ASEAN is navigating one of the most testing periods in its modern history, grappling with mounting trade tariffs, geopolitical friction, climate-related threats, and the relentless pace of technological and economic transformation across its member states.
Governor of Bank Negara Malaysia, Datuk Seri Abdul Rasheed Ghaffour, said the 10-nation bloc is confronting these trials within an increasingly fragile international order, where the rule-based global system is coming under unprecedented strain.
“Economic interdependence and connectivity — once the gold standard for prosperity and stability — have paradoxically evolved into sources of strategic vulnerability,” he said during a keynote speech at the ASEAN Finance Track Gala Dinner in Kuala Lumpur on Wednesday evening.
Abdul Rasheed warned that the rise of inward-looking and nationalist policies around the world posed direct risks to small, open economies like those in ASEAN, which are deeply integrated into global value chains.
“When nations turn inward and adopt more nationalistic stances, small and open economies such as many in ASEAN become acutely exposed. No scenario exists in which any one of us can remain entirely unscathed. It is a matter of who is affected and who can avoid the fallout,” he said.
The gala dinner was held in conjunction with Malaysia’s chairmanship of the ASEAN Finance Track and formed part of the 12th ASEAN Finance Ministers and Central Bank Governors Meeting (AFMGM) and related events, which commenced earlier in the week.
Also present was Finance Minister II, Datuk Seri Amir Hamzah Azizan.
Abdul Rasheed noted that the ASEAN bloc had already witnessed earlier this week how swiftly external policy decisions — particularly in the realm of foreign relations and trade tariffs — can ripple across economies with long-lasting effects.
However, he struck a hopeful tone, urging member nations to lean on long-established partnerships within the region as they brace for further volatility.
“This is not a message of despair but a call to action. In these uncertain times, we in ASEAN have one key advantage — we have each other,” he said.
“Our enduring partnerships and years of shared effort have fostered a resilient and united region, one that is ready to rise to any challenge.”
He further underscored the importance of structural reform, enhanced intra-regional trade and investment, and strengthened financial cooperation as essential measures that have helped fortify the region’s economic foundations.
“While we may not be able to control the external environment, we can certainly shape our collective response to it,” he said.
Abdul Rasheed closed his remarks by expressing hope that the outcome of the meetings would deliver renewed insight and determination among ASEAN leaders.
“By the end of our discussions tomorrow, I hope we will all leave with fresh perspectives, bold ideas, and a renewed confidence to do what is necessary — not only for our own economies but for the region as a whole,” he said. – April 10, 2025
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