ASEAN on Track to Become the Fourth-Largest Economy by 2030: Inclusive Growth is Crucial

ASEAN stands on the brink of a significant milestone, poised to become the world’s fourth-largest economy by 2030. According to Malaysia’s Minister for Natural Resources and Environmental Sustainability, Nik Nazmi Nik Ahmad, this achievement is not just about reaching a numerical goal. It is about ensuring that this growth translates into sustainable and equitable development that uplifts all communities, especially those who are most vulnerable.

The Path to Economic Prosperity

While cities such as Kuala Lumpur, Bangkok, and Jakarta are experiencing remarkable GDP growth, disparities remain prevalent throughout the region. Many rural and underdeveloped areas still grapple with limited access to electricity, education, and economic opportunities. Nik Nazmi emphasizes that this economic progress should not be solely measured by GDP figures. Instead, genuine success will be reflected in the quality of life improvements for all people, particularly those in less-developed regions.

“We are currently the fifth-largest economy globally, but forecasts suggest that by 2030, ASEAN could rise to become the fourth-largest,” Nik Nazmi stated during a press briefing at the ASEAN Youth Economic Forum (AYEF) 2025 in Kuala Lumpur.

“However, our challenge lies not only in reaching this milestone but in ensuring that the economic growth we achieve leads to sustainable, equitable development that benefits all communities, particularly the most underserved.”

The Imperative of Inclusion

For Nik Nazmi, being the fourth-largest economy holds little value if significant portions of the population lack access to basic necessities such as education and electricity. The real measure of success is how economic progress improves people’s lives.

“It’s not enough to say we are the fourth-largest economy if many people still face barriers to education or cannot access basic services. These are the issues that need urgent attention,” he added.

He underscores the importance of ASEAN acting as a unified bloc to effectively address global challenges, particularly climate change. The region aims to present a unified position at the upcoming 2025 United Nations Climate Change Conference (COP30), recognizing that a coordinated effort is essential to tackle shared challenges effectively.

“If ASEAN were to act independently rather than as a collective bloc, our influence on global matters would be limited. That’s why we are coming together as a unified region, especially in areas like climate change,” Nik Nazmi stressed.

The Role of Youth in the ASEAN Youth Economic Forum 2025

The ASEAN Youth Economic Forum 2025 takes place from February 14 to 16 at the Swiss Garden Hotel in Kuala Lumpur. This year’s forum centers on the theme of “Climate Change and Building a Climate-Resilient Economy,” bringing together policymakers, industry leaders, and youth delegates to discuss strategies for enhancing economic resilience in the face of climate change.

Young people in ASEAN are acutely aware of the environmental challenges they face, from rising air pollution and heatwaves to floods and haze. They are eager to contribute to environmental action and seek support from governments, businesses, and NGOs.

“Youth in ASEAN are increasingly aware of the environmental challenges we face. They are witnessing the direct impact of climate change in their communities and want to know how they can contribute,” Nik Nazmi explained.

He highlights the need to provide platforms that amplify youth voices and offer them the resources and support necessary to drive change. Involving youth in the policymaking process is crucial for creating lasting impact.

The forum aims to strengthen ASEAN and Japan’s collaboration on climate resilience, empower young leaders to shape policies, and promote green technology and sustainable infrastructure. This event aligns with the ASEAN 2025 Chairmanship’s goals of fostering inclusivity and sustainability.

Why ASEAN’s Future Depends on Inclusive Growth

The ASEAN Youth Economic Forum 2025 showcases the importance of engaging youth in shaping ASEAN’s future. As the region faces increasing geopolitical tensions, environmental concerns, and economic challenges, ASEAN’s role in addressing these issues is more critical than ever.

“The voices of young people are vital in shaping the future of ASEAN. Many may not fully realize the significance of ASEAN in their daily lives, but as the region grapples with escalating challenges, ASEAN’s role becomes more crucial,” Nik Nazmi stated.

Through this forum, ASEAN seeks to nurture the next generation of leaders who will play a pivotal role in advancing sustainable development and climate adaptation strategies. The event represents a step forward in ensuring that the region’s youth are not just participants but active leaders in the ongoing efforts to tackle climate change and drive economic growth that benefits all.

Call to Action

As ASEAN progresses toward becoming the fourth-largest economy, the focus must remain on inclusive growth and ensuring that no one is left behind. The ASEAN Youth Economic Forum 2025 highlights the importance of unity, sustainable policies, and youth involvement in achieving this goal.

We encourage you to share your thoughts on how ASEAN can achieve inclusive growth and address climate change. Join the conversation by commenting below, subscribing to our newsletter for more insights, or sharing this article on your social media platforms. Together, we can contribute to a more sustainable and equitable future for ASEAN.