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Ten Southeast Asian nations, formally united as ASEAN, have worked together since the 1960s to improve intergovernmental coordination to bring about positive social, economic and environmental change throughout the region. Entrepreneur and philanthropist Vijay Eswaran has long been an advocate of the ASEAN alliance and its potential to advance the region on the global stage.
One country in the coalition, Malaysia, has recently been put under the spotlight by the Minister of International Trade and Industry, who is seeking to position the nation as a gateway for ASEAN investment. While some have questioned this view, Eswaran stands behind the idea that Malaysia can and should lead the economic way.
Each country in the ASEAN alliance has its own strengths and areas for growth, and Malaysia is no exception to this sentiment. While Vietnam and Indonesia may have advantages in education and tourism infrastructure, Eswaran notes that there is no denying Malaysia’s dominance when it comes to the economy.
As one of the wealthier economies in Asia as a whole, Malaysia is considered to have an upper middle class income average. Benefits include low unemployment rates and high GDP figures despite an expansive population of 32 million.
Yet Eswaran also agrees that Malaysia must continue to build on its strengths while targeting change elsewhere to continue to emerge as an ASEAN leader. He believes that the use and knowledge of English, the language of global trade, is a key advantage that Malaysia has neglected in recent years.
Eswaran believes the use of the English language has helped attract new jobs as well as teachers in the subject helping further global interaction and progress. “Malaysia ranks third in the ASEAN English Language Proficiency Index, just behind Singapore and the Philippines. This advantage would be lost if we continue to neglect and delegate the English language,” explained Vijay Eswaran.
Another critical area for improvement in Malaysia’s bid to become an ASEAN gateway is the improvement and development of critical infrastructure. Not only are new transportation routes and options appealing to visitors and tourists to help them navigate a new area, but local residents can also make great use of these resources. Although Malaysia is one of the most developed ASEAN countries according to Eswaran, there is also room for improvement when it comes to adding roads that can connect different districts and even countries to each other.
He elaborated: “As of 2020, the Klang MRT Line, the 2000km Pan-Borneo Expressway and the West Coast Expressway have been completed, adding to the already existing roads and the MRT system which has provided ease of travel from one end of the country to the other, while it helps trade between ASEAN and the rest of the world.”
Related to the criticality of transportation, Eswaran also advocates for the removal of choke points that impede travel and trade within and between nations. He recommends that bridges be built between Malaysia and Singapore to “increase trade flow, thereby encouraging more foreign investment”. He also advocates reconsidering a high-speed rail link between Singapore and Kuala Lumpur to connect regions that can benefit from increased traffic and economic growth.
Another obstacle to smooth travel and trade between ASEAN countries comes in the form of immigration barriers. Eswaran is pushing for an agreement between countries such as Malaysia and Singapore to make it easier for residents to move between the countries for business, trade and leisure travel, all of which can help boost ASEAN economies.
While over 5,000 foreign companies do business in Malaysia, representing over 60 countries, there is still room for growth when it comes to international economic interests, according to Eswaran. “Another way to strengthen Malaysia’s position as a trade gateway would be to aggressively push the Malaysia My 2nd Home (MM2H) scheme to foreign investors. As a place to live and invest, we can expect an increase in foreign investment coming to Malaysia,” he explained. The country already stands out as a hub of diversity among ASEAN countries without a single ethnic majority, making it great for welcoming people from all walks of life in business and tourism ventures.
Malaysia is uniquely poised to begin leading ASEAN towards a new economic status on the world stage, and Vijay Eswaran’s own deep understanding of the country’s strengths helps paint a positive picture for future growth. As a whole, ASEAN should remain focused on eliminating barriers to travel to help achieve its economic goals at the regional level. While member countries have made progress in improving infrastructure and relations, the collective must continue to come together to remove borders and tariffs that restrict foreign investment.