Kao said the tariffs had sent shockwaves across the global trading system and struck the very foundation of corporate trade and investment, which for decades had underpinned Asean’s growth and prosperity.
“We have always understood that interdependence brings vulnerability. But rarely have we seen such a stark exposure – so sudden, so destabilising, and so real,” he said during his keynote address at an Asean conference here.
“Asean’s vision is to become a global supply chain hub built on our transformation into a single market and production base,” he added.
To achieve this, Kao urged Asean to remain committed to its founding principles of openness, resilience, and unity.
“We must deepen our regional bonds, tap the inherent strength of our 678 million people, unlock the full breadth of our shared potential, and diversify our markets and partners,” he said.
He said the Asean economic ministers’ special meeting tomorrow would assess the impact of the US’s tariffs on each Asean member country and the bloc as a whole.
Tariffs on the 10 member countries vary from 10% for Singapore to 49% for Cambodia.
Kao said that without urgent and collective action to accelerate intra-Asean economic integration, the region faced increased risks from global trade tensions and uncertainty.
“To remain relevant and resilient in a world where economic chaos is fast becoming the new normal, we must act boldly and decisively to reaffirm Asean’s commitment to a stable, predictable and business-friendly environment,” he said at the Asean Investment Conference here.
“We should also strengthen the region’s trade policy tools through a regional mechanism that would enhance trade policy coordination to reduce the risk of intra-Asean trade friction.”
He said Asean remained committed to upgrading existing free trade agreements (FTAs) to ensure that they stay relevant and effective, adding that the region would sign an updated Asean-Australia-New Zealand Free Trade Area deal on April 21.
Kao said Asean was also working on signing an upgraded FTA with China and finalising a review of the Asean-India Trade and Goods Agreement.