Transition to a Circular Economy in ASEAN-5: Inferences on Sustainable Development in a Globalised World

Purpose:The main purpose of the undertaken research is to analyse the effects induced by the specific coordinates of circular economy (CE), environment, and sustainability on the ASEAN-5 countries by assessing the economic dynamics in the context of this transition. Methodology:The research methodology focuses on robust regression (RREG) models and Gaussian graphical models (GGMs) applied to panel data, including a complex set of fundamental macroeconomic aggregates as variables. Indicators were compiled for the ASEAN-5 member states: the Philippines, Indonesia, Malaysia, Singapore, and Thailand, over the period 2000–2023, including International Monetary Fund projections for the period 2024–2028. Findings:The results highlight the importance of environmental coordinates in modelling the sustainable economic development of the ASEAN countries. Significant positive developments in the transition to a CE have been recorded with the end of the pandemic period, but fluctuations in carbon dioxide emissions (CO2_EMIS) are still present. Although values have fallen by almost 30% compared to the last decade, countries have failed so far to ensure a downward trend. Significance/Implications/Conclusions:To bring about change, ASEAN-5 countries should focus on implementing a CE framework, enforcing stricter measures, and raising awareness among the population. Limitations:The current research encountered certain limitations primarily due to the lack of data availability and the restricted sample of indicators. Future Research:Innovation, digitalisation, and adopting emerging technologies are indispensable in expediting diverse processes. These facets are fundamental in the assimilation and institutionalisation of CE principles and signify the future trajectory of research.