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ASEAN risks being pushed to the sidelines of major geopolitical and economic decisions unless it responds to great power rivalry with a firmer, more unified posture.

The warning was among the central points raised at a high-level conference in London, where ASEAN and UK leaders from government, business and academia assessed the bloc’s place in a more fragmented global order, an English daily reported. 

ASEAN, with more than 680 million people and an economy nearing US$4 trillion (RM15.68 trillion), remains a key growth centre, but faces rising pressure from strategic competition between major powers, more restrictive trade policies and a multilateral system that is losing influence.

The conference, “ASEAN at the Geopolitical Crossroads”, was jointly organised by LSE Ideas at the London School of Economics and Political Science, the KSI Strategic Institute for Asia Pacific and the ASEAN Business Club.

LSE president and vice-chancellor Prof Larry Kramer and Malaysia Investment Development Authority (MIDA) chairman Tengku Datuk Seri Zafrul Tengku Abdul Aziz said the shifting global landscape makes it more important for countries and regions to strengthen trade and investment links that can withstand shocks.

Organisers said a policy report with strategic recommendations will be prepared and submitted to ASEAN leaders ahead of the ASEAN Summit in May 2026.

“We need an ASEAN, but we need a strengthened ASEAN for the times we are in,” said ASEAN Business Club president Tan Sri Dr Munir Majid.

Discussions at the event centred on how ASEAN can respond to protectionist trends while also identifying areas where UK-ASEAN cooperation can be deepened, including trade, technology and education.

The conference also featured the UK-ASEAN Business Excellence Awards, which recognised business figures seen as contributing to stronger UK-ASEAN commercial ties.

Corporate partners supporting the conference included YTL Corp Bhd, Standard Chartered plc, Affin Bank Bhd, Bank Mayapada and The Petra Group.

Among the award recipients was Tan Sri (Sir) Francis Yeoh, founder and executive chairman of YTL, who received the recognition from Datuk Zakri Jaafar, Malaysia’s High Commissioner to the UK.

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KUALA LUMPUR — Both Malaysia’s export and import volume indices increased 13.8 per cent and 4.0 per cent in December 2025, respectively, according to the Department of Statistics Malaysia (DOSM).

In a statement today, chief statistician Datuk Seri Dr Mohd Uzir Mahidin said the increase in export volume index was in line with the increment in the indices of machinery and transport equipment (+23.6 per cent), manufactured goods (+22.2 per cent) and animal and vegetable oils and fats (+14.5 per cent), while the seasonally adjusted export volume index also gained by 7.0 per cent to 177.4 points from 165.8 points.

He said the export unit value index declined by 0.4 per cent in December 2025, due to decreases in the indices for animal and vegetable oils and fats (-2.7 per cent), miscellaneous manufactured articles (-0.5 per cent), and machinery and transport equipment (-0.3 per cent).

“Referring to the annual comparison, both the export unit value index and volume index expanded 1.8 per cent and 8.4 per cent, respectively,” he added.

Meanwhile, the import volume index rose by 4.0 per cent in December 2025 against the previous month, contributed by the increment in the index of miscellaneous manufactured articles (+32.3 per cent), chemicals (+27.9 per cent) and food (+25.2 per cent), while the seasonally adjusted import volume index increased by 3.4 per cent to 242.3 points from 234.3 points.

The DOSM said the import unit value index also dipped by 0.3 per cent in December 2025, due to the reductions in the indices of mineral fuels (-1.8 per cent), chemicals (-0.5 pr cent) and machinery and transport equipment (-0.3 per cent).

“A year-on-year comparison showed that the import unit value index declined by 3.0 per cent, while volume index edged up by 15.4 per cent,” it said.

The department said Malaysia’s terms of trade dropped 0.1 per cent month-on-month to 123.6 points in December 2025, due to decreases in the indices for animal and vegetable oils and fats (-1.3 per cent), miscellaneous manufactured articles (-0.2 per cent), and chemicals (-0.2 per cent).

