On January 1, 2025, Malaysia assumed the chairmanship of ASEAN, adopting the theme of “Inclusivity and Sustainability.” This theme is deeply rooted in Prime Minister Anwar Ibrahim’s domestic vision, Malaysia Madani, which emphasizes sustainability, prosperity, innovation, respect, trust, and compassion. Under Malaysia’s leadership, these principles will be extended to the regional level to shape ASEAN’s trajectory.[1]
Ibrahim had already articulated this vision in an essay published in December,[2] which builds on his 1996 book, The Asian Renaissance. There is much anticipation that Malaysia will inject renewed energy into ASEAN and propel it forward.
ASEAN founding member Malaysia, along with another founding member Indonesia, has contributed significantly to shaping ASEAN’s vision over the years especially its development and influence in Southeast Asia. During the Cold War in 1971, Malaysia successfully introduced the Zone of Peace, Freedom, and Neutrality (ZOPFAN) Declaration, advocating for a Southeast Asia free from external interference. Economically, Malaysia proposed the East Asia Economic Caucus in 1997 to foster engagement with Japan, South Korea, and China. Though initially met with opposition, this concept eventually evolved into ASEAN+3, expanding ASEAN’s cooperation with East Asia.
Malaysia assumes ASEAN leadership once every decade, with the next rotation expected in 2035. Each chairmanship takes place in a rapidly changing geopolitical environment where ASEAN’s unity and centrality are constantly tested. Therefore, Malaysia’s theme of “Inclusivity and Sustainability” is especially significant, as its effective implementation will determine ASEAN’s relevance and strength in the coming years.
Malaysia’s leadership in ASEAN has been instrumental in setting long-term regional goals. Its 1997 chairmanship saw the adoption of the first ASEAN Vision 2020 document, which envisioned ASEAN as a concert of Southeast Asian nations. Again, in 2015, also under Malaysia’s leadership, ASEAN adopted the ASEAN Community Vision 2025, which emphasized peace, stability, and resilience. Now, with the ASEAN Community Vision 2045 on the horizon, Malaysia aims to further integrate ASEAN with a stronger emphasis on people-centric development and sustainability.
This year, Malaysia will play a pivotal role in the adoption of the ASEAN Community Vision 2045 and its accompanying strategic plan documents. These efforts will commemorate the 10th anniversary of the ASEAN Community, which was officially launched in 2015.
Malaysia’s ambition is to steer ASEAN toward regional peace, stability, and prosperity while reinforcing ASEAN’s centrality. This vision includes fostering trust among member states and external partners through dialogue, diplomacy, and goodwill A particular emphasis will be placed on increasing intra-ASEAN trade and investment, as Malaysia believes that these efforts will enhance the grouping’s global stature.
This year, Malaysia will lead ASEAN in concluding negotiations for the Digital Economy Framework Agreement (DEFA), ASEAN’s first regional digital agreement, enhancing digital trade, e-commerce, digital payment systems, and related services. If successfully implemented, DEFA could add nearly $2 trillion to ASEAN’s economy by 2030, making it a key player in global digital trade.
However, Malaysia recognizes that digital transformation must be inclusive. The digital divide among Cambodia, Laos, Myanmar and Vietnam (CLMV) and the original ASEAN 5 must not be exacerbated, which is why the grouping is committed to implementing initiatives such as the Initiative for ASEAN Integration (IAI) and narrowing development gaps (NDG) to ensure that the CLMV is not left behind. With the likely induction of Timor-Leste as ASEAN’s 11th member, inclusivity will require even greater attention.
Malaysia is taking its responsibilities seriously, and PM Ibrahim has appointed informal advisers to guide Malaysia’s ASEAN role. They include former Thai Prime Minister Thaksin Shinawatra, former Indonesian Foreign Minister Retno Marsudi, and former Singaporean Foreign Minister George Yeo. While these figures bring extensive experience and insight, their appointments have also generated scepticism about the nature of Malaysia’s approach.
The coordinator roles within ASEAN have gained importance this year. Each country is assigned an interlocutor’s role to coordinate all activities with a Dialogue Partner for a three-year period. Malaysia is also the country coordinator for China.
One of ASEAN’s major challenges is navigating relations with the United States, especially with the return of the Trump administration. ASEAN has historically struggled to gain U.S. attention, and recent political developments suggest that this challenge may persist. During a recent confirmation hearing, the U.S. Defence Secretary-designate failed to name a single ASEAN country, underscoring ASEAN’s ongoing struggle for recognition in U.S. policymakers.
