these initiatives are the ASEAN Digital Trade Standards and Conformance Working Group, the Bandar Seri Begawan Roadmap, the ASEAN Digital Masterplan 2025, and the ASEAN Digital Economy Framework Agreement. These aim to foster e-invoicing interoperability, establish common standards, and advance regional integration.

However, adoption across the region still faces significant challenges, including disparities in IT infrastructure, fragmented data policies, cybersecurity concerns, and limited private sector uptake.

Overcoming these barriers is essential to building a secure and efficient e-invoicing ecosystem, states the policy paper issued last December.

To address these challenges, ASEAN has introduced initiatives to foster interoperability, develop common standards, and support regional integration.

“By prioritizing standardization, offering government support, and encouraging private sector adoption through financial incentives and capacity-building efforts, ASEAN can accelerate trade digitalization and enhance economic integration across the region,” the publication says.

In the case of MSMEs, while e-invoicing promises sizable savings, adoption is impeded by high implementation costs, information gaps, and limited technical capacity.

These hurdles can be addressed through enhanced outreach, training programs, and standardization to improve private sector uptake. The research authors also recommend the provision of government incentives such as early registration vouchers for MSMEs and financial grants for larger companies implementing IT systems to drive widespread adoption.

To promote e-invoicing interoperability within the region, the report calls for the following strategic actions: promote collaboration and harmonize standards, align regional initiatives with international frameworks, adopt flexible implementation models, develop a standardized e-invoicing format, implement robust cybersecurity protocols, and support private sector adoption through financial incentives and capacity-building programs.

E-invoicing involves the electronic exchange of structured invoice data between a supplier and a buyer. It allows for automatic processing with minimal human intervention. Unstructured formats such as PDF or scanned paper invoices are not true e-invoices, as they do not enable automated data exchange between accounting systems.

January 10, 2025

Cambodia to launch new REC scheme to boost sustainability

A new renewable energy certificate (REC) system will soon be introduced to encourage the growth of renewable energy and support manufacturing factories through boosting competitiveness and enhancing market access of Cambodia’s manufacturing sector in the global market.

RECs represent proof that electricity was generated from renewable energy sources like solar or wind power and delivered to the grid.

The REC system provides a practical and transparent pathway for business to support Cambodia’s renewable energy transition while meeting the growing demand for sustainable practices in global markets, said Keo Rottanak, Minister of Mines and Energy.

Designed with transparency and accountability at its core, the system provides a credible mechanism for businesses to demonstrate the support for renewable energy, he said.

REC plays a vital role in Cambodia’s strategy to meet international environmental standards and help industries create low carbon traceable supply chains demanded by global markets, Rottanak said during a consultation workshop on the Preparation of Prakas on Renewable Energy Certificate REC Mechanism in Cambodia, held last week.

“In early 2025, manufacturing factories can apply for a Renewable Energy Certificate from Electricite du Cambodge (EDC) to increase market opportunities for their products in the global market,” the minister said.

To implement this electricity, EDC will manage a single buyer model that suits Cambodia current market conditions.

For full article, please read here

Source: Khmer Times

Cashew export to surge in 2025, focus on European markets

The cashew nut exports are expected to increase significantly in 2025, with a focus on the European market, a senior official of the Cashew nuts Association of Cambodia (CAC) told Khmer Times.

Approximately 6,000 stores in France have begun selling Cambodian cashews in the first phase.

Vice President of the CAC Suy Kokthean said, “I am fully confident that cashew exports will increase significantly in 2025, as the factories now operating are large-scale facilities with the capacity to produce for export. As a result, overall exports in the cashew sector will experience substantial growth in 2025.”

He said that the European Community (EC) offers many incentives to promote the export of cashew products, and Cambodia has actively participated in exhibitions in Paris with great enthusiasm to showcase its products.

Regarding the Vietnamese market, Kokthean said that Cambodia still maintains contacts and focuses on it because Vietnam is the largest country that buys raw cashews from Cambodia at good prices.

