KUALA LUMPUR: Malaysia’s calm and strategic response to the US tariffs situation is a model for Asean, said Asean Business Advisory Council (Asean-BAC) Malaysia chairman Tan Sri Nazir Razak.
He said the way the government handled the situation is “absolutely the right way” in contrast with the responses of several other countries, which he said “reacted too quickly or were too aggressive”.
“Those of you who have covered me for a long time know that I don’t compliment easily, but I really think that our government has been very astute in its handling of the US tariff situation,” he said in a media briefing on updates on Asean-BAC’s 12 economic initiatives, new corporate partnerships announcement and progress on Asean Business and investment summit today.
Breaking it down, Nazir said firstly, Malaysia remained calm; secondly, it engaged with the United States to figure out what is rhetoric and what is reality on the US side. “Thirdly, Malaysia has then gone back to strategise, which we’re doing now. And then fourthly, Malaysia will go back and negotiate.”
At the same time, Nazir acknowledged that non-tariff barriers (NTB) are an Asean-wide problem, with the latest count showing 9,642 NTB across the region. “Someone showed a chart where there’s a strong correlation between the reduction in tariffs and the rise of non-tariff barriers.”
He said one of the difficulties Asean always faces is the lack of a clear enforcement mechanism to bring down non-tariff barriers.
“There’s a lot of this kind of non-tariff barrier. From the private sector, I can say there’s a lot of frustration,” Nazir said, citing how even halal-certified food from Malaysia requires additional approvals to enter Indonesia or Brunei.
He said that as Malaysia negotiates with the US, it may be a good time to review some of these non-tariff barriers.
“Sometimes, if you don’t look closely, you don’t even know why they’re there. So it’s an opportunity for us to review non-tariff barriers that are highlighted by the business sector.”
Asean-BAC also shared updates on its 12 flagship initiatives as Malaysia reaches the halfway mark of its Asean chairmanship. The council, led by Asean-BAC Malaysia in 2025, meanwhile, introduced its strategic sponsors for the upcoming Asean Business and Investment Summit 2025 and Asean Business Awards 2025. These developments showcase growing momentum in Asean-BAC Malaysia’s efforts to make progress in its chairmanship year, across Southeast Asia.
Among the initiatives advocated is the flagship Asean Business Entity framework which calls for the creation of a regional business category to allow companies greater operational flexibilities across Asean markets.
Meanwhile, the Asean Common Carbon Market initiative aims to address the lack of a unified carbon market in Asean. Through methodologies across countries and increased market efficiency, this initiative 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 to collaborate with similar platforms in other Asean member states.
The Asean IPO Prospectus initiative advocates the harmonisation of cross-border initial capital-raising to facilitate a wider pool of capital for regional enterprises.
Also among the diverse range of initiatives is the proposal to rebrand the SEA Games as “Asean Games”.
“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.
“Asean-BAC will also be having a formal dialogue with Asean leaders at the upcoming 46th Asean Summit later this month,” said Nazir.
