ASEAN needs to break through in services to shape the future of global trade
The ASEAN region needs to drastically transform its services sector to maintain its competitiveness in the international arena, said Malaysian Deputy Minister of Trade, Investment and Industry (MITI) Liew Chin Tong at the ASEAN International Trade in Services Fair (AIFTIS) 2025 on November 17 in Kuala Lumpur.
According to a VNA reporter in Kuala Lumpur, in his opening speech at AIFTIS 2025, Deputy Minister Liew Chin Tong emphasized that ASEAN cannot continue to consider services and manufacturing as two separate sectors, because the sophistication of manufacturing increasingly depends on related services.
He said ASEAN’s trade in services is expected to grow by 12.2% to US$1.29 trillion by 2024, driven by a recovery in tourism and robust digital business activity. However, many member states, including Malaysia, still face structural gaps in services trade, which need to be addressed through closer policy coordination and ecosystem development.
To build a strong ASEAN services sector, both for the regional economy and the Malaysian domestic market, Deputy Minister Liew Chin Tong outlined five strategic priorities.The first,integrating manufacturing and services - areas that grow together, reinforce each other, creating more value-added opportunities for both.
Monday, building more regional service champions, such as Grab, that excel locally and compete regionally. The ASEAN Business Advisory Council can help strengthen business linkages, support innovation and create a conducive environment for these companies to emerge.
Tuesday,Strengthening cultural industries and cultivating ASEAN's common identity. When it comes to ASEAN services, it is necessary to incorporate cultural elements. In the future, when developing strong enough cultural experiences, ASEAN can completely form a unique and competitive industry.
Wednesday,Establish a national professional team for major global exhibitions. Preparations can begin by bringing together the construction, engineering and professional services industries to work closely with the host country government to differentiate the participating country.
Thursday,improve working conditions, skills and wages in the service sector, while ensuring these jobs remain viable and meaningful even in the face of technological change and artificial intelligence.
Deputy Minister Liew Chin Tong said that the success of AIFTIS 2025 will strengthen ASEAN’s capacity to become a global hub for high-value professional services, promoting resilience and sustainable economic growth for the region. He affirmed that AIFTIS 2025 marks a step forward in ASEAN’s ambition to shape, not just follow, the future of global trade in services.
AIFTIS 2025 is being organised for the first time in collaboration with the Malaysian Service Providers Confederation (MSPC) and the Malaysian Productivity Corporation (MPC), with the support of the Malaysian External Trade Development Corporation (MATRADE), the Malaysian Investment Development Authority (MIDA) and the Malaysian Design Council (MRM).
The fair took place over two days, November 17-18, attracting more than 500 delegates representing the government, international organizations, industry experts, and scholars to discuss strategic initiatives focusing on promoting productivity, innovation, and export growth in seven key areas: Professional services, Electrical and Electronics (E&E) services, digital services, private healthcare, tourism - hospitality, construction - built environment, sports - entertainment.
