MALAYSIA, INDONESIA POSITIVE ABOUT ASEAN-GCC PACT AS NEW ECONOMIC POWER

Malaysian Prime Minister Datuk Seri Anwar Ibrahim and Indonesian Coordinating Minister for Economic Affairs Airlangga Hartarto are positive about the outcome of the ASEAN and Gulf Cooperation Countries (GCC) strategic dialogue at the World Economic Forum (WEF) in Saudi Arabia.

They believe that the meeting will enhance ASEAN's cooperation with GCC, particularly in trade and investment, as a new economic power.

The two leaders joined ministers from ASEAN and the GCC invited by the WEF to discuss and identify how both organisations can enhance cooperation for sustainable growth amid global uncertainty.

Airlangga, in a statement on Monday, explained that Indonesia, Malaysia and Laos are the “troika” of the ASEAN chair this year.

“Troika” is a concept of rotating the chairman of an event to ensure the continuity of the issues discussed.

ASEAN chairmanship in 2023 was held by Indonesia with the theme “Epicentrum of Growth”, while this year, the position was handed to Laos, which also coincides with the ASEAN-GCC Summit.

The ASEAN chair will be held by Malaysia in 2025.

“Inter-regional cooperation is important, especially to the domestic agenda of achieving a 'Golden Indonesia' by 2045 amid the global economic slowdown and the current escalation of geopolitical tensions,” he said.

The Indonesian minister also called for GCC countries to join the Regional Comprehensive Economic Partnership (RCEP) to strengthen economic cooperation established by ASEAN and partner countries, as this will become the largest trade bloc in the world.

“The trade bloc could facilitate various potential collaborations in the trade, investment, digital economy, Islamic finance, small and medium enterprise, and youth exchange sectors,” said Airlangga.

The implementation of the ASEAN-GCC framework needs to be clearer and more concrete, he said, adding that the free trade agreement cooperation needs to start with the GCC countries to open up new investment and trade opportunities.

“The agriculture, energy and tourism sectors should be given focus, including cooperation in the fields of energy transition, carbon storage, education, culture and the halal product industry which will contribute to increasing food and energy security, sending a signal to the world that ASEAN-GCC is a new economic power in the world,” added Airlangga.