Under the theme of "Sustainability and Inclusion" in charting a course for collective resilience and prosperity, Kuala Lumpur will make history by hosting the 46th ASEAN Summit on 26 and 27 May amid complex geopolitical and economic challenges.
Throwback September 2, 2023, Jakarta: The main focus is on 'Investing for Sustainable Development'—exploring selected investment opportunities in various sectors across the region, especially for foreign direct investors. A crucial effort to bridge the development gap between high-growth economies and less developed member countries. The 2023 ASEAN Investment Forum has been held—Highlighting important foreign investments that are well-positioned to support the regional economy and recovery post-pandemic.
Overall, the impact of the US's retaliatory tariff policy has still weighed on ASEAN despite President Donald Trump's recent decision to give a 90-day reprieve to tariffs on China. Most investors have indeed put their plans on hold as the global economy is suffering.
"Given that the ASEAN secretariat is not an enforcement institution and therefore not empowered to ensure compliance, pressure from member states is essential to move matters forward" -Denis Hew, senior fellow at the Lee Kuan Yew School of Public Policy. Read: For Asean, there’s insufficient relief from tariff reprieve
As President Donald Trump completed a high-level meeting in Saudi Arabia, coupled with the China trade truce, it is clear that the importance for ASEAN members to seek lower Trump tariffs is increasing. There is nothing to worry about as long as it depends on who the negotiators are sent to the 'Tariff King'. Flashback to April 9 - hours after the retaliatory tariffs went into effect, Trump announced a 90-day pause for affected countries except China.
There is certainly an opportunity to enhance Malaysia's potential to lead the ASEAN economic sector's cyclical economy. This move can help ASEAN economies in strengthening the resilience of import and export supply chains. ASEAN countries have already gone through crises such as COVID-19 and episodic wars.
However, its implementation requires collaboration between government, industry, and consumers—as well as investments including green technology (AI for waste management, biodegradable materials) and public education.
The 46th ASEAN Summit, important issues to highlight.
Kuala Lumpur will welcome about 20 thousand delegates when it hosts the 46th Asean Summit later this month at the Convention Centre (Vision Area 2020). Third, with the theme of 'inclusiveness and sustainability', the Summit is said to reflect the aspiration for 'shared progress' as the tariff war rages on.
The probability of focusing on economic growth and solutions that can be achieved sustainably. As the world is seen to be starting to shift to a Circular Economy, 'it is certain and must' become a global focus as an alternative to the 'traditional linear economy' (take-use-throw) capital.
In addition, specifically for the economic interests of Malaysia, the decision of Permodalan Nasional Bhd (PNB) to consider divesting its holdings in legacy investments should be taken seriously. It is indeed true that it can strengthen other asset classes including fixed income. However, what is the follow-up to the decision that will be carried out?
"In the 80s and 90s, when we needed a local partner, they chose to work with PNB. So we had a 30 per cent to 49 per cent stake in many companies. This was a minority stake, without control and difficult to dispose of. Some of it was a bit complicated but the right buyer for this stake was usually the major party who held the remaining 51 per cent to 70 per cent." - Its Deputy President and Group Chief Executive, Datuk Rick Ramli. April 9, 2025.
Efforts to improve Malaysia's corporate performance, with the aim of making the country more attractive to local and international investors, should be strengthened through the opportunity of the 46th Asean Summit. Although the private market is still relatively new in Malaysia, it should follow the example of the glory of the era of 2012 where the Malaysian capital market at that time recorded a record performance with its overall size increasing by 16.4% to a value of RM2.5 trillion in 2012. And that year was also a year that yielded strong valuation results. All market segments recorded double-digit growth between 14.1% and 22.6%.
“The Malaysian capital market has performed strongly in 2012 despite challenging global market conditions. The SC’s focus in 2012 is to ensure that our market remains resilient and we will continue to play a role in capital formation and savings mobilisation,” said Datuk Ranjit Ajit Singh, Chairman of the Securities Commission Malaysia (SC).
