Malaysia’s reputation as a moderate and neutral nation makes it an attractive destination for businesses seeking stability amidst geopolitical uncertainty.
PETALING JAYA: Malaysia’s role as Asean chair this year presents a pivotal opportunity to bolster its domestic economy, elevate its global standing, and strengthen regional cohesion.
With geopolitical uncertainties and economic volatility shaping the global landscape, Malaysia’s leadership role – anchored by the vision of Asean Community Vision 2045 – offers a platform to showcase its strengths, attract investments, and solidify its position as a regional hub.
This leadership, however, comes with its complexities, as Malaysia must delicately balance internal priorities with external pressures. Successfully managing this balance could yield significant economic and geopolitical benefits for the nation.
Its role as Asean chair is set to spur significant economic activity within its borders, said Associated Chinese Chambers of Commerce and Industry of Malaysia treasurer-general Datuk Koong Lin Loong.
“Hosting a multitude of symposiums, forums, and cultural events will increase local and international participation, boosting sectors such as hospitality, retail, and infrastructure.
“The influx of foreign visitors and businesses will drive domestic consumption and contribute to the country’s GDP growth.
“These events also provide an invaluable platform to address critical areas such as research and development (R&D), where Malaysia has room for improvement.
“By prioritising innovation and technology discussions, the chairmanship could catalyse advancements in key sectors like electrical and electronics (E&E), in which Malaysia already holds a strong regional position,” said Koong.
Being the chairman of Asean also offers Malaysia the opportunity to address challenges faced by its economy, such as currency volatility and rising costs of imported raw materials.
Strengthening policies that support automation and technological innovation in micro, small, and medium enterprises (MSMEs), which make up 97.4% of businesses, will be critical, Koong pointed out.
“However, the government must ensure that its agencies and departments are agile and prepared to attract and facilitate foreign investments, streamlining bureaucratic processes to create a more investor-friendly environment.”
As one of Asean’s largest exporters, Malaysia is well-positioned to use its chairmanship to navigate complex trade landscapes.
The ongoing US-China trade tensions and longstanding tariff policies, including those introduced during the Trump administration, continue to shape global trade dynamics. Malaysia can leverage its leadership to strengthen bilateral and multilateral trade relationships, ensuring its domestic economy remains resilient, he noted.
Additionally, Koong pointed out that Malaysia’s reputation as a moderate and neutral nation makes it an attractive destination for businesses seeking stability amidst geopolitical uncertainty.
“Its advanced infrastructure, including a robust public transport system, adds to its appeal as a regional hub for investment.
“Encouraging high-tech industries to relocate to Malaysia and fostering stronger ties with major economies can further enhance its trade and investment landscape.”
Beyond its domestic benefits, Malaysia’s Asean chairmanship has significant regional and international implications. This includes the chance to promote unity and cooperation among member states, fostering a sense of shared purpose in addressing economic, social, and geopolitical challenges.
“The chairmanship also provides a platform to counter misconceptions about Malaysia, such as its perceived extremism, by showcasing its diversity, inclusivity, and innovation to the world,” said Koong.
Malaysia’s past tenures as Asean Chair in 1977, 1997, 2005, and 2015 have provided valuable lessons in adaptability and resilience.
This year’s focus on inclusivity and sustainability signals a shift toward long-term strategic planning over short-term gains, reinforcing Malaysia’s role as a steady and pragmatic leader in Asean.
How well Malaysia uses this position will depend on its ability to turn plans into action, strengthen regional cooperation, and address the economic and political realities shaping the region.
