KUALA LUMPUR: A regional business advisory body has put forward the idea for Asean business entity, a move that could be the most significant progress in the grouping's economic integration to date.
Asean Business Advisory Council (Asean-BAC) also proposed an Asean Prospectus that allows a company going for listing to raise capital from investors anywhere in Asean.
Asean-BAC said the Asean business entity idea aims to create a new category of business entities that will enjoy seamless operational and personnel benefits across the regional countries.
Asean-BAC chairman Tan Sri Nazir Razak said when a company qualifies as an Asean business entity, it gets the benefits of freely moving people and operations.
"This (idea) is more complex, more contentious, but I think it could be the single biggest move forward in Asean business that we've seen," Nazir said at the Asean Economic Opinion Leaders Conference 2025 here today.
Citing an example, he said if Singaporean bank UOB qualifies as an "Asean Business Entity", it could move staff seamlessly between member countries.
It can also outsource operations to other Asean markets and access regional economies of scale, thereby competing more effectively with larger global players like those in China and Europe.
He said the previously proposed single production-based recruitment of people is nit going to happen.
"It isn't going to happen because politically it just cannot sell. But at the same time, we need Asean economies of scale for our businesses.
"How are businesses going to compete with Chinese businesses that have 1.5 billion customers, the European businesses that are fully integrated and so on?
"So, if you want to do both, the only way you do it is actually avail that economies of scale at the company level. So, our recommendation is that Asean member countries have this category of Asean business entity," he explained.
As for the Asean Prospectus initiative, Nazir said the council had submitted it to the Securities Commission (SC).
"If you choose to be listed say, in Bursa Malaysia, you can choose to use a Malaysian prospectus or an Asean prospectus.
"If you choose a Malaysian prospectus, you can raise money from investors in Malaysia. If you choose an Asean prospectus, then you can raise money from right across Asean.
"I think this is an idea that will bring our markets closer together. It's an idea that we tabled with the SC," he added.
Nazir said the SC had arranged for the council to meet Asean regulators and other regional capital market participants.
"Everyone liked the idea and everyone was very clear about it at the Asean Capital Market Forum. They said, okay. This country said, we think we can join you next year.
"The other country said, no, we can't join you next year, but give us a few years, we will join you," he added.