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As ASEAN Chair in 2025, Malaysia convened three virtual consultation sessions with ASEAN economic ministers and their counterparts from China, Japan, Australia, and New Zealand. The ministers reaffirmed their collective commitment to a rules-based multilateral trading system, anchored by the WTO, to ensure a fair, open, and sustainable trade and investment environment.
In its role as ASEAN Chair for 2025, Malaysia has facilitated three separate virtual consultations between ASEAN Economic Ministers and their counterparts from China, Japan, Australia, and New Zealand on 20 May 2025.
These discussions provided a platform to strengthen regional economic ties and deepen collaboration on shared priorities. Across all sessions, the ministers reiterated their shared commitment to a rules-based multilateral trading system anchored by the World Trade Organisation (WTO), emphasising the importance of maintaining a transparent, inclusive, and sustainable global trade environment.
Here is a breakdown of the consultations between the various ministers and Malaysia Minister of Investment, Trade and Industry, Tengku Zafrul Aziz:
Special AEM-MOFCOM Consultation with China
The consultation with China was co-chaired by Tengku Zafrul and Wang Wentao, Minister of Commerce, China. In recognition of how current global trade tensions could impact supply chain resiliency in the region, disrupt the global trade order, exacerbate trade tensions, and weaken confidence in the rules-based Multilateral Trading System (MTS), the ministers underscored the support for a predictable, transparent, non-discriminatory, free, fair, inclusive, sustainable, and rules-based multilateral trading system, with the WTO at its core.
Tengku Zafrul said: “Given various ASEAN countries’ deep embedment in global supply chains, any major geopolitical and geoeconomic uncertainties will also affect businesses and consumers not just within ASEAN, but also worldwide.
"All the ministers recognised the potential impact of such uncertainties on economic security and stability, and as such, reaffirmed the target to sign the ASEAN-China Free Trade Area (ACFTA) 3.0 Upgrade Protocol by this year, which is one of Malaysia’s Priority Economic Deliverables (PEDs) of its 2025 ASEAN Chairmanship."
This upgrade, he added, is envisaged to include new areas, such as digital economy, green economy, and supply chain connectivity.
The meeting underscored the importance of expanding trade through initiatives like the Regional Comprehensive Economic Partnership (RCEP), noting ongoing efforts to finalise accession arrangements for aspiring economies. ASEAN and China’s economic ministers reaffirmed their support for a rules-based multilateral trading system and called for deeper ASEAN-China cooperation to address disruptions — leveraging the WTO for constructive engagement and safeguarding members’ legitimate interests.
Special AEM- CER Consultation with Australia and New Zealand
The Consultation with Australia and New Zealand was co-chaired by Tengku Zafrul Aziz, Senator Don Farrell, Minister for Trade and Tourism, Australia and the Todd McClay, New Zealand’s Minister for Trade and Investment. Given the current challenging global trading landscape, the meeting reaffirmed the Agreement Establishing the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA) principles of open, predictable, transparent rules-based and non-discriminatory trade.
In this regard, the meeting welcomed the entry into force of the Second Protocol to Amend the AANZFTA on 21 April 2025 for Australia, Brunei Darussalam, Lao PDR, Malaysia, New Zealand, and Singapore. The ministers also looked forward to its implementation by the remaining parties later this year, marking a significant step toward strengthening regional economic cooperation under this vital framework.
Tengku Zafrul said:
“I am pleased that the ministers gave their time and commitment to find workable solutions for ASEAN and its key trading partners amid the current tough trading landscape. Equally important is the ministers’ recognition of the importance of technical assistance and capacity building to ensure all AANZFTA parties can secure the benefits of open, rules-based trade."
"Australia and New Zealand’s support for the Regional Trade for Development (RT4D) Facility, for example, provides financial support for capacity building and implementation activities under AANZFTA and the RCEP.”
Special AEM-METI Consultation with Japan
The Consultation with Japan was co-chaired by Tengku Zafrul and Yoji Muto, Japan’s Minister of Economy, Trade & Industry.
The meeting reaffirmed ASEAN and Japan’s commitment to advancing the ASEAN-Japan Comprehensive Economic Partnership (AJCEP). It also noted ongoing efforts to implement, enhance, and broaden the RCEP Agreement, including finalising accession procedures for aspiring economies.
Tengku Zafrul said: “There are clear opportunities for ASEAN and Japan to forge collaborations to enhance supply chain resilience, as well as promote digital transformation, energy transition, innovation, and critical industries.
"To that end, the meeting committed to foster a conducive investment and trade environment in ASEAN as well as its sub-region and globally based on the principles of a level playing field.
"ASEAN and Japan will explore industry-specific cooperative initiatives such as those in the automotive sector, clean energy, and ethical, responsible development and deployment of artificial intelligence.”
In principle, ASEAN and Japan also agreed on the possibility of updating the rules and standards, including in existing agreements such as the AJCEP and RCEP to ensure they remain relevant to businesses.
READ MORE: Malaysia and Bangladesh to discuss reopening labour market on May 15
Lead image / Tengku Zafrul Facebook
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