Notable wins mark successful year for Asean under Malaysia’s lead

An analyst and a former diplomat see many breakthroughs, from economic integration to diplomatic achievements, for Asean under Malaysia’s chairmanship. (EPA Images pic)

KUALA LUMPUR: Significant progress in economic integration, diplomacy and inclusivity has made 2025 a transformative year for Asean under Malaysia’s chairmanship, according to an analyst and a former diplomat.

They cited key developments — ranging from breakthroughs in digital economy negotiations to diplomatic achievements — as factors that have demonstrated Asean’s growing global clout and future-ready strategies.

Analyst Jamil Ghani noted that under Malaysia’s guidance, Asean has initiated a subtle but crucial shift in its economic direction. He told FMT the bloc is no longer solely focussed on reducing trade barriers but is now pursuing deeper, more strategic economic integration.

A major milestone is the completion of 70% of negotiations for the Asean Digital Economy Framework Agreement.

This ambitious pact is aimed at expanding the region’s digital economy to an impressive US$2 trillion by 2030. Beyond this, Asean has also launched two pivotal economic initiatives that signal a move towards enhanced industrial cooperation.

The first is the setting up of the Asean Geoeconomics Task Force that will coordinate regional responses to unilateral tariffs, supply chain disruptions and investment risks to reinforce economic resilience.

The second initiative is the launching of the Framework of Asean Industrial Projects-Based Initiative in May 2025 to facilitate cross-border manufacturing and infrastructure collaboration, as well as streamlining the movement of goods, talent and technology among member states.

According to Jamil, these initiatives indicate that Malaysia’s chairmanship is “steering the bloc towards a new phase of economic cooperation — one defined less by market liberalisation and more by strategic integration”.

Diplomatic acumen and convening power

Observers have praised Asean’s enhanced diplomatic role in 2025, with the bloc successfully convening major global powers, including the US, China, Brazil and South Africa.

Former ambassador Ilango Karappunnam highlighted the landmark Asean-Gulf Cooperation Council (GCC)-China Summit in May as a standout achievement.

He described the summit as a vital new trilateral channel, bringing together the resource-rich GCC and the technologically advanced China, with Asean serving as the bridge.

“This formulation, this triangular relationship, is extremely interesting because it promises a lot of synergies,” Ilango said, emphasising the importance of sustaining this summit at future agendas.

Jamil noted that Malaysia’s diplomatic acumen was most evident in its ability to bring together actors within a single summit framework. Notably, Asean’s leadership helped deliver the Asean-US leaders’ joint vision statement and an upgrade in the Asean-China Free Trade Agreement 3.0, reaffirming the bloc’s global relevance.

“Malaysia positioned Asean as a credible convening force for inclusive rule-making amid intensifying great power rivalry and shifting global economic realities,” Jamil said.

Expansion and conflict resolution

The year under Malaysia’s chairmanship also witnessed significant achievements in regional inclusivity and peace-building.

A major development was the official inclusion of Timor-Leste as Asean’s 11th member state — the first enlargement of the bloc since the 1990s. The expansion not only enhances the bloc’s diversity but also strengthens its collective voice on the international stage.

Additionally, the Kuala Lumpur Accord, brokered between Cambodia and Thailand, resulted in a sustainable ceasefire treaty, marking a milestone in regional conflict resolution and reinforcing Asean’s role as a mediator in Southeast Asia.

In summary, Malaysia’s chairmanship has propelled Asean into a new era, marked by strategic economic integration, robust diplomacy and greater inclusivity.

The expansion to include Timor-Leste and the successful brokering of peace between Cambodia and Thailand are testament to the bloc’s growing influence and capacity for positive change.

As Asean looks ahead, its ability to adapt, integrate and convene diverse stakeholders will remain central to its continued relevance and leadership on the global stage.