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AsiaOne
27-05-2025
- Business
- AsiaOne
Asean must strengthen its integration to give itself 'manoeuvring space': PM Wong, Singapore News
KUALA LUMPUR — Asean countries must redouble efforts to deepen the grouping's integration in a world where multilateralism and globalisation are in retreat, Prime Minister Lawrence Wong said on May 26. Doing so while also strengthening its external partnerships will be key to ensuring it has "the manoeuvring space and the agency" to continue charting its own destiny in these turbulent times, he added. Speaking at both the plenary and retreat sessions of the 46th Asean Summit in Kuala Lumpur, PM Wong said a more ambitious agenda is necessary for Asean in the years ahead if the region is to be more secure, stable and prosperous. In his remarks, PM Wong commended Malaysia for its efforts in steering Asean's response through these very difficult times. "We should continue to constructively engage the US, individually as countries but more importantly, collectively as Asean. We appreciate Malaysia's leadership in that regard," he said. PM Wong noted that, under Malaysia's chairmanship, Asean concluded upgrades to trade pacts such as the Asean Trade in Goods Agreement and the Asean-China Free Trade Agreement, and is also on track to concluding negotiations on the Asean Digital Economy Framework Agreement in 2025. "All this demonstrates Asean's ability to make progress in meaningful areas of co-operation, but there is still much more to be done, and we have to chart a more ambitious agenda for Asean in the years ahead," he said. PM Wong also welcomed the signing of an enhanced memorandum of understanding on the Asean Power Grid — aimed at improving regional clean energy connectivity — but noted that there are still key elements that must be put in place, including a proper framework for subsea power cables in Asean. A key area for improvement is in the timely implementation of agreements that the grouping has already inked, he said. PM Wong said his officials found 24 economic agreements, some from as far back as 2015, which had been agreed to but still not implemented. "Clearly, there is still a lot of room for us to improve in terms of implementation, execution and strengthening our integration even in existing areas of goods, services and investments," he said. He also urged the removal of barriers, such as complex customs procedures and import licensing requirements that continue to hamper intra-Asean trade, and that the region accelerate trade in services and its competitiveness as an investment area. "If we are open and candid with ourselves, we know that while we have achieved much, there is still so much more that needs to be done," he told fellow Asean leaders during the summit at the Kuala Lumpur Convention Centre. Quoting Singapore's founding foreign minister S. Rajaratnam — who said Asean must hang together or it will hang separately — PM Wong urged the other member countries to reinforce the grouping's centrality, while also demonstrating its value to external partners. While Asean is already strengthening partnerships with other economies by enhancing its free trade agreements, PM Wong said it should also grow its relationships with other regional groupings. He noted that countries such as China, Japan, South Korea and India are keen to do more with Asean, as do its partners outside East Asia such as the European Union, Australia, New Zealand and Canada. While some of these countries may not be ready to become formal partners, Asean should engage them in specific areas of mutual interest and be flexible in configuring ways to co-operate, as it is doing with the Gulf Cooperation Council (GCC) countries, said PM Wong. Singapore also welcomes more Asean members to be part of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), he added. The CPTPP is a free trade agreement among 12 economies: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United Kingdom and Vietnam. "If you look at all of us combined — Asean, CPTPP, the EU and the GCC — collectively, we make up a significant part of the world economy," he said. "And if together, we can push back and uphold a rules-based trading system, that would enable us to strengthen multilateralism and make our overall economic foundations a lot more robust and resilient." PM Wong also stressed the need for Asean to ensure that its existing platforms remain relevant and effective in building trust, managing differences and preventing outright conflict. This is especially so for the East Asia Summit (EAS), which brings together all the major powers with interests in the region, he noted. The EAS is a leaders-led platform for dialogue and co-operation on political, security and economic issues, involving Asean and eight other participating countries. "Although these platforms cannot solve all the issues, they help to foster collaboration and dialogue," he said. Turning to Myanmar, PM Wong expressed appreciation for Malaysia's leadership in Asean's response in the aftermath of the recent earthquake there. The 7.7-magnitude earthquake that struck central Myanmar on March 28 caused widespread devastation and killed thousands. PM Wong reiterated Singapore's readiness to support Asean's humanitarian efforts, and joined other leaders in calling for an extended ceasefire as one step towards a longer-term political solution. Myanmar has been in turmoil since its military staged a coup against the elected government in February 2021. Asean drew up a five-point peace plan with the military two months later that called for dialogue among all parties, an immediate halt to the violence in Myanmar, the appointment of an Asean special envoy to facilitate mediation, humanitarian assistance, and a visit by an Asean