The Sino-American rivalry not only bears on smaller countries’ own aspirations; it also jeopardizes the peace and stability that they have relied on in pursuing economic development and growth. Navigating today's tumultuous geopolitics will require new strategies built around resilience and adaptability.
KUALA LUMPUR – The world we live in is changing fast. The international order, long defined by well-established rules and norms, faces unprecedented challenges.
Some of these norms are outdated, easily abused by the powerful, and in need of comprehensive reform. But others underpin the system of peace and prosperity on which many countries, including my own, depend. We must defend these norms, strengthen them where necessary, and ensure that they are applied fairly – without exception.
At the same time, we must recognize the complexities of the current international climate. The rise of post-truth politics has fostered a dangerous environment where misinformation is often embraced as holy writ, eroding trust within societies and between countries. As lies spread on social media, the global consequences are profound: democracy is weakened, divisions within and between countries deepen, and the fabric of multilateral cooperation unravels, making it even harder to tackle global challenges.
So, we must ask ourselves: Can democracy really function when so much of the policy discourse is driven by lies, and when – instead of reassuring voters – some leaders resort to stoking fear and division for political gain?
Today’s profound uncertainty – shaped by a shifting global order and the rise of “alternative facts” – is further exacerbated by escalating major-power rivalries. As the competition between the United States and China disrupts economies, technologies, and alliances around the world, smaller and midsize countries are often forced to pick sides or risk becoming pawns in a larger geopolitical game.
Nowhere is this tension more pronounced than in the Asia-Pacific, the world’s fastest-developing region. As the Sino-American rivalry intensifies, the region’s development goals are increasingly at risk, along with the peace and stability that have underpinned its economic progress.
As a new world order takes shape, we must also be mindful of the growing challenges facing countries across the Global South. Many of the mechanisms that once drove their development are weakening, while the very concept of development aid is coming under intense scrutiny from some of the world’s most powerful countries. Economic interdependence, once the cornerstone of global prosperity, has now become a source of tension.
If this trend continues, interconnectedness could ultimately become a vulnerability, even for countries that have long flourished under globalization. Trade wars, tariffs, and sanctions have been transformed from economic tools into weapons in a broader struggle for dominance, fostering an atmosphere of suspicion and distrust that is eroding the foundations of international cooperation. Countries that long viewed others as partners or competitors in a global marketplace now see only adversaries or proxies in a global contest for influence and dominance.
Recognizing the Shifting Balance of Power
For countries like Malaysia and the other members of the Association of Southeast Asian Nations (ASEAN), the erosion of multilateral cooperation and the growing sense of distrust represent a dangerous new normal. But there is nothing “normal” about this state of affairs. To navigate these uncertain times, we must remain steadfast in our purpose and act with conviction, crafting viable solutions that safeguard peace and create conditions for shared prosperity.
At a time of escalating global turmoil, there is an urgent need for incisive, informed analysis of the issues and questions driving the news – just what PS has always provided.
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To this end, we must recognize that the world is no longer shaped solely by a few dominant powers. Emerging economies like South Korea, India, the United Arab Emirates, Saudi Arabia, Turkey, Brazil, and South Africa now play a pivotal role in shaping global norms and structures.
Consider ASEAN, which I now chair. Representing a market of nearly 690 million people, the bloc is the world’s fifth-largest economy and the third largest in Asia. As a powerful economic force, we have a responsibility to ensure that our voices are heard on the global stage – not merely as passive recipients of decisions made elsewhere but as active participants in shaping the international order.
The Gulf Cooperation Council offers a useful model. The GCC’s member states are undergoing an extraordinary socioeconomic transformation, marked by economic diversification, women’s empowerment, and advances in domestic technological capabilities, particularly in defense and other critical sectors. Much like the groundbreaking literacy campaigns of the early twentieth century, these shifts are revitalizing the region’s economies, driving both legal and cultural progress.
