The D-8 Organization for Economic Cooperation—commonly known as the Developing-8—is an intergovernmental group founded in 1997 in Istanbul by Bangladesh, Egypt, Indonesia, Iran, Malaysia, Nigeria, Pakistan, and Türkiye. It was created to promote economic cooperation, expand trade, and strengthen the collective position of large developing countries in the global economy. Together, these countries represent more than a billion people and a combined GDP exceeding five trillion dollars, making the D-8 a significant platform for South–South collaboration.
A notable feature of the D-8 is the presence of two ASEAN member states: Indonesia and Malaysia. Their participation links Southeast Asia to key regions in the Middle East, Africa, and South Asia, transforming the D-8 into a bridge between ASEAN and the broader Muslim world.
ASEAN Members in the D-8
Indonesia
Indonesia, a founding member, has consistently taken an active role in shaping the organization’s direction. The country emphasizes cooperation in agriculture, fisheries, food security, maritime affairs, and trade standardization. Indonesia has hosted important D-8 meetings in the past and is preparing to assume the chairmanship again in 2026.
During earlier D-8 deliberations, Indonesia’s former foreign minister Hassan Wirajuda explained how the group’s cooperation benefits member states through preferential trade arrangements, noting:
“The facility is tax relief on the flow of goods and services for D-8 members’ products with at least 40 percent local content.”
His statement refers to the spirit behind the D-8 Preferential Trade Agreement, which aims to lower trade barriers and stimulate commerce among members.
Malaysia
Malaysia is also a founding member and a frequent host of high-level D-8 meetings, including the 6th D-8 Summit in Kuala Lumpur. Its diversified economy—ranging from electronics to petrochemicals and a globally recognized halal industry—positions Malaysia as one of the most active trading partners within the bloc.
The D-8 has acknowledged Malaysia’s ambition to become a global center for Islamic finance. The organization has repeatedly highlighted Malaysia’s leadership in Islamic banking, halal certification, and financial innovation, making it a natural driver for economic cooperation within the group.
In recent D-8 engagements, Malaysia’s Prime Minister Anwar Ibrahim expressed strong support for Indonesia’s upcoming leadership role, stating:
“Malaysia firmly supports President Prabowo’s leadership for D-8 in 2026, and I look forward to closer cooperation with Indonesia.”
His remarks reflect a growing synergy between the two ASEAN members in steering the organization forward.
Benefits to ASEAN Members
- Trade Diversification and New Markets
For both Indonesia and Malaysia, D-8 membership provides access to large and rapidly growing markets across three continents. This helps diversify their export destinations beyond traditional partners like China, Japan, and the United States.
Central to this is the D-8 Preferential Trade Agreement (PTA), which reduces tariffs on hundreds of products. Although not fully implemented by all member states, the PTA is designed to increase intra-D-8 trade significantly and create more stable and predictable market conditions.
Indonesia benefits through expanded opportunities for palm oil, processed foods, fisheries, and manufactured goods. Malaysia gains similar advantages, especially in electronics, palm oil, halal products, and Islamic financial services.
- Cooperation on Food Security and Agriculture
Food security is one of the D-8’s core cooperation areas. Members share research, technology, and best practices in agricultural management. Recent initiatives include collaborative projects on climate-resilient crops, fertilizer production, seed improvement programs, and fishery resource management.
For Indonesia—a major fisheries nation—and Malaysia—one of the world’s leading palm oil producers—these partnerships enhance resilience against global supply chain disruptions and climate-related challenges.
- Energy and Technology Collaboration
The D-8 also offers a platform for collaborative work in renewable energy, digital technology, and industrial development. Joint research programs and technology-sharing initiatives support both countries’ long-term transition toward greener and smarter economies.
- Strengthening Diplomatic Influence
Membership in the D-8 amplifies Indonesia’s and Malaysia’s roles as leaders among developing countries. The organization often adopts coordinated positions on global issues, including development financing, trade reform, and support for the Global South. This reinforces the diplomatic weight of ASEAN within a wider international context.
Challenges Facing D-8 Members
Despite its promise, the D-8 faces several obstacles:
- Low Intra-D-8 Trade Share – Trade among members remains relatively low compared to their overall global trade volume.
- Uneven PTA Implementation – Not all member countries have fully ratified or operationalized the Preferential Trade Agreement, limiting its effectiveness.
- Regulatory and Non-Tariff Barriers – Customs delays, differing product standards, and logistical bottlenecks continue to hinder commercial flows.
- Competing Commitments – For Indonesia and Malaysia, balancing obligations across ASEAN, APEC, RCEP, the OIC, and the WTO can strain resources and policy alignment.
Future Opportunities
The D-8 is moving toward several innovations that offer fresh opportunities:
- New Generation Barter Trade Mechanisms (NGBT) to reduce reliance on hard currency and cushion against global financial volatility.
- Digital Economy Cooperation, including e-commerce integration, fintech partnerships, and digital trade platforms.
- Halal Value Chain Expansion, where Malaysia and Indonesia can lead global standardization efforts.
- Green Energy Collaboration, supporting the transition to renewable energy systems.
- Wider Membership Expansion, which can increase the organization’s economic importance and global relevance.
As Indonesia prepares to chair the D-8 in 2026, both ASEAN members are uniquely positioned to guide the organization toward deeper economic integration and a stronger role in global development. The future of the D-8 increasingly depends on how effectively Indonesia and Malaysia can harness their influence, align priorities, and drive collective action among member states.
