MALAYSIA will assume the chairmanship of the Association of Southeast Asian Nations (Asean) within the next 72 - hours in a time of uncertainty following the protectionism policies adopted by some of the bloc's global trading, climate change and unfettered global inflation.
Much has changed since 2015, the last time Malaysia led Asean under then Prime Minister Datuk Seri Najib Tun Razak, who has since been imprisoned over his role in the 1MDB money laundering scandal.
Now, the country is leading Asean for the first time as a national unity government under three major coalitions under the stewardship of Datuk Seri Anwar Ibrahim, who in 2015, was serving a prison sentence.
Anwar has been busy rehearsing for his elevation to the regional if not global stage, as Malaysia takes over the Asean mantle just when the US will swear in its 47th President - Donald J. Trump, 78, who has spooked the global markets with a declaration of punitive tariffs on many countries, especially China.
Anwar has been navigating globalisation and regionalism in this past year with visits to 19 countries, and having Malaysia join Thailand and Indonesia in the BRICS (Brazil, Russia, India, China and South Africa) trade bloc as an associate with an eye for a full membership soon.
It's a prolific step up for Anwar, said former government economic adviser Tan Sri Dr Kamal Salih, who specialises in regionalism and global trade.
Globalisation is now under threat because developed nations now realise that they are not benefitting from it as what was envisioned despite having earlier pushed for trade liberation, he said.
In available public data, China was the largest source of Asean imports in 2023, with 23.9% of the total, followed by its member states (20.9%), the US (7.4%), South Korea (7.0%) and Japan (6.9%).
_.png)
Travel, transport and other business services dominate Asean's export and import of services.
The regional bloc, now comprising 11 member countries as East Timor has signed up, stands as the world’s fifth-largest economy, with a total gross domestic product (GDP) of RM3.8 trillion in 2023 and a combined population of 677 million.
Despite that, the citizenry of Asean tends to look afar due to the colonialism legacy of centuries where Britain, the Netherlands, France, Spain, Portugal and the Americans held sway.
Kamal said the economic integration within the grouping is progressing but at a pace, which can be hastened due to effects from sluggish global growth, threats of climate change, human trafficking, cross-border migration, and digitalisation; not to mention public healthcare such as Covid - 19.
Ideally, economists and investors would adore a fully integrated Asean, with a model resembling the European Union counterpart.
Benefits such as borderless travel within the region, heightened security cooperation to check terrorism, regional tourism and healthcare collaboration; creation of more jobs, easier investment flow and an overall reduction in bureaucracy would act as a stimulant to the regional economy.
Anwar will also have to grapple with the internal struggles of Asean, which continues to have substantial levels of poverty and a widening divide between the rich and poor.
Countries such as Myanmar, Laos, Cambodia and East Timor need more time and space to reach the levels of what the Singaporeans are enjoying - the excellence part of a developed nation.
But here, the civil societies of Asean do not wait for the public sector to keep pace, they are blazing their own trail in regionalism, holding various initiatives within major neighbouring players and sending joint - communiques from taxation to global waste pollution as well as human trafficking.
The Philippines-based Asian People's Movement Debt and Development (APMDD) has been championing a form of wealth tax to be adopted within the region in view of the growing disparity between the rich and poor segments of the population.
Its coordinator Lidy Nacpil told a seminar participated by Asean journalists that it is pointless touting growth when the underbelly of the region shows a growing divide between the rich and poor.
APMDD has also been championing debt and climate justice, citing that both are interrelated.
Another outfit - the Global Alliance for Incinerator Alternatives (GAIA) has strongly moved regionally even to South Asia such as India and Bangladesh.
GAIA holds monthly interaction online sessions to ensure its members and associates, including journalists are kept abreast of their determination to have a regional zero waste movement.
SPI Asset Management managing partner Stephen Innes reportedly said that Anwar has actively engaged with the Southeast Asian leaders since assuming office in 2022, leveraging his extensive political and economic expertise to strengthen regional ties.
He added that Anwar’s focus on collaboration is pivotal, especially as Asean faces transitions with new leaders in Indonesia, Singapore, Cambodia and Thailand.
"These changes introduce challenges and opportunities for Anwar as Malaysia prepares for its chairmanship. Key issues such as the South China Sea disputes and evolving BRICS partnerships will test his diplomatic acumen, emphasising the need for consensus and adept negotiation skills."
Like any other region in the world, territorial disputes are often in the way, such as the joint claims for the chain of the Spratly Islands, a disputed archipelago in the South China Sea, which some quarters believe to be a rich fishing ground and has vast natural resources.
Asean anticipates its digital economy will grow from US$300 billion to US$1 trillion by 2030.
To accelerate this growth, the region is focusing on easing digital transactions with the goal of doubling this figure through the Digital Economy Framework Agreement (DEFA), and to boost cybersecurity.
"Harmonisation is essential for fostering a predictable business environment, enhancing digital inclusivity, and encouraging innovation.
“Over the next decade, DEFA is poised to significantly influence Asean’s economic landscape by creating a cohesive digital market.
“This initiative will facilitate smoother cross-border commerce, spur innovation, and potentially bridge the digital divide across member states, enhancing regional competitiveness, ”Innes was quoted as saying.
Asean should also develop its own economic niche for each member so the others can leverage from and help in the capacity building for it to attain a global-level strength.
Like it or not, Asean is witnessing an unparalleled movement of people and capital since the pandemic was consigned to an epidemic status.
Nothing is more apparent than the ability of one traveller to find Asean cuisine in all parts of the region; from Malaysian to Indonesian to Vietnamese to Filipino, Laotian and to Bruneian, Singaporean, Burmese, Timorese and Thai, as well as Cambodian. - December 29, 2024.
.jpg)