In ASEAN, we are not simply observing these changes – we are actively engaging with them. In May, Kuala Lumpur will host the joint ASEAN-GCC summit aimed at strengthening ties between these two dynamic regional groups. Meanwhile, ASEAN’s trade and economic partnerships with China and India continue to evolve and deepen, reflecting the bloc’s growing global influence.
Building Resilience with Smart Diplomacy
Despite the challenges facing the Global South, Malaysia remains steadfast in its commitment to protecting and advancing its national interests. We know not only what we want but also who we are and what we stand for. This clarity is essential, especially given our strategic position within global supply chains and along key maritime trade routes.
Malaysia remains committed to fostering shared growth, strengthening regional cooperation, and remaining open to trade, development, and commerce. We will continue to promote an inclusive and sustainable approach to peace and security, both within our immediate region and beyond. As this year’s chair of ASEAN, Malaysia will work to revitalize underused platforms such as ASEAN+3 (China, Japan, and South Korea) and the East Asia Summit – the only regional forum for strategic and security dialogue where competing powers can meet in a neutral and constructive environment.
Malaysia will also maintain its open and pragmatic relationships with both the US and China, which are based on mutual respect and shared interests. If the Sino-American rivalry evolves into a zero-sum game, there will be no winners. Thus, maintaining robust relationships with both powers is not merely a matter of economic pragmatism. It is a strategic imperative for safeguarding our national interests and ensuring prosperity in an increasingly volatile world. By cultivating a balanced and constructive relationship with China and the US, Malaysia aims to develop a diversified economic base, reducing overdependence on any single country or bloc, and cementing its position as a resilient, open, and competitive economy.
In the face of profound global uncertainty, midsize powers like Malaysia cannot afford simply to endure. Clarity of purpose must drive our actions in pursuit of greater resilience and adaptability. While the challenges ahead are formidable, Malaysia is determined to stand firm and resist pressures from major powers. We will continue to engage with all countries, big and small, upholding the principle of non-alignment as we chart our own course.
Malaysia will fortify its position as a center of competitive trade, finance, and technology amid global changes. While Daron Acemoglu, Simon Johnson, and James A. Robinson’s Nobel Prize-winning work on institutions and governance highlights systemic inequalities, we must avoid oversimplifying the complexities of global power dynamics. The challenges we face today come not just from historical colonizers but also from diverse global actors, including corporations, individuals, and non-state entities that often show little regard for laws and norms.
For developing countries, the key is to recognize the unremitting competition they face and to accept Acemoglu, Johnson, and Robinson’s central insight that countries thrive when the state is accountable, inclusive, and committed to fostering institutions that earn public trust. Only with these foundations can we cultivate the resilience needed to meet the fierce challenges of international competition.
In 2023, Malaysia introduced the MADANI Economy Framework, with the twin objectives of “raising the ceiling” through sustained economic growth and “raising the floor” by ensuring that prosperity is shared by all. Genuine inclusion, where prosperity is not an exclusive privilege but a collective right, is the surest form of societal resilience. This commitment to inclusion and sustainability lies at the heart of our development agenda, enabling us to withstand the relentless pressures of global competition and the sometimes-uncompromising demands of the world’s most powerful countries.
Our efforts are already bearing fruit. In 2024, Malaysia demonstrated strong economic performance, with GDP increasing by more than 5%, inflation remaining stable below 2%, and record-high trade figures. The international community has taken notice. Owing to our mature institutions and favorable investment climate, our manufacturing and services sectors attracted nearly $85 billion in foreign investment, from both East and West, in 2024.
But we cannot be complacent. In an increasingly volatile world, stability depends on adaptability. In this respect, Malaysia’s deepening commitment to the semiconductor industry reflects its forward-looking vision. With the launch of our National Semiconductor Strategy, Malaysia aims to strengthen its position in the global semiconductor supply chain. Already the world’s sixth-largest exporter of semiconductors, we are determined to move up the value chain, focusing on front-end activities. In the coming weeks, we will unveil our second chip-design park – less than a year after launching our first.
