Latest news with #46thAseanSummit
Business Times
18 hours ago
- Business
- Business Times
Malaysia leads Asean summit as region faces tough choices
[KUALA LUMPUR] Malaysia stepped into the spotlight this week as it hosted a flurry of high-stakes diplomatic engagements, with Prime Minister Anwar Ibrahim leading regional efforts to future-proof Asean amid rising global headwinds. The 46th Asean Summit in Kuala Lumpur came at a tense moment, amid rising global rivalries, growing protectionism, and mounting pressure on the bloc to finally act on long-stalled integration plans, all while trying to stay neutral between global superpowers. Held alongside the Asean-Gulf Cooperation Council (GCC) and the inaugural Asean-GCC-China summits, the two-day gathering was a bid to put Asean back on the global map – this time with a long-term game plan rooted in pragmatism. Anwar set the tone at the summit's opening: 'The very foundations of Asean are being tested… From the Myanmar crisis to growing protectionism, we must act together, on our own terms.' Observers say Malaysia's chairmanship has re-energised Asean's often-fragmented diplomacy, offering a rare show of unity and purpose. 'This marks a shift for Asean, which is often perceived as a loose organisation where consensus is hard to achieve,' Dr Liew Wui Chern, a policy analyst and lecturer at Universiti Tunku Abdul Rahman told The Business Times. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up 'It demonstrates a growing realisation among members of the need for unity amid external uncertainties and a stronger global voice,' he added. All 10 member states jointly called for a ceasefire in Myanmar and made progress in long-stalled negotiations for a Code of Conduct in the South China Sea. That level of agreement, Dr Liew noted, is typically years in the making. Unity on paper – action to come The signing ceremony of the Kuala Lumpur Declaration on 'Asean 2045: Our Shared Future' during the 46th Asean Summit in Kuala Lumpur, on May 26. PHOTO: EPA-EFE At the heart of the summit was the adoption of the Kuala Lumpur Declaration, a foundational blueprint that launches Asean's Community Vision 2045 – a 20-year plan to make the bloc a more assertive global player and one of the world's top four economies by mid-century. The roadmap focuses on political stability, greener growth, better infrastructure, and tighter digital ties – plus a long-overdue push to turn big-picture plans into action. Asean Business Advisory Council chairman Nazir Razak said Malaysia has demonstrated tremendous leadership this year – a time when Asean truly needs it. During a panel discussion at the Asean Business Forum 2025, he highlighted the strong sense of camaraderie among leaders. 'The Prime Minister has cultivated robust bilateral relationships with fellow leaders, and this has been reflected in his chairmanship,' he said. Nazir said the momentum showed up even at the economic ministers' level and stressed that turning plans into action will be the real test for Asean, which hasn't always nailed execution. Business leaders and policymakers have been eager to reaffirm key priorities, especially with recent US tensions in play, he remarked. Laying the groundwork Speaking at the inaugural Asean-GCC-China Summit in Kuala Lumpur, Chinese Premier Li Qiang said: 'By fully connecting our markets, we will unleash powerful development potential.' PHOTO: AFP The summit also saw the endorsement of a five-year action plan aimed at removing regulatory bottlenecks to cross-border trade, improving the mobility of goods, services and talent, and attracting more foreign investment, particularly in sectors such as agriculture, mining and manufacturing. Malaysia, Singapore and Vietnam advanced this ambition further with a tripartite agreement to explore cross-border renewable energy trade. The proposed project involves transmitting offshore wind power from Vietnam to Peninsular Malaysia and Singapore via subsea and overland grids, marking an early win for the Asean Power Grid vision. 'These efforts are part of our broader goal to create a more resilient and sustainable energy supply for the region,' said Singapore's Prime Minister Lawrence Wong in his social media posting. Beyond internal goals, Malaysia also used the summit to position Asean as an attractive partner to external players. At the inaugural Asean-GCC-China Summit, Chinese Premier Li Qiang called for stronger trilateral ties, noting that China, the GCC and Asean collectively represent a quarter of global gross domestic product (GDP). 'By fully connecting our markets, we will unleash powerful development potential,' he said. Talks are also set to begin on a potential Asean-GCC free trade agreement – a move likely to attract investment into logistics, petrochemicals and halal supply chains. Still, some observers tempered expectations. 