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Malaysiakini
02-06-2025
- Business
- Malaysiakini
Asean-GCC-China summit: Forging strategic trilateral future
LETTER | On May 27, Kuala Lumpur became the epicentre of a historic diplomatic convergence as the leaders of Asean, the Gulf Cooperation Council (GCC) and the People's Republic of China gathered for the first-ever Asean-GCC-China Summit. This unprecedented trilateral engagement, held under the chairmanship of Malaysia, marked a milestone in international diplomacy, economic cooperation and strategic alignment among three of the world's most dynamic regions. The summit was more than a mere multilateral meeting. It symbolised the coming together of regions connected by centuries of trade, civilisation, and cooperation from the ancient Silk Road and the maritime powerhouses of Melaka to the energy corridors of the Gulf and the technological advances of modern China. Prime Minister Anwar Ibrahim, as host and chair, reflected this spirit by emphasising the deep historical linkages and shared aspirations that bind these blocs together. Anwar described the summit as a 'new chapter in Asean's journey of outward-looking engagement,' underscoring the trilateral potential of a combined population exceeding 2.15 billion and a gross domestic product (GDP) of US$24.87 trillion. He stressed that such a scale presents immense opportunities to synergise markets, deepen innovation, and foster cross-regional investments. Global dynamics The 2025 summit took place against a backdrop of shifting global dynamics, notably the rise in U.S. protectionism under President Donald Trump's second term. As the United States imposed new rounds of tariffs on Asean exports - reaching up to 49 percent for some member states - there was a clear impetus for regional blocs to assert strategic autonomy. The Asean-GCC-China alignment thus appeared not as a defiance of global order, but as a recalibration of priorities towards multipolarity, cooperation and balanced engagement. While Anwar was careful to reiterate that the US remains an important trade partner, he also reaffirmed Asean's intention to maintain a policy of 'constructive, balanced engagement' with all major powers. This was echoed in the summit's joint statement, which pledged to uphold international law, multilateralism and mutual respect. The summit produced a far-reaching Joint Statement, outlining commitments in six primary domains: economic integration, energy and sustainability, digital transformation, food and agriculture, connectivity and people-to-people exchanges. These areas form the backbone of what the leaders termed a 'unified and collective path toward a peaceful, prosperous, and just future.' The summit reaffirmed the centrality of trade as the cornerstone of trilateral relations. Leaders committed to finalising and signing the Asean-China Free Trade Area (ACFTA) 3.0 Upgrade and looked forward to the early conclusion of the China-GCC Free Trade Agreement. Furthermore, they proposed the establishment of a trilateral regional business council to facilitate dialogue between companies across the three regions, with a special focus on digital trade, fintech, supply chains and empowering micro, small and medium enterprises (MSMEs). There was also a strong push for de-dollarisation strategies, with an emphasis on local currency usage and cross-border payment systems to shield regional trade from external volatility. Infrastructure development was positioned as both an economic and symbolic enabler of regional unity. The Belt and Road Initiative (BRI) was endorsed as a platform to enhance seamless regional connectivity, particularly through digital infrastructure, maritime security cooperation and the development of logistics corridors. These initiatives are expected to diversify economic access and deepen inter-regional trade links between the Asean archipelago, the Gulf and mainland China. On energy Energy featured prominently, reflecting the Gulf's strength as an energy powerhouse and China's and Asean's increasing drive toward clean energy transitions. The summit participants agreed to collaborate on an inclusive, affordable energy transition aligned with the Paris Agreement. Joint efforts will focus on clean hydrogen, low-carbon ammonia, carbon capture and nuclear energy guided by International Atomic Energy Agency (IAEA) standards. The parties also committed to strengthening energy market stability, investing in cross-border energy infrastructure such as LNG terminals and undersea power cables and promoting innovation in emerging green technologies. The leaders acknowledged digital innovation as a strategic priority. There was consensus on exploring cross-regional frameworks for cooperation in digital trade, fintech, artificial intelligence (AI), quantum computing, blockchain and smart city development. To ensure inclusivity in the digital age, the summit endorsed skills development, digital literacy programs, and inclusive platform work protections. Food security was highlighted as an urgent issue, especially amid ongoing conflicts and supply chain disruptions. The leaders agreed to enhance sustainable agricultural practices, promote halal food trade through mutual recognition of standards and diversify food sources to strengthen regional nutrition and food resilience. Cultural diplomacy was also a core theme. The summit committed to boosting educational exchange, scholarship programs, mutual tourism marketing, and cross-cultural initiatives through art, music and literature. A special focus was placed on youth engagement