As Malaysia takes the chair of ASEAN for 2025, the question is: will Malaysia lay the foundations for a more united, robust, and impactful regional bloc or stand idly by to watch ASEAN slouch towards geopolitical insignificance or worse, take it down the road to greater divisiveness?
If Prime Minister Anwar Ibrahim's recent addresses at the World Economic Forum is anything to go by, on top of his speeches and remarks made since the formal handing over in Vientiane last October, the prospects are bright for a positive trajectory as they present a robust roadmap to navigate today’s geopolitical and economic uncertainties. The core of this vision is rooted in ASEAN’s history and track record as a resilient, inclusive and dynamic force for regional progress. The real question then should be: Is Malaysia poised to take this to the next level?
Guided by the theme Inclusivity and Sustainability, Malaysia’s ASEAN Chairmanship embraces the principle that economic growth must be people-centric and environmentally conscious. As Anwar articulated in Davos, this approach seeks to blend economic pragmatism with human-centred values, ensuring that growth benefits all and not merely a privileged few.
By enhancing connectivity through improved infrastructure, harmonising regulations and simplifying customs procedures, Malaysia aims to unlock ASEAN’s vast untapped potential for intra-regional trade, which represents but a fraction of the bloc’s overall economic activity. Critically alongside this will be measures supporting SMEs, fostering innovation and building resilient supply chains to further bolster ASEAN’s economic fabric and elevate its role in the global economy.
Strengthening ASEAN Centrality and Regional Unity
In an era of intensifying great power rivalries, ASEAN’s centrality and cohesion is being subjected to increasingly centrifugal forces. Malaysia’s leadership will focus on constructive engagement with global powers while safeguarding ASEAN’s independence and promoting stability. The forthcoming ASEAN-GCC-China Summit in Kuala Lumpur show-cases this commitment, lending a platform for deeper economic, technological and cultural cooperation across regions.
Malaysia’s approach to regional stability is guided by a vibrant and adaptive strategy, based on international rules and norms, cooperation and inclusivity. The roles of key ASEAN mechanisms like the East Asia Summit and the Plus Three dialogues, will be crucial in emphasising this approach, alongside likeminded dialogue partners.
While littoral disputes in the South China Sea could be viewed as potential conflicts of high priority, yet they should neither be blown out of proportion, nor conflated as an ‘ASEAN versus China’ problem. The fact is ASEAN member states also need to resolve their intra-regional littoral and border issues as well, sooner rather than later, but meantime, life – regional cooperation – must go on in the interest of centrality and cohesiveness. In any event, adherence to international law, including UNCLOS 1982, is paramount as Malaysia pushes the envelope for peaceful and constructive resolutions. Allowing the discord to be hijacked by major power rivalry, or kowtowing to a “might makes right” approach will have repercussions far beyond Southeast Asia. Recognising the complex and overlapping claims among these nations, Malaysia will continue to keep her eye on the ball on fostering constructive dialogues and preventing miscalculations that could escalate tensions. We could do well to remember that it only takes a spark to ignite a wildfire.
This commitment to stability and collaboration fits in snugly with Malaysia’s broader vision for the ASEAN Community Vision 2045, a roadmap for regional prosperity and resilience over the next two decades. By championing a progressive and outward-looking ASEAN, Malaysia aims to position the bloc as a consequential contributor to shaping political, security and economic frameworks in an increasingly interconnected and dynamic world.
Key to this vision is ASEAN’s youthful population, with over 60% under the age of 35. By 2030, ASEAN is expected to become the world’s fourth-largest economy, driven by urbanisation, industrialisation, technological advancements, and above all, the agility and vitality of young blood. Harnessing this demographic dividend, Malaysia will champion policies that invest in human capital, reduce poverty and ensure equitable access to quality healthcare and education.
Being integral to the bloc’s cohesion and progress, Malaysia’s leadership naturally seeks to make ASEAN whole by supporting Timor-Leste’s accession. Similarly, addressing the crisis in Myanmar remains a priority, with Malaysia committed to persuading the junta to implement the Five-Point Consensus. It doesn’t stop there, of course, for as a precursor to eventual political reconciliation, fostering a more inclusive dialogue process will be crucial as is the urgency to alleviate the immediate humanitarian challenges. At the same time, Malaysian officials must work hard to persuade their colleagues in ASEAN that the regional association needs a more structured and strategic long-term approach to Myanmar.
A Just and Sustainable Energy Transition
Malaysia recognises the dual challenges of ensuring energy security and addressing climate change. Through initiatives such as the ASEAN Power Grid and the ASEAN Plan of Action for Energy Cooperation 2025, Malaysia aims to accelerate renewable energy integration and build a resilient energy infrastructure.
However, as Prime Minister Anwar emphasised in Davos, energy transition must be equitable. For ASEAN, a region with significant reliance on oil and gas, the shift to renewable energy must balance environmental goals with the socio-economic realities of developing nations. Malaysia will continue to seek global support for climate financing, green investments and technology transfer to achieve this fair and just transition.
Harnessing Digital Transformation for ASEAN’s Future
In a rapidly changing global landscape, digital transformation is no longer optional. Malaysia’s ASEAN Chairmanship prioritises emerging technologies such as artificial intelligence, blockchain and big data analytics to drive innovation and economic stability. Initiatives such as the ASEAN Digital Economy Framework Agreement (DEFA) aim to position ASEAN as a competitive and integrated digital bloc.
Malaysia also plans to establish an ASEAN AI Safety Network, showcasing leadership in ensuring the responsible development of artificial intelligence. By bridging the digital divide and enhancing digital infrastructure, Malaysia seeks to create a digitally inclusive society that fosters growth and innovation.
Final Thoughts
As Malaysia takes the helm of ASEAN in 2025, its leadership is guided by a vision of shared prosperity and inclusivity. Prime Minister Anwar Ibrahim’s message is clear: ASEAN must rise to the occasion, leveraging its demographic advantages, fostering innovation and championing sustainable growth.
The expectations are great. But to use Anwar’s pet phrase, with “the courage of conviction and tenacity of purpose” in staying on track on fortifying regional integration, forging ahead with digital transformation and overcoming pressing humanitarian challenges, Malaysia’s chairmanship promises to lay the foundations for a stronger, more united ASEAN. In a co-dependent world fraught with uncertainty, ASEAN’s ability to act collectively and pragmatically will define its role as a stabilising force and a beacon of progress.
This is ASEAN’s moment to shine, and Malaysia is ready to lead the way.
Datuk Prof Dr Mohd Faiz Abdullah
Chairman, Institute of Strategic and International Studies (ISIS) Malaysia
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