ASEAN promotes the development of multinational technology companies in the region

ASEAN needs to change its perception of dependence on foreign technology, increase capital for local enterprises, thereby building multinational technology corporations, contributing to growth and green transformation in the region.

The Association of Southeast Asian Nations (ASEAN) cannot rely solely on foreign direct investment but needs to increase investment and develop local technology companies, according to Malaysia's Deputy Minister of Investment, Trade and Industry Liew Chin Tong.

Speaking at a press conference after the establishment of the ASEAN Private Market Council, Deputy Minister Liew said there is a need to change the perception that technology must come from outside while ASEAN only plays the role of a production site.

With more investment, local companies can become influential companies not only regionally but even globally.

Deputy Minister Liew also stressed the need to connect financial resources, technology and industrial policy to establish a strong regional market.

The ASEAN Private Markets Council was established based on an initiative led by the ASEAN Business Advisory Council (ASEAN BAC) to address structural barriers to private capital development.

These barriers include regulatory or policy difficulties in developing and investing in private capital markets in the region, regulatory ambiguity or factors that make investing and raising capital more difficult.

The Council comprises more than 20 members who are leading private financial institutions in the region and aims to tap the growth potential of the green technology and transformation sector.

Accordingly, Deputy Minister Lew hopes that the Council will contribute to promoting ASEAN's green transition through technological solutions and building innovative development strategies.

Chairman of the ASEAN BAC Council Malaysia Tan Sri Nazir Razak cited a study by consulting firm McKinsey that showed that ASEAN's private market accounts for only 0.5% of Gross Domestic Product (GDP) compared to the global average of 1.5%.

He estimated that ASEAN needs up to 60 billion USD in capital for private equity funds and regional venture capital funds to achieve average global growth./.

(TTXVN/Vietnam+)

Source: https://www.vietnamplus.vn/asean-thuc-day-phat-trien-cac-cong-ty-cong-nghe-da-quoc-gia-trong-khu-vuc-post1063294.vnp