By Datuk Prof Dr Mohd Faiz Abdullah
If Malaysians following the news wondered whether all the fanfare surrounding the just-concluded ASEAN Summit and its associated meetings was a spectacle, they wouldn’t be entirely wrong. Major summits and extravaganza are like two peas in a pod —replete with pomp and pageantry. Ask the rotating hosts of BRICS or the G20, or the cities of Davos and New York, when the WEF and UNGA descend each year. Kuala Lumpur did not merely host one of the most crowded ASEAN Summits in recent memory; it did so at a crucial moment in history — an achievement of no ordinary scale for even the most seasoned of hosts.
But make no mistake: what transpired in the halls of the KLCC Convention Centre and its surrounding hotels was not a mere parade but the intricate ballet of modern diplomacy in motion – complex, fast-paced yet delicate. It was the culmination of almost two years of coordination, strategy and persistence: a sequence of breakthroughs and creative compromises. Malaysia’s officials, especially those on the High-Level Task Force that cochaired ASEAN’s Vision 2045 and the KL Declaration, worked quietly and resolutely to bring them to fruition. And yes, there were compromises — for such is the price of consensus and the craft of governance.
Trump, tariffs and peace
Convincing a sceptical American president – one who had attended an ASEAN Summit only once before – to return was a diplomatic coup that Malaysia pulled off with quiet tenacity. Donald Trump may be notorious for his unpredictability and proclivity to polarise opinion, but there is no mistaking the weight of his office or the influence it casts over this region. His engagement on ASEAN’s soil – spirited yet substantive – was both a vindication of Malaysia’s persistence and a signal of ASEAN’s renewed relevance.
A decisive kicker was the peace accords between Cambodia and Thailand, brokered through Malaysia’s enduring diplomacy and co-signed by both Trump and Prime Minister Anwar Ibrahim. Under the circumstances, it couldn’t be sweeter. Neither leader disguised the difficulty of persuading two proud neighbours to step back from the brink, yet both acknowledged that peace, however imperfect, remains the only viable horizon. The agreement may not resolve the underlying disputes, but it restores a semblance of calm.
Collaborative geopolitics
The presence of Brazil and South Africa as Guests of the Chair this year was another marker of Malaysia’s forward-looking and ambitious diplomacy, aimed at broadening ASEAN’s global partnerships. This was built upon Malaysia’s bold precedent earlier in the year – convening the inaugural ASEAN-GCC-China Summit. In a world where engagement with both Washington and Beijing remains essential yet increasingly fraught, inter-regionalism has become ASEAN’s best hedge. It reflects Malaysia’s conviction that ASEAN’s path forward lies not in retreating behind its borders but in meeting the world with composure and purpose.
Another milestone was the 20th anniversary of the East Asia Summit (EAS) – a leaders-led process that was itself born in Kuala Lumpur. Conceived as a candid forum for strategic, political and economic dialogue, the EAS has drawn criticism for its scripted routines and over-managed agendas, which have dulled its edge. Perhaps rather exaggeratedly, I have occasionally panned it as being in a comatose state. Not anymore. Malaysia and fellow member states deserve credit for restoring a sense of purpose: they steered through the Kuala Lumpur Declaration on Peace and Stability – the first joint statement in three years to secure consensus among all EAS members. Earlier efforts in Jakarta and Vientiane had collapsed amid the major powers’ tendency to turn the platform into a diplomatic battleground.
Over the longer term, however, EAS members must rethink how to make the mechanism fit for purpose. ASEAN cannot do this alone; it will require genuine investment from key dialogue partners willing to keep the forum constructive rather than combative.
Deepening trade and tech
Malaysia used its 2025 ASEAN chairmanship to deepen the region’s internal economic links, so ASEAN is less exposed to tariff shocks and geoeconomic pressures. This included upgrading existing rulebooks, such as the Second Protocol to Amend the ASEAN Trade in Goods Agreement (ATIGA), which is meant to go beyond tariff cuts and instead modernise customs rules and improve dispute settlement to move goods “quicker, faster, cheaper” across ASEAN borders. Similarly, it upgraded the ASEAN–China Free Trade Area upgrade (ACFTA 3.0), widening cooperation into digital and green sectors while signalling that ASEAN intends to keep Chinese market access and supply-chain anchoring even as US tariffs tighten.