“We continue to maintain relations with Vietnam to sell raw cashew nuts, as Cambodia has not yet reached its full capacity to process them. The next target market is China, as many Chinese investors have recently approached us to purchase both raw and processed cashew nuts,” Kokthean emphasised.

In addition, CAC has been working diligently with private companies, focusing on the European market. Specifically, the association has collaborated closely with sellers from Turkey and expects to expand its presence in the Turkish market next year. This is made possible by the association’s representatives and sales teams in Turkey.

For full article, please read here

Source: Khmer Times

Brunei ranks 13th in Islamic Finance Development 2024 report

Brunei Darussalam ranked 13th out of 136 countries globally in the latest Islamic Finance Development Report 2024: From Niche to Norm, according to a press release from the Brunei Darussalam Central Bank (BDCB).

The report reveals that Brunei Darussalam achieved 29 points on the Islamic Finance Development Indicator (IFDI) 2024, which measures the development of the Islamic finance industry based on data in 2023.

Meanwhile, the global average score increased to 12 in 2024 from 9 in the previous year. 

The IFDI highlights another strong year for the global Islamic finance industry, with total assets increasing by 11 per cent from USD4.5 trillion in 2022 to USD4.9 trillion in 2023. Strong performances across key sectors drove this growth, and the IFDI forecasts total global assets to reach USD7.5 trillion by 2028, signalling sustained growth in the sector.

Islamic banking saw a robust growth of 12 per cent in 2023, reaching USD3.6 trillion in assets, with Afghanistan, Iraq, and Bahrain leading in growth rates. Sukuk followed closely, rising by 9 per cent, driven by increased sovereign issuances to maintain yield curves in key markets, sizeable offerings from non-traditional markets, and a notable rise in green and sustainability sukuk issuances, bringing the total outstanding amount to USD863 billion.

The takaful sector experienced modest growth, reaching USD86 billion, hindered by competition from conventional counterparts, a limited range of Syariah-compliant options, and pressures from the monetary tightening cycle.

Source: Borneo Bulletin

Read the full article here

Sultanate’s export volume rises

The export volume index in the third quarter (Q3) of 2024 rose by 14.4 per cent compared to the same period in the previous year.

The increase was primarily driven by growth in the export volume indices of inedible crude materials (26.9 per cent), machinery and transport equipment (16.9 per cent) and mineral fuels (15.4 per cent).

However, the export unit value index declined by 4.9 per cent, resulting in a decrease in export value from BND4,092.4 million to BND3,600.9 million.

The decrease in the export unit value index was mainly due to a decline of 18.5 per cent in miscellaneous manufactured articles index, driven by lower unit values for professional, scientific, and controlling instruments and apparatus.

This was followed by a 7.2-per cent decrease in the manufactured goods index and a 6.1 per cent decline in the chemicals index

The import unit value index fell by 6.8 per cent compared to the previous year, lowering imports value from BND2,624.5 million to BND2,383.3 million.

The decrease was mainly due to the decline in the indices of manufactured goods (22.5 per cent), mineral fuels (9.8 per cent), and machinery and transport equipment (0.4 per cent).

The import volume index in Q3 2024 decreased by 1.1 per cent, primarily due to a 10.1 per cent decline in the index of mineral fuels, driven by a reduction in the imports volume of petroleum products and related materials.

This was followed by decreases in the volume indices of chemicals (8.0 per cent) and manufactured goods (6.0 per cent).

Source: Borneo Bulletin

Read the full article here

Brunei economy grows 6pc in Q3

Brunei Darussalam’s gross domestic product (GDP) at constant prices, grew at six per cent year-on-year in the third quarter (Q3) of 2024. This growth was driven by a 12.9 per cent expansion in the oil and gas (O&G) sector, while the non-O&G sector saw a growth of 0.3 per cent.

According to Department of Economic Planning and Statistics, the growth of the O&G sector was driven by higher production of crude oil, natural gas and liquefied natural gas (LNG). The increase in crude oil and natural gas production was driven by new O&G wells, while the increase in LNG production was attributed to a higher gas supply.

