Malaysia has once again called on its Asean counterparts to deepen intra-regional trade and reduce dependence on external trading partners, as global trade tensions mount.
Trade within the region remains below 25% of total trade among member states which is concerning, particularly as the bloc is becoming increasingly reliant on non-Asean countries as their primary trading partners, Foreign Minister Datuk Seri Mohamad Hasan told the Dewan Rakyat on Thursday.
“Politically, we [Asean] are already strong,” Mohamad said during the Minister's Question Time. “But economically, we are still too dependent on external countries.”
His remarks come amid a new wave of unilateral tariffs being rolled out by the US, set to take effect on Aug 1 with most Asean nations still scrambling to respond.
Malaysia was caught off guard after US President Donald Trump announced on July 8 that a blanket 25% import tariff would be imposed on all Malaysian goods. However, Trump has indicated that there is still room for negotiations before the August deadline.
“Malaysia, for instance, relies heavily on traditional trade partners — when something happens in those countries, it becomes difficult, and we don’t want to see that situation repeated,” Mohamad said.
With less than a week to go before the deadline, Indonesia, Vietnam, and the Philippines have all managed to secure lower tariffs with the US than previously threatened. Singapore, meanwhile, enjoys the lowest rate among Southeast Asian nations at 10%.
“Asean centrality is our strength,” Mohamad said. “Not many regional blocs have the level of mutual understanding that Asean enjoys — this must be safeguarded. If it is compromised by any party, Asean will become weak.”
Mohamad was responding to a question from Manndzri Nasib (BN–Tenggara), who asked about Malaysia’s foreign policy achievements while chairing Asean this year, especially in reinforcing the region’s centrality and unity amid ongoing geopolitical tensions.
Nevertheless, he acknowledged that internal challenges remain, pointing to Myanmar’s ongoing civil conflict as a persistent obstacle to Asean cohesion.
Myanmar is now in its fourth year of civil war, with no resolution in sight. Following a major offensive in October 2023 in the northeastern state of Shan, the military junta has lost control over large stretches of territory along its border with China, further complicating the bloc’s efforts to maintain regional stability.
Source: theedgemalaysia