ASEAN MUST STRENGTHEN LEGAL CERTAINTY, DISPUTE SETTLEMENT MECHANISMS TO SUSTAIN BUSINESS CONFIDENCE - SEC-GEN
KUALA LUMPUR, Aug 21 (Bernama) -- ASEAN must strengthen its legal certainty and dispute settlement mechanisms to sustain business confidence as the region advances towards becoming the world’s fourth-largest economy by 2030, Secretary-General Dr Kao Kim Hourn said today.
He noted that ASEAN’s economic integration has propelled the region to become the world’s fifth-largest economy, with projections indicating its gross domestic product (GDP) to reach about US$4.5 trillion by the end of the decade.
“With this growth comes a parallel responsibility to provide effective and trusted mechanisms for resolving commercial disputes so that investors and businesses can operate in ASEAN with confidence,” Kao said in his opening address at the ASEAN Law Forum 2025 here today.
Kao added that over the years, ASEAN member states have advanced their international commercial arbitration as part of the commitment to reinforce the rule of law and accelerate economic integration.
ASEAN’s progress reflected both regional determination and its alignment with international best practices, he said.
Among notable developments that emerged across the region were the adoption of new and revised arbitration laws, potential accession to the 1958 New York Convention, and the adoption of the Singapore Convention on Mediation by the UN General Assembly in December 2018.
“These developments, combined with the growth of mediation and arbitration institutions across ASEAN, demonstrate our world's recognition that arbitration and mediation are not only technical and legal tools.
“These are also vital mechanisms for enhancing trust, ensuring predictability, reducing risk, and reshoring global commerce. Legal certainty and predictability underpin the implementation of our ASEAN economic commitments,” Kao said.
He added that ASEAN member states have also discussed and explored matters relating to arbitration laws and practices, including the way forward for an advisory panel on arbitration, standards for international sales of goods, legal infrastructure for e-commerce, and the signing and ratification of the Singapore Convention on Mediation.
Kao stressed that the alignment of trade-related legal frameworks with regional and global standards, particularly under the United Nations Commission on International Trade Law, underscores ASEAN's commitment to multilateralism, a rules-based order, and to contribute constructively to global governance in trade and investment.
ASEAN Law Forum 2025, themed "Enhancing Access to Justice in the ASEAN Economic Community: Bridging Legal Cooperation for Inclusive Growth" was held from Aug 19-21, 2025.
The Asian International Arbitration Centre organised the event in collaboration with the Legal Affairs Division of the Prime Minister’s Department.
Prime Minister Datuk Seri Anwar Ibrahim and Minister in the Prime Minister's Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said were also at the event.
-- BERNAMA