Furthermore, Malaysia is at the forefront of driving innovation within ASEAN, championing data centers and AI, and exploring the potential of cryptocurrencies and digital assets. But we are doing so with a deep commitment to sustainability. Malaysia has set a clear goal: to shift away from fossil fuels and generate 70% of its energy from renewables by 2050.
Strategic Flexibility in an Evolving Geopolitical Landscape
As a country that relies on international trade, Malaysia recognizes that the crosswinds of uncertainty and protectionism make it more important than ever to remain adaptive and ambitious. But we will not lose sight of our paramount goal: sustainable, inclusive, and equitable growth. We are also determined to solidify our position as a vital nexus of trade, investment, and technological innovation.
For these reasons, Malaysia made the strategic decision to join the BRICS group of major emerging economies. Contrary to some pundits’ claims, our decision was not about taking sides in the Sino-American rivalry. On the contrary, it reflects a clear-eyed understanding of the shifting geopolitical and geoeconomic landscape in which we operate.
Malaysia is not alone in this thinking. Our neighbors – Thailand, Vietnam, and Indonesia – have made similar decisions, not because they want to align with any particular bloc, but to expand their strategic options in these tumultuous times. Our pursuit of BRICS membership advances the goal of narrowing the development disparities between the Global South and Global North.
By engaging with rival power blocs and creating a diverse array of viable economic opportunities, middle powers like Malaysia can pave the way for lasting peace and prosperity for their citizens in the Global South. For us, that remains a critical goal and urgent priority.
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KUALA LUMPUR – The world we live in is changing fast. The international order, long defined by well-established rules and norms, faces unprecedented challenges.
Some of these norms are outdated, easily abused by the powerful, and in need of comprehensive reform. But others underpin the system of peace and prosperity on which many countries, including my own, depend. We must defend these norms, strengthen them where necessary, and ensure that they are applied fairly – without exception.
At the same time, we must recognize the complexities of the current international climate. The rise of post-truth politics has fostered a dangerous environment where misinformation is often embraced as holy writ, eroding trust within societies and between countries. As lies spread on social media, the global consequences are profound: democracy is weakened, divisions within and between countries deepen, and the fabric of multilateral cooperation unravels, making it even harder to tackle global challenges.
So, we must ask ourselves: Can democracy really function when so much of the policy discourse is driven by lies, and when – instead of reassuring voters – some leaders resort to stoking fear and division for political gain?
Today’s profound uncertainty – shaped by a shifting global order and the rise of “alternative facts” – is further exacerbated by escalating major-power rivalries. As the competition between the United States and China disrupts economies, technologies, and alliances around the world, smaller and midsize countries are often forced to pick sides or risk becoming pawns in a larger geopolitical game.
Nowhere is this tension more pronounced than in the Asia-Pacific, the world’s fastest-developing region. As the Sino-American rivalry intensifies, the region’s development goals are increasingly at risk, along with the peace and stability that have underpinned its economic progress.
As a new world order takes shape, we must also be mindful of the growing challenges facing countries across the Global South. Many of the mechanisms that once drove their development are weakening, while the very concept of development aid is coming under intense scrutiny from some of the world’s most powerful countries. Economic interdependence, once the cornerstone of global prosperity, has now become a source of tension.
If this trend continues, interconnectedness could ultimately become a vulnerability, even for countries that have long flourished under globalization. Trade wars, tariffs, and sanctions have been transformed from economic tools into weapons in a broader struggle for dominance, fostering an atmosphere of suspicion and distrust that is eroding the foundations of international cooperation. Countries that long viewed others as partners or competitors in a global marketplace now see only adversaries or proxies in a global contest for influence and dominance.
Recognizing the Shifting Balance of Power
For countries like Malaysia and the other members of the Association of Southeast Asian Nations (ASEAN), the erosion of multilateral cooperation and the growing sense of distrust represent a dangerous new normal. But there is nothing “normal” about this state of affairs. To navigate these uncertain times, we must remain steadfast in our purpose and act with conviction, crafting viable solutions that safeguard peace and create conditions for shared prosperity.