'I don't expect the summit to result in any significant near-term economic impact for member countries, as most of the discussions were focused on political strategy rather than direct policy outcomes,' said Nazmi Idrus, head of economics (equity research) at CGS International. But the summits held this week have sent a clear signal to the US 'that Asean has a choice to work with other economic blocs and to negotiate with other countries', he remarked. One bloc, many deals That signal comes amid growing unease over recent US tariff threats, which have disrupted regional supply chains and forced Asean states into difficult balancing acts. While Asean has reached internal consensus on collective negotiation with the US, an Asean-wide deal is unlikely, said Dr Oh Ei Sun, a senior fellow at the Singapore Institute of International Affairs. 'In reality, individual Asean countries are separately – and not so discreetly – racing to secure bilateral trade deals with the US, some even offering to reduce their tariffs on American goods to zero in hopes of securing better terms,' he said. Oh argued that Malaysia's chairmanship, while symbolically important, is unlikely to reverse entrenched dynamics within a single year. 'Expecting Kuala Lumpur to unify Asean on trade is like fishing in a tree – it's just not realistic,' he said. Road to October As Asean looks ahead to its next 47th Asean Summit in October, some issues remain outstanding. Questions remain over the full membership of Timor-Leste despite Malaysia and Indonesia's offer to assist in meeting accession requirements. While the country holds observer status, its full integration may still be years away, said observers. Some speculate that Kuala Lumpur may host a historic Asean-US-China trilateral dialogue, though the prospects of US President Donald Trump attending remain slim. Balancing acts Asean faces a tricky balancing act ahead – strengthening ties with China without pushing the US, a key export market, too far away. Speaking at the Asean Business Forum 2025, OCBC chief economist Selena Ling said while the US remains an important market, the region is fundamentally part of the same economic sphere as China. 'There is no decoupling between China and Asean; if anything, multinational corporations are increasingly adopting a strategy of producing in the US for the US market, in China for the Chinese market, and in Asean for the rest of the world,' she added. Still, Ling noted, Asean must tread carefully. 'While deepening ties with China is important, Asean cannot afford to antagonise the US. This highlights the need for a balanced approach in navigating these complex economic relationships,' she said. For Malaysia, it was a test of whether quiet diplomacy still works in a region facing louder challenges – an answer that may only emerge in the months ahead.
The Star
21 hours ago
- Business
- The Star
I've planned my next steps but will reveal them later, says Rafizi
PETALING JAYA: After resigning as Economy Minister, Datuk Seri Rafizi Ramli says he will announce his plans once the dust settles from recent events. Rafizi said he began his leave on Wednesday (May 28) and is currently busy replying to messages and having discussions on X. ALSO READ: Anwar: No Cabinet reshuffle for now 'I have planned what to focus on after this. But let everyone calm down… 'I will update here in future,' he said on X on Friday (May 30). The former PKR deputy president also pointed out that the strength of the country lies in its people. 'The biggest potential lies in regular people. We have to go back to harnessing this potential,' he wrote. ALSO READ: Nurul Izzah: Fearless Rafizi will remain relevant A day after the 46th Asean Summit and Related Summits concluded, Rafizi and Nik Nazmi Nik Ahmad tendered their resignations from the Economy and Natural Resources and Environmental Sustainability portfolios respectively. At the PKR central leadership elections on May 23, Rafizi lost his party post to president Datuk Seri Anwar Ibrahim's daughter Nurul Izzah. Nik Nazmi was unsuccessful in his bid for one of the four vice presidents' posts. ALSO READ: Not the end of the line for the two party stalwarts, say analysts Rafizi had said his resignation would take effect from June 17, and that he will be on annual leave from Thursday (May 29) to June 16. Nik Nazmi said his resignation takes effect from July 4 and that his leave would start on Thursday. Also on Thursday, Prime Minister Anwar said he was not considering a Cabinet reshuffle yet despite the resignations. 'They are still on leave. We cannot replace ministers who are currently on leave," he told the media after the Prime Minister's Department monthly assembly in Putrajaya.
