ASEAN-BAC urges ASEAN and dialogue partners to uphold rules-based trade for economic stability

Kuala Lumpur, 10 April 2025: The Government of Malaysia today hosted and chaired a special ASEAN Economic Ministers (AEM) Meeting that called for ASEAN to speak with one voice on the unilateral tariffs of the United States (U.S.). This special ministerial meeting was convened following the conclusion of the 12th ASEAN Finance Ministers' and Central Bank Governors' Meeting (AFMGM).

In response to the joint statement of the AEM following their meeting today, ASEAN-BAC, the apex private sector advisory body to ASEAN, strongly endorsed the AEM's unified position. ASEAN-BAC noted that these unilateral tariffs of the U.S. have now been paused for a period of 90 days for all countries except China. It commends the AEM for their urgency and quick response to the evolving unilateral tariffs of the U.S. situation and emphasises that ASEAN's strength does not lie in individual economies but in their collective resolve.

"This is a pivotal time for ASEAN as the U.S. seems determined to upend the world order as we know it, and while we do not quite know what end state it seeks, we know that the journey will be very volatile and our actions and reactions may be crucial to our fortunes as nations and a region. We welcome the 90-day pause on reciprocal tariffs that gives time for negotiations and brings relief to financial markets. But huge uncertainties remain, making it very difficult for businesses. The financial markets will remain on edge given the uncertainty and extreme volatility of recent days. We urge the U.S. to provide as much clarity as possible about the parameters at the forthcoming tariff negotiations," said Tan Sri Nazir Razak, Chairman, ASEAN-BAC.

He added, "The private sector is deeply concerned about the recent escalation in U.S. tariffs and its cascading impact on our regional economy. Now is the moment for ASEAN to stand united, accelerate integration, and strengthen financial and economic cooperation. With millions of businesses in ASEAN forming the backbone of the global supply chains, we cannot afford fragmentation in our response. ASEAN must act as one to protect its economic future."

While addressing immediate market concerns, ASEAN leaders must also use this temporary reprieve to implement more fundamental changes. Tan Sri Nazir emphasised that the current situation demands bold action on regional integration.

Aligning closely with priorities outlined in the special AEM meeting today, ASEAN-BAC calls for:

1. Upholding rules-based trade and continuing to promote open trade in the region.

2. Immediate dialogue between ASEAN governments and the U.S. administration to review tariffs set on ASEAN countries, emphasising that while tariffs have been imposed at individual country levels, ASEAN must speak with one voice on principles of trade and tariffs.

3. Strengthening of ASEAN's economic relations with other economies, noting the timeliness of Malaysia's plans to host the first ASEAN-GCC-China summit in 2025 and prioritise free trade agreements with the EU and Canada.

4. Accelerated domestic efforts to identify and remove non-tariff barriers, strengthen connectivity and supply chains, and ease flows of people and capital within the region, effectively creating shared economic contingency plans to mitigate impacts of external trade shocks like the ASEAN Business Entity (ABE), amongst other things.

5. Enhanced partnership between the ASEAN private sector and ASEAN governments to weather current uncertainties through dialogue and swift action, reinforcing that unity must extend beyond government corridors to embrace the private sector.

Tan Sri Nazir Razak added, "Dialogue is the foundation of intra-ASEAN economic progress, where tariffs have been brought down, complemented by constant efforts to reduce non-tariff barriers and improve efficiency of trading systems. If there was ever a time to decisively expedite ASEAN economic integration, it is surely now!”

ASEAN-BAC stands ready to work closely with ASEAN governments to develop coordinated response to current trade challenges, offering its expertise and private sector perspective to strengthen the region's economic resilience.

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About ASEAN-BAC

Established by the ASEAN Leaders at the 7th ASEAN Summit in November 2001 in Bandar Seri Begawan, Brunei Darussalam and launched in 2003, the ASEAN Business Advisory Council (ASEAN-BAC) is the apex private sector body mandated to provide private sector feedback and guidance to boost ASEAN’s efforts towards economic integration, and further identify priority areas for consideration of ASEAN leaders. The ASEAN-BAC will lead in coordinating inputs from established business councils and entities in their interactions with various ASEAN sectoral groups.

About ASEAN-BAC Malaysia

The ASEAN-BAC Malaysia chapter is an integral member in the regional ASEAN-BAC with regular participation at all Council Meetings and Consultation with ASEAN Leaders. Since 2003, ASEAN-BAC Malaysia has provided policy input at various consultations with the ASEAN Leaders, ASEAN Economic Ministers and ASEAN Sectoral bodies. Notably, ASEAN-BAC Malaysia was the Chair in 2015 when Malaysia announced the formation of the ASEAN Community. ASEAN-BAC Malaysia is represented by Chairman Tan Sri Nazir Razak alongside council members Tan Sri Tony Fernandes and Mr. Lim Chern Yuan.

As Malaysia assumes the role as the ASEAN Chair in 2025, ASEAN-BAC Malaysia is proud to take the lead in all private sector policy initiatives and programmes, supporting Malaysia’s Chairmanship vision and Priority Economic Deliverables (PEDs). In realising the vision, ASEAN-BAC Malaysia has begun to roll out 12 policy initiatives and over 60 programmes throughout the year aimed at advocating and pushing for the deepening of ASEAN economic integration, and the promotion of increased cross-border business cooperation.

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Jacinta Vythilingam | Email: myasean2025@aseanbex.com | Tel: +60 12 3145935