delegation to the country to meet all concerned parties. "We know that successive chairs have tried to find a way forward for Myanmar and move things in the right direction," PM Wong said. "Unfortunately, progress has been slow. The issues are complex, and it's very difficult to find a way forward. But we should still continue to engage." In the meantime, Asean must continue to uphold the Five-Point Consensus, and the leaders' decisions to restrict Myanmar's representation at its meetings to non-political figures. This is important for Asean's credibility, especially with its external partners, said PM Wong. PM Wong said Asean faces many daunting challenges, but that they can be overcome if the grouping steps up both its internal integration and its external partnerships. "We have almost 60 years of experience in responding to and overcoming crises. I'm confident that we can do it again," he said. On May 26, Asean leaders also signed the Kuala Lumpur Declaration 2045 — Our Shared Future, a new blueprint that reaffirms the grouping's commitment to a sustainable and inclusive future. In a speech at the signing ceremony, Malaysian Prime Minister Anwar Ibrahim said Asean's continued relevance will be defined by revolutions in technology and science. He called for the grouping to embrace innovation while learning to govern it together, and with care. Asean leaders also attended a gala dinner hosted by Datuk Seri Anwar and his wife at the Kuala Lumpur Convention Centre. [[nid:718377]] This article was first published in The Straits Times. Permission required for reproduction.
Straits Times
26-05-2025
- Business
- Straits Times
Asean must strengthen its integration to give itself ‘manoeuvring space': PM Wong
- Asean countries must redouble efforts to deepen the grouping's integration in a world where multilateralism and globalisation are in retreat, Prime Minister Lawrence Wong said on May 26. Doing so while also strengthening its external partnerships will be key to ensuring it has 'the manoeuvring space and the agency' to continue charting its own destiny in these turbulent times, he added. Speaking at both the plenary and retreat sessions of the 46th Asean Summit in Kuala Lumpur, PM Wong said a more ambitious agenda is necessary for Asean in the years ahead if the region is to be more secure, stable and prosperous. In his remarks, PM Wong commended Malaysia for its efforts in steering Asean's response through these very difficult times. He noted that, under Malaysia's chairmanship, Asean concluded upgrades to trade pacts such as the Asean Trade in Goods Agreement and the Asean-China Free Trade Agreement, and is also on track to concluding negotiations in 2025 to the Asean Digital Economy Framework Agreement. 'All this demonstrates Asean's ability to make progress in meaningful areas of cooperation, but there is still much more to be done, and we have to chart a more ambitious agenda for Asean in the years ahead,' he said. PM Wong also welcomed the signing of an enhanced memorandum of understanding on the Asean Power Grid - aimed at improving regional clean energy connectivity - but noted there are still key elements that must be put in place, including a proper framework for subsea power cables in Asean. A key area for improvement is in the timely implementation of agreements that the grouping has already inked, he said. PM Wong said his officials found 24 economic agreements, some from as far back as 2015, which had been agreed to but still not implemented. 'Clearly, there is still a lot of room for us to improve in terms of implementation, execution, and strengthening our integration even in existing areas of goods, services and investments,' he said. He also urged the removal of barriers, such as complex customs procedures and import licensing requirements which continue to hamper intra-Asean trade, and for the region to accelerate trade in services and its competitiveness as an investment area. 'If we are open and candid with ourselves, we know that while we have achieved much, there is still so much more that needs to be done,' he told fellow Asean leaders during the summit at the Kuala Lumpur Convention Centre (KLCC). Quoting Singapore's founding Foreign Minister S. Rajaratnam - who said Asean must hang together or it will hang separately - PM Wong urged the other member countries to reinforce the grouping's centrality, while also demonstrating its value to external partners. He noted that countries such as China, Japan, South Korea and India are keen to do more with Asean, as do its partners outside East Asia such as the European Union, Australia, New Zealand and Canada. While some of these countries may not be ready to become formal partners, Asean should engage them in specific areas of mutual interest and be flexible in configuring ways to cooperate, as it is doing with the Gulf Cooperation Council (GCC) countries, said PM Wong. He also stressed the need for Asean to ensure that its existing platforms remain relevant and effective in building trust, managing differences and preventing outright conflict. This is especially so for the East Asia Summit (EAS), which brings together all the major powers with interests in the region, he noted. The EAS is a leaders-led platform for dialogue and cooperation on political, security and economic issues, involving Asean and eight other participating countries. 