Kuala Lumpur: Prime Minister Datuk Seri Anwar Ibrahim has displayed acute political acumen as chair of ASEAN in navigating challenges confronting the region, some of which no one would have guessed when he received the baton of the ASEAN chairmanship from Laos in October last year.
According to BERNAMA News Agency, a significant challenge has been America’s debilitating and unexpected tariffs, which disrupted the global trading arena and threw markets into chaos. This turbulence forced some developed economies to adopt retaliatory and protective measures, leaving many Global South nations distressed and uncertain about their next steps.
Malaysia’s robust bilateral trade and long-term economic ties with the United States have been a silver lining. These ties include Malaysia’s critical role in the global semiconductor supply chain, which, coupled with Anwar’s ability to maintain cordial relations with both allies and adversaries, have positioned Malaysia advantageously in tariff negotiations, prioritizing Southeast Asia’s economic interests as the regional group’s chair.
Dr. Latifa Bibi Musafar Hameed, Deputy Vice-Chancellor of Research, Community Networking and Industry at Selangor Islamic University, agrees that Malaysia’s trade relationship with the US has remained strong since independence and continues to drive economic growth and investment. From January to October 2024, Malaysia-US trade rose 29.1 percent to RM264.28 billion, up from RM204.78 billion the previous year, with 1,321 projects worth US$39 billion (RM173 billion) implemented, reflecting strong investment ties.
Anwar’s approach has consistently urged member countries to avoid retaliation and instead proactively negotiate import levies to protect their economic interests. Analysts note that Anwar’s extensive experience in dealing with political challenges has benefited ASEAN, leading to consensus on free trade and multilateralism against President Donald Trump’s tariffs imposed on 168 countries.
Geostrategist Prof Dr. Azmi Hassan highlighted Malaysia’s pivotal role in the US semiconductor supply chain, recognized even by Trump through tariff exemptions, as a valuable leverage in trade negotiations. Prof Dr. Barjoyai Bardai, economist with Universiti Sains dan Teknologi Malaysia, underscored Malaysia’s position as Washington’s third-largest export source, advocating for a non-aligned trade stance and emphasizing Malaysia’s strengths in semiconductors, electronics, and palm oil.
Anwar’s balanced handling of increased US-China economic rivalry through greater integration and trade linkages among ASEAN member states has been evident. His recent interactions with Chinese President Xi Jinping emphasized multilateralism, reinforcing ASEAN as a lucrative export market and attractive destination for semiconductor investments.
Under Anwar’s leadership, Malaysia’s chairmanship of ASEAN has been critical in promoting a fairer global order amidst protectionist tendencies and nationalistic ideals triggered by Washington’s tariff war. Malaysia’s potential engagement with BRICS, framed as an additional cooperation platform rather than a geopolitical rival to the West, complements ASEAN’s multilateral character and expands market opportunities.
Dr. Anthony Dass, Senior Economic Advisor at KSI Strategic Institute for Asia Pacific and Economic Club Kuala Lumpur, emphasized Malaysia’s role in strengthening ASEAN’s position as a proactive voice for a fairer global order, engaging with BRICS without compromising ties with traditional partners like the US, EU, Japan, or Australia.
Dr. Oh Ei Sun, Principal Adviser at the Pacific Research Centre of Malaysia, suggested Malaysia should focus on becoming a full BRICS member. He stressed the importance of adopting a reconciliatory tone with the resurgent West, integrating ASEAN more with the West to avoid having sides chosen for the region.
Under Malaysia’s chairmanship, Anwar has made it clear that ASEAN can be a stabilizing and forward-looking bloc in the Global South, engaging with all while aligning with none, and promoting reforms in global governance without burning bridges with the West.