Sachs to Asean countries: Prioritise global partnerships

New Straits Times

25-05-2025

KUALA LUMPUR: The upcoming summit with China and the Gulf Cooperation Council (GCC) is a critical opportunity for Asean to deepen cooperation and embrace a future-focused agenda.
As such, United States-based economist Jeffrey Sachs urged Asean countries to prioritise regional integration, sustainable development and stronger global partnerships to navigate a changing economic and geopolitical landscape.
Speaking ahead of the Asean Summit with China and GCC nations, which starts tomorrow, Sachs underscored the bloc's role in driving a green global economy, especially under Malaysia's chairmanship.
Sachs, a professor at Columbia University and the president of the United Nations Sustainable Development Solutions Network, described the summit as a historic opportunity to deepen Asean ties with East Asia and West Asia.
"This meeting brings together Asean, China and the GCC.
"It's an important and promising moment, especially with Malaysia playing a leadership role."
He expressed optimism that significant commitments would emerge during the summit and the Asean leaders' meeting later this year.
"We can expect progress on regional integration, advancements in the sustainable development agenda and enhanced ties with global partners."
He said this at a dialogue on "Asean Amid Shifting Global Order" organised by Sunway University and the Jeffrey Cheah Foundation in Petaling Jaya near here on Friday.
A DECLINE IN US DOMINANCE
Sachs addressed the shifting global economic landscape, highlighting the declining dominance of the US in politics and trade.
"Just as the US no longer dominates the world economy, the US dollar is losing its stronghold in global trade," he said.
He pointed to recent developments, including the downgrade of the US credit rating and rising interest rates, as indicators of growing uncertainty about the US economy and policies.
"This presents a critical opportunity for Asean to explore alternative trade and financial arrangements that promote resilience and long-term stability."
LEADING THE GREEN AND DIGITAL ECONOMY
He emphasised Asean's potential to lead the global transition to a green and digital economy, advocating for the adoption of sustainable energy systems and new technologies.
"Asean must embrace a new energy trajectory by adopting low- or zero-carbon technologies," he said, highlighting the need for renewable energy sources.
He urged the bloc to implement an Asean power grid.
"Asean needs a low-carbon, high-efficiency regional energy system that integrates all 10 member states," he said.
He outlined the benefits of an interconnected energy marketplace, which would support electric vehicles, clean shipping, hydrogen economies and advanced biofuels.
He stressed the importance of linking Asean's energy initiatives with regional partners, including China, Australia and Japan, to maximise impact.
"Building a robust power grid and enhancing infrastructure will not only attract investments but also strengthen Asean's global competitiveness."
STRENGTHENING PARTNERSHIPS AND TRADE RESILIENCE
He highlighted the importance of Asean's economic partnerships with China and the GCC, describing them as vital for the bloc's global standing.
Asean, he added, should have good relations with all parts of the world rather than be allied with other countries or groupings.
"The idea is that Asean is a very open region, and trades with the US, Europe, China and others."
On US trade protectionism, Sachs expressed confidence in a return to multilateralism.
"The world prefers a rules-based trading system under the World Trade Organisation.
"Asean, like others, should maintain open trade and avoid following the US into protectionist policies," he said, adding that Asean leaders should act collectively and decisively.
"Together, we can create a sustainable and prosperous future by focusing on the Sustainable Development Goals — planet, people, prosperity and peace."