Malaysia’s stance on the U.S. has also been complicated by disagreements over Gaza policy. Alongside Indonesia, Malaysia is critical of U.S. support for Israel, creating a diplomatic rift. This, coupled with Cambodia’s role as ASEAN’s coordinator for ASEAN-U.S. relations, presents additional challenges in managing ASEAN’s engagement with Washington, partly because Cambodia is close to China and partly because Phnom Penh doesn’t have the required clout with the U.S.
On the pressing challenge of the strategic competition between the U.S. and China, ASEAN avoids taking sides but cannot ignore China’s status as its largest trading partner and significant investor. Many ASEAN countries benefit from China’s Belt and Road Initiative (BRI), and Malaysia, as the coordinator for ASEAN-China relations, must balance its diplomatic approach while maintaining ASEAN’s neutrality.
ASEAN is split on relations with China. The negotiations on the South China Sea Code of Conduct (COC) are slow going, and remain a crucial test for ASEAN-China relations. While the Philippines has faced direct confrontations with China over disputed maritime territories, other ASEAN countries adopt a more cautious approach. Malaysia itself is a claimant state but prefers non-confrontational diplomacy. Unless ASEAN develops a unified stance on the COC, it will struggle to negotiate effectively with China.
ASEAN’s internal cohesion is also at stake. The Philippines, backed by the U.S. and Japan, often feels unsupported by its ASEAN partners in its territorial disputes with China. Meanwhile, Malaysia’s decision to invite China to the upcoming ASEAN-Gulf Cooperation Council (GCC) Summit in May 2025 has raised concerns about China’s increasing role in ASEAN affairs.
A major issue is Myanmar’s political crisis. ASEAN members remain divided on how to address Myanmar’s situation.[3] Some, led by Thailand, advocate for engagement rather than isolation, arguing that Myanmar should be included in ASEAN discussions. Others insist that Myanmar must first meet the expectations outlined in the Five-Point Consensus (5PC). However, uncertainty over who truly controls Myanmar complicates ASEAN’s approach to a Myanmar-owned and led process.
Malaysia will need to balance these differing perspectives and nurture an inclusive yet effective ASEAN response to the Myanmar crisis.
Malaysia assumes the ASEAN chairmanship at a time of heightened geostrategic rivalry, economic deglobalization, rising protectionism, and nationalist trends in Europe. Tensions in the South China Sea, East China Sea, and Taiwan Strait continue to pose risks. The way the U.S. and China manage their bilateral relations will undoubtedly influence Malaysia’s ASEAN leadership.[4]
Malaysia received a ringing endorsement from Indonesia president Prabowo who flew to Kuala Lumpur right after his visit to New Delhi as chief guest at India’s Republic Day celebrations.[5] It put to rest whispers of Malaysia-Indonesia rivalry (when the Indonesian FM skipped an ASEAN FMs meeting in December)[6] – even as Indonesia raced past Malaysia to become a full BRICS member and is seen as pursing an ASEAN Plus foreign policy.
As ASEAN navigates these challenges, Malaysia’s leadership will be critical in reinforcing ASEAN’s role as a resilient and forward-looking regional bloc in an uncertain world.
Gurjit Singh is a former Indian Ambassador to Germany. He is currently promoting the impact investment movement for implementing SDGs in Africa.
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References
[1] LAUNCHING CEREMONY OF THE LOGO AND THEME OF ASEAN-MALAYSIA CHAIRMANSHIP 2025, 22 OCTOBER 2024, MFA Malaysia, 22 October 2024, https://www.kln.gov.my/web/guest/-/launching-ceremony-of-the-logo-and-theme-of-asean-malaysia-chairmanship-2025-22-october-2024\
[2] ASEAN’s Second Renaissance Is Now, PS Quarterly, 16 December 2024, https://www.project-syndicate.org/magazine/asean-malaysia-chair-must-strengthen-outside-partnerships-build-supply-chain-resilience-by-anwar-ibrahim-2024-12
[3] ASEAN tells Myanmar junta peace, not election, is priority, Reuters, 19 January 2025, https://www.reuters.com/world/asia-pacific/malaysia-takes-asean-mantle-tempers-expectations-myanmar-south-china-sea-2025-01-18/
[4] Sharon Seah, ASEAN should hope for the best but prepare for the worst in 2025, Fulcrum, 20 January, 2025, https://eastasiaforum.org/2025/01/20/asean-should-hope-for-the-best-but-prepare-for-the-worst-in-2025/
[5] President Prabowo of Indonesia Voices Strong Support for Malaysia’s ASEAN Leadership, IN Diplomacy, 31 January 2025, https://indiplomacy.com/2025/01/31/president-prabowo-of-indonesia-voices-strong-support-for-malaysias-asean-leadership/
[6] Are we abandoning ASEAN? The Jakarta Post, 19 December 2024, https://www.thejakartapost.com/opinion/2024/12/19/are-we-abandoning-asean.html