Singapore Official Urged Asean Firms to Upgrade
Deputy Prime Minister Gan Kim Yong called for businesses to enhance value chains amid rising trade with China.
Updated on Sept. 28, 2026 in International Trade
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Singapore Deputy Prime Minister Gan Kim Yong has called on Asean enterprises to move up the value chain through digital adoption and improved logistics. The address follows significant economic integration between the region and China.
Why it matters
As automation diminishes the competitiveness of low-cost labour, Asean businesses must pivot to digital platforms to maintain their market position. This shift is crucial for firms looking to compete in an increasingly digital global trade environment.
Trade between China and Asean reached US$744.4 billion in the first seven months of 2026, with the region accounting for 22% of China's total foreign trade. Total annual trade between the two entities exceeded US$1 trillion in 2025.
The players
Gan Kim Yong
He serves as the Deputy Prime Minister of Singapore.
Asean
The Association of Southeast Asian Nations is a political and economic union of ten member states in Southeast Asia.
The details
Enterprises are encouraged to leverage digital tools and enhanced transport links to connect more effectively to international markets. These efforts aim to counter the competitive pressure introduced by digital platforms and evolving global labor costs.
Timeline
China became Asean's largest trading partner in 2009.
Asean became China's largest trading partner in 2019.
Trade between China and Asean exceeded US$1 trillion in 2025.
The Asean-China Free Trade Area upgrade was signed in October 2025.
Gan Kim Yong spoke at the FutureChina Global Forum on September 25, 2026.
Market Landscape
The push for higher-value production aligns with the Asean-China Free Trade Area upgrade, which sets the framework for deeper economic integration. This strategic shift positions regional firms to compete more effectively against global rivals in a consolidated trade bloc.
Business owners may face increased pressure to invest in digital training and automated tools to remain competitive in the regional market. For consumers, this evolution could lead to a broader selection of higher-quality goods and more efficient delivery services.
The takeaway
Businesses should prioritize the adoption of digital platforms to safeguard their competitiveness against rising global automation standards. Enhancing logistics and training is no longer an optional upgrade but a necessary step for regional growth.
Further reading
For more information on current global trade trends, visit International Trade.
Source note: This article includes information reported by The Star.
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