SINGAPORE — ASEAN faces increasing challenges in advancing its industrial development as automation diminishes the competitive edge of low labor costs, Deputy Prime Minister Gan Kim Yong said at the FutureChina Global Forum held last Friday at the Sands Expo and Convention Centre. Gan, who also serves as Singapore’s Minister for Trade and Industry, emphasized that while digital platforms both introduce new competitors and open fresh market opportunities, businesses will need more than just investment to capitalize on these changes.
“More trade and investment, by themselves, will not be enough,” Gan said, stressing the importance of helping local enterprises move up the value chain and equipping workers with the skills required for evolving roles. He added that fostering a stronger, more resilient ASEAN is a shared goal for Singapore and China, as a prosperous region would create expanded markets, robust supply chains, and reliable partners for businesses in both countries.
China has held the position as ASEAN’s largest trading partner since 2009, with ASEAN becoming China’s biggest trading partner in 2019. Trade between the two crossed the US$1 trillion mark for the first time in 2025. In the first seven months of 2026 alone, China-ASEAN trade reached US$744.4 billion, representing nearly 22 percent of China’s total foreign trade during that period, according to data from China’s Commerce Ministry.
Gan highlighted the upgraded ASEAN-China Free Trade Area, formally renewed in October 2025, as a platform for collaboration in areas such as the digital economy, green initiatives, and enhanced supply chain connectivity. He pointed to infrastructure projects like the International Land-Sea Trade Corridor, which connects western China to Southeast Asia and beyond, as vital to improving transport links and supporting services. These developments can help ASEAN firms access Chinese markets and provide logistics companies with new business opportunities.
By fostering closer ties between investors and local suppliers, the region can enhance quality standards, production methods, and technological adoption. Partnerships with technology firms are expected to aid smaller enterprises in implementing digital tools and building capacity for their maintenance. Additionally, green economy projects can drive growth for local businesses while providing workforce development opportunities.
Gan underscored that the goal is not for every ASEAN economy to replicate the same industries, but rather for businesses throughout the region to identify competitive niches within value chains and for workers to have clear paths for career advancement. This approach, he said, strengthens regional integration by ensuring local companies expand their customer base and capabilities, thereby sustaining support for ongoing trade and investment.
He also noted that while open markets have fueled Asia’s development, the model faces pressures from geopolitical tensions. Moreover, rising concerns among workers and businesses about the equitable distribution of benefits from economic growth and technological progress present additional challenges for the region’s future development.