Regional Economic Partnership Achieved at ASEAN-GCC-China Summit, Marking a Fresh Chapter
Kuala Lumpur, May 27 - At the second ASEAN-Gulf Cooperation Council (GCC) Summit today, Prime Minister Datuk Seri Anwar Ibrahim emphasized the significance of strengthening ties between the two blocs in the light of the current challenging global climate. Speaking at the Kuala Lumpur Convention Centre, he highlighted the summit's critical role in ensuring the alignment of the partnership remains dynamic, responsive, and impactful.
Anwar underscored the ASEAN-GCC partnership's relevance in today's complex landscape, characterized by economic uncertainty and geopolitical challenges. He expressed his belief that a stronger partnership would foster greater collaboration, boost resilience, and support sustainable prosperity across both regions.
The GCC, encompassing Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates, has been a significant trade partner for ASEAN for years, with total trade amounting to approximately US$130.7 billion two years ago [1]. In addition, investments between the regions have been growing, reflecting increased confidence in their joint future.
The Crown Prince of Kuwait, Sheikh Sabah Khaled Al-Hamad Al-Sabah, also spoke at the event, anticipating that trade between the 16 nations is likely to increase by an average of 30 percent, surpassing US$180 billion by 2026 [2]. He underscored the multitude of investment opportunities between the sides and reiterated the importance of continued cooperation in economic, trade, investment, and technical fields.
The ASEAN-GCC Summit coincides with the 46th ASEAN Summit, with Malaysia serving as the host nation. The day's proceedings will be followed by the inaugural ASEAN-GCC-China Trilateral Summit [3].
This meeting comes at a time when there is no direct Free Trade Agreement (FTA) between ASEAN and the GCC at the regional bloc-to-bloc level [4]. Nevertheless, efforts are underway to strengthen economic ties between the two blocs and individual member countries. The recently concluded ASEAN-GCC-China Summit underscored the commitment to economic integration, although no official negotiations for a bloc-to-bloc FTA were announced [5].
On the sidelines of the ASEAN-GCC Summit, Malaysia and the GCC officially launched negotiations for a bilateral FTA, marking a crucial step in enhancing trade and investment relations between the two [6][7]. The Malaysia-GCC FTA aims to encompass not only goods and services but also investment, trade facilitation, and broader economic cooperation. This agreement is seen as a strategic platform to collaborate in response to global economic uncertainties and tap into new trade opportunities [8].
[1] (ASEAN, 2023)[2] (Emirates News Agency, 2025)[3] (ASEAN, 2025)[4] (Asia Times, 2025)[5] (ASEAN, 2025)[6] (Malaysia-GCC, 2025)[7] (Bernama, 2025)[8] (The New Straits Times, 2025)
In the dynamic city of Kuala Lumpur, the ongoing ASEAN-GCC Summit sees Malaysia and the GCC officially initiating negotiations for a bilateral Free Trade Agreement (FTA), aimed at expanding trade and investment opportunities. This strategic move aligns with Prime Minister Datuk Seri Anwar Ibrahim's emphasis on fostering greater collaboration and supporting sustainable prosperity across regions. With increased trade projected to surpass $180 billion by 2026 [2], theMalaysia-GCC FTA will also focus on investment, trade facilitation, and broader economic cooperation, positioning both parties to jointly address global climate challenges and seize tech, sports, and other opportunities.
