ASEAN hold its nerve, Trump tariffs are not the first challenge to multilateralism, nor will they be the last - PM Anwar

KUALA LUMPUR: In a strong call for regional unity and resilience, Prime Minister Datuk Seri Anwar Ibrahim delivered a keynote address at the ASEAN Investment Conference today, urging ASEAN to remain steadfast in its commitment to multilateralism, even as global economic headwinds intensify.

Opening his speech with a firm acknowledgment of rising protectionist sentiments, Anwar struck a timely chord in reference to the latest sweeping reciprocal tariffs by the United States.

“The Trump tariffs are not the first challenge to multilateralism, nor will they be the last,” Anwar said.

“But if ASEAN can hold its nerve – staying open, pragmatic and cohesive – it may yet be among the last believers in a world that works better when it works together,” he added.

Navigating a Fractured Global Order

Acknowledging that Malaysia’s trade with the United States has long been mutually beneficial, Anwar expressed concern that the new tariffs risk damaging economic ties and employment in both nations.

Yet, he emphasised Malaysia’s preference for “soft diplomacy of quiet engagement,” announcing that Malaysian officials will soon travel to Washington to initiate dialogue.

“We do not believe in megaphone diplomacy."

“There may be limited room to revisit the underlying intent, but there is still scope for adjusting the policy’s implementation,” he said.

He reinforced that Malaysia will remain a strong trading partner to the US while intensifying its trade diversification strategy across Europe, Asia, the Middle East, and Africa. “Winds may shift, but we do not drift,” he stated, underlining Malaysia’s pragmatic approach.

In a global landscape marked by rising nationalism, fractured supply chains, and eroding multilateral institutions, Anwar positioned ASEAN as a beacon of hope.

As ASEAN Chair, Malaysia prioritises revitalising strategic platforms like ASEAN Plus Three to build economic resilience, he said. Citing the Johor–Singapore Special Economic Zone as a “case study in cross-border economic logic,” Anwar also highlighted Malaysia’s commitment to investing in border areas shared with Thailand and Kalimantan to promote shared prosperity.

“ASEAN stands out as a beacon of hope and positivity. We are still broadly committed to openness, cooperation and institutional continuity,” he said.

But this commitment, he warned, must move beyond rhetoric.

“Tariff liberalisation within the region is largely complete, but regulatory alignment, cross-border logistics, and digital connectivity remain unfinished business,” he said.

Sustainability and the Digital Divide

PM Anwar also stressing the urgent need for green infrastructure and climate resilience, he declared that technologies like carbon capture and circular production are no longer peripheral but central to ASEAN’s economic strategy.

On digital transformation, he cautioned that while progress is rapid, it is also uneven. “If the asymmetrical digital progress is left unchecked, it risks deepening divides,” he said, advocating for stronger investment in digital literacy, infrastructure, and governance.

To support small and medium enterprises (SMEs) in embracing sustainability, Anwar announced the launch of the ASEAN Simplified ESG Disclosure Guide for SMEs.

“This is a practical tool to help small businesses take their first steps towards more sustainable and transparent operations,” he noted.

In closing, Anwar rejected both nostalgia and fatalism, stating, “ASEAN has always been a creature of evolution, not revolution. Its strength lies not in drama, but in durability.”

He cited initiatives like the ASEAN power grid and expanding digital payment connectivity as evidence that ASEAN integration is very much alive.

“These efforts will help promote intra-ASEAN trade and tourism,” he said, with digital payment linkages now expanding to Cambodia and plans to cover all ASEAN natio

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