In parallel, ASEAN announced “substantial conclusion” of negotiations on the ASEAN Digital Economy Framework Agreement (DEFA), targeting harmonised rules on data flows, e-commerce, and digital payments, with the deal slated for signature in 2026. ASEAN also used its convening power to anchor the wider trade architecture. Kuala Lumpur played host to the first Regional Comprehensive Economic Partnership (RCEP) Leaders’ Summit since the agreement entered into force in 2022, with leaders acknowledging the need to improve its full implementation and utilisation ahead of its review in 2027.
That said, the question remains – can ASEAN seriously move to boost intra-ASEAN trade beyond rhetoric and balance external geoeconomic risks? This will require confronting long-time bottlenecks to greater integration. Intra-ASEAN trade is stuck at about 20 percent of total ASEAN trade, barely higher than two decades ago, despite near-zero tariffs. Meanwhile, non-tariff barriers (NTBs) continue to choke the growth of intra-ASEAN flows. Likewise, other issues like low utilisation of the complex patchwork of trade agreements that ASEAN already has suggest that the solution cannot just be more trade agreements.
Nonetheless, recent steps suggest there is reason for cautious optimism. The upgraded ATIGA explicitly takes aim at NTBs, customs frictions, beyond just headline tariff cuts. DEFA could help to deepen integration on the digital and financial fronts, along with the ASEAN Framework for an Integrated Semiconductor Supply Chain (AFISS), which could finally allow the cross-border investment flows needed to entrench production networks regionally and strengthen supply chains. Of course, challenges remain. ASEAN still lacks strong enforcement, and ATIGA’s changes will only take effect after full ratification and an 18-month runway. DEFA is not yet signed, and AFISS is still being operationalised. Legacy issues surrounding capacity gaps and uneven development stages between member states may have widened with the entry of Timor-Leste, which added a least-developed member that will need long-term regulatory and infrastructure support.
Moving forward, the bloc must do more to streamline regulations, promote indigenous investment, increase regional mobility and deepen supply chain integration. Achieving this will require staying true to the ASEAN Economic Community Strategic Plan 2026- 2030 and fully implementing new frameworks like DEFA and AFISS beyond rhetoric.
On the tech front, a common theme by ASEAN leaders at the EAS, RCEP and the ASEAN Business and Investment Summits was on digital inclusivity, efforts to narrow gaps of digital transformation and ASEAN’s high-technology innovation ambitions. As the region grapples with the development and growing utilisation of artificial intelligence with its political, economic and social impacts, ASEAN would be well served to be better prepared rather than playing catch-up.
Leadership and Malaysia’s strategic positioning
It would not be self-congratulatory to say that this year has seen ASEAN elevated in every sense of the word – its vision sharpened, its partnerships widened, its confidence renewed. With the long-awaited inclusion of Timor-Leste as its 11th member, ASEAN is 5 now truly complete and wholly Southeast Asian. The baton now passes to our Filipino colleagues, who will chair the bloc next year and carry the torch forward. Judging from the clarity and composure with which Manila has approached its new responsibility, ASEAN’s future is in good hands.
The end of this year’s summit marks a collective triumph for Malaysia’s diplomats, agencies and partners, who worked tirelessly to deliver outcomes of lasting significance. Breakthroughs may not have been possible on every front, but the overall result speaks volumes. Malaysia’s chairmanship has restored the region’s faith in the quiet power of coordination and the practical virtues of persistence.
More profoundly, it reflects the revitalisation of Malaysia’s foreign policy vision and execution since 2023 – a renewal guided by the Prime Minister’s active diplomacy and clear sense of purpose. His approach blends principle with pragmatism, charm with forthrightness, and an unshakable belief that Malaysia’s voice must be heard – not merely noted, and certainly not consigned to the menu.
Under his leadership, Malaysia has re-established itself as a thoughtful interlocutor and a steady bridge-builder in a turbulent world. It has been shown that small and middle powers can still exercise agency through clarity of purpose and moral consistency. In a region often defined by the push and pull of larger forces, Malaysia has chosen engagement without subservience, conviction without arrogance, and independence without isolation.
The challenge ahead will be to sustain this momentum beyond the glow of the summitry – to translate words into enduring institutions and partnerships. For ASEAN, as for Malaysia, the task now is to ensure that diplomacy’s rhythm continues long after the spotlight fades.
If that spirit endures, Kuala Lumpur’s ASEAN chairmanship will be remembered not merely for its pomp but for its poise – not for its pageantry but for its purposefulness.
*Datuk Prof Dr Mohd Faiz Abdullah is Chairman of the Institute of Strategic and International Studies, Malaysia.
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