KUALA LUMPUR (BERNAMA) – ASEAN economies can emulate Malaysia’s move to renew some of its bilateral trade deals with partner countries to include sustainability elements and the changing dynamics of the global investment landscape.
Prof Jun Arima, Senior Policy Fellow for Energy and Environment at the Economic Research Institute of ASEAN and East Asia (ERIA), said the inclusion of sustainability in trade deals is a good thing because that will increase the penetration of environmentally friendly goods and services in global trade.
“So, I think that in short, other ASEAN countries could learn from Malaysia and if applicable, they could emulate such a good practice,” he told Bernama in a video interview recently.
Arima was responding to a question on whether ASEAN countries should also revisit their existing trade deals with Malaysia and renew existing FTAs to include sustainability, renewable energy and the digital economy.
The sustainability factor is expected to gain greater prominence as it is likely to be included in upcoming trade deals and FTAs to be signed between ASEAN and global partners, more so with ESG (Environmental, Social and Governance) standards being practised in businesses, including the banking sector.
To date, Malaysia has signed and implemented 16 FTAs, seven of which are bilateral and nine regional.
In October, Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz was reported as saying that Malaysia was looking forward to the “upgrading” and conclusion of some of the existing free trade agreements (FTAs) with countries such as China, India and ASEAN members.
He said it was to take advantage of the ever-changing landscape of the global economy, especially with Malaysia assuming ASEAN chairmanship.
Malaysia is taking over the ASEAN chairmanship from Laos officially on Jan 1, 2025.
