KUALA LUMPUR, Dec 29 — On January 1, Malaysia will assume the chairmanship of the Association of South-east Asian Nations (Asean), a 10-member bloc with a combined GDP ranking it among the world’s top economic entities.
The chairmanship rotates annually in alphabetical order based on the English names of member states, with Laos currently in charge.
This marks Malaysia’s fifth time in chairing Asean, following its last tenure in 2015.
Why Malaysia’s leadership matters
Malaysia takes the reins during a period of shifting geopolitical tensions, marked by strained ties with the United States and strengthened partnerships with Russia and China.
Prime Minister Datuk Seri Anwar Ibrahim recently disclosed that US officials had questioned Malaysia’s envoy to the United States over the nation’s refusal to designate Hamas as a terrorist organisation.
The US Embassy in Malaysia also issued two demarches urging action to prevent a suspected state — widely believed to be Iran — from escalating the Gaza conflict via proxies.
In October, Malaysia joined Brics as a partner nation, alongside Indonesia, Thailand, and Vietnam.
Brics is an acronym for a coalition of five major emerging economies — Brazil, Russia, India, China, and South Africa — focused on promoting economic cooperation, development, and reform of the global financial system.
The intergovernmental organisation is often portrayed as a counterweight to the Western-led world.
Anwar described the move as essential for enhancing Global South cooperation and reducing Malaysia’s reliance on the US dollar.
Under Malaysia’s leadership, Asean may face intensified trade tensions with the US, particularly as incoming President Donald Trump has pledged to implement tariffs aimed at addressing trade deficits.
Regionally, Anwar must navigate generational shifts among Asean leaders, from Brunei’s Sultan Hassanal Bolkiah to newer figures like Thailand’s Paetongtarn Shinawatra, Cambodia’s Hun Manet, and Singapore’s Lawrence Wong.
The chairmanship also offers Anwar a chance to solidify his credentials as a statesman ahead of Malaysia’s 2026 general elections.
Top priorities for 2025
1. Timor-Leste’s membership
Asean is poised to welcome Timor-Leste as its 11th full member, 14 years after the nation submitted its application in 2011.
The announcement was confirmed during Timor-Leste Prime Minister Kay Rala Xanana Gusmao’s visit to Malaysia earlier this month.
A former Portuguese colony and Indonesian territory until its independence in 2002, Timor-Leste has been an Asean observer state since 2005. In 2022, Asean leaders agreed in principle to grant full membership.
2. The Myanmar crisis
In November, Anwar proposed temporarily “carving out” Myanmar from Asean to foster stronger consensus on addressing the military junta, which has ruled since a 2021 coup.
Malaysia has been an outspoken critic of the junta, with Anwar previously urging Myanmar’s suspension unless it restores democratic governance and releases civilian leaders.
Although Myanmar plans to hold elections in 2025, Asean insists on an inclusive process involving all stakeholders.
3. South China Sea Code of Conduct (CoC)
Finalising the long-delayed CoC for the South China Sea will be a priority.
Negotiations, which began in 2002, have progressed slowly, with the second reading completed only in 2023.
Asean secretary-general Kao Kim Hourn has expressed optimism for its conclusion under Malaysia’s leadership.
The CoC aims to manage disputes in the resource-rich waters claimed by several Asean members — Malaysia, Vietnam, Brunei, and the Philippines — as well as China, which asserts near-total sovereignty through its “nine-dash line.”
China’s construction and militarisation of artificial islands since 2013 have heightened tensions.
