He said a regional stock exchange could comprise the top 50 blue chip companies from each Asean country, and that they could be given special incentives and tariff treatment.

These Asean-listed companies would be able to raise funds in any Asean market, he said.

“For example, a Malaysian company can raise capital in Jakarta or in Manila. An Indonesian company can raise capital in Kuala Lumpur,” he told FMT on the sidelines of the Asean Foreign Ministers’ Retreat in Langkawi recently.

In addition, he said, it could also raise capital from other regions as investors around the world are attracted to trade on the Asean bourse.

Mohamad, also known as Tok Mat, said such an initiative could lead to Asean becoming a bloc that is more unified and harmonious, and developed.

He noted that Asean currently has the fifth largest gross domestic product in the world.

“If we maintain this growth, Asean will be the fourth largest economy in the world by 2030,” he said, adding that initiatives such as the Asean stock exchange would contribute to more robust growth for the region.

He said Asean collectively has a lot going for it. “We have a lot of digital transformation, energy transition, and artificial intelligence initiatives, making Asean a region that has become a focus for many investors,” he said.

Collaborate instead of compete

Mohamad said it was imperative that Asean nations work together instead of competing against each other. He cited the example of Malaysia and Indonesia, which are the two largest palm oil producers in the world.

He noted that there were instances when certain parties tried to pit the two countries against each other in order to secure lower palm oil prices.

He said Asean countries, as major commodity producers, should be allowed to set the standards and prices for their commodities.

Setting up an Asean commodity exchange would ensure “nobody can dictate” the nations’ trade terms, he said.

He said if Asean nations combine their strengths, the region could leverage its vast market to gain a significant global advantage.