The non-O&G sector showed moderate growth in Q3, supported by expansions in subsectors such as fishery (25.5 per cent), electricity and water (15 per cent), water transport (10.2 per cent) and education (3.3 per cent).

The growth in the fishery subsector was mainly contributed by increased production in capture fisheries. Growth in the electricity and water subsector was supported by increase in electricity production and expanded waste management activities. The expansion in the water transport subsector was linked to higher LNG exports. Meanwhile, the education subsector grew in tandem with increased activities in tertiary education.

In terms of GDP contribution by economic activity, the industry sector contributed 60.1 per cent, followed by the services sector at 38.6 per cent and the agriculture, forestry and fishery sector at 1.3 per cent.

The Sultanate’s GDP at current prices stood at BND5.03 billion in Q3 2024, up from BND4.98 billion in Q3 2023. The O&G sector accounted for 46.4 per cent, comprising O&G mining and manufacture of LNG. The non-O&G sector contributed 53.6 per cent of GDP, mainly comprising downstream activities such as the manufacture of petroleum and chemical products.

By the expenditure approach, the increase in GDP growth in Q3 2024 was primarily driven by a 6.2 per cent increase in household final consumption expenditure, followed by a 1.5 per cent rise in government final consumption. However, gross capital formation contracted by 3.9 per cent and exports of goods and services also declined by 12.5 per cent.



Source: Borneo Bulletin

Read the full article here

ASEAN aims to boost intra-regional trade through better transport connectivity

KUALA LUMPUR: The Association of Southeast Asian Nations (ASEAN) is looking to improve economic growth and trade within the region through building better transportation and logistics networks.
 
This would also allow member states to insulate themselves from rising geopolitical and economic risks. 
 
But the task ahead for the trading bloc remains challenging, as countries have to work on simplifying customs clearance and removing red tape, said observers. 

REDUCING BUREAUCRACY

“Within ASEAN, we have done quite well,” said Malaysian Transport Minister Anthony Loke, highlighting the grouping’s open skies policy that increases regional connectivity. 
For maritime, there are plans for the digitalisation of the region’s ports, so they can share information with each other and become more competitive, he added. 

“The rail network (is also) important. There are missing links which have been rectified right now, especially between Laos and China.”

In June, the first ASEAN Express cargo rail service connecting Malaysia to China via Thailand and Laos was launched. 

The journey is supposed to take just eight days but instead takes nearly two weeks due to gauge change and customs clearance at the borders.

In rail transport, track gauge refers to the distance between the two rails of a railway track. Several different track gauges exist worldwide, presenting a barrier to wider operation on rail networks.

This happens at the border between Thailand and Laos, as the latter's railway differs from Malaysia's and Thailand's. Each container box has to be lifted by cranes to a different track. 

Mr Loke stressed that there is a need to reduce the bureaucracy. 

“It's a win-win for everyone,” he said. “It is not just that taking down barriers only benefits one country, but it benefits the region as a whole.” 

TAPPING EACH OTHER’S STRENGTHS

Thailand has said it is on board when it comes to improving connectivity between countries.

For instance, it is expanding to a double track rail network. 

It is also pushing to build a land bridge in southern Thailand that connects the Andaman Sea with the Thai Gulf.

The flagship project, scheduled to be ready by 2028, aims to create a new international trade route and shorten travel time for vessels, said Thai Deputy Prime Minister and Transport Minister Suriya Juangroongruangkit. 

There is currently "a lot of congestion" in the Malacca Straits, he noted. “We foresee that in the future, a lot of shipping lines will have to wait and queue. But if there is a land bridge, it can (be used as an alternative).”

But infrastructure alone is not enough, industry players noted.

“The key question now is, can they get it (to be) seamless, can they get it (to be) affordable?” said Westports’ executive chairman Ruben Emir Gnanalingam, who runs the largest listed port operator in Malaysia.

“Because otherwise you can't market it, you can't promote it as an option, because it's going to cost you more.”

Experts told CNA that Southeast Asian countries must get their act together so they can benefit from economic integration.

