ASEAN, Japan target stronger supply chains

ASEAN and Japan are stepping up economic cooperation in semiconductors, critical minerals, energy, artificial intelligence and the circular economy as both sides seek to strengthen regional supply chains amid global trade and geopolitical uncertainty.

The commitment was outlined at the 32nd ASEAN Economic Ministers-Ministry of Economy, Trade and Industry (AEM-METI) Consultation held in Manila on 20 September, co-chaired by Trade Secretary Ma. Cristina A. Roque and Japan Economy, Trade and Industry Minister Ryosei Akazawa.

Two-way merchandise trade between ASEAN and Japan reached $245.4 billion in 2025, while Japanese foreign direct investment into ASEAN totaled $9.5 billion, making Japan one of the region’s top trading and investment partners.

Ministers cited geopolitical tensions, trade uncertainty, regional conflicts and energy market volatility as risks to supply chains, particularly for micro, small and medium enterprises.

The meeting backed stronger ASEAN-Japan cooperation on supply chain resilience and energy security, including through the Partnership on Wide Energy and Resources Resilience and the Asia Zero Emission Community 2.0.

Japan also proposed deeper cooperation in semiconductors, critical minerals, biofuels and the circular economy, while public-private roundtables will explore opportunities in selected sectors.

The two sides also advanced discussions on a possible upgrade of the ASEAN-Japan Comprehensive Economic Partnership Agreement, including a joint feasibility study examining measures to strengthen supply chain resilience.

Japan expressed readiness to support ASEAN in implementing the ASEAN Digital Economy Framework Agreement, while both sides highlighted cooperation in AI, automotive industries, human capital and technology transfer.

The meeting also welcomed Timor-Leste as ASEAN’s 11th member and reaffirmed commitments to provide capacity building and technical assistance to support its integration into the regional economy.