Latest news with #AssociationofSouth-eastAsianNations
Straits Times
8 hours ago
- Politics
- Straits Times
Trump's call broke deadlock in Cambodia-Thailand border crisis
Sign up now: Get ST's newsletters delivered to your inbox Cambodia's Prime Minister Hun Manet (left) and Thailand's Acting Prime Minister Phumtham Wechayachai (right) agreed to a ceasefire in talks mediated by Malaysia's Prime Minister Anwar Ibrahim on July 28. BANGKOK – First came a push from the Malaysian premier, then China reached out, but it was only after US President Donald Trump called Thailand's leader last week that Bangkok agreed to talks with Cambodia to end an escalating military conflict . A flurry of diplomatic efforts over a 20-hour window sealed Thailand's participation in ceasefire negotiations with Cambodia, hosted in Malaysia, halting the heaviest fighting between two South-east Asian countries in over a decade. Reuters interviewed four people on both sides of the border to piece together the most detailed account of how the truce was achieved, including previously unreported Thai conditions for joining the talks and the extent of Chinese involvement in the process. When Mr Trump called Thai Acting Prime Minister Phumtham Wechayachai on July 26, two days after fighting erupted along a 200km long stretch of the border, Bangkok had not responded to mediation offers from Malaysia and China, said a Thai government source with direct knowledge. 'We told him that we want bilateral talks first before declaring a ceasefire,' the source said, asking not to be named because of the sensitivity of the issue. Thailand had already made it clear that it favoured bilateral negotiation and initially did not want third-party mediation to resolve the conflict. On July 27, a day after his initial call, Mr Trump said Cambodia and Thailand had agreed to meet to work out a ceasefire, and that Washington would not move ahead with tariff negotiations with both until the conflict had ended. The source said as the Cambodian and Thai foreign ministries started talking, following Mr Trump's call, Bangkok set out its terms: The meeting must be between the two prime ministers and at a neutral location. 'We proposed Malaysia because we want this to be a regional matter,' the source said. 'The US really pushed for the meeting,' a second Thai source said. 'We want a peaceful solution to the conflict, so we had to show good faith and accept.' Cambodia had accepted the initial Malaysian offer for talks, but it was Thailand that did not move ahead until Mr Trump's intervention, said Mr Lim Menghour, a Cambodian government official working on foreign policy. Prime Minister Hun Manet's government also kept a channel open with China, which had shown interest in joining any peace talks between the neighbours, he said, reflecting Phnom Penh's close ties to Beijing. 'We exchanged regular communication,' Mr Lim Menghour said. Good faith On July 28, Mr Phumtham and Mr Hun Manet went to the Malaysian administrative capital of Putrajaya, where they were hosted by Prime Minister Anwar Ibrahim, also the current chair of the 10-member Association of South-east Asian Nations. At the end of their talks, the two leaders stood on either side of Datuk Seri Anwar, who read out a joint statement that said Thailand and Cambodia would enter into a ceasefire from midnight and continue dialogue. The rapid parleys echoed efforts to diffuse severe border clashes between Cambodia and Thailand in 2011, which took several months, including mediation efforts by Indonesia, then chair of Asean. But those talks had not directly involved the US and China. The fragile ceasefire was holding as of July 31, despite distrust on both sides, and neither military has scaled down troop deployment along the frontier. Cambodia and Thailand have, for decades, quarrelled over undemarcated parts of their 817km land border, which was first mapped by France in 1907 when the latter was its colony. In recent months, tensions began building between the neighbours after the death of a Cambodian soldier in a skirmish in May and escalated into both militaries bolstering border deployments, alongside a full-blown diplomatic crisis. After a second Thai soldier lost a limb last week to a landmine that Thailand alleged Cambodian troops had planted, Bangkok recalled its ambassador to Phnom Penh and expelled Cambodia's envoy. Cambodia has denied the charge. The fighting began soon after. Since the ceasefire deal, Mr Hun Manet and Mr Phumtham have been effusive in their praise for Mr Trump, who had threatened 36 per cent tariffs on goods from both countries coming to the US, their biggest export market. The Thai sources did not say whether tariff talks had been impacted by the border clashes. Mr Lim Menghour said after the 'positive talks, President Donald Trump also showed positive developments' regarding tariffs, without elaborating.
