Malaysia urges stronger intra-Asean trade

Source: The Manila Times | Original Published At: 2025-07-09 16:28:00 UTC

Key Points

• Malaysia urges ASEAN countries to strengthen intra-regional trade amid global uncertainties
• US imposes 25-40% tariffs on six Southeast Asian nations, affecting ASEAN economies
• Vietnam secures reduced tariff rate; Indonesia, Thailand, Malaysia seek further negotiations
• ASEAN ministers to address trade tensions and economic fragmentation risks
• Bilateral deals with US must not harm ASEAN members' interests

KUALA LUMPUR — Malaysia’s Prime Minister Anwar Ibrahim on Wednesday urged Southeast Asian countries to “act with purpose” and enhance trade among each other in the face of global uncertainty, as regional foreign ministers met amid renewed jitters over US trade tariffs.

Anwar, addressing ministers of the 10-member Association of Southeast Asian Nations, described tariffs, export restrictions and investment barriers as “the sharpened instruments of geopolitical rivalry.” He did not mention the United States specifically.

“As we navigate external pressures, we need to fortify our internal foundations. Trade more among ourselves, invest more in one another and advance integration across sectors with resolve,” he said.

“As global conditions remain uncertain, there is no overstressing the need to act with purpose in our own region.”

US President Donald Trump on Monday announced hefty levies of between 25 percent and 40 percent on six Southeast Asian countries, despite concerted efforts by some to offer broad concessions and negotiate lower rates.

The export-reliant Asean is collectively the world’s fifth-biggest economy, with some members beneficiaries of supply chain realignments from China. Only Vietnam has secured a deal, which lowers the levy to 20 percent from 46 percent initially.

Indonesia, Thailand and Malaysia are seeking further talks ahead of the tariff implementation on Aug. 1.

The gathering in Kuala Lumpur will include a flurry of meetings between Asean and its major trade partners, including the United States, China, Japan, Russia, India and the European Union.

China’s Foreign Minister Wang Yi and Russian counterpart Sergei Lavrov are expected to join from Thursday, as will US Secretary of State Marco Rubio, who makes his first trip to Asia looking to smooth over relations with allies and partners rattled by Trump’s tariff strategy.

Tariffs ‘counterproductive’

Asean foreign ministers will express “concern over rising global trade tensions and growing uncertainties in the international economic landscape, particularly the unilateral actions relating to tariffs,” according to a draft joint communiqué seen by Reuters.

The draft, dated July 7 and before the latest tariff rates were announced, did not mention the United States and used language similar to an Asean leaders’ statement in May. Both said tariffs were “counterproductive and risk exacerbating global economic fragmentation.”

The bloc in April said it would not retaliate and its leaders have pledged any bilateral deals they strike with Washington would not harm fellow Asean members.

OCBC senior Asean economist Lavanya Ventakeswaran said countries including Vietnam faced additional uncertainty over tariffs targeting transshipments, a measure aimed at products largely from China, with questions remaining over enforcement and implementation.

“The bottom line is that it’s going to be quite complicated moving forward,” Ventakeswaran said.