Private sector’s place in shaping Asean’s future

When the world is unsettled, regional cooperation is a source of resilience. For ASEAN, a region of diverse economies, fast-growing cities and increasingly connected markets, that resilience depends not only on governments but also on the businesses that invest, employ, innovate and trade across borders.

The case for business engagement is especially strong today, and I say this not just because Manila will host in November the biggest event for private and public sector engagement, the ASEAN Business and Investment Summit. I say this because the proof is everywhere.

Geopolitical tensions, supply chain disruptions, technological change, climate risks and economic uncertainty are reshaping how countries and companies operate. No government can manage these pressures alone, and neither can individual firms, not even the large ones. The region’s ability to respond will depend on closer cooperation between the public and private sectors, and on a shared understanding that commercial success and public progress are not necessarily opposed.

The private sector is central to ASEAN’s development because they turn opportunity into economic activity in terms of job creation, supply chains, technology and connecting local producers with broader markets. Their investment can help transform infrastructure plans into ports, power systems, digital networks and industrial capacity. MSMEs, meanwhile, find their niche in unmet markets that larger institutions may overlook.

This contribution goes beyond growth figures. Good jobs can raise household incomes and expand opportunity. Training and skills development can help workers move into higher-value occupations. Innovation can make services more accessible and production more efficient. When firms invest responsibly, they can support more inclusive growth and integrate smaller suppliers, local communities and developing economies into regional value chains.

Investment tends to flow where businesses can plan, where rules are clear, where workers have relevant skills and where infrastructure is dependable. If ASEAN wants to remain competitive, governments need to create conditions in which firms can invest with confidence. Just as importantly, businesses need to help shape policies that are practical, forward-looking and responsive to economic change.

This works best when governments engage the private sector early when designing regulations, trade arrangements, infrastructure plans and workforce policies. Businesses, in turn, should openly talk about the barriers they face and the opportunities they see. Dialogue works best when it is transparent, inclusive and grounded in a recognition that policy must serve the wider public as well as the economy.

The stakes are high in areas where regional coordination can make a major difference. Supply chains, for example, do not stop at national borders. Companies need reliable logistics, compatible customs processes and predictable rules if they are to move goods efficiently across ASEAN. Governments can improve these systems, but firms have the operational knowledge to identify bottlenecks and test solutions. Working together, they can make the region a more dependable place to source, produce and trade by building more diversified and connected networks.

The digital economy offers another opportunity. Digital tools can help small firms reach customers, improve public services and raise productivity across industries. Yet the benefits depend on access, trust, infrastructure, skills and appropriate safeguards. Businesses can invest in technology and help train workers; governments can support digital inclusion, establish clear rules and encourage cross-border cooperation. If the public and private sectors move in isolation, the region risks fragmented systems and uneven access. If they collaborate, digital growth can become a broader engine of opportunity.

Food security is another urgent sector. Companies can help make agriculture profitable for the thousands of smallholder farmers, and in the process create an inclusive and sustainable system that can guarantee our region’s food security.

Active engagement also matters for the region’s competitiveness. ASEAN competes not only on labor costs or market size, but on its ability to offer stability, talent, connectivity and a clear direction for growth. In a period of global instability, companies are likely to value resilience as much as efficiency. A region that can coordinate across borders, adapt to disruption and maintain confidence will be better placed to attract investment and deepen its role in the global economy. That confidence is built through consistent institutions and practical cooperation.

For businesses, participation in this effort is enlightened and productive self-interest. Companies benefit when workers are skilled, infrastructure is dependable, markets are open and public institutions are trusted. They benefit when growth is inclusive enough to sustain demand.

Still, engagement must be responsible. The influence of large companies should not crowd out small businesses, workers, community groups or other voices affected by policy. Nor should partnership become a substitute for public accountability. Governments remain responsible for making decisions in the public interest; companies remain responsible for how they operate and whom their decisions affect. The roles must not be blurred, but instead made more effective through shared problem-solving.

ASEAN’s diversity is one of its strengths, but it also makes cooperation more demanding. Countries have different levels of development, priorities and institutional capacities. Private sector engagement can help bridge those differences by bringing practical experience and investment to the table. Regional progress is most durable when it allows countries to move at a realistic pace while continuing to build toward common goals.

The choice facing ASEAN is not whether governments or businesses should lead. Both are indispensable, and neither can succeed alone. Governments provide direction, rules and public goods. Businesses provide investment, innovation and the capacity to scale solutions.

In uncertain times, ASEAN’s greatest advantage may be its ability to act together. The private sector should be an active partner in that effort: not only advocating for favorable conditions, but helping build the skills, connections and systems on which shared prosperity depends. When business goals are pursued with an eye to the region’s wider needs, commercial ambition can become a force for resilience – and ASEAN can be more competitive, inclusive and prepared for whatever comes next.