ASEAN’s economic growth is the main focus amidst increasingly complex global challenges. With various dynamics such as the COVID-19 pandemic, climate change and geopolitical tensions, this region is showing extraordinary resilience and competitiveness. One of the main drivers of ASEAN economic growth is regional economic integration. Through the ASEAN Economic Community (AEC), member countries are committed to creating a single market and production base. This has resulted in increased intra-ASEAN trade, reaching a value of USD 623 billion by 2022. This trade openness supports industrial growth, strengthens supply chains, and improves market access. Foreign direct investment (FDI) is also an important factor. Despite global uncertainty, ASEAN continues to attract investor interest, especially in the technology and manufacturing sectors. According to UNCTAD, FDI in ASEAN is recorded to reach USD 174 billion in 2022, making it one of the most attractive investment destinations. Countries such as Vietnam, Indonesia and Singapore are becoming attractive hubs for investors thanks to competitive labor costs and policies that support investment. Innovation and digitalization play an important role in spurring economic growth. Digital transformation in ASEAN can be seen through the increasing adoption of technology in various sectors, such as health, education and e-commerce. According to the Google-Temasek report, ASEAN’s digital economy is estimated to reach USD 1 trillion by 2030. This opens up huge opportunities for MSMEs to develop and expand their market reach online. However, this growth has not come without challenges. A global supply crisis, inflation and the impact of climate change threaten economic stability. Several ASEAN countries are facing high inflationary pressures due to soaring food and energy prices, which can reduce people’s purchasing power. Additionally, dependence on fossil fuels must be addressed to achieve better sustainability and reduce the carbon footprint. ASEAN also needs to strengthen cooperation to face global challenges. Initiatives such as the ASEAN Framework for Equitable Economic Development (AFED) focus on inclusive strategies to ensure equitable growth among member countries. Cooperation in addressing social issues, such as gender equality and poverty reduction, is important to create a sustainable economy. In a geopolitical context, tensions between major powers such as the United States and China introduce uncertainty to trade relations. ASEAN must be smart in positioning itself, maintaining a balance between cooperating with the two countries while strengthening its regional position. With smart economic diplomacy, ASEAN can take advantage of its geographical position to become a link between these two great powers. Overall, ASEAN economic growth shows great potential amidst changing global dynamics. Through efficient collaboration, continuous innovation, and appropriate strategies for handling challenges, ASEAN can achieve inclusive and sustainable growth towards a brighter future.