Singapore, 3 September 2025: Asia must strengthen its middle class and deepen regional supply chain integration to withstand mounting global trade tensions, ERIA President Tetsuya Watanabe told leading regional experts in Singapore.

Speaking at the 13th OECD–AMRO–ADB–ADBI–ERIA Asian Regional Roundtable on New Frontiers, hosted on 2–3 September by the ASEAN+3 Macroeconomic Research Office (AMRO), President Watanabe underscored the growing responsibility of international and regional institutions in helping governments address supply chain vulnerabilities, digital disruption, and climate pressures.

In his opening remarks, he identified Asia’s demographic dividend as a key driver of growth, while cautioning that ageing populations, inequality, and shifting labour markets could erode this advantage without stronger middle-class development.

During a high-level panel with leaders of the OECD, AMRO, ADB, and ADBI, President Watanabe highlighted the far-reaching implications of tariff disputes and industrial policy shifts. While trade tensions pose risks, he noted, they also create new opportunities for ASEAN economies through trade diversion and investment inflows. He called for the strengthening of regional value chains and the cultivation of 'regional champions' to boost resilience against future shocks.

ERIA experts also contributed to technical sessions. Senior Economists Dionisius Narjoko and Lurong Chen presented research on trade diversion, supply chains, and national security, emphasising the need for coordinated strategies to safeguard Asia’s competitiveness.

The Asian Regional Roundtable on New Frontiers is an annual platform where five international organisations engage with senior officials, economists, and experts. This year’s discussions focused on Asia’s position amidst trade fragmentation, shifting geopolitics, rapid digitalisation, and the pursuit of sustainable development.