“When you look at ASEAN member states, yes, they are unified. Yes, (there is) ASEAN centrality. But they're often competing with each other,” said Mr Chris Humphrey, executive director of the Singapore-based EU-ASEAN Business Council. 

“They're competing with each other for FDI (foreign direct investment) flows. They're competing with each other for trade. We need to make sure that rather than competing, we do play to each other's strengths.”

Source: Channel News Asia
Link: Here

Cambodia-Vietnam to firm up border payment system

Cambodia and Vietnam agreed to promote further development in their banking sectors, especially to boost cooperation on the border payment system integration project.

The decision was taken during a meeting last Friday in Hanoi, Vietnam, between Chea Serey, Governor of the National Bank of Cambodia (NBC) and Nguyen Thi Hong, Governor of the State Bank of Vietnam (SBV).

Serey and Hong exchanged views on the economic, political and monetary situation as well as the development of the banking sector of the two countries. Also, they discussed the progress of cooperation on the cross-border payment system integration project, said an NBC press release.

“The 2024 bilateral meeting is aimed at strengthening and expanding bilateral cooperation to promote the further development of the banking sector between the two countries,” the release further said.

“We successfully completed our annual bilateral meeting between NBC and SBV. This annual meeting aimed to strengthen friendship and collaboration between the two central banks by sharing experiences and learning from each other,” Serey said.

Cambodia and Vietnam on December 3, 2023, officially launched a project to connect cross-border QR payment systems to promote tourism, trade and investment between the two countries.

For the original post, please click here

Source: Khmer Times

Commentary: China’s overcapacity may become a Southeast Asia problem if Trump’s tariffs materialise.

Commentary: China’s overcapacity may become a Southeast Asia problem if Trump’s tariffs materialise.

If Donald Trump follows through on tariff threats in the US-China trade war, all those cheap Chinese exports have to go somewhere else, says Shay Wester of the Asia Society Policy Institute.

 

WASHINGTON DC: Southeast Asia is already bracing for a wave of tariffs. Donald Trump's return to the White House brings a significant shift in US trade policy, with his proposed sweeping tariffs threatening to trigger retaliation and raising the prospect of a global trade war.

For a region whose exports to the US surged to US$143 billion in the first half of 2024 – overtaking shipments to China – Southeast Asia will likely come under increased scrutiny.

 

At the heart of Trump's agenda is rebalancing trade through robust tariff increases, which he views as both a powerful negotiating tool and a means to rejuvenate American manufacturing. On Tuesday (Nov 19), Trump announced China hawk Howard Lutnick as his pick for commerce secretary, tasking him with leading the administration's trade and tariff strategy.

On the campaign trail, Trump said he would impose tariffs of up to 20 per cent on all imports and a staggering 60 per cent or more on Chinese goods – which would effectively shut many Chinese exports out of the US market.

Southeast Asian economies such as Vietnam, Thailand and Malaysia export more to the US than they import, creating significant trade surpluses. Tariffs would raise the cost of their exports making them less attractive to American buyers. To maintain access to the critical US market, they may need to increase imports of American goods and curtail exports.

 

ASEAN economies could face short-term disruptions, with economists projecting that Trump's tariffs could cut regional growth by up to 0.5 percentage points in 2025.

CHINA'S OVERCAPACITY - ASEAN'S NEW PROBLEM?

But Chinese exports that are shut out of the US market need to go somewhere else. While this might be good news for consumers in the short term, Southeast Asian manufacturers are already struggling with Chinese industrial overcapacity.

Thailand, for example, has seen over 2,000 factory closures this year due to a flood of cheap Chinese steel and other goods. Indonesia's textile sector has lost tens of thousands of jobs in just six months, and local manufacturers across the region are struggling to stay competitive.

If tariffs cut off access to American buyers, this challenge could deepen as subsidised Chinese imports flood Southeast Asia and other emerging markets.

ASEAN governments are already taking steps to curb the influx. Vietnam and Indonesia have imposed a range of anti-dumping tariffs on Chinese goods, and Thailand recently announced measures to monitor cheap imports.
 

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