KUALA LUMPUR, 24 October 2025 – At the opening of the 2025 ASEAN Inclusive Growth Summit here, Sultan Nazrin Shah of Perak delivered a pointed message: while economic growth in the region has been strong, it must translate into deeper social progress, not merely gains for capital and markets.
The Sultan emphasised that the region’s exceptional growth in sectors such as Islamic finance, which has surpassed US$5 trillion globally, should not mask persistent social and infrastructure deficits. He noted that in the ASEAN region alone, approximately 200 million adults still lack access to banking services; meanwhile, rural broadband coverage lags urban areas by up to 30 per cent.
“A strong economy cannot exist in isolation from the welfare of its people,” the Sultan said. “It is our responsibility to ensure that economic growth translates into tangible social progress, that it serves not just markets or capital owners, but communities.”
He also highlighted the ethical dimension of the financial sector’s role in promoting inclusion. Pointing to the growth of Islamic finance, he remarked that this model “connects capital with purpose, encouraging investment in productive enterprises while discouraging speculation and exploitation.” In Malaysia, he noted, Islamic finance assets now represent more than 40 % of the financial system.
Significance for Malaysia & ASEAN
The Sultan’s remarks carry important implications for Malaysia and the wider ASEAN region:
- They underscore the growing expectation that growth must be inclusive, with policy emphasis shifting from purely GDP-growth towards access, equity and welfare.
- The focus on financial inclusion and infrastructure gaps (like banking access and broadband) signals key areas where governments and the private sector must step up.
- For Malaysia, as chair of various regional bodies and a country advancing its “Shared Prosperity Vision 2030”, the speech is a timely reminder that economic objectives must align with social goals.
- At the ASEAN level, the emphasis on communities and inclusion helps reinforce the region’s narrative of “people-centred and people-driven” development.
Outlook & Considerations
While the policy rhetoric is clear, execution remains a challenge. The Sultan’s warning points to key questions for governments and industry:
- How to convert growth metrics into measurable social outcomes (e.g., increased digital access, financial inclusion, regional equality)?
- How to ensure that financial and technological advancement benefit underserved regions and demographics rather than concentrate in urban or affluent zones?
- How to embed governance, ethical finance and inclusive infrastructure as central pillars rather than add-ons?
