Kuala Lumpur, 8 August 2025: ASEAN must adopt a fresh approach to regional economic integration if it is to remain competitive in a rapidly changing global environment, ERIA President Tetsuya Watanabe said on Friday, ASEAN Day.

Speaking at the ASEAN Economic Integration Forum 2025 in Kuala Lumpur, President Watanabe observed that the world is witnessing ‘a global power shift towards ASEAN and other emerging economies in the Global South.’

‘ASEAN is now a stronger, bigger, and more important economic bloc for the world, ’ he told a high-level panel on Shaping ASEAN 2045: Pathways to a Resilient, Inclusive, and Sustainable Community, moderated by Universiti Kebangsaan Malaysia (UKM) Vice-Chancellor Professor Sufian Jusoh.

President Watanabe cautioned that ASEAN’s demographic dividend – driven by its youthful population and expanding middle class – will not last indefinitely. While these factors, along with rapid digital adoption and a strong manufacturing base, have powered the region’s growth, innovation will be essential to sustain momentum.

He called for greater investment in strategic research and development, digital infrastructure, artificial intelligence (AI) governance, intellectual property systems, and skills development. Strategic partnerships with trusted dialogue partners, including Japan and the European Union, would be critical. Japan, he noted, offers advanced expertise in AI, quantum computing, and clean energy.

Energy integration was also in focus at the forum. ERIA Senior Energy Economist Dr Han Phoumin and Research Fellow Dr Yanfei Li participated in a session on the ASEAN Power Grid, highlighting its potential to strengthen energy security, expand access, and increase renewable energy adoption. The discussion reviewed current progress and explored opportunities and challenges in building a more interconnected and sustainable regional power network.

Co-organised by Malaysia’s Ministry of Investment, Trade, and Industry (MITI) and the Institute of Malaysian and International Studies (IKMAS) at UKM, the ASEAN Economic Integration Forum 2025 gathered senior policymakers, academics, and industry leaders from across the region.