ASEAN must act for collective recovery amid US tariffs says Anwar

Malaysian Prime Minister urges action over rhetoric at 2025 ASEAN Investment Conference.

Malaysian Prime Minister Anwar Ibrahim attends the ASEAN Investment Conference 2025 in Kuala Lumpur on Tuesday, April 8, 2025. Photo by Samsul Said/Bloomberg

By Anna Fadiah and Hayu Andini

ASEAN must act for collective recovery amid US tariffs, said Malaysian Prime Minister Anwar Ibrahim at the 2025 ASEAN Investment Conference in Kuala Lumpur on Tuesday, April 8. Addressing a room full of regional investors, diplomats and economic leaders, Anwar stressed that Southeast Asia cannot afford to remain stagnant or reliant on rhetoric. With global economic stability under threat from increasing United States import tariffs, he urged fellow ASEAN member states to turn words into action.

Anwar’s speech came at a time when countries across the globe are grappling with the ripple effects of America’s new protectionist policies. The US decision to impose wide-ranging tariffs has not only disrupted supply chains but has also put additional pressure on export-driven economies like those in Southeast Asia. The Prime Minister argued that while the region has successfully liberalized tariffs among member states, it still faces deeper structural hurdles.

“Tariff liberalization is largely complete, but we are still lagging in regulatory alignment, cross-border logistics and digital connectivity,” he noted.

The Prime Minister’s remarks reflect a growing urgency within ASEAN to transform its economic vision into tangible progress. As the current Chair of ASEAN, Malaysia is taking the lead in charting a strategic path forward — one that leverages regional unity in the face of external pressures.

Turning vision into action: ASEAN’s way forward

In his keynote, Anwar outlined two major initiatives that Malaysia is championing during its ASEAN chairmanship. First is the ASEAN Energy Network, a cross-border project that aims to integrate electricity grids across member states. By enabling the exchange of renewable energy, Anwar believes the network will not only enhance energy security but also position the region as a sustainable green energy hub.

“The potential is enormous. Imagine a grid where solar energy from one country can power homes in another. It’s ambitious, but entirely possible if we commit to collaboration,” he said.

The second focus is a regional payment system that aims to simplify and accelerate trade and tourism. As a pilot project, Malaysia launched a payments linkage with Cambodia, enabling instant and seamless transactions between the two countries. The initiative, Anwar explained, is expected to scale across ASEAN.

“Financial integration is key to boosting intra-regional commerce. The payments link we launch today is the first step toward an ASEAN-wide digital financial system,” he said.

This move is especially timely as digital commerce continues to surge across Southeast Asia, accelerated by post-pandemic trends and a rising middle class. Regional payment interoperability, Anwar emphasized, will not only benefit large-scale investors but also SMEs and local entrepreneurs, creating a more inclusive economic landscape.

Unity through cooperation and leadership

While economic policies and infrastructure projects are crucial, Anwar also stressed the importance of political will and mutual trust among ASEAN nations. According to him, the close ties among ASEAN leaders provide a unique opportunity to deepen economic integration in strategic sectors such as financial services, green energy, logistics, and medical tourism.

“Good relations among ASEAN leaders are an asset we must not waste. Economic unity cannot happen without political harmony,” he said.

Anwar also pointed out that a united ASEAN can provide a counterbalance to global superpowers and secure better deals on trade, technology, and sustainability.

“Our strength lies in our unity. If we act as one, we will not only survive global shocks — we will emerge stronger.”

Navigating the storm: ASEAN’s response to US tariffs

The global economic landscape has grown increasingly uncertain in recent months. The United States’ import tariff policy, introduced under the banner of “protecting American industry,” has caused alarm among its trading partners. While not directly targeting ASEAN, the cascading effects have unsettled many sectors that rely on global integration.

Anwar’s remarks — that ASEAN must act for collective recovery amid US tariffs — echo a growing consensus among Southeast Asian policymakers. There is recognition that passive observation is no longer an option. Without coordinated responses, each nation risks being overwhelmed by rising costs, supply bottlenecks and reduced market access.

Malaysia’s approach, as laid out by Anwar, aims to position ASEAN as an agile, forward-looking bloc. One that embraces digital transformation, builds sustainable infrastructure, and protects regional economic interests through diplomacy and shared strategy.

Private sector engagement and regional investment

The 2025 ASEAN Investment Conference was not just about government policy. Representatives from major investment funds, tech firms, and infrastructure companies attended the event, eager to hear how ASEAN plans to weather global volatility. Many welcomed Anwar’s call to action and Malaysia’s leadership in launching concrete initiatives.

“With initiatives like the ASEAN Energy Network and the payments linkage, we are seeing clear steps, not just promises,” said one investment analyst based in Singapore.

The private sector's role is expected to be critical in driving ASEAN's next growth phase. Governments may lay the policy groundwork, but it is businesses — from startups to conglomerates — that will execute innovation, scale renewable solutions, and create cross-border ecosystems of trade.

Anwar's assurance that Malaysia welcomes strategic investments in energy, technology, and digital infrastructure was met with optimism. He noted that Malaysia will continue offering incentives and regulatory support to foreign investors that align with ASEAN’s regional goals.

From rhetoric to results

The message from Kuala Lumpur was clear: ASEAN must act for collective recovery amid US tariffs. For Anwar Ibrahim, that means moving beyond traditional policy statements and delivering impactful initiatives. Whether through linking power grids or integrating financial systems, Malaysia is setting the tone for ASEAN’s new chapter.

While challenges remain — from geopolitical friction to infrastructural gaps — the region’s strength lies in its unity, diversity, and untapped potential. If Anwar’s roadmap gains traction, ASEAN could not only shield itself from global instability but also become a model for regional cooperation in the 21st century.

For now, all eyes are on how the rest of the bloc responds — and whether 2025 will mark the year ASEAN turned its shared vision into concrete progress.