The SC also scored 92% in a rigorous assessment of its regulatory framework, with a rating of "fully implemented" for 34 out of 37 principles assessed. Among the highest achievements among other countries at that time.
Is the government initiative only focused on the two memorandums of understanding (MoU) signed in conjunction with the General Meeting and ACO 2025? In terms of strengthening bilateral cooperation in the field of education and cooperative business development, it is true, it is good, especially at the ASEAN level. Perhaps, perhaps, the main focus is only between the Koperasi Kakitangan Amanah Ikhtiar Malaysia Berhad (KKAIMB) and the Indonesian Cooperatives Council (DEKOPIN) as a strategic collaboration in the development of cooperative businesses, especially in the tourism sector.
"This is to explore business opportunities in the tourism sector, between Indonesia and Malaysia, in addition to the potential to expand to other regions."
And the latest is PNB, which is actively restructuring its portfolio when it has released Malaysian Industrial Development Finance Bhd (MIDF) to Malaysia Building Society Bhd (MBSB). It is expected that a new strategy will be drawn up specifically at the ASEAN level.
Trade tensions between the United States (US) and China can be controlled as long as there is an 'Unsung Hero' behind us.
Minister of Investment, Trade and Industry, Tengku Datuk Seri Zafrul Tengku Abdul Aziz has said that the easing of trade tensions between the US and China will help reduce the impact of tariffs on the global economy, including Malaysia.
It was said that while the world's two largest economic powers agreed to reduce tariffs on each other for 90 days, Zafrul looked towards the positive side of the recent US-China trade deal.
" For Malaysia, this is a good thing because it reduces tensions between the US and China. They are prioritizing more important issues, such as (resuming) trade. Whatever the US and China do will have (Impact) on the global economy. Malaysia will also be affected because they are our closest trading partner." - Zafrul
I believe there is no problem between Malaysia's relationship with China, Furthermore, Malaysia recently became the first country in the world to use the open source large language model (LLM), DeepSeek, on a national scale. ( I hope it can be controlled ).
But on the trade front, there are certainly some issues raised by 'our homeland' industries, particularly in the metals and glass sectors. The industries have clearly been significantly affected by the tariffs imposed by the US. And it is a response to specific concerns about trade imbalances or national security, leading to increased costs for businesses and consumers.
This chain is connected through the relationship between Thailand and Indonesia as strategic partners with a focus on cooperation in the areas of defense, trade, investment, energy, food safety, and public health.
What does this have to do with Asean or Tariff War or Malaysia? Starting with Thailand, diplomatic relations between the countries involved with China have been strengthened following the Signing Ceremony of the 2025 Running and Sports Tourism Exchange which was held in Beijing on May 14, 2025. The agreement covers in-depth cooperation in areas such as knowledge sharing, quota exchange, resource sharing, internationalization efforts, regulatory refinement, and joint visits. A testament to the deep friendship and vibrant bilateral relations between China and Thailand, the exchange aims to support Chinese brands to expand into the Southeast Asian market.
In Indonesia, China’s First 2+2 with Indonesia has brought about a symbolic shift in diplomatic strategy. This mechanism, led by a combination of foreign ministers and defense ministers in joint dialogue, originated in NATO’s Cold War practice and has since become a tool of US strategic coordination. Today, the United States maintains about a dozen such dialogues with key allies and partners such as Japan, India and Australia. They institutionalize high-level defense and diplomatic coordination, sending a strong signal of alignment and intent and not just protocol.
Can you see it?
In Malaysia, Zafrul has also stated that his discussions with the US also touched on strengthening economic cooperation among the Asia-Pacific Economic Cooperation (APEC) member countries and Malaysia will participate in the ASEAN Caucus Meeting: Involving seven APEC member countries, to coordinate regional positions on trade and economic cooperation issues.
I believe Zafrul together with the Madani government can control this complicated or not so complicated situation as long as there is a convergence of opinions between the governments from the internal context. Furthermore, didn't the Chairman of the ASEAN Business Advisory Council (ASEAN-BAC), Tan Sri Nazir Razak, recently praise the maturity of Malaysian diplomacy in dealing with the US tariff issue?
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