'Although these platforms cannot solve all the issues, they help to foster collaboration and dialogue,' he said. Turning to Myanmar, PM Wong expressed appreciation for Malaysia's leadership of Asean's response in the aftermath of the recent earthquake there. The 7.7-magnitude earthquake that struck central Myanmar on March 28 caused widespread devastation and killed thousands. PM Wong reiterated Singapore's readiness to support Asean's humanitarian efforts, and joined other leaders in calling for an extended ceasefire as one step toward a longer-term political solution. Myanmar has been in turmoil since its military staged a coup against the elected government in February 2021. Asean drew up a five-point peace plan with the military two months later that called for dialogue among all parties, an immediate halt to the violence in Myanmar, the appointment of an Asean special envoy to facilitate mediation, humanitarian assistance, and a visit by an Asean delegation to the country to meet all concerned parties. 'We know that successive chairs have tried to find a way forward for Myanmar and move things in the right direction,' he said. 'Unfortunately, progress has been slow. The issues are complex and it's very difficult to find a way forward. But we should still continue to engage.' In the meantime, Asean must continue to uphold the Five-Point Consensus, and the leaders' decisions to restrict Myanmar's representation at its meetings to non-political figures. This is important for Asean's credibility, especially with its external partners, said PM Wong. PM Wong said Asean faces many daunting challenges, but that they can be overcome if the bloc steps up both its internal integration and its external partnerships. 'We have almost 60 years of experience in responding to and overcoming crises. I'm confident that we can do it again,' he said. On May 26, Asean leaders also signed the Kuala Lumpur Declaration 2045 – Our Shared Future, a new blueprint that reaffirms the bloc's commitment to a sustainable and inclusive future. In a speech at the signing ceremony, Malaysian Prime Minister Anwar Ibrahim said Asean's continued relevance will be defined by revolutions in technology and science. He called for the bloc to embrace innovation while learning to govern it together, and with care. The group's leaders also attended a gala dinner hosted by PM Anwar Ibrahim and his wife at KLCC. Join ST's WhatsApp Channel and get the latest news and must-reads.
The Star
26-05-2025
- Business
- The Star
Evolving ties: Malaysia and China shift from trade to innovation partnership
KUALA LUMPUR: Malaysia and China's partnership is evolving from traditional trade to a deeper collaboration based on innovation, talent, and shared development goals, says Science, Technology and Innovation Minister Chang Lih Kang. He stated that China has been Malaysia's largest trading partner for 16 consecutive years; however, the relationship was evolving from transactional exchanges to transformational cooperation. 'We're not just exchanging goods anymore—we're sharing ideas, talent, and innovation,' he said during a speech at the Asean-China Economic Forum & The Third China International Supply Chain Expo Roadshow on Monday (May 26). Chang highlighted Malaysia's strategic position at the heart of Asean, supported by its multilingual workforce and pro-business environment, as a natural partner for global enterprises. "With China's technological scale and Malaysia's regional connectivity, both nations can jointly build smart and sustainable supply chains, "he said. Outlining Malaysia's innovation agenda, Chang said the government was investing in areas such as the hydrogen economy, AI, robotics and semiconductors through initiatives like the Hydrogen Economy and Technology Roadmap and the upcoming National Semiconductor Strategy. 'These efforts are in line with the Malaysia Madani government's vision to create a future-ready, inclusive and resilient economy. 'In today's uncertain world, no country can stand alone. We must work together to create resilient, diverse, and responsive ecosystems that meet global challenges,' he added. Malaysia-China Business Council (MCBC) chairman Tan Sri Low Kian Chuan said the recent upgrade of the Asean-China Free Trade Agreement (ACFTA 3.0), which includes new chapters on the digital and green economies, supply chain connectivity, and SME cooperation, has further strengthened regional ties. Low said that Asean and China remain each other's top trading partners, with China holding the position for Asean since 2009 and Asean becoming China's largest partner since 2020. 'Countries like Malaysia, Indonesia, Thailand and Vietnam are emerging as competitive production hubs, navigating geopolitical shifts while deepening economic ties with China,' he added. The Malaysia-China Business Council (MCBC) and the China Council for the Promotion of International Trade (CCPIT) jointly hosted the Asean-China Economic Forum & The Third International Supply Chain Expo Roadshow, aimed to strengthen Asean-China economic ties, promote resilient and sustainable supply chains, and showcase collaboration opportunities in key sectors such as advanced manufacturing, green agriculture, the digital economy, smart infrastructure, and healthcare. The Forum and Roadshow supported the upcoming Third China International Supply Chain Expo, to be held from July 16 to 20 in China. Low stated that the event provides opportunities for large firms and enables SMEs to integrate into China's extensive supply chain network. 'This platform promotes greater inclusivity, resilience and sustainable growth,' he said. As Asean Chair this year, Malaysia is well-positioned to drive regional supply chain integration in semiconductors, renewable energy, EVs, and digital technology sectors. 'Our strategic location and capabilities make Malaysia an ideal hub. With the National Energy Transition Roadmap offering RM637bil in opportunities by 2050, and China's strengths in solar and hydropower, we see strong potential for collaboration,' Low said. He invited Chinese and Asean businesses to partner with Malaysia in building 'long-term, win-win cooperation,' saying innovation and smart manufacturing would be key to future growth.
