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THURSDAY | APR 10, 2025

‘Adopt dual-track strategy in response to US tariffs’

KUALA Malaysia’s leadership role in coordinating Asean’s response to the United States’ latest tariff measures should be balanced with direct and strategic engagement with Washington. Universiti Malaya foreign affairs, security and strategy analyst Collins Chong Yew Keat ( pic ), said it is vital for Malaysia to pursue a dual-track approach – strengthening regional coordination while maintaining pragmatic bilateral ties with the US, which he described as Asean’s most important economic and security partner. “To balance our approach and to protect our national and regional interests, this is the time for us to LUMPUR:

economically resilient America remains central to Malaysia’s own long-term prosperity and regional security. “What Trump is doing now is to fairly ask the rest of the world to pay its fair share and to jointly contribute to this global task. “The tariffs imposed are thus a common-sense measure to stop the bleed, fix the debt, and ensure long term fiscal discipline and sustain ability. “Remember, a strong, safe, and financially healthy America translates to a strong, safe, and financially healthy world,” Chong said. Malaysia is set to dispatch a delegation to Washington by the end of April to initiate dialogue with the US over the 24% reciprocal tariff imposed on Malaysian goods, Prime Minister Datuk Seri Anwar Ibrahim announced on Tuesday. Anwar said the move is part of Putrajaya’s “soft diplomacy of quiet engagement”, aimed at exploring possible adjustments to the policy’s implementation. – Bernama

reduce its own tariff and non-tariff barriers on American goods. Despite global calls to diversify economic partnerships via Regional Comprehensive Economic Part nership, BRICS or the Global South, Chong said, these platforms remain unable to match the full spectrum of US-led economic, technological, and security structures. “This new tariff hike has seen knee-jerk reactions throughout the world with threats to impose immediate countermeasures. This remains a foolish move and Malaysia must not join the bandwagon. “Overdependence on the so called prospects of the alternative invites greater risks due to the unpredictable resilience and sus taining economic potential of the powers behind the move to dis lodge the US-dominated system,” he said. Highlighting Trump’s approach, Chong described the tariffs as part of a broader reset to correct long standing global trade imbalances. He added that a strong, stable and

o Analyst says Malaysia should strengthen regional coordination and maintain pragmatic bilateral ties with Washington

face the reality that America still remains the most im portant economic, market, trade and security source that Malaysia and Asean still depend on primarily,” he told Bernama International News Service on the implications of the US tariffs for Malaysia and Asean. Elaborating, he highlighted that Malaysia remains a major US investment destination,

At the same time, Chong stated his opinion that Asean must avoid sentimental or knee-jerk responses to the new US tariffs. He stressed that diplomacy and pragmatism must prevail, warning that symbolic unity alone will not move Washington – particularly under Donald Trump’s administration guided by strategic trade hardliners. “Antagonistic and knee-jerk res ponses, coupled with the bandwagon of misplaced countermeasures, will only invite more wrath from the US. We must be wise not to be seen as antagonising in our approach by galvanising joint or common Asean solidarity and stance in pushing back against these tariffs,” Chong said. He recommended that Malaysia table a credible counterproposal and

are from Fortune 500 companies. To date, US businesses have created over 300,000 jobs,” he noted. Therefore, the foreign affairs analyst called on policymakers to focus on long-term, values-based partnerships that prioritise technology transfer, human capital development, and

high-skilled industries – a shift from Malaysia’s longstanding dependence on low-skilled, extractive sectors. “Without a focused long-term approach, we lose out from both unreliable economic dependence, and the risks that this pivot will entail with further retaliatory and punitive measures from the US,” he warned.

receiving a combined RM32.8 billion in American investments that helped fuel economic momentum in 2024. In 2022, net foreign direct investment from the US accounted for 43% of Malaysia’s total – more than the combined total of the six largest investors. “Over 70% of new US investments

Asean Power Grid requires US$764b for generation, transmission infrastructure: Sec-gen

