ASEAN Summit could unlock hundreds of billions in trade, FDI for Malaysia

by FARAH SOLHI

MALAYSIA’S chairmanship of the 46th ASEAN Summit 2025 this year could result in “hundreds of billions of ringgits” in beneficial return to the country’s economy and real estate market, said international real estate technology group Juwai IQI.

Co-founder and group CEO Kashif Ansari said the Summit would have industry leaders watching closely to see what is in store for them, as regional leaders come together to discuss ways to integrate economies and promote trade between now and 2030.

“What is at stake are potential agreements that could help make Malaysia wealthier by 2030 (therefore) it is especially important for ASEAN nations to work together now, at this global turning point.

“We face a complicated world, with global strategic rivalries, new technologies and artificial intelligence (AI) disruptions (which) create risks but also present opportunities that the bloc can seize together,” he said in a statement.

He further said that changes in regional integration, ASEAN unity in global trade and foreign direct investment (FDI), where the Summit could boost Malaysia’s economy, could mean hundreds of billions of ringgits in additional trade and capital over the coming years.

Tighter integration projects, such as the Johor-Singapore Special Economic Zone (JSSEZ), across all ASEAN could significantly boost the country’s total trade volume to about RM3,869 billion by 2027.

“Our exports could also reach an all-time high where the projections point to RM2,133 billion in annual exports volume by 2030 which would result in more jobs and higher wages in Malaysia.

“While the agreements coming out of the Summit could have us shipping more goods by 2030, we will also be receiving more FDI which should exceed RM300 billion over the next three years, with that money going into local innovation, infrastructure, employment and properties,” he said.

Kashif added that based on Juwai IQI’s analysis, the FDI inflows during this period will generate at least RM15 billion in new real estate activity, including industrial parks, commercial centres, logistics hubs and housing developments.

“To arrive at this estimate, we applied a conservative ratio of 5%. Based on a projected RM300 billion in FDI by 2030, we estimate that RM15 billion — or 5% — will be channelled into the real estate industry.

“We have estimated this 5% ratio between FDI and real estate based on typical patterns we’ve seen across the region. The real number could be lower, or much higher,” he said.

Kashif said the Summit is a platform for improving the country’s future where Malaysia and partner nations will benefit, if regional leaders can agree to deepen intra-ASEAN trade, harmonising regulations and reducing trade barriers.

The 46th ASEAN Summit is taking place through May 27, with meetings expected at the senior official, ministerial, and head of government levels.

The Summit also features two high-level meetings, namely the second ASEAN-Gulf Cooperation Council (GCC) Summit and the ASEAN-GCC-China Summit.

This year marks Malaysia’s fifth as the chair with “Inclusivity and Sustainability” as the theme, to reflect the nation’s aspirations to shape a united and prosperous ASEAN.