and intercultural dialogue to build mutual trust and long-term friendship among the peoples of the three regions. In addition to development priorities, the summit tackled pressing global humanitarian and security concerns. The plight of Palestinians was addressed comprehensively, with the leaders jointly condemning attacks on civilians in Gaza and calling for a durable ceasefire and full humanitarian access. The summit cited the International Court of Justice Advisory Opinion (July 19, 2024) and UN resolutions supporting the two-state solution based on pre-1967 borders. Qatar's mediation and China's role in facilitating Palestinian unity through the Beijing Declaration (July 2024) were acknowledged and praised. The leaders also endorsed Saudi Arabia's initiative to co-host a High-Level International Conference for Peace in Palestine with France in June 2025. Myanmar crisis In addressing the Myanmar crisis, the summit called for extending the ceasefire initiated after the March earthquake, although concerns were raised about the military regime's sincerity. Nonetheless, Asean reaffirmed its commitment to a peaceful solution through regional consensus and diplomacy. Anwar delivered multiple keynotes during the summit and the accompanying Asean-GCC-China Economic Forum. He celebrated the event as a landmark demonstration of Asean's capacity to convene and lead amidst complexity. Anwar highlighted the rapid economic rise of the GCC, particularly in energy transition and AI development, and reaffirmed China as a vital partner for regional stability, justice, and development. He praised the summit for achieving concrete consensus on governance, economic policy, and human rights advocacy, stating that this summit proves that open dialogue and collective spirit can overcome differences. Chinese Premier Li Qiang echoed similar sentiments, emphasising China's readiness to align development strategies with Asean and GCC partners, and expressing optimism that trilateral synergies would multiply benefits across all regions. GCC leaders, including Kuwait's Crown Prince Sheikh Sabah Khalid Al Sabah, stressed the importance of building resilient partnerships to withstand global crises, while advancing negotiations on a free trade area with Asean. The summit concluded with a collective pledge to implement the joint statement through agreed mechanisms and to build on existing frameworks such as the Asean-GCC and Asean-China platforms. The leaders also looked ahead to future summits, including the Asia Cooperation Dialogue in Doha (October 2025) and the Palestine Peace Conference (June 2025). In short, the Asean-GCC-China Summit represents a bold reimagining of global governance. It demonstrated that in a fragmented international order, regional blocs can lead with purpose, foster inclusivity and champion cooperation over conflict. With Malaysia at the helm, the summit has set a precedent for strategic trilateralism that could shape Asia and the Middle East for decades to come. NURUL AMELLYA AZHAR is a doctorate student in International Political Economy at Universiti Kebangsaan Malaysia. The views expressed here are those of the author/contributor and do not necessarily represent the views of Malaysiakini.
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Business Standard
01-06-2025
- Business
- Business Standard
Asean and our neighbouring countries now drifting closer to China
Deepseek says that in 2023 Asean countries exported goods worth $416 billion to China and imported goods worth $495.7 billion from them TNC Rajagopalan Listen to This Article Last Tuesday, the leaders of the Association of Southeast Asian Nations (Asean), the Gulf Cooperation Council (GCC), and China gathered in Kuala Lumpur, Malaysia, with a view to enhance economic co-operation. The joint announcement after the Asean-GCC-China summit talked of, besides many other issues, promoting free trade, negotiations for a Asean-China Free Trade Area 3.0 Upgrade and a China-GCC free trade agreement. Such conferences and announcements are not uncommon. However, it is remarkable that the smaller member countries of Asean prioritize the benefits of interdependence, keeping aside many differences between them. Asean is a grouping of Brunei, Indonesia, Thailand, Malaysia,
Business Times
30-05-2025
- 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
28-05-2025
- Business
- The Star
China's Li Qiang calls for ‘vibrant economic circle' with Asean, Gulf states
Chinese Premier Li Qiang on Tuesday urged Asean and Gulf state leaders to increase cooperation with Beijing, his call coming at a time when China is seeking to strengthen global economic ties amid intractable trade tensions with the US. Addressing the inaugural summit involving China, the Association of Southeast Asian Nations and the Gulf Cooperation Council (GCC), Li said that the three sides could create a 'vibrant economic circle' through deeper exchanges to benefit each nation as well as global development. 