Kuala Lumpur: As the United States, under President Donald Trump, moves to reshape the global trading system to its advantage, Malaysia’s role as ASEAN chair in 2025 will be critical in charting the bloc’s next stage of economic growth.
According to BERNAMA News Agency, Professor Shandre Mugan Thangavelu, head of Sunway University’s Jeffrey Cheah Institute on Southeast Asia, emphasized that ASEAN is at a crucial juncture to uphold its shared vision of growth, economic cooperation, and regional integration for sustainable development. He stated that Malaysia’s chairmanship role is timely to reiterate the enduring ASEAN principles and policy stance in responding to the Trump administration’s unprecedented tariff shock to the global economy and ASEAN specifically.
The professor highlighted the importance of maintaining and strengthening ASEAN centrality through a shared vision of growth. He noted that individual responses to Trump’s reciprocal tariffs underscore the need to reinforce ASEAN centrality, particularly through multilateral free trade agreements such as the Regional Comprehensive Economic Partnership (RCEP) and the ASEAN Economic Community (AEC).
Shandre pointed out that RCEP, as the world’s largest free trade agreement, provides a rule-based and institutional framework for sustainable economic development in East Asia. He mentioned that it can address contemporary issues like environment and climate change, skills development, and the development of digital and smart urban centers. Moreover, he suggested that the institutional features of RCEP could support progressive liberalization of regional and global trade and address non-traditional issues beyond trade and investment.
The professor also emphasized the need for ASEAN to consider new and emerging technologies such as AI, robotics, and autonomous technologies, where the US holds a competitive edge. He stated that these technologies are creating new service sectors and global value chains, enabling greater participation by small and medium enterprises in regional and global production networks.
Shandre stressed the importance of nurturing next-generation global value chain firms that are agile and capable of moving into higher value-added segments in manufacturing and services. He noted that domestic firms must understand how to unbundle their production structures to build more resilient and responsive supply chains.
He projected that the next phase of ASEAN growth will be driven by the digital and green economy, presenting opportunities to reduce US trade deficits with the region. He called for enhanced regional cooperation to help firms undergo structural transformation through digital and green technologies, increasing their value-added contributions and participation in global value chains.
Furthermore, Shandre urged ASEAN members to accelerate the implementation of the ASEAN Digital Economy Framework and stressed the need for a more flexible and agile skilled labor force. He also cautioned that the US-imposed reciprocal tariffs may lead to more bilateral negotiations and a focus on national interests over regional integration, directly challenging ASEAN centrality.
Shandre concluded by saying that ASEAN centrality has anchored the region’s economic cooperation since its establishment in 1967 and that the AEC has played a vital role in sustaining economic growth and stability across the region.