New Straits Times
a day ago
- Business
- New Straits Times
Asean leaders fortify unity amid growing global challenges
KUALA LUMPUR: The 46th Asean Summit, under Malaysia's chairmanship, has reaffirmed the bloc's commitment to navigating an increasingly complex global landscape, championing unity, economic resilience and principled diplomacy. As the curtains closed on the summit, Prime Minister Datuk Seri Anwar Ibrahim underscored the leaders' resolve to confront mounting geopolitical and economic pressures from the humanitarian crisis in Gaza to the intensifying strategic competition between global powers. Anwar emphasised that Asean must act with a collective voice, grounded in multilateralism and inclusive decision-making. Under Malaysia's chairmanship, one of the most notable institutional developments was the reaffirmation that Timor-Leste's accession to Asean is firmly on track, with full membership expected by October. In his closing press conference, Anwar reiterated Malaysia's strong support for Timor-Leste's integration, pledging that the bloc would do "whatever necessary" to facilitate the process under the Asean Foreign Ministers' framework. The summit also addressed the prolonged Myanmar crisis, with Asean leaders agreeing to push for an expanded nationwide ceasefire as a necessary precursor to inclusive political dialogue. Anwar, who recently engaged both Myanmar's junta chief Min Aung Hlaing and the opposition National Unity Government, said Asean remained a neutral platform for trust-building and eventual reconciliation. One of the summit highlights was the adoption of the Kuala Lumpur Declaration on Asean 2025 and Beyond, a long-term strategic framework aimed at reinforcing Asean centrality and enhancing the bloc's role on the global stage. The declaration envisions a more assertive and responsive Asean in addressing regional concerns like the South China Sea and the Myanmar conflict. Nusantara Academy for Strategic Research senior fellow Dr Azmi Hassan described the declaration as Malaysia's signal that Asean must evolve to stay relevant. "The two main strategies are to increase Asean's involvement globally and reinforce the centrality concept. "This includes staying neutral, especially in great power rivalries and trade conflicts, and being more proactive in shaping the global discourse," he said. While the KL Declaration outlines a 20-year vision, Azmi believes its key goals are achievable within the next three to four years, depending on the direction set by future Asean chairs. "Even as the Philippines takes over the chairmanship next year, Malaysia wants to remain in the pilot seat," he added. On the economic front, the summit produced a strong regional response to the United States' retaliatory tariffs, which target Asean exports with duties ranging from 10 to 49 per cent. Anwar made it clear that unilateral trade actions threatened global economic stability and undermined Asean's commitment to fair and open trade. He confirmed that the bloc would pursue engagement with Washington through diplomatic channels, favouring cooperation over confrontation. As such, any decisions made in regards to the tariffs should not be made to the detriment of other member countries. In a major diplomatic breakthrough, the summit also hosted the inaugural trilateral meeting between Asean, China and the Gulf Cooperation Council (GCC). This, in itself, was a coup of sorts, as Anwar described the gathering attended by Chinese Premier Li Qiang as a strategic milestone and a testament to Asean's growing convening power. This summit was apart from the Asean-GCC Summit, held for only the second time. Anwar said the spirit of Asean centrality remains critical to regional cooperation. The Asean-GCC-China Summit also saw a united call by Asean, China and the GCC for an immediate and lasting ceasefire in Gaza. It condemned attacks on civilians and demanded full humanitarian access, including the restoration of essential services such as water, electricity, food, fuel and medicine. In his closing press conference, Anwar said the summit represented one of the most substantive milestones in Asean's history. He added that the summit had successfully achieved its objectives, attributing the outcome to the strong support and unity among Asean leaders, as well as the bloc's first meaningful simultaneous engagement with the GCC and China. He also said Malaysia's chairmanship would continue to focus on building a more inclusive, sustainable, and resilient Asean, in line with the bloc's long-term vision.
New Straits Times
2 days ago
- Health
- New Straits Times
Sultan of Pahang calls for prayers as Sultan of Brunei rests at IJN
KUANTAN: The Sultan of Pahang, Al-Sultan Abdullah Ri'ayatuddin Al-Mustafa Billah Shah has instructed all mosques and suraus across the state to hold special prayers for the health of Sultan of Brunei, Sultan Hassanal Bolkiah who is currently resting at the National Heart Institute (IJN). In a statement posted on the Pahang Royal Household's official Facebook page, Al-Sultan Abdullah also offered personal prayers, wishing the Bruneian monarch a full recovery and continued good health. Sultan Hassanal Bolkiah is reported to be in stable condition and resting after experiencing fatigue. He is in Malaysia for the 46th Asean Summit and its related meetings. – Bernama
Business Times
2 days ago
- Business
- Business Times
The best deal with Trump is no deal
THE 46th Asean Summit took place this week against a backdrop of a changing world order, with multilateralism and globalisation in retreat. As Asean leaders confront the global economic uncertainty, created by the current US administration's policies, the most strategic response to President Donald Trump's tariff-driven approach is disengagement – not negotiation or appeasement. Ignoring Trump is not passivity – it is strategic defiance. By refusing to be drawn into asymmetrical negotiations, Asean can safeguard its interests and let the costs of protectionism fall squarely on the US economy. Trump's depiction of China, Japan, South Korea, India, and Asean as job thieves is not just misleading – it is a deliberate distortion of economic reality. From 2021 to 2024, US unemployment averaged just 3.8 per cent – among the lowest not only in the developed world, but globally – exposing the falsehood that foreign economies are siphoning off American jobs. In fact, the US economy soared to a record US$29.3 trillion in 2024, retaining its status as the world's