Kuala lumpur: ASEAN has taken a landmark step towards becoming a seamless single market and production base after member states concluded and signed the upgraded ASEAN Trade in Goods Agreement (ATIGA) that aims to boost trade and investment integration across the region.

According to BERNAMA News Agency, ASEAN secretary-general Dr Kao Kim Hourn stated that the agreement comes as ASEAN's combined gross domestic product (GDP) reaches nearly US$4 trillion, with intra-ASEAN trade now accounting for 21.5 percent of total trade. Regional leaders aim to increase this figure to enhance connectivity and business flows.

Dr Kao highlighted that stronger economic integration is crucial for ensuring prosperity for the region's more than 680 million people while reinforcing ASEAN's role as a global growth anchor. The recent signing of the ASEAN-China Free Trade Area (ACFTA) 3.0 Upgrade Protocol is expected to push trade between ASEAN and China to US$1 trillion this year.

ASEAN is positioning itself at the center of the rapidly expanding Regional Comprehensive Economic Partnership (RCEP), already the world's largest trade bloc, representing 30 percent of global GDP and population. Efforts are ongoing to welcome wider accession to RCEP.

Dr Kao emphasized that maintaining peace in Southeast Asia is essential for sustaining trade and investment flows, as businesses require stability and predictability. He noted that emerging technologies and digitalization present both opportunities and challenges, underscoring the need for protection of data and privacy.

With the acceleration of trade integration, digital transformation efforts, including the ASEAN Digital Economy Framework Agreement (DEFA), will create significant opportunities for enterprises and workers. Dr Kao mentioned the importance of digital skills training programs and partnerships with technology giants to support upskilling and reskilling initiatives.

Dr Kao concluded by affirming that with upgraded trade rules, rising connectivity, and a united approach to global challenges, ASEAN is on track to position itself as a stable and increasingly influential economic force.