The same trend was observed in real GDP per employed person, which slowed to 1.6% from 3.0% in the same period, indicating weaker productivity.

“It could indicate the needs of technological advancement, better capacity building and improved management practices in the economy for obtaining higher productivity so that it will drive higher economic growth,” the report stated.

Based on separate ASEAN data, the region’s population stood at 671.7 million in 2022, representing a 1.2% growth rate, faster than the 0.8% recorded the previous year.

These indicators reflect Asean’s progress under SDG 8, or Decent Work and Economic Growth, which seeks to promote inclusive growth, full employment and decent work for all.

Far from full employment

Under the same SDG, the report noted that the region remains far from full employment. The unemployment rate inched down only slightly, to 3.8% from 3.9% in 2016, which the report described as “relatively slow” progress.

Disparities remain between sexes and age groups. Unemployment among men was 3.7% in 2023, compared with 4.0% in 2016, while women’s unemployment rose to 3.5% from 2.6%.

Youth unemployment was the highest, standing at 8.5% in 2023, though down from 11.2% in 2016. The share of young people not engaged in education, employment or training also fell to 16.8% from 18.7%.

Southeast Asia remains a relatively young region, with a median age of 30.4, compared with the Asian average of 32.5 years. 

The figure is expected to fall further when Timor-Leste, Asia’s youngest democracy, which also happens to have one of the world’s youngest populations, formally joins the bloc.

As in the recently concluded UN General Assembly, the Gaza conflict will likely dominate any encounter with the US president. Trump has positioned himself as a broker pushing Israel toward a ceasefire, but his close ties to Prime Minister Benjamin Netanyahu complicate regional perceptions.

Malaysia’s Communications Minister, Fahmi Fadzil, said the summit provides ASEAN with a rare chance to directly confront Washington on the issue.

"Some have asked why a clearer message (of support for Palestine) wasn't sent by not inviting (Trump),” he said. "Actually, it would be easy for us to 'boycott' (the US), but the Prime Minister's (Datuk Seri Anwar Ibrahim) approach in many matters is that we need dialogue.”

"This is the most appropriate time to invite the US President. In addition to Malaysia stating its position, it gives other (summit) member countries the space to interact with and express their views to the US President," he continued.

Earlier this month, all ASEAN states backed a UN resolution reaffirming a two-state solution to the Israel-Palestine conflict, while Washington was among just 10 countries voting against.

Trade, US tariffs

Malaysia’s decision to extend an invitation to Trump may be rooted in trade realities: the United States is now Malaysia’s largest export market, overtaking China. Bilateral trade has nearly doubled over the past decade, reaching $78.3 billion in 2022.

Across the region, however, China remains ASEAN’s dominant partner , holding that position for 16 consecutive years. In the first seven months of 2025 alone, trade between China and ASEAN climbed to $597 billion, an 8.2% increase from the previous year.

In terms of overall strategic partnership, the US still holds an edge over China . A recent survey found 52.3% of Southeast Asian respondents favouring Washington as a long-term partner, compared with 47.7% for Beijing. These findings, however, came before Trump announced sweeping new tariffs, which have weighed heavily on ASEAN economies:

Regional defence

If and when Trump attends the October summit, regional defence will also be one of the main points expected to be raised with him. According to a Lowy Institute study, the US is Southeast Asia’s preferred military partner , specifically for joint exercises. 

Trump has already drawn himself directly into ASEAN disputes. In July, when border clashes flared between Cambodia and Thailand , the self-styled anti-war leader stepped in to mediate.

A 26 July phone call from Trump to the leaders of both countries helped break a deadlock in negotiations. Two days later, a ceasefire was signed in Malaysia, ending some of the heaviest fighting between the neighbours in years.

Cambodia has since nominated Trump for the Nobel Peace Prize, citing his “historic contributions in advancing world peace.”

But the truce remains fragile. Thailand is still under a transitional government led by Anutin Charnvirakul, after former premier Paetongtarn Shinawatra was ousted on ethics charges linked in part to the border dispute.

Bangkok is now weighing the possibility of a referendum on whether to revoke two long-standing border agreements with Cambodia as a way to defuse tensions.