Tag: FDI

Geopolitical uncertainty an opportunity for ASEAN to accelerate aviation reform

BANGKOK: ASEAN sees the current geopolitical and economic uncertainties involving the aviation sector as an opportunity to boost regional cooperation as well as accelerate long-overdue reforms. Deputy Secretary-General of the ASEAN Economic Community Satvinder Singh said the reforms included aspects of liberalising cargo services, standardising regulations and accelerating the implementation of the ASEAN Single Aviation Market (ASAM) which could further strengthen the Southeast Asian aviation sector. He is also optimistic that the current global challenges can strengthen the ASEAN aviation sector for the next one to two years. "I hope we can come together again in another year or two to say that this crisis has its benefits and this is what unites us," he said at a panel session at the Airports Council International (ACI) Asia Pacific and Middle East Regional Assembly, Conference and Exhibition here, today. Satvinder said ASEAN member states were seen to be using the crisis as a catalyst to improve coordination, strengthen resilience and accelerate reforms that had previously been at a slower pace. He said ASEAN was also finalising what was described as the world's largest regional digital agreement that had legal validity and was expected to be signed later this year in Manila. The agreement is expected to support the aviation sector and regional connectivity by improving payment systems, data flows and e-commerce integration. In addition, he said that despite concerns about trade disruptions and geopolitical tensions, ASEAN entered 2026 in a strong position with the region's Gross Domestic Product (GDP) growing by 4.9 percent in 2025, exceeding the initial projection of 4.2 percent. Regional trade also grew by 8.8 percent, rising from US$3.8 trillion (US$1= RM3.93) to US$4.3 trillion while foreign direct investment (FDI) grew by 10 percent. Satvinder said ASEAN leaders have also shown strong unity in addressing current challenges, including cooperation to ensure the resilience of the energy and aviation sectors. He cited Thailand's offer to support neighboring countries with surplus jet fuel as an example of the spirit of cooperation in the region. The current crisis is also an opportunity to strengthen aspects of intra-ASEAN travel and regional integration. In addition, he stressed the importance of accelerating the ratification process of aviation agreements within ASEAN to enhance the implementation of the ASAM. "We need to increase the ratification process in the region and leverage existing efforts to enable this agreement to be fully implemented," he said. ASEAN, he said, has made great progress in its efforts to liberalize third and fourth freedoms of traffic rights and is now continuing negotiations on air services agreements with key allies including the European Union, Japan, South Korea and the United Kingdom. "However, there is still much to be done, particularly in liberalising air cargo services, harmonising regulations and strengthening mutual recognition in the aviation safety system," he said. Satvinder also stressed the strategic importance of air cargo links to the ASEAN semiconductor industry, with the region producing 60 to 70 percent of the world's semiconductors and largely dependent on air transport services. Apart from aviation liberalisation, Satvinder said ASEAN is also working to advance broader regional initiatives in the aspects of digitalisation and sustainability. Commenting on sustainability, he said ASEAN countries are likely to increase efforts in the development of sustainable aviation fuel (SAF) and biofuels by leveraging the strong capabilities of the agricultural sector and the region's extensive agricultural waste resources. According to Satvinder, while the current crisis is creating operational challenges across the aviation sector, the situation also highlights the urgent need for ASEAN countries to move faster in terms of regional coordination, resilience and long-term transformation. -- BERNAMA

BANGKOK: ASEAN sees the current geopolitical and economic uncertainties involving the aviation sector as an opportunity to boost regional cooperation as well as accelerate long-overdue reforms. Deputy Secretary-General of the ASEAN Economic Community Satvinder Singh said the reforms included aspects of liberalising cargo services, standardising regulations and accelerating the implementation of the ASEAN Single Aviation […]