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Growth Gateway

Supporting ASEAN to develop a common Strategic Trade Management framework for dual-use goods

2026

Context and Opportunity

ASEAN’s rapid growth as a hub for dual-use goods trade is creating significant economic opportunity, but this comes with strategic risk. The region’s dual-use goods trade is projected to reach ~£64B by 2030, driven by advanced manufacturing in electronics, semiconductors, and special materials. Geo-economic fragmentation is making robust STM1 frameworks a prerequisite for investor confidence.

A lack of consistent STM coverage across ASEAN Member States (AMS) leaves ~£13B of annual exports exposed to trade resilience risks. Only four AMS have STM legislation aligned with international norms. The remainder states currently range from nascent to partial coverage, resulting in gaps in control lists, enforcement capacity, and cross-border compliance.

Growth Gateway supported the development of a common ASEAN STM framework, positioning the UK as a trusted partner in regional trade governance. The intervention assessed maturity across all AMS, defined the case for a common ASEAN baseline covering definition, control lists, controlled activities, and catch-all provisions. The intervention also developed a phased roadmap for regional adoption whilst securing the UK’s role in shaping the framework.

Key highlights

ASEAN States Assessed

~10

ASEAN Member States assessed for STM maturity

Export Value Grown

~£13B

Estimated export value through STM coverage by 2030

Trade Protected

~£10B

UK dual-use export exposure to be protected via STM adoption

Support Provided

Assessed ASEAN STM maturity and identified priority sectors for pilot

Produced an evidence-based assessment of the case for a regional STM framework

  • Assessed the STM maturity of all 10 AMS across legislation, enforcement capability and control list coverage
  • Identified electronics (integrated circuits, processors, batteries) and special materials (aluminium and nickel alloys, titanium) as priority sectors for initial roll-out

Impact Achieved

10

ASEAN Member States assessed for STM maturity

Developed a pragmatic roadmap for ASEAN STM framework adoption

Built a phased “Think Big, Start Small, Implement” approach to drive consensus

  • Defined four key components of the common minimum STM baseline: definition, control list, activities, and end-user provisions
  • Mapped the long-term ASEAN STM Cooperation Model, covering cross-AMS data sharing and standard operating procedures
  • Proposed a sectoral body to drive AMS-level consensus on STM scope alignment

3

Pillars mapped for the ASEAN STM Cooperation Model

Established the UK’s role as a strategic trade partner

Secured the UK’s voice in shaping the framework and flagged UK trade exposure to STM gaps

  • Defined the UK’s engagement pathway through AEM1 & SEOM2 to influence framework design
  • Identified UK supply chain exposure in critical sectors at risk from non-STM aligned AMS
  • Mapped commercial opportunity for UK private sector suppliers in the STM value chain

1ASEAN Economic Ministers (Meeting)

2Senior Economic Officials Meeting

~£300M

UK import exposure identified for safeguarding by 2030

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