largest economy, with per capita income of US$86,000. Structurally, 81 per cent of US GDP stems from services, which employ 79 per cent of American workers – in fact 91 per cent when including the self-employed. Manufacturing, though politically resonant, accounts for only a sliver of employment. Tariffs, particularly against Asia, under the guise of 'saving jobs', distort this reality and risk harming the very global networks that power US growth. For decades, Asean has contributed significantly to US prosperity. In goods, Asean's supply of semiconductors and machinery is critical to sustaining US manufacturing competitiveness. At the same time, the region's demand for American aircraft and defence equipment supports thousands of high-skilled jobs across the United States. In services, Asean is a major destination for US exports – ranging from finance and education to digital platforms – contributing significantly to America's trade surplus. In 2024, the US recorded a US$24.4 billion services surplus with Asean. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up More broadly, US services exports reached US$1.11 trillion, while imports totalled US$812.2 billion, yielding a global services surplus of US$293.4 billion (Bureau of Economic Analysis). On investment, US firms channelled US$328.8 billion into Asean in 2024 alone, accounting for 22.5 per cent of total foreign direct investment into the region. Risks of aggression Yet, Trump's tariff aggression risks unravelling this mutually beneficial relationship. Punitive tariffs risk alienating a trillion-dollar trade partner, disrupting supply chains, and weakening America's own economic prospects. For over five decades, Asean has anchored US prosperity – economically, strategically, and diplomatically – by supplying essential intermediate goods, absorbing US services exports, and generating trillions in annual revenue for American companies operating throughout the region. How, then, should Asean respond to Trump's destructive approach? First, Asean should lead with principles. Trump's exploitation of trade in goods imbalances to justify tariffs must not be rewarded with preferential treatment. Disengagement from Trump is a firm reaffirmation of Asean's core values: non-alignment, multilateralism, and mutual respect. Asean should underscore its unwavering commitment to rules-based trade and regional stability. It remains open to partnerships with any country that respects international norms and embraces equitable cooperation. By insisting on World Trade Organization (WTO) principles of reciprocity and most-favoured nation (MFN) treatment, Asean rejects Trump's zero-sum logic. These principles were reaffirmed in the Asean Leaders' Statement of May 26-27, 2025 – a unified rejection of discriminatory trade practices. Asean must also partner other regions to uphold these rules. In an era of growing economic fragmentation, Asean's adherence to multilateralism offers one of the few remaining anchors of rules-based global trade. Second, Asean must mobilise the American business community, whose long-term interests lie in open, stable markets. These companies have profited enormously from Asean's openness. It is time they defend the very conditions that enabled their success. From Boeing to Apple, Microsoft, IBM, and Intel; from Freeport, ExxonMobil, and Chevron to platforms such as Starlink; from global consumer names such as McDonald's, Coca-Cola, Nike, and Unilever to banks such as Citibank, Visa, and Mastercard; from insurers AIG and Chubb to law firms Skadden and Baker McKenzie and consultancies such as McKinsey and BCG – these firms flourish on open markets and regional cooperation. Yet if influential corporations – such as Elon Musk's Tesla and Starlink, or Meta (which owns Facebook and Instagram, whose leadership aligns with Trump's nationalist agenda) or media outlets such as Fox News, which amplify protectionist rhetoric – continue to disregard Asean's strategic relevance, the region must take note. These firms must harness their influence in Washington to counter economic nationalism. If they fail to speak up – or worse, remain complicit – Asean is right to reconsider the privileged access they enjoy in its markets. Asean should make clear that market access is not a blank cheque. In today's contested global economy, partnerships must be reciprocal. If US firms benefit from Asean's openness but fail to defend the frameworks that enable it, Asean has every right to reassess their privileged access. Last, Asean should let the US deal with the consequences of its own policies. Trump has made clear – through sweeping tariffs and nationalist rhetoric – that he has little regard for Asean, or for America's own longstanding allies, including the European Union, Canada, Japan, and South Korea. He is unlikely to change. He responds neither to diplomacy nor to data, but only to two constituencies: his domestic political base and a narrow circle of business elites. So let them feel the impact. If Trump slaps tariffs on Asean, it will be US firms – those dependent on South-east Asian supply chains – who will bear the consequences: higher costs, logistical delays, and eroded competitiveness. Ultimately, they may be the only voices he listens to. Strategic discipline Trying to reason with Trump is a dead end. Asean should instead invest in building economic resilience: deepen regional integration, diversify trade partners, and expand strategic alliances. Let the pressure come from within. This is not retreat – it is strategic discipline. Sometimes, the most strategic move is to stand back and let the costs of bad policy speak louder than diplomacy ever could. Moving forward, following the conclusion of the Asean summit and the Asean-GCC-China Economic Forum, there is now a critical window for Asean to assert a bold economic agenda. The region must double down on intra-Asean trade, fully utilise the Asean+1 free trade agreements and Regional Comprehensive Economic Partnership (RCEP), strengthen Asean+3 with China, Japan, and Korea cooperation, and deepen strategic ties with partners across the EU, Middle East, Eurasia, Latin America, and Africa. Diversifying not only trade and investment but also currency use and payment systems will be essential to building a more autonomous and future-ready Asean. As Trump turns inwards, Asean must turn outwards. The writer is secretary general of the International Economic Association. The commentary reflects her personal views.
