Latest news with #ChiangMaiInitiativeMultilateralisation
The Star
10-07-2025
- Business
- The Star
Asean facing a perfect storm of global challenges, says Mat Hasan
KUALA LUMPUR: Rising unilateralism and nationalism are increasingly sidelining multilateral cooperation – a core pillar of global stability now under strain, says Foreign Minister Datuk Seri Mohamad Hasan. "Today, we are once again being tested. The region is facing what might be called the perfect storm," he said in remarks at an Asean Plus Three (APT) gathering here on Thursday (July 10). "The challenges are multi-fold, ranging from intensifying great power rivalry, economic fragmentation, technological disruptions and trans-boundary threats." Despite the difficulties, Mohamad expressed confidence in the region's ability to overcome them through "collective steadfastness and strong commitment to dialogue and cooperation." He pointed to recent developments that signal progress within the APT framework, including the endorsement of the Rapid Financing Facility (RFF) under the Chiang Mai Initiative Multilateralisation (CMIM) and the momentum generated from leaders' statements on the Electric Vehicle Ecosystem (2023) and Regional Supply Chain Connectivity (2024). "These are not isolated achievements. They illustrate the APT's capacity to generate value, respond with agility and lead with foresight," he said. Looking ahead, Mohamad emphasised the need for APT to remain "agile, well-coordinated, and forward-looking," particularly in embracing frontier technologies. He said Asean's digital transformation is projected to contribute approximately US$2 trillion to regional gross domestic product (GDP), with China, Japan and South Korea playing a key role in technological expertise. "These initiatives align with Malaysia's objectives as Asean Chair to narrow development gaps, promote sustainable growth and foster peace through mutual trust and cooperation," he said. Mohamad also highlighted the strategic weight of the APT bloc, which collectively represents a population of 2.28 billion and a combined nominal GDP of around US$29.33 trillion, or 25.77% of global GDP. "This scale underscores the global relevance of our partnership and the responsibility we bear in ensuring regional stability and inclusive development," he said. Established in 1997 to address the Asian financial crisis, the APT framework has since evolved into one of the region's most resilient models of cooperation. "It is a hallmark of teamwork that is dependable and dynamic. "It enables us to consult, coordinate and cooperate not only in times of crisis, but also in our collective pursuit of sustained peace, inclusive growth and shared resilience in East Asia," he said.
New Straits Times
19-05-2025
- Business
- New Straits Times
Local currency trade a strategic long-term move, say experts
KUALA LUMPUR: Conducting up to 20 per cent of trade in local currencies by Malaysia and its regional partners could enhance monetary independence in the region and reduce exposure to global economic fluctuations. Universiti Malaya economist Professor Dr Mohd Nazari Ismail said while the initiative might not yield immediate economic benefits, it is a strategic long-term step. "In the short run, there's no significant benefit beyond reducing dependence on the US dollar. However, in the long term, reducing reliance on the US dollar is vital, especially when President Donald Trump has shown a willingness to weaponise the US dollar, and future presidents may continue this trend. "Over-reliance on the US dollar allows the country to pressure other nations, resulting in challenges for countries to stay neutral in situations of conflicts between the US and other powers, as cross border payments will be disrupted by the US for countries that are deemed to be unsupportive of the US," he said when contacted. He, however, said that the shift to local currencies would not be without risks. "Our regional currencies are generally less stable than the US dollar. Businesses involved in such trade could suffer losses from adverse currency fluctuations." He added while the move aims to challenge the global dominance of the US dollar, it would not necessarily bring immediate stability to international trade. However, Nazari acknowledged potential advantages, particularly in monetary policy. "It could help central banks of Asian countries manage the stability of their currencies." Nazari added, "If we want to reduce our dependency on the US, a very important step is to reduce our external loans, especially loans denominated in US dollars or supplied by US financial institutions. "Countries that are highly indebted to US financial institutions and experience difficulties in servicing the loans will inevitably be seeking help from the International Monetary Fund, which has historically functioned as a tool for US interests." Prime Minister Datuk Seri Anwar Ibrahim, in an exclusive interview with international broadcaster TV BRICS, said Malaysia and several regional partners are targeting to conduct up to 20 per cent of their trade in local currencies. The move, Anwar said, signalled a regional push to strengthen monetary autonomy and reduce overdependence on the US dollar. Anwar added that the move was not intended to replace the US dollar, which remains the dominant global currency, but rather to create financial buffers to safeguard national interests. International relations analyst and senior consultant with Global Asia Consulting, Samirul Ariff Othma,n described the move as a hedging strategy. "This is monetary pragmatism, not monetary rebellion. It's part of a broader vision that sees Malaysia increasing its economic resilience." He said by citing the Chiang Mai Initiative Multilateralisation and reviving the Asian Monetary Fund discourse, Anwar is tapping into a long-standing regional aspiration, Asia-led financial safety nets. Asked if the move could affect ties with the US, Samirul Ariff said it could create mild friction, but not rupture. "Malaysia is threading a very careful needle, advancing national and regional monetary autonomy without triggering great power insecurity. Anwar's messaging is consistent with a non-aligned, multipolar outlook. "This is not de-dollarisation, it is diversification. Washington may raise eyebrows, but Malaysia is unlikely to face punitive pushback, especially if it continues engaging with the US constructively on security, investment and regional diplomacy."