Business Times
9 hours ago
- Business
- Business Times
Malaysia, US discuss lower tariff rate of below 20 per cent
[KUALA LUMPUR] The US tariff rate on Malaysian goods will be announced on Friday (Aug 1), Malaysian Premier Anwar Ibrahim said on Thursday after speaking on the phone to US President Donald Trump. The two countries discussed a tariff rate below 20 per cent, people familiar with the talks said, asking not to be identified as the talks are private. The call lasted about 20 minutes, they added. Malaysia is facing a 25 per cent tariff on its exports to the US unless a deal with Washington is reached by Friday. That would have been higher than the agreements announced so far with South-east Asian neighbors, with goods from the Philippines and Indonesia facing tariffs of 19 per cent, and Vietnam 20 per cent. The two countries have held multiple rounds of talks, with Malaysia's trade minister saying several sticking points remained, particularly on non-trade barriers. Anwar said he discussed tariffs 'in the spirit and principle of free trade' during his call with Trump. 'After the explanation I provided, (Trump) decided to review the tariff rates imposed on Malaysia, with an announcement expected (on Friday). We pray, God willing, that it will help and not burden our country's economy,' Anwar said in a speech to parliament to present the country's new five-year economic plan. 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 Trump to visit Malaysia in October Anwar also said Trump confirmed that he would attend the next Association of South-east Asian Nations summit in Malaysia in October. Malaysia will target annual gross domestic product growth of 4.5 per cent to 5.5 per cent from 2026 to 2030, with a deficit of less than 3 per cent of GDP by the end of that period, Anwar said when launching the new five-year plan. Malaysia is also targeting export growth of 5.8 per cent a year in the plan, and will strive to keep inflation at an average rate of 2 per cent-3 per cent for the period, he said. Malaysia will allocate RM611 billion (S$185 billion) for the economic plan, with RM430 billion of the total coming from the government's coffers, and the remainder from government-linked companies and the private sector. 'The next five years will be a crucial period for Malaysia to not only transition into a high-income nation but also to provide a high quality of living for the people,' Anwar said. Malaysia's central bank on Monday lowered its growth forecast for 2025 to a range of 4 per cent to 4.8 per cent from 4.5 per cent to 5.5 per cent due to global tariff uncertainties and shifting trade policies. The bank also cut interest rates for the first time in five years earlier this month to 'pre-emptively preserve' the export-oriented economy's growth. REUTERS, BLOOMBERG
Business Times
11 hours ago
- Business
- Business Times
Malaysia, US discussed tariff rate of below 20 per cent
[KUALA LUMPUR] The US tariff rate on Malaysian goods will be announced on Friday (Aug 1), Malaysian Premier Anwar Ibrahim said on Thursday after speaking on the phone to US President Donald Trump. The two countries discussed a tariff rate below 20 per cent, people familiar with the talks said, asking not to be identified as the talks are private. The call lasted about 20 minutes, they added. Malaysia is facing a 25 per cent tariff on its exports to the US unless a deal with Washington is reached by Friday. That would have been higher than the agreements announced so far with South-east Asian neighbors, with goods from the Philippines and Indonesia facing tariffs of 19 per cent, and Vietnam 20 per cent. The two countries have held multiple rounds of talks, with Malaysia's trade minister saying several sticking points remained, particularly on non-trade barriers. Anwar said he discussed tariffs 'in the spirit and principle of free trade' during his call with Trump. 'After the explanation I provided, (Trump) decided to review the tariff rates imposed on Malaysia, with an announcement expected (on Friday). We pray, God willing, that it will help and not burden our country's economy,' Anwar said in a speech to parliament to present the country's new five-year economic plan. 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 Trump to visit Malaysia in October Anwar also said Trump confirmed that he would attend the next Association of South-east Asian Nations (Asean) summit in Malaysia in October. Malaysia will target annual gross domestic product growth of 4.5 per cent to 5.5 per cent from 2026 to 2030, with a deficit of less than 3 per cent of GDP by the end of that period, Anwar said when launching the new five-year plan. Malaysia is also targeting export growth of 5.8 per cent a year in the plan, and will strive to keep inflation at an average rate of 2 per cent-3 per cent for the period, he said. Malaysia will allocate RM611 billion (S$185 billion) for the economic plan, with RM430 billion of the total coming from the government's coffers, and the remainder from government-linked companies and the private sector. 'The next five years will be a crucial period for Malaysia to not only transition into a high-income nation but also to provide a high quality of living for the people,' Anwar said. Malaysia's central bank on Monday lowered its growth forecast for 2025 to a range of 4 per cent to 4.8 per cent from 4.5 per cent to 5.5 per cent due to global tariff uncertainties and shifting trade policies. The bank also cut interest rates for the first time in five years earlier this month to 'pre-emptively preserve' the export-oriented economy's growth. REUTERS, BLOOMBERG
Business Times
12 hours ago
- Business
- Business Times
