Malaysia

ASEAN’s proven resilience has capacity to stand against U.S. tariffs

If member nations remain steadfast—open, pragmatic, and united—it will prove that the world functions better when we collaborate

Updated 1 year ago · Published on 08 Apr 2025 2:47PM

ASEAN’s proven resilience has capacity to stand against U.S. tariffs
ASEAN develops progressively, not through revolution – April 8, 2025

THE strength of ASEAN lies not in moments that capture the world's attention, but in its proven resilience in facing wars, crises, and coups over nearly six decades since its founding in 1967.

In this regard, Prime Minister Datuk Seri Anwar Ibrahim stated that ASEAN, acting collectively, has the capacity to address Washington’s imposition of burdensome tariffs, which have caused a downturn in global markets.

Injecting confidence, he added that ASEAN, currently chaired by Malaysia, continues to move forward. Though at times perceived as slow, the region persists in its progress.

Anwar emphasised that ASEAN develops progressively, not through revolution.

"The tariffs imposed by former US President Donald Trump are not the first challenge to multilateralism, nor will they be the last. But if ASEAN remains steadfast—open, pragmatic, and united—it will prove that the world functions better when we collaborate," he said.

He made these remarks during his speech at the ASEAN Investment Conference 2025, titled “ASEAN 2025: Building a Resilient and Inclusive Future,” held in conjunction with the 12th ASEAN Finance Ministers and Central Bank Governors Meeting (AFMGM) and related discussions at the Kuala Lumpur Convention Centre.

Anwar, who also serves as Finance Minister, pointed out that amid increasing uncertainty, the reimplementation of protectionist policies and the realignment of supply chains, ASEAN represents a symbol of hope. This is because the bloc remains committed to openness, cooperation, and the continuity of its institutions.

"Our trade in goods amounts to US$3.5 trillion. However, this figure is not guaranteed. With tariff assaults spreading rapidly across the world, we are witnessing fractures in the global order. Therefore, ASEAN must rely more on its own capabilities," he said.

Strengthening ASEAN Trade

This means that strengthening intra-ASEAN trade must move beyond rhetoric to actual implementation.

"Tariff liberalisation in the region is largely complete, but regulatory coordination, cross-border logistics, and digital connectivity are still work in progress," he explained.

"It also means protecting and expanding our external relations. Our dialogue and sectoral partners span six continents," he added.

Anwar noted that only a few regional blocs could establish such a network.

As this year’s chair, Malaysia is prioritising the revitalisation of strategic platforms such as ASEAN Plus Three as mechanisms for economic resilience.

"Our vision for ASEAN is a prosperous, sustainable, and inclusive region. Achieving this requires political will, significant investment, resilience, and conducive circumstances. It also requires rapid progress in initiatives at the subregional level," he said.

He cited the Johor–Singapore Special Economic Zone as a prime example.

"Although this is not an immediate solution, it remains an important step. By reducing barriers and aligning policies between two closely linked economies, we are creating an impact that serves as a reference point—an example of cross-border economic logic," he stated.

Malaysia is also committed to investing in development along its borders, such as the northern Peninsular border with Thailand and the Sabah and Sarawak borders with Kalimantan, to promote economic activities for the benefit of people on both sides.

Other initiatives include the ASEAN energy grid, which aims to deliver electricity from Vietnam to Kelantan via an undersea cable, then on to Singapore via land transmission lines, as well as expanding ASEAN's payment networks.

There are also plans to promote better economic integration to allow businesses to fully capitalise on ASEAN as a market and further expand thriving businesses at the regional level in sectors including finance, energy, healthcare, tourism, telecommunications, and logistics.

Anwar warned that the trajectory of artificial intelligence (AI) is advancing rapidly, and if unbalanced digital progress is left unchecked, it risks deepening existing divides and exacerbating inequality.

"Therefore, investment in digital literacy, infrastructure, empowerment, and governance must go hand in hand," he stressed.

Anwar remarked that while the digital economy holds great potential, it also brings significant inequality. Despite ongoing digital transformation in the region, it remains uneven.

He also reiterated the need for continued economic integration within the region, including the expansion of ASEAN’s payment connectivity.

"Today, we will launch the extension of payment connectivity between Malaysia and Cambodia, with plans to eventually cover all ASEAN nations. This will help promote intra-ASEAN trade and tourism," he said.

Earlier, Anwar officially opened the ASEAN Investment Conference 2025, which was also attended by Deputy Finance Minister II Datuk Seri Amir Hamzah Azizan.- April 8, 2025

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