By Vijay Eswaran
The global economic landscape is undergoing a profound transformation, shaped by converging forces of technological disruption, shifting power dynamics, and evolving trade relationships. With its combined market of over 650 million people and deep integration into the global supply chains, ASEAN stands at a pivotal moment, ready to transform global uncertainties into opportunities through three key points:
● Strategic Position: ASEAN is poised to turn global uncertainties into opportunities for growth and innovation, with WEF2025 as a key platform to showcase its resilience and influence.
● Economic and Technological Leadership: Strategic initiatives, such as Vietnam’s manufacturing rise and Singapore’s leadership in semiconductors and digital innovation, strengthen ASEAN’s role as a global economic hub.
● Leadership and Unity: ASEAN’s leaders must harness strengths, embrace technology, and prioritise sustainable development to secure its future as a global powerhouse through partnerships and inclusive growth.
The World Economic Forum Annual Meeting 2025 (WEF2025) in Davos, themed Collaboration for the Intelligent Age, presents a timely opportunity for ASEAN to showcase its resilience, strategic initiatives, and collaborative efforts, reaffirming its role as a key regional and global player. With years of laying the foundations for economic resilience through its strategic location, diverse economies and growing technological capabilities, ASEAN is well-positioned to seize this moment of opportunity.
Internal ASEAN Dynamics: Strengthening the Bloc from Within
ASEAN is quickly becoming a global hub for economic growth and innovation with its diverse and youthful population. Nations like Vietnam, Malaysia, Indonesia, and Singapore are attracting investments and enhancing infrastructure, driving advancements in consumer and industrial technologies.
The bloc has solidified its position as a major geopolitical player. By balancing economic interdependence with strategic competition—particularly with China, its largest trading partner—ASEAN reinforces regional stability. Singapore, with its strategic location and role as a regional financial hub, further amplifies ASEAN’s influence on the world stage.
Building resilience in ASEAN through unity, investment & infrastructure
ASEAN has proven to be a beacon of stability and prosperity in a turbulent global landscape, demonstrating remarkable resilience in the face of geopolitical challenges.
The Southeast Asia Survey underscores this, with 29.7% of respondents confident in its ability to champion free trade and 44.8% advocating for enhanced resilience and unity.
Buoyed by this strong regional consensus and Malaysia’s upcoming Chairmanship of ASEAN in 2025, the region’s economic strength is further solidified by its pursuit of regional cooperation and diversification of economic partnerships.
As exemplified by Singapore, the island nation’s thriving semiconductor industry accounts for 11% of global semiconductor output, and its burgeoning digital economy, with over 1,600 fintech companies, showcases the region’s growing importance.
Investment flows are increasingly favouring ASEAN. For instance, Malaysia-China economic ties have grown significantly, with China becoming Malaysia’s largest investor, funding projects across multiple high-value sectors worth US$13.2 billion.
The China+1 Policy, adopted by multinational companies, diversifies manufacturing and supply chain operations. Vietnam’s rise as a manufacturing and trade hub exemplifies this strategy, propelling ASEAN’s ability to diversify and mitigate risks, reinforcing its resilience.
ASEAN as a Tech Hub for the Future
ASEAN is swiftly becoming a global tech hub driven by its commitment to digital innovation. Its focus on reskilling and upskilling through regional education and tech-training programs aligns with the World Economic Forum’s emphasis on human capital and sustainable development.
Initiatives like the ASEAN Digital Integration Framework (ADIF) are accelerating digital transformation across the region. The rise of tech hubs in ASEAN in AI and FinTech, with Malaysia and Singapore leading the way, is fostering a vibrant startup ecosystem that attracts global investments and talent.
Indonesia is advancing in AI and tech-driven industries, highlighted by its national AI centre in partnership with Nvidia.
A Call to Action for ASEAN’s Leaders
ASEAN’s ability to turn challenges into opportunities is a testament to its resilience. By harnessing its strengths, embracing technological advancements, and prioritizing sustainable development, the region can cement its position as a global economic powerhouse.
In a world fraught with uncertainty, ASEAN’s stability, innovation, and unity stand as a beacon of hope and progress. As the bloc charts its future, its leaders have a responsibility to drive sustainable and equitable growth—not just for Southeast Asia but for the global community at
large.
Datuk Seri Vijay Eswaran is a prominent Asian thought leader, philanthropist, speaker, and author. He is the founder and Executive Chairman of the QI Group of Companies, a multinational conglomerate headquartered in Hong Kong with diverse business interests in education, retail, direct selling, real estate, hospitality, and luxury products. He is also the Chairman of the University Council for Quest International University in Perak