ASEAN-BAC Economic Integration Initiatives Gain Momentum

Progress on key regional frameworks sets stage for October summit focused on trade, investment, and collaboration

KUALA LUMPUR, 6 May 2025 — As Malaysia reaches the halfway mark of its ASEAN Chairmanship, the ASEAN Business Advisory Council (ASEAN-BAC) today shared updates on its 12 flagship initiatives. The council led by ASEAN-BAC Malaysia in 2025, also introduced its strategic sponsors for the upcoming ASEAN Business and Investment Summit (ABIS) and ASEAN Business Awards (ABA) 2025. These developments showcase growing momentum in ASEAN-BAC Malaysia’s efforts to make significant progress in its chairmanship year, across Southeast Asia.

Among the initiatives advocated by ASEAN-BAC is the flagship ASEAN Business Entity (ABE) framework, which calls for the creation of a new regional business category to allow companies greater operational flexibilities across ASEAN markets. Its ASEAN Common Carbon Market Initiative aims to address the lack of a unified carbon market in ASEAN. Through streamlined methodologies across countries and increased market efficiency, this framework will support a well-functioning and liquid carbon credit market. As part of its efforts, ASEAN-BAC Malaysia has set up the Malaysia Carbon Market Association (MCMA), to collaborate with similar platforms in other AMS. Its ASEAN IPO Prospectus initiative advocates the harmonisation of cross-border initial capital-raising to facilitate a wider pool of capital for regional enterprises. Also amongst the diverse range for ASEAN-BAC Malaysia’s initiatives is the proposal to rebrand the SEA Games as “ASEAN Games”.

(Note: Please refer to the backgrounder for information on all 12 initiatives)

“Since their launch in January, our 12 flagship initiatives have been progressing steadily through ongoing formal consultations with ASEAN bodies. These consultations occurred at the 31st AEM Retreat and most recently at the 12th ASEAN Finance Ministers’ and Central Bank Governors’ Meeting (AFMGM). ASEAN-BAC will also be having a formal dialogue with ASEAN Leaders at the upcoming 46th ASEAN Summit later this month,” said Tan Sri Nazir Razak, Chairman of ASEAN-BAC, during the media briefing.

He added “This is a pivotal time for ASEAN to come together, deepen integration, and enhance economic and financial cooperation. The current global uncertainties which pose substantial challenges for businesses across the region underlines the imperative of greater ASEAN economic integration. If we cannot turbo-charge ASEAN integration now, when can we.”

As ASEAN gears up to implement the ASEAN Economic Community (AEC) Strategic Plan 2025–2045, ASEAN-BAC remains focused on ensuring the private sector plays a central role in shaping a competitive, cohesive, and resilient ASEAN. The Council’s efforts in the second half of the year will be geared towards working with the policy makers across ASEAN to turn this potential into tangible outcomes for the region’s businesses and people.

At today’s briefing, ASEAN-BAC also revealed the sponsors of the ABIS 2025 and the ABA 2025, two cornerstone events to be held on 25-26 October alongside the 47th ASEAN Summit in Kuala Lumpur. Traditionally, ASEAN leaders and ministers, together with ASEAN dialogue partner countries such as the European Union, United States, Australia, New Zealand, Japan, China, Korea, and Russia participate as speakers at ABIS. These premier events will convene C-Suite business leaders, regional and global organisations to advance trade, investment, and economic cooperation across the region.

The Council also announced that Capital A Berhad, CIMB Group Holdings Berhad, Mastercard Asia/Pacific Pte. Ltd. (Malaysia Branch), Standard Chartered Bank Malaysia Berhad, TikTok Pte. Ltd., The Weststar Group and Yinson Holdings Berhad have signed on as Titanium Sponsors in support of the initiatives ASEAN BAC is driving this chairmanship year with the culmination set to take place this October at ABIS 2025 and ABA. Other sponsors include Kuala Lumpur Kepong Berhad, Genting Malaysia Berhad, Permodalan Nasional Berhad, UEM Group Berhad and UOB Malaysia.

Expressing gratitude on behalf of the Council for their partnership, Tan Sri Nazir said, “These companies reflect the best of Malaysia and embody the spirit of regional collaboration in support of ensuring a successful chairmanship for ASEAN-BAC Malaysia and Malaysia as a whole. Their support sends a strong signal of confidence, not just in the ASEAN-BAC agenda for 2025, but in ASEAN itself as a destination for investment, innovation and inclusive growth. We hope more partners will join us on this journey towards ABIS 2025.”

ASEAN-BAC Malaysia will continue to advocate and engage constructively with governments, industry, and regional stakeholders in the months ahead to strengthen the foundations of a more integrated and dynamic ASEAN.