'We should firmly grasp this historical opportunity, continuously enrich the power of trilateral cooperation, and strive to create a model of global cooperation and development,' he said in his opening remarks at the event in Kuala Lumpur, Malaysia. Li also called for greater regional development and the building of a 'large shared market', where resources, technologies and talent flowed more efficiently and where there was 'freer and more convenient trade and investment'. China, he said, was willing to deepen strategic alignment and strengthen the coordination of macroeconomic policies with Asean and GCC countries on the basis of mutual respect and equal treatment. The six GCC states are Bahrain, Kuwait, Saudi Arabia, Oman, Qatar and the United Arab Emirates, while Asean's 10 members are Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. Li's trip to the Malaysian capital for the Asean-GCC-China summit comes close on the heels of Chinese President Xi Jinping's visit to Kuala Lumpur during a regional tour last month. Beijing appears to be intensifying its efforts to strengthen Asean ties while there is no sign of trade tensions with the United States easing. During talks with Malaysian Prime Minister Datuk Seri Anwar Ibrahim on Monday, Li called for deeper bilateral exchanges and trade cooperation, while urging the two countries to safeguard free trade and the global trading system. China was willing to maintain high-level exchanges, strengthen strategic communication and enhance cultural cooperation with Malaysia, Li said. He also urged the two countries to continue expanding trade and investment cooperation, focusing on areas such as the digital economy, green economy and artificial intelligence, state news agency Xinhua reported on Monday. Li also told Anwar that countries attending the three-way summit must strengthen coordination and 'uphold open regionalism and true multilateralism' in a world confronted with rising unilateralism and protectionism. 'China is ready to work closely with Malaysia to take the event as an opportunity to push for closer economic cooperation among the three sides, build a model of global cooperation and development, jointly safeguard free trade and the multilateral trading system, and address global challenges together, so as to contribute greater stability, certainty and positive energy to a turbulent world,' he said. Observers said the back-to-back visits by China's top two leaders underscored Malaysia's strategic significance as Asean's rotating chair this year, as well as the bloc's broader importance to China amid the tariff war unleashed by US President Donald Trump. During his tour of Vietnam, Malaysia and Cambodia in April, Xi positioned China as a stable partner, advocating for stronger cooperation to resist 'unilateral bullying' by the US and to 'safeguard our shared Asian home'. Ties between China and Malaysia were ushering in 'a new golden era', Xi said during a meeting with Anwar, who has visited China three times since taking office in November 2022. Unlike the Philippines and Vietnam, each of which has competing territorial claims with Beijing in the South China Sea, Malaysia under Anwar has edged closer to China, prioritising economic cooperation while downplaying maritime disputes. China has remained Malaysia's largest trading partner for the past 15 years, while China and Asean continue to be each other's top trade partners. Despite a 90-day tariff truce agreed by China and the US after talks in Geneva earlier this month, Asean members have been left facing an increasingly delicate balancing act between the world's two largest economies – with Beijing warning trade partners against making deals with the US at China's expense. Anwar described the gathering with China and the GCC as an opportunity to foster new cooperation that could help insulate Asean's economy from external shocks. - SOUTH CHINA MORNING POST
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New Straits Times
27-05-2025
- Business
- New Straits Times
[UPDATED] Anwar: Businesses must seize the economic momentum established by leaders
KUALA LUMPUR: The business community of Asean, the Gulf Cooperation Council (GCC) and China must seize the economic momentum established by their leaders and turn it into tangible outcomes. Prime Minister Datuk Seri Anwar Ibrahim said that while governments have laid the groundwork for stronger regional cooperation, the private sector must now step up to ensure that the ambitions of shared prosperity and deeper integration are fully realised. "We have done our part. The political leadership has assured you of stability and given you the policy clarity, attractive investments, and the promotion of new technology. "We will do whatever is necessary to promote investments and make our countries attractive to investors. "Now that we have finished our session, the ball is in your court. The business community, the corporate players, the captains of industry must seize the moment and do whatever is necessary, because we have given our support and policy clarity," he said in his opening remarks at the Asean-GCC-China gala dinner, held in conjunction with the Asean-GCC Economic Forum 2025. Anwar praised the collective leadership of Asean, the GCC and China for reaching a consensus that outlines shared principles of good governance, clear economic policy and prioritising citizens' welfare. "As such, I salute all our Asean, GCC and China leaders. We have proven that it can be done. "I look forward to this Asean-GCC-China Economic Summit because we want to see results, and it is now your (business community's) duty to act and ensure that our countries benefit from one another. "There is so much synergy, so much collaboration needed, and so much hope to fulfil the aspirations of our countries." The high-level summit, hosted by Malaysia as Asean Chair, brought together leaders from both regional blocs to strengthen cooperation across political, economic and security domains. The 46th Asean Summit, held under Malaysia's 2025 Chairmanship theme, "Inclusivity and Sustainability", marks the country's fifth term as Asean Chair, following previous chairmanships in 1977, 1997, 2005 and 2015.
