# Regional Capital: The Engine Behind Asean’s Growth

- Link: https://www.thailand-business-news.com/asean/302784-regional-capital-the-engine-behind-aseans-growth
- Published: 2026-04-28T03:47:00+07:00
- Author: Jessica Lee

**Malaysian and ASEAN+3 companies should strategically invest across the region 
to strengthen trade and FDI linkages. Despite global geopolitical risks, the region
grew 4.3% in 2025, with ASEAN+3 now accounting for 28% of global final demand, emerging
as the world’s largest market.**

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## Key Points

• ASEAN+3 now accounts for 28% of global final demand, surpassing the United States
•
Region has evolved beyond manufacturing into a major consumer market• Supply chains
have shifted from China-centric to broader ASEAN+3 collaboration involving Japan
and South Korea• ASEAN poised to lead in a emerging multipolar world order• Securities
Commission chairman calls for deeper, agile capital markets aligned with regional
sustainability and innovation standards to drive future growth

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### Strategic Regional Investment and Economic Resilience

**Domestic companies must adopt a more deliberate, strategic approach to cross-regional
investment.** According to Allen Ng of AMRO, when local firms invest in foreign-
owned groups, they generate foreign direct investment flows that **strengthen trade
linkages and deepen regional integration**. Ng emphasized that Malaysia is actively
developing policies to foster a more integrated capital market. Despite significant
geopolitical risks, including conflicts in the Middle East, the Asean+3 region demonstrated
resilience, expanding by **4.3% in 2025**, with growth forecasted at **4% for both
2026 and 2027**, even after absorbing two major economic shocks within 12 months.

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### Structural Shifts Redefining Asean+3’s Global Role

**Asean+3 has undergone transformative structural shifts** that have redefined its
position in the global economy. Supply chains, once centered predominantly on China,
have evolved into a **highly integrated network involving China, Japan, and South
Korea**. More significantly, the Asean region has emerged as a **final consumption
market**, not merely a manufacturing hub. The bloc now accounts for **28% of global
final demand**, surpassing the United States, signaling a fundamental change in 
its economic identity. Central banks and policymakers face the critical challenge
of managing both supply and demand shocks through carefully **targeted fiscal and
monetary policies**.

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### Malaysia’s Opportunity in a Multipolar World

**Malaysia is well-positioned amid the global shift toward multipolar power dynamics.**
Deputy Finance Minister Liew Chin Tong highlighted that as US influence declines,
Asean nations must unite strategically, noting that **“no country is too small when
operating within the Asean context.”** He suggested Kuala Lumpur could emerge as
a major regional hub, drawing parallels to how **Petronas was born from the 1974
oil crisis**, turning adversity into opportunity. Securities Commission chairman
Mohammad Faiz Azmi reinforced this vision, urging capital markets to be **deep, 
agile, and aligned across borders** through harmonized sustainability and cross-
border standards, ultimately creating a **common capital market greater than the
sum of its parts**.
