ASEAN’s Response to Global Challenges
SINGAPORE – In the face of rising geopolitical tensions and protectionist policies, ASEAN is taking steps to strengthen economic ties among its member countries. Deputy Prime Minister Gan Kim Yong made this statement during a panel at the Singapore Business Federation’s ASEAN Conference 2026 on July 31.
He pointed out that while the world seems to be fragmenting, ASEAN is working hard to come together. “During the Covid-19 pandemic, we united to bolster our supply chains, and we continued this collaboration by updating our Trade and Goods Agreement in 2025, particularly in response to the U.S. global tariffs,” he commented.
The conference held at Resorts World Convention Centre brought together business leaders and government officials to discuss the pressing issues that ASEAN faces, such as conflicts, trade tariffs, and advancements in artificial intelligence.
DPM Gan emphasized that the key to ASEAN’s continued unity is trust, which has been built through shared challenges. “Going through multiple crises together has deepened our trust among member nations,” he noted.
The recent Digital Economy Framework Agreement (Defa), set to launch in 2027, represents another step forward in ASEAN’s commitment to economic integration. It aims to streamline operations for businesses, particularly small and medium-sized enterprises, by establishing unified rules for digital trade and transactions across Southeast Asia.
However, DPM Gan stressed that achieving success greatly depends on the active involvement of the business community, not just government actions.
Looking ahead, he mentioned that the ASEAN chairmanship will move to Singapore in 2027, with continued efforts to strengthen internal integration and engage with the global community being top priorities.
In another part of the discussion, John Kain from Amazon Web Services announced that investment in AI infrastructure is expected to grow significantly in the region over the coming years, with planned investments in countries like Indonesia, Malaysia, Singapore, and Thailand projected to exceed $33 billion by 2039. This investment is anticipated to create numerous jobs and contribute $64 billion to the GDP of these countries.
Kain highlighted the importance of early AI adoption for companies, stating, “Don’t wait for the perfect model; the technology is always evolving.” He encouraged businesses to focus on how to integrate technology effectively to boost productivity.
UOB’s corporate banking head, Edmund Leong, added that AI is not just a technological advancement, but also a critical factor for economic growth. He pointed out the positive outcomes that companies can expect from its adoption.
During a fireside chat, Aw Kah Peng, chairman of Shell Companies in Singapore, discussed the importance of creating a resilient energy market, especially in light of global disruptions to oil and gas supplies. She noted the need for urgent investment in energy that also aligns with sustainable practices.
Aw highlighted that ASEAN holds great potential for energy investment, given that its energy usage is significantly lower compared to the EU. “There’s tremendous opportunity for us to invest in energy for growth without compromising cleaner energy goals,” she said.
She cautioned that geopolitical tensions and events in the Middle East signify that volatility is now a constant reality, urging businesses to maintain growth despite uncertainty.
In summary, ASEAN is committed to fostering economic integration and collaboration among its members, while adapting to the complexities of our evolving world.
