ASEAN Summit to See Signing of $70.38 Billion Deals
- ASEAN Business Companies Deals
Global Business Magazine- 4 minutes read
The two-day ASEAN Summit, which will be held in Kuala Lumpur next week on May 26 and 27, will be a platform to integrate regional economies and promote trade through potential agreements with an estimated $70.38 billion in foreign direct investment (FDI) in the next five years, Juwai IQI Holdings Co-founder and Group CEO Kashif Ansari said on Thursday.
In a statement, Ansari said that it was important for ASEAN member-states to work together as the region faces a complicated world, with global strategic rivalries, new technologies, and artificial intelligence (AI) disruptions.
The summit could boost Malaysia’s economy through regional integration, ASEAN unity in global trade, and foreign direct investment. Changes in these three areas could mean hundreds of billions of Ringgit (Malaysian currency), in additional trade and capital over the coming years.
“The Johor-Singapore Special Economic Zone (JS-SEZ) is a prime example of integration, which could contribute as much as $26.02 billion to Malaysia’s economy annually by 2030,” he said.
Kashif said that a tighter-knit ASEAN could boost Malaysia’s total trade volume significantly, to about $910 billion by 2027, while exports could reach an all-time high of $500 billion in annual export volume by 2030.
“While the agreements coming out of the summit could have us shipping more goods out by 2030, we will also be receiving more inbound FDI, with that money going into local innovation, infrastructure, employment, and property,” he noted.
Impact on Property Sector
In the property sector, based on IQI’s analysis, FDI inflows during this period will generate at least $3.52 billion in new real estate activities, which include industrial parks, commercial centres, logistics hubs, and housing developments, he said.
“With $70.38 billion of FDI projected by 2030, we estimate 5% of it will be channelled into the real estate industry. We have estimated this 5% ratio between FDI and real estate based on typical patterns seen across the region. The real number could be lower, or much higher,” he said.
According to Kashif, global brands have built data centres, electric vehicle facilities, and logistics hubs over the past few years. These developments create high-quality property demand in the industrial sector and have a spill over effect on housing, office, and retail.
“This ASEAN Summit is a platform for improving Malaysia’s future. If regional leaders can agree to deepen intra-ASEAN trade, harmonise regulations, and reduce trade barriers, Malaysia and all our partner nations will benefit,” he added.