Malaysia discusses trade initiatives with EU-Asean, US-Asean business councils

KUALA LUMPUR: The Asean Power Grid (APG) vision – which is aimed at enhancing regional electricity interconnectivity – requires an estimated investment of US$764 billion (RM3.4 trillion) for power generation and transmission infrastructure, said Asean secretary-general Dr Kao Kim Hourn ( pic ). Through cross-border electricity trade, the APG addresses the region’s rising energy demands and accelerates the integration of renewable energy sources, he said in his keynote address on the second day of the Asean Investment Conference here yesterday. On Tuesday, Prime Minister Datuk Seri Anwar Ibrahim said the Southeast Asian bloc was engaging with investors as well as multilateral development banks, including the Asian Development Bank and the World Bank, to power up the APG. Anwar, who is also the finance minister, said the financing was aimed at supporting projects that involve transmitting electricity from Vietnam to Kelantan via submarine cables, with further distribution to Singapore through land transmission lines. APG is a region-wide initiative introduced

blended loans and other multilateral funds more accessible for sustainable investment projects. These efforts complement the Asean Green, Social, Sustainability and Sustainability-linked Bond Standards. Additionally, Asean must enhance collaboration with inter national partners and donors and the private sector to support existing initiatives such as the Asean Catalytic Green Finance Facility to scale up bankable green projects, he added. Asean must also focus on projects that support supply chains in green industries such as electric vehicles, logistics, sustainable mining practices and renewable energy. “To this end, Asean is finalising the Policy Recommendation on Guidelines to Support Asean EV Implementation Roadmap and the Asean Sustainable Investment Guideline in 2025. These initiatives are critical in shaping national investment and industrial policies that drive sustainable growth and contribute to the sustainable development goals,” Kao said. – Bernama

in 1997 to connect electricity infrastructure among member states. Besides the APG, Kao said that by 2030, Asean will require about US$2.8 trillion in infrastructure investments – equivalent to an annual average of US$184 billion – to meet its decarbonisation commitments. “Given the significant demand for a sustainable future, Asean must develop appropriate policies to channel

KUALA LUMPUR: Malaysia met with representatives from the European Union-Asean Business Council (EU-ABC) and the United States-ABC (US-ABC) on Tuesday regarding new initiatives that could be promoted to enhance trade, not only in Malaysia but also among Asean member countries. Finance Minister II Datuk Seri Amir Hamzah Azizan said the meetings also aimed to identify issues faced by investors and to consider suitable methods to assist them. “This will help the government take appropriate actions to support them in expanding their businesses here. The discussions were very productive, and the new ideas proposed could help further increase intra-Asean trade,” he told Bernama after the separate bilateral meetings. At the same time, Amir Hamzah said, Malaysia seized the opportunity to seek support from the US ABC as part of efforts to find solutions to the tariffs imposed by Washington. Meanwhile, he expressed hope for consensus and agreement among Asean member countries ahead of three important meetings with the US-ABC, EU-ABC and the Asean Business Advisory Council yesterday. “We hope to reach an agreement on how we interact and enhance the existing trade between industries and other countries. “Ideas like intra-Asean trade are a sound approach for member countries to build a cross border market operation. Therefore, I look forward to positive outcomes and mutual agreements from all parties,” he said. The meetings, which Amir Hamzah will chair, emphasise financial issues crucial in strengthening Southeast Asia’s appeal as a trade and investment destination.

financial resources into sustainability initiatives, including a sustainable investment policy.” He said the ongoing development of the Asean Taxonomy for Sustainable Finance provides an excellent opportunity to align Asean’s framework with global taxonomies, providing investors and international donors with clear guidelines for sustainable invest ments in Asean. Kao said Asean must develop robust and innovative financial mechanisms to diversify capital resources from the private sector and international donors, which include esta blishing capital markets to facilitate the exchange of sustainable bonds and make

Bloc to implement Rapid Financing Facility to help distressed members KUALA LUMPUR: Asean ministers will endorse the operationalisation of the Rapid Financing Facility (RFF), aimed at helping financially dis tressed member countries to cushion against exogenous shocks or financial problems caused by external factors. Paid-In-Capital, which forms part of the Chiang Mai Initiative Multilateralisation, a self-help regional mechanism to help countries facing liquidity problems. Marzunisham, however, clarified that Asean countries are not foreseeing a finan cial crisis. “No, we are not, and no country in the region is facing any liquidity crisis. But it’s always good to be prepared,” he said.

“These two programmes would help Asean members to help each other in the event of a crisis,” he told Bernama after co chairing the Asean+3 finance and central bank deputies meeting yesterday.

Marzunisham said the facilities are seen as a demonstration of the region coming together to assist any member country in the event that liquidity needs arise.

Besides this safety net, Bank Negara Malaysia deputy governor Datuk Marzunisham Omar announced the grouping will also endorse the