23/07/2025

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COMMENT by Vijay Eswaran

Asean’s greatest strength is unity D ESPITE US President Donald Trump’s trademarked unpredictability – now popularly coined “Taco” (Trump Always Chickens Out) – one thing has non-alignment. Instead of avoiding great power entanglements, Asean is cultivating diversified partnerships to maximise leverage and minimise dependency. Regional economic growth Southeast Asia is emerging as a rare economic bright spot in an increasingly fragmented global landscape.

a marked progress in the region’s strategic decision-making. Malaysian Prime Minister Datuk Seri Anwar Ibrahim’s recent visit to Russia resulted in US$10 billion worth of energy and technology agreements while maintaining Malaysia’s existing US$80.2 billion trade relationship with the US. This is not diplomatic fence-sitting but strategic portfolio management. Diversification is the absolute key. Conclusion The shift from selective engagement to strategic multialignment shows that middle powers can shape the contours of the global order. Regional leaders should now focus on institutionalising these partnerships through formalising mechanisms of permanent secretariats, standardised trade protocols and integrated supply chain agreements. What we are witnessing is Asean nations prioritising pragmatic partnerships over ideological alignment, which anchors diplomacy in balance and not bias. Regionalism rooted in shared interests can be a proactive force in an increasingly fragmented world, a viable path to long-term stability in a multipolar era. Vijay Eswaran is the founder and executive chairman of the QI Group and has built businesses across Asean markets for over 25 years. He is a frequent commentator on Southeast Asian affairs. Comments: letters@thesundaily.com

The regional economy grew by 4.3% in 2024 and GDP is projected to continue expanding at around 4% in 2025, despite ongoing external headwinds. The Asean-GCC partnership alone is projected to generate US$50 billion in new trade flows by 2027 while the region’s digital economy is set to reach US$1 trillion by 2030. The deepening integration between Asean, GCC and China – representing over 2.15 billion people and combined GDP nearing US$25 trillion – signals transformative potential for regional growth. In 2024 alone, this bloc attracted US$419 billion in FDI (30% of global inflows), highlighting its collective economic resilience. Over the past three years, Asean member states have strategically broadened their partnerships, signing comprehensive agreements with countries such as Japan, Australia, India and South Korea, generating over US$200 billion in new investment commitments. Beyond traditional manufacturing, Asean is positioning itself as the world’s blue economy hub, with maritime industries contributing US$2.4 trillion annually to the region’s GDP. Pragmatic diversification and ‘third way’ in diplomacy Within boardrooms in Asean, the conversation has shifted from “How do we avoid taking sides?” to “How do we benefit from all sides?” –

The numbers tell the story. In 2024, Asean’s trade with China grew by 15%, trade with the US increased by 12% and trade with the EU rose by 18%, proving that strategic diversification works. Bilateral agreements recently signed with China by Malaysia, Vietnam, Cambodia and Thailand are not pledges of trade allegiance but calculated moves to reap economic benefits while preserving political independence. Singapore exemplifies this approach, having signed US$8.2 billion (RM35 billion) worth of new agreements with China in 2024 while simultaneously deepening defence cooperation with the US and expanding trade partnerships with the EU. This is strategic multiplication of options, which is a necessity. Furthermore, initiatives like the Regional Comprehensive Economic Partnership, which has already reduced tariffs on 65% of traded goods within 18 months of implementation, institutionalise this balancing act, enabling the bloc to foster multilateral ties globally without compromising strategic autonomy. The result? Countries like Vietnam now source 23% of their foreign domestic investment from China, 19% from Japan, 15% from South Korea and 12% from the US – a diversification that would have been impossible under canonical alignment models.

become increasingly certain: Southeast Asian countries now have major targets on their backs. With six Asean members receiving tariff letters in the first round from Washington, Trump has stepped up his public display of frustration towards the bloc’s collectively export-oriented economies. With a 25% tariff slapped on Malaysia and other varying amounts across Southeast Asian states, Asean members must ramp up their collective efforts to revitalise regional diplomacy to help immunise the bloc against uncertainties and external shocks. Kuala Lumpur’s recent hosting of the Asean Gulf Cooperation Council (GCC) Summit and the inaugural Asean-GCC-China Summit illustrates the bloc’s multivector diplomacy in action. Rather than adhering to traditional non alignment to avoid entanglements, Asean has pioneered a strategy of multialignment, actively leveraging multiple partnerships for competitive advantage. Amid multitude of conflicts in the Middle East and ongoing tensions along the Thai Cambodian border, global and regional instability only underscores the urgency with which Asean must advance its strategic multialignment approach. Strategic posture in the new multipolar order Asean’s strategic multialignment differs fundamentally from the Cold War-era

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