KUALA LUMPUR, Dec 10 — Malaysia should further tap into the Asean market and leverage its strategic advantages, as the regional bloc is well-positioned amidst global uncertainties, particularly ahead of the United States’ tariff threats on China.

Bursa Malaysia Bhd chairman Tan Sri Abdul Wahid Omar urged Malaysia to continue to pursue its relationship with Asean in a pragmatic and constructive manner to further capitalise on the bloc’s 670 million market.

"The biggest potential that we have is in Asean. Our trade and investments (in the bloc) is relatively low compared to other trade partners, and that can be enhanced further,” he said during a panel session at the Institute of Chartered Accountants in England and Wales (ICAEW) Economy Insight Conference 2024 here today.

The session was moderated by Ernst and Young Malaysia deputy assurance leader Datuk Megat Iskandar Shah and joined by Affin Bank Bhd president and group chief executive Datuk Wan Razly Abdullah Wan Ali.

Wahid also emphasised that Malaysia should not be mutually exclusive to any specific trade groupings, trade talks, or bilateral agreements and should focus on further strengthening trade relationships.

"We can be part of Asean, and at the same time, we are part of the Asia-Pacific Economic Cooperation (APEC). We are also a Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) member and can be part of Brics.

"China is Malaysia’s largest trading partner, and at the same time, it is also in some of these economic groups. I hope Malaysia can export more to China because the trade balance is very much in China’s favour,” he added.

Echoing Abdul Wahid’s sentiment, Maybank Investment Bank Bhd head of regional equity research Anand Pathmakanthan said integration with Asean holds significant potential, particularly in intra-Asean trade and foreign direct investment (FDI), which are currently much lower than in the European Union or North American Free Trade Agreement (Nafta).

"There’s been a lot of distraction with Brics over the past, especially in terms of wanting to be a member and trying to get more out of Brics. (Focus) on Asean, as our own backyard.

"When you look at the opportunities within Asean integration, it’s massive. Look at the Asean economic community, intra-Asean FDI, and Asean countries investing in other Asean countries or intra-Asean trade. The ratios are half of what they are in the EU; they are half of what they are in Nafta,” he said during the session.

Earlier in his presentation, Anand highlighted several key factors that would drive bullish growth expectations for Asean and Malaysia next year.

"A lot of these factors are cyclical in nature. However, we expect more central banks to ease amidst uncertainty now that Trump’s policies are coming into play.

"Nonetheless, we expect monetary policy to continue easing in the US, which will give room for Asean nations to cut rates as well,” he said.

Anand highlighted that other Asean growth factors include the relocation of supply chains from China and the increase of FDI inflow.

He elaborated that Vietnam, Malaysia, Indonesia and Thailand would be the main beneficiaries of FDI inflow, with a focus on Vietnam and Malaysia.

"Malaysia is in a very sweet spot when it comes to attracting supply chain relocation and FDI. Another factor is data centre investments, where Malaysia is standing out among Asean nations,” he added. — Bernama