ASEAN must stop being just the factory—It’s time to build our own tech giants, says Liew

KUALA LUMPUR: ASEAN must break free from its overreliance on foreign direct investment (FDI) and instead build its own technological ecosystem if the region wants to compete on a global scale, says the Malaysian Deputy Minister of Investment, Trade and Industry Liew Chin Tong.

Speaking at the launch of the newly formed ASEAN Private Markets Council, Liew challenged the outdated view that ASEAN’s role is limited to low-cost production while advanced technologies must come from outside the region.

“If more investments are channelled into ASEAN’s own tech capabilities, we could see the rise of regional — and even global — multinational companies from Southeast Asia,” he said at a press conference on Monday.

Liew stressed the importance of aligning funding, innovation, and industrial policy to cultivate a thriving internal market that fuels long-term growth across ASEAN.

The ASEAN Private Markets Council, one of twelve initiatives headed by the ASEAN Business Advisory Council (ASEAN-BAC), intends to remove major obstacles to private capital expansion in the region. These include fragmented guidelines, a dearth of knowledgeable and qualified local fund administrators, and inadequate across-the-board investment prospects.

More than 20 key financial organisations from all over ASEAN have signed up to become founding members, an indication of robust regional support for the effort.

The Council’s emphasis is clear — highlight private market possibilities with targeted investments in technology and green transition efforts. Liew stressed the vital role of combined bankrolling to finance infrastructure like the ASEAN power network, which is indispensable to impartial energy dispersal and sustainability objectives.

Tan Sri Nazir Razak, Chairman of ASEAN-BAC Malaysia, underscored the urgency of boosting private capital, citing a McKinsey report that found ASEAN private markets represent just 0.5% of regional GDP — well below the global average of 1.5%.

“To catch up with global benchmarks, ASEAN needs an estimated US$60 billion in private equity and venture capital funding,” Nazir said.

The Council will also work to position ASEAN as a globally recognised private market hub by integrating capital flows, enhancing governance, engaging with global capital allocators, and widening participation beyond traditional financial centres.

“This is about building ASEAN’s future from within,” Liew concluded. “It’s time we stop waiting for the world to invest in us — and start investing in ourselves.”