In response to PM Anwar’s KL Declaration, economist Prof. Geoffrey Williams outlines pragmatic steps to deepen ASEAN connectivity and reduce barriers to economic integration.
By TENGKU NOOR SHAMSIAH TENGKU ABDULLAH
KUALA LUMPUR, May 23, 2025 – Prime Minister Datuk Seri Anwar Ibrahim recently said the Kuala Lumpur Declaration on Governance and Digital Transformation as a key roadmap for ASEAN’s future.
The declaration, which will be launched at the upcoming 46th ASEAN Summit (hosted by Malaysia), is intended to set the tone for the regional bloc’s future direction in areas like governance, digital transformation, and strategic preparedness.
Anwar was quoted as saying that at recent media briefing on the upcoming Asean Summit in Putrajaya on Wednesday. He emphasized that it represents ASEAN’s collective commitment to move beyond rhetoric and into action on these crucial issues.
But according to Professor Geoffrey Williams, a respected economist and policy analyst, true regional integration will depend less on lofty declarations and more on breaking down real-world barriers that continue to frustrate businesses and workers alike.
“There are still many barriers to trade among ASEAN countries, especially for smaller companies,” Prof. Williams told TNS News in response to questions about the KL Declaration.
Prof. Williams is the Founder and Chief Economist at Williams Business Consultancy in Kuala Lumpur, and has served in advisory roles across academia, government, and regional policy institutions.
The Real Barriers to ASEAN Unity
While Anwar’s declaration laid out a regional vision, Prof. Williams stressed that practical issues remain deeply unresolved.
“There are still many constraints on simple issues such as setting up businesses, bank accounts, and even payment transfers,” he said. “Harmonising regulations on payment systems, reducing transaction costs, and building common platforms for e-payments is essential.”
He also highlighted the lack of progress on regional labour mobility.
“Even issues related to the free movement of workers are underdeveloped as ASEAN members protect their own labour markets.”
The diversity in economic development, political systems, and national self-interest, he warned, continues to hold back closer economic alignment.
Professor Geoffrey Williams, a respected economist and policy analyst
Forget the EU Model – ASEAN Needs Its Own Path
Prof. Williams advised that ASEAN should avoid replicating the European Union’s integration model, which relies heavily on centralised regulation.
“ASEAN cannot follow the EU model because that is government driven,” he explained. “But it can follow a market-driven model using technology platforms and e-commerce, which bypass brick-and-mortar barriers.”
He pointed to the tourism sector as an encouraging example, where private sector innovation has simplified travel, accommodation, and currency exchange, proving that integration can succeed when business leads the way.
Big Ideas: Visas for Entrepreneurs and Digital Nomads
To make the KL Declaration more actionable, Prof. Williams offered two bold suggestions:
“An ASEAN-wide digital nomad visa would be a good idea and would be attractive for the region as a whole while reducing competition between countries.”
“An ASEAN-wide entrepreneur visa would also be helpful in reducing costs, especially for the non-ASEAN business community, allowing foreign investors to move easily around the 10 member states.”
These proposals align with Malaysia’s own emphasis on digital inclusion and smart regulation, and could help shift ASEAN toward a more integrated digital economy.
Conclusion
While Prime Minister Anwar’s KL Declaration lays a strategic foundation, Prof. Williams cautions that ASEAN must resist bureaucratic inertia and lean into market-driven reforms.
“Integration is not impossible if it is market driven,” he emphasised. “But it is proving difficult if it is government driven.”
His insights offer a timely reminder that regional cooperation must be built on what works — not just what sounds good.
About the Expert: Professor Geoffrey Williams is a prominent economist based in Kuala Lumpur and founder of Williams Business Consultancy. He has held academic and advisory roles in Malaysia and the UK, and frequently comments on public policy, labour markets, and economic governance in Southeast Asia.
- TNS News