Asean’s push to become global economic power

[ASIA] The Association of Southeast Asian Nations (Asean) has unveiled a five-year roadmap designed to push the region toward becoming the world’s fourth-largest economy by 2045. The plan, announced at the Asean summit in Kuala Lumpur, emphasizes the need for stronger regional integration and coordinated strategies to tackle emerging challenges. Leaders acknowledged that simply maintaining current policies will not be enough to achieve this ambitious target.

The strategy outlines goals to improve cross-border trade, streamline regulations, and address issues such as digital transformation and climate change. However, analysts caution that significant obstacles remain, including persistent domestic policy inconsistencies and historical trade barriers between member states. Without addressing these internal frictions, many worry the roadmap’s bold targets could remain out of reach.

The plan also comes at a time of global trade shifts, with supply chains realigning due to geopolitical tensions and the rise of protectionism in some major economies. Asean leaders recognize the importance of agility in navigating these changes, positioning the bloc not just as a manufacturing hub but as a competitive player in emerging sectors like digital services and green technology.

Implications

For businesses, this strategy signals both opportunity and challenge. Firms operating across Asean could benefit from smoother trade and regulatory harmonization, but they will need to monitor how effectively governments implement reforms. Industries tied to cross-border supply chains, digital commerce, and green innovation stand to gain the most if integration deepens.

Consumers in the region may see positive ripple effects, including greater access to goods and services, improved digital infrastructure, and potentially lower prices due to reduced trade frictions. However, these benefits will largely depend on how quickly and effectively national governments can cut through red tape and deliver on the roadmap’s promises.

From a public policy perspective, Asean’s ambition will test the political will of its member states. It requires balancing national interests with regional priorities, a historically tricky task for the bloc. Policymakers will need to strengthen institutions, foster public-private collaboration, and ensure that economic gains are broadly shared to avoid exacerbating inequalities.

What We Think

Asean’s bold push to become the world’s fourth-largest economy is both inspiring and daunting. On paper, the region’s young population, expanding middle class, and strategic location give it significant economic potential. Yet, the devil lies in the details: real progress will depend on dismantling entrenched barriers and fostering trust between diverse political systems.

The bloc’s acknowledgment that “business as usual” won’t suffice is a clear-eyed recognition of past shortcomings. Still, talk is easier than action, especially when member states have deeply rooted domestic priorities that often overshadow regional goals. The success of this plan will hinge not just on setting targets, but on measurable, accountable follow-through.

We believe businesses should watch closely for early signals of implementation, such as regulatory reforms or infrastructure investments. Governments, meanwhile, must prioritize building resilient institutions that can withstand global economic shocks. If Asean can deliver, it has a real chance to reshape the global economic landscape—if not, it risks falling short of its ambitious vision.