Meanwhile, Malaysia’s terms of trade expanded 4.9 per cent year-on-year from 117.8 points in December the year before. — BERNAMA

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KUALA LUMPUR — Malaysia’s economic growth outlook continues to be supported by solid fundamentals. Our economy is highly diversified and our domestic demand is resilient, said Bank Negara Malaysia (BNM) Governor Datuk Seri Abdul Rasheed Ghaffour (picture).

In an exclusive interview with Bernama, he said Malaysia’s economy and trade structures are diversified as they are not overly dependent on one particular sector, industry or product segment.

“Even our export market is diversified. We don’t trade with just one country. We trade with many economies. No single country accounts for more than 15 per cent of Malaysia’s exports. That shows how diversified we are,” he said. 

Abdul Rasheed said Malaysia’s growth also exceeded expectations last year with its major growth engines supporting growth: consumption, investment, exports and tourism.

On fiscal policy, Abdul Rasheed said the government has demonstrated policy credibility by following through on its subsidy rationalisation measures involving fuel, electricity, water and diesel.

“The government has communicated its resolve to push through with its economic reform agenda. The government has promised reform, and has implemented it in a way that does not affect growth. 

“The government has also stuck to its commitment to fiscal reforms. This has allowed fiscal savings to be channelled back to the rakyat in a targeted manner,” he said. 

He added that long-term national frameworks such as the National Energy Transition Roadmap (NETR), New Industrial Master Plan (NIMP) and National Semiconductor Strategy (NSS) also provide clear policy direction for investors.

“These positive domestic factors make Malaysia an attractive destination for global investors, thus lending greater support to the ringgit,” he said. — BERNAMA 

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KUALA LUMPUR — Small and medium enterprises (SMEs) should be a key focus in efforts to deepen Malaysia-India economic ties, as India offers vast market opportunities for Malaysian businesses seeking to expand overseas, said ASEAN-India Economic Council chairman Datuk Ramesh Kodammal.

He said that while large corporations have already established cross-border networks, SMEs require greater support to enter new markets, particularly India, which presents strong potential for trade and joint ventures. “When we are talking of businesses, the corporate businesses have already got their links, but the SMEs need new players, new markets, and India is a huge market,” he told Bernama TV’s “The Nation: Diplomatic Dispatch” programme.

Ramesh said Malaysian SMEs can explore opportunities either through direct exports or by forming joint ventures with Indian partners to manufacture products for the Indian market. He added that SMEs often face challenges in understanding how to begin expanding abroad, but noted that various agencies and business chambers are available to provide guidance and support.

“Malaysian SMEs are very fortunate that the Malaysia External Trade Development Corporation (MATRADE) provides a lot of information to them. There are also a lot of chambers of commerce that can advise SMEs, like the Malaysia India Business Council and the Kuala Lumpur and Selangor Indian Chamber of Commerce, and also various Indian groups who are working with India,” he continued.

He said closer collaboration between SMEs and business chambers is needed to help companies identify opportunities and navigate the Indian market effectively.

Against this backdrop, Ramesh said digital technology and artificial intelligence (AI) are emerging as key enablers in strengthening Malaysia-India economic relations, particularly in supporting SME growth and innovation. He noted that digital investment is a major focus area, with both countries exploring closer collaboration in AI and related technologies. “We are looking at digital investment, and we are working aggressively to see that the digital council for both countries can be formed,” he added.

Ramesh said India’s capabilities in AI could support Malaysia’s digital development efforts, including interest from Indian companies in setting up AI training centres locally. “Malaysia needs a lot of ideas and support to work on this platform (AI), and India can provide it,” he added.

Beyond digital cooperation, Ramesh reckons that the pharmaceutical sector also offers strong potential for bilateral collaboration, given India’s strengths in pharmaceutical manufacturing. He said enhanced cooperation in pharmaceuticals could support Malaysia’s healthcare supply chain while positioning the country as a manufacturing and export base for the region, leveraging existing trade linkages between both countries to serve ASEAN and other markets. — BERNAMA

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