Malaysia PM says US tariff rate on Malaysian goods to be announced Friday
[KUALA LUMPUR] The US tariff rate on Malaysian goods will be announced on Friday (Aug 1), Malaysian Premier Anwar Ibrahim said on Thursday (Jul 31) after speaking to US President Donald Trump. Malaysia is facing a 25 per cent tariff on its exports to the United States unless a deal with Washington is reached by Friday. The two countries have held multiple rounds of talks, with Malaysia's trade minister saying several sticking points remained, particularly on non-trade barriers. Anwar said he discussed tariffs 'in the spirit and principle of free trade' during a phone conversation with Trump early on Thursday. 'After the explanation I provided, he (Trump) decided to review the tariff rates imposed on Malaysia, with an announcement expected tomorrow' Anwar said in a speech to parliament to present the country's new five-year economic plan. Anwar did not provide further details. Anwar also said Trump confirmed that he would attend a meeting of the Association of South-east Asian Nations (Asean) in Malaysia in October. 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 Malaysia will target annual gross domestic product growth of 4.5 per cent to 5.5 per cent from 2026 to 2030, with a deficit of less than 3 per cent of GDP by the end of that period, Anwar said when launching the new five-year plan. The South-east Asian nation is also targeting export growth of 5.8 per cent a year in the plan, and will strive to keep inflation at an average rate of 2 per cent-3 per cent for the period, he said. Malaysia will allocate RM611 billion (S$186 billion) for the economic plan, with RM430 billion of the total coming from the government's coffers, and the remainder from government-linked companies and the private sector, Anwar added. 'The next five years will be a crucial period for Malaysia to not only transition into a high-income nation but also to provide a high quality of living for the people,' Anwar said. Malaysia's central bank on Monday lowered its growth forecast for 2025 to a range of 4 per cent to 4.8 per cent from 4.5 per cent to 5.5 per cent due to global tariff uncertainties and shifting trade policies. The bank also cut interest rates for the first time in five years earlier this month to 'pre-emptively preserve' the export-oriented economy's growth. REUTERS
Straits Times
3 days ago
- Business
- Straits Times
Thailand sees US offering ‘very good' trade deal after ceasefire
Thailand's trade talks with the US have included offering expanded access for American goods to narrow a US$46 billion trade surplus. BANGKOK - Thailand expects the Trump administration to offer it a 'very good' trade deal after agreeing to end an armed border conflict with Cambodia under a US-backed peace initiative, its Acting Prime Minister Phumtham Wechayachai said. Mr Phumtham spoke to President Donald Trump hours after Thailand and Cambodia jointly announced an 'immediate and unconditional' ceasefire. The US president lauded Thailand for agreeing to end the five-day old conflict, Mr Phumtham told reporters late on July 28. The truce was reached after Mr Trump threatened to block trade deals with both the South-east Asian countries unless the violence stopped. Mr Phumtham and Cambodian Prime Minister Hun Manet met for talks hosted by Malaysian Prime Minister Anwar Ibrahim in his capacity as the chair of the Association of South-east Asian Nations. Mr Trump told Mr Phumtham that 'there will be tariff negotiations, which will be beneficial and we will get something very good out of it. He will do his best to give us as much as he can', the Thai leader said. On his part, Mr Trump posted on Truth Social that 'I have instructed my Trade Team to restart negotiations on Trade'. With the Aug 1 tariff deadline nearing, export-reliant Thailand appeared eager to avoid provoking the US president as it worked to reduce a planned 36 per cent levy on its exports. Mr Trump has credited his use of trade pressure with helping stop border clashes between India and Pakistan earlier this year – a claim welcomed by Pakistan but consistently denied by India. Thailand's trade talks with the US have included offering expanded access for American goods to narrow a US$46 billion (S$59 billion) trade surplus. Neighboring Indonesia, the Philippines, and Vietnam have already secured trade deals with the US in recent weeks. Top stories Swipe. Select. Stay informed. World Trump says many are starving in Gaza, vows to set up food centres Asia Cambodia, Thailand agree to 'immediate and unconditional ceasefire' to de-escalate border row World US, China hold new talks on tariff truce, easing path for Trump-Xi meeting Asia Giant algal bloom off South Australia devastates marine life, threatens seafood exports Singapore Tanjong Katong sinkhole: Road recovery works progressing steadily, tests under way Singapore ST Explains: What we know about the Tanjong Katong sinkhole so far Sport Gan Ching Hwee breaks 2 national records, qualifies for World Aquatics C'ships 1,500m final Asia Gunman kills 5 near Bangkok's Chatuchak market before taking own life Mr Phumtham said though border fighting continued ahead of the midnight ceasefire, it will end very well as the international community supports the truce. The Malaysia talks didn't cover disputed maps and border checkpoint measures. The Thai-Cambodia conflict traces its roots to long-standing disputes stemming from colonial-era maps and treaties that defined the two countries' boundaries. Relations had remained relatively stable since a 2011 clash that left dozens dead, but renewed tensions have triggered fears of escalated fighting. BLOOMBERG
