Timor-Leste marked its first anniversary as ASEAN’s 11th member on 26 October 2026, with a government review of its integration progress and preparations for the country’s 2029 ASEAN chairmanship.
ASEAN Welcomes Timor-Leste
Timor-Leste officially became ASEAN’s 11th member state on 26 October 2025, following the signing of the Declaration on the Admission of Timor-Leste into ASEAN at the opening ceremony of the 47th ASEAN Summit and Related Summits in Kuala Lumpur, Malaysia.
The declaration was signed by ASEAN Leaders and Prime Minister Xanana Gusmão, marking the culmination of a membership process that began with Timor-Leste’s formal application in 2011. The milestone followed ASEAN’s agreement in principle to admit the country in 2022 and the adoption of its full membership roadmap in 2023.
The visit included a tree-planting ceremony, the unveiling of Timor-Leste’s emblem, the presentation of the country’s icon to ASEAN, and engagements with the Secretary-General and the Committee of Permanent Representatives to ASEAN.
Gusmão also delivered a policy speech titled “Opportunity and Responsibility: Timor-Leste in ASEAN”, highlighting the opportunities and responsibilities that come with membership. The visit marked an early opportunity for Timor-Leste to engage with ASEAN’s diplomatic community and reaffirm its commitment to regional cooperation and participation in the organisation.
Progress After One Year
Timor-Leste’s first year as ASEAN’s 11th member has opened new opportunities for economic integration, while highlighting the domestic reforms needed to translate membership into tangible benefits.
On 16 April 2026, the Ministry of Foreign Affairs and Cooperation (MNEC), in partnership with the World Bank Group, launched the Timor-Leste Economic Report 2026, titled Leveling Up: How ASEAN Membership Can Support Timor-Leste’s Economic Transformation. The report examines how regional integration could support the country’s transition towards a more diversified and productive economy.
At the launch, World Bank Resident Representative David Freedman noted improvements in economic performance since 2023, supported by sustained growth, increased tourism, improved domestic revenue and macroeconomic stability underpinned by the Petroleum Fund.
Vice Prime Minister Francisco Kalbuadi Lay reaffirmed the Government’s commitment to inclusive and resilient growth, with a focus on job creation, poverty reduction and improved social services. Foreign Minister Bendito dos Santos Freitas also emphasised the importance of economic diversification and reforms to strengthen competitiveness, attract investment and build institutional capacity.
The report notes that Timor-Leste’s non-oil economy grew by 4.5% in 2025, its strongest performance since 2014. However, growth remains heavily reliant on public spending, while agriculture and manufacturing continue to face productivity and market-access challenges.
The country also recorded a significant trade imbalance, with non-oil exports worth approximately US$41 million against imports of US$960 million. Coffee alone accounted for almost 90% of non-oil export earnings, underscoring the need to diversify the export base.
ASEAN membership offers opportunities to expand market access, strengthen investor confidence and deepen regional economic integration. However, the World Bank stresses that these benefits will depend on improvements in trade facilitation, customs procedures, business regulations and investor services.
Timor-Leste has made progress through initiatives such as ASYCUDA World and its Trade Information Portal, but further work is needed to improve cross-border trade processes and align domestic systems with regional arrangements.
To support this transition, the report proposes a four-part reform framework, known as the “Four Ds”: Design, Delivery, Discipline and Development. This involves setting clear and published rules, delivering faster and more reliable services, strengthening accountability through ASEAN monitoring and reporting, and building infrastructure such as testing laboratories, certification services and digital customs platforms. The World Bank recommends prioritising high-impact reforms, particularly border efficiency, paperless trade and licensing.
The Government views ASEAN integration as a framework for advancing reforms, attracting quality investment and promoting private-sector-led growth. The report highlights that the benefits of membership will ultimately depend on Timor-Leste’s ability to sustain these efforts, strengthen public institutions and create a more competitive economy.
Preparing for 2029 ASEAN Chairmanship
Timor-Leste began organising its preparations for the 2029 ASEAN chairmanship with the establishment of the ASEAN Chairmanship National Organising Council (ACNOC) in February 2026.
Approved by the Council of Ministers, ACNOC is responsible for overseeing preparations and coordinating the work of government institutions. Its Executive Committee and the National ASEAN Secretariat handle implementation and day-to-day coordination.
The preparations cover five main areas: human resources and institutional capacity, infrastructure and facilities, security, communications and diplomacy, and finance and operations.
At the first ACNOC meeting in February 2026, the government set the end of 2026 as the deadline for baseline assessments and action plans, describing the year as a foundation phase for the chairmanship.
Timor-Leste is also seeking to learn from ASEAN member states that have previously held the chairmanship. In July 2026, Lay told Vietnam’s chargé d’affaires that he hoped to draw on Vietnam’s experience in running major multilateral events, including training officials, protocol, logistics, communications and coordination between agencies. Vietnam said it was ready to exchange experience and provide appropriate support.
These efforts are intended to prepare government institutions and personnel to organise ASEAN meetings, manage regional engagements and carry out the responsibilities of chairing the organisation in 2029.