New Straits Times
05-05-2025
- Business
- New Straits Times
Asean united in choosing negotiation over tariffs
KUALA LUMPUR: Asean will not retaliate against the United States (US) over its recent imposition of reciprocal tariffs, opting instead to resolve the issue through diplomatic negotiations. Prime Minister Datuk Seri Anwar Ibrahim said the decision was reached during the Asean Economic Ministers' Special Meeting convened on April 10 to address the tariff measures imposed by Washington. Anwar said the regional bloc remains firmly committed to fostering strong and sustainable ties with the US, which is Asean's largest source of foreign direct investment (FDI) and second-largest trading partner. "The US reciprocal tariffs have disrupted global trade and supply chains, particularly affecting small and medium enterprises (SMEs), and threaten Asean's overall economic stability. "Asean is united in its stance, and we have agreed not to resort to retaliatory actions, but to address the matter through negotiations," he said in the Dewan Rakyat during a special sitting to discuss the US reciprocal tariffs. Anwar, who also chairs Asean this year, said member states had expressed their full support for Malaysia in forming a collective Asean voice and presenting a united front as a major economic bloc in negotiations with the US. "Asean represents an economic strength of US$4 trillion in 2024, with a population of 640 million. "Any position on US tariffs must be taken collectively as an Asean bloc — a move that demonstrates our strategic maturity and wisdom." Anwar added that the Asean Summit, together with the Gulf Cooperation Council (GCC) countries and China, will discuss the way forward in enhancing cooperation ahead of the US tariffs imposed on the affected countries. "Countries aligned with us have strengthened their networks to address this issue, particularly through discussions with Asean nations, China, Japan, and other regional partners. "I believe that by the end of this month, when we meet for the first time at the Asean Summit with the GCC countries and China, this issue will be a key agenda item." He also revealed that Malaysia is expected to finalise the negotiations for the improvement of the Asean-China Free Trade Agreement (FTA) soon. "With our domestic economic resilience and confidence, we are not easily swayed by external pressures or overwhelmed by challenges. We have the figures and data that can be managed and utilised wisely." On April 2, US President Donald Trump announced a baseline 10 per cent tariff on all imports into the United States, with higher rates for selected countries — including a 145 per cent tariff on Chinese goods — while Malaysian exports were subjected to a 24 per cent tariff. Among Asean nations, Cambodia faced the highest combined tariffs at 49 per cent, followed by Laos (48 per cent), Vietnam (46 per cent), and Myanmar (44 per cent). Thailand was subjected to tariffs of 36 per cent, Indonesia 32 per cent, Brunei 24 per cent, the Philippines 17 per cent, while Singapore faced only the baseline 10 per cent tariff. On April 9, Trump announced a 90-day pause on tariffs for most countries after acknowledging that the move had unsettled markets, but maintained the higher rates against China, intensifying the ongoing trade war between the two superpowers. In response, Malaysia held discussions with US Trade Representative Jamieson Greer and Secretary of Commerce Howard Lutnick to address the matter. The three-day mission was led by Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz on April 24.
