THE Asean economies have again proven themselves to be among the world’s most resilient economic groupings. Relying on strong exports, sound macroeconomic policies, and effective buffers, its economies recovered rapidly from the devastating impacts of Covid-19, recording growth of 5.6 per cent in 2022 after falling to 3.2 per cent in 2020.

But we cannot view Asean’s relative strength in the past three years as reason for complacency. The pandemic and other shocks like the Russian invasion of Ukraine, geopolitical tensions, and climate change exposed weaknesses in Asean’s global value chains (GVCs). Ignoring these risks could reduce the immense benefits Asean has gained from global trade and the resilience it continues to build.

Historically, Asean has always ridden out crises with an appropriate mix of good policy and market reforms, increasing external trade, and foreign direct investment. GVC linkages – the multi-country cross-border production networks that bring a product or service from conception to market – expanded and deepened as multinational corporations and offshore suppliers flocked to the region’s manufacturing and assembly base, with its young and vibrant workers and better access to technology, knowledge, and innovation.