Asean will be able to secure more favourable economic deals if it projects a united front when negotiating with global powers, says an opposition MP.
Bersatu’s Wan Ahmad Fayhsal Wan Ahmad Kamal says Asean may not have the same bargaining power as the European Union (EU) presently, which may work to its disadvantage during tariff negotiations with the US.
However, he believes Asean would be able to match the EU’s influence in the future, given its current pace of growth and performance.
“We shouldn’t discount the fact that if Asean comes to the table and negotiates with Washington, we could come up with more positive deals.
“If Asean can show unity among its leaders on economic matters, at least with respect to negotiating with the superpowers, they would take us seriously in the next round of meetings because at least we are projecting our strength in economic terms,” he said in an exclusive interview with FMT.
Earlier this month, Prime Minister Anwar Ibrahim said Asean rejects any form of tariffs unilaterally imposed by the US, as such measures contradict the spirit of multilateralism.
Asean’s Indochina member states have been among the most severely affected nations, with Cambodia facing combined baseline and retaliatory duties totalling 49%, followed by Laos (48%), Vietnam (46%), and Myanmar (44%).
Thailand has been subjected to a 36% tariff, Indonesia 32%, Brunei and Malaysia 24% each, the Philippines 17%, while Singapore faces a baseline tariff of 10%. Trump said he would delay the implementation of tariffs for 90 days, with only a baseline tariff of 10% kicking in immediately.
Investment, trade and industry minister Tengku Zafrul Aziz said Malaysia, as the chair of Asean this year, has called for a special US-Asean summit on Trump‘s tariffs, reiterating that the 10-member bloc would not impose any retaliatory measures.
The Machang MP said Washington may want to strengthen its economic ties with Asean, especially as its relationship with China continues to deteriorate.
“A multilateral platform like Asean offers a better deal for Washington in balancing China. They should explore that potential. It’s up to the Asean chairman to propose such a framework that brings all member states together to negotiate collectively with Washington on behalf of the region.”
Don’t depend too much on US, China
Given the unpredictability of the Trump administration, Wan Fayhsal said Anwar made the right move by exploring trade opportunities with other economic blocs, including BRICS, which Malaysia joined as a partner country last year.
“Trump has basically dismantled the current international liberal order in the economy and politics. With this new setting or context, Malaysia must plan ahead by exploring other possibilities.
“We cannot be dependent too much on both China and the US. The ones who are fighting are these two giants, but the ones who suffer the most are the smaller countries or the middle-income countries like Malaysia,” he said.
BRICS, originally comprising Brazil, Russia, India, and China, was established in 2009 as a cooperation platform for emerging economies, with South Africa joining in 2010. The bloc has since expanded to include Iran, Egypt, Ethiopia and the United Arab Emirates.
Wan Fayhsal added that Malaysia could further strengthen its trade relations with Asean member states, as well as with Muslim-majority countries in Africa and the Middle East.
