MALAYSIA, in its role as the chair of ASEAN this year, will lead the Southeast Asian bloc in engaging the United States over the sweeping tariffs imposed on the region, with an emphasis on dialogue and reducing trade barriers rather than retaliatory actions, according to Malaysia’s Minister of Finance II, Datuk Amir Hamzah Azizan.
Speaking ahead of the ASEAN Finance Ministers’ and Central Bank Governors’ Meeting (AFMGM) next week, Amir Hamzah reaffirmed ASEAN’s commitment to free trade and regional cooperation, as the bloc grapples with the consequences of the US tariffs.
He made it clear that while the tariffs, which have impacted ASEAN’s Indo-Chinese member states hardest, are a challenge, ASEAN would approach the issue with calm, rational discussions aimed at reducing the tariffs, rather than escalating tensions with retaliation.
“Currently, the stance across ASEAN is clear: we are not looking to retaliate. Instead, we are focused on engaging with the United States to understand their position and explore the possibility of reducing the tariff base,” said Amir Hamzah.
The tariffs, which range from 10% to 49%, have affected countries like Cambodia, Laos, and Vietnam most severely, with tariffs also hitting other ASEAN members such as Thailand, Indonesia, and Malaysia. Despite these challenges, Amir Hamzah noted that ASEAN's response has been largely unified and non-confrontational, prioritising open dialogue.
“Our approach is always to foster inclusive, consensual engagement. We aim to make decisions through calm analysis and open discussion, as reactive responses driven by emotions are not helpful in the long run,” he said.
ASEAN’s primary goal, he emphasised, is to support free trade and strengthen economic ties within the region, with the broader aim of ensuring that the group is heard as a single voice on the global stage. “Malaysia has always supported free trade, and we will continue to promote it,” he added.
At the upcoming AFMGM, Amir Hamzah outlined that ASEAN will continue its focus on boosting intra-regional trade, building resilience against global economic shifts, and facilitating trade mechanisms, including advancements in payment systems and customs cooperation.
One of the key economic priorities discussed will be the development of an instant payment mechanism to ease cross-border payments, which is expected to benefit micro, small, and medium-sized enterprises (MSMEs) within ASEAN.
“The Working Committee on Payment and Settlement Systems (WC-PSS) has worked diligently to prepare the foundation for greater payment connectivity, which will support trade and economic activity across the region,” he said.
In addition, the ASEAN Customs Cooperation is set to harmonise procedures, reduce barriers, and facilitate smoother trade by standardising regulations and creating Mutual Recognition Agreements (MRAs).
These efforts, including initiatives such as the ASEAN Customs Transit System (ACTS), aim to streamline goods movement and combat illegal trade activities, thus fostering regional economic growth.
As Malaysia navigates the leadership of ASEAN this year, Amir Hamzah emphasised that the overarching objective is to strengthen ASEAN's economic unity and ensure its continued growth in the face of a rapidly changing global trade environment. – April 4, 2025