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At a time of escalating global turmoil, there is an urgent need for incisive, informed analysis of the issues and questions driving the news – just what PS has always provided.
Subscribe to Digital or Digital Plus now to secure your discount.
Subscribe Now
To this end, we must recognize that the world is no longer shaped solely by a few dominant powers. Emerging economies like South Korea, India, the United Arab Emirates, Saudi Arabia, Turkey, Brazil, and South Africa now play a pivotal role in shaping global norms and structures.
Consider ASEAN, which I now chair. Representing a market of nearly 690 million people, the bloc is the world’s fifth-largest economy and the third largest in Asia. As a powerful economic force, we have a responsibility to ensure that our voices are heard on the global stage – not merely as passive recipients of decisions made elsewhere but as active participants in shaping the international order.
The Gulf Cooperation Council offers a useful model. The GCC’s member states are undergoing an extraordinary socioeconomic transformation, marked by economic diversification, women’s empowerment, and advances in domestic technological capabilities, particularly in defense and other critical sectors. Much like the groundbreaking literacy campaigns of the early twentieth century, these shifts are revitalizing the region’s economies, driving both legal and cultural progress.
In ASEAN, we are not simply observing these changes – we are actively engaging with them. In May, Kuala Lumpur will host the joint ASEAN-GCC summit aimed at strengthening ties between these two dynamic regional groups. Meanwhile, ASEAN’s trade and economic partnerships with China and India continue to evolve and deepen, reflecting the bloc’s growing global influence.
Building Resilience with Smart Diplomacy
Despite the challenges facing the Global South, Malaysia remains steadfast in its commitment to protecting and advancing its national interests. We know not only what we want but also who we are and what we stand for. This clarity is essential, especially given our strategic position within global supply chains and along key maritime trade routes.
Malaysia remains committed to fostering shared growth, strengthening regional cooperation, and remaining open to trade, development, and commerce. We will continue to promote an inclusive and sustainable approach to peace and security, both within our immediate region and beyond. As this year’s chair of ASEAN, Malaysia will work to revitalize underused platforms such as ASEAN+3 (China, Japan, and South Korea) and the East Asia Summit – the only regional forum for strategic and security dialogue where competing powers can meet in a neutral and constructive environment.
Malaysia will also maintain its open and pragmatic relationships with both the US and China, which are based on mutual respect and shared interests. If the Sino-American rivalry evolves into a zero-sum game, there will be no winners. Thus, maintaining robust relationships with both powers is not merely a matter of economic pragmatism. It is a strategic imperative for safeguarding our national interests and ensuring prosperity in an increasingly volatile world. By cultivating a balanced and constructive relationship with China and the US, Malaysia aims to develop a diversified economic base, reducing overdependence on any single country or bloc, and cementing its position as a resilient, open, and competitive economy.
In the face of profound global uncertainty, midsize powers like Malaysia cannot afford simply to endure. Clarity of purpose must drive our actions in pursuit of greater resilience and adaptability. While the challenges ahead are formidable, Malaysia is determined to stand firm and resist pressures from major powers. We will continue to engage with all countries, big and small, upholding the principle of non-alignment as we chart our own course.
Malaysia will fortify its position as a center of competitive trade, finance, and technology amid global changes. While Daron Acemoglu, Simon Johnson, and James A. Robinson’s Nobel Prize-winning work on institutions and governance highlights systemic inequalities, we must avoid oversimplifying the complexities of global power dynamics. The challenges we face today come not just from historical colonizers but also from diverse global actors, including corporations, individuals, and non-state entities that often show little regard for laws and norms.
For developing countries, the key is to recognize the unremitting competition they face and to accept Acemoglu, Johnson, and Robinson’s central insight that countries thrive when the state is accountable, inclusive, and committed to fostering institutions that earn public trust. Only with these foundations can we cultivate the resilience needed to meet the fierce challenges of international competition.
In 2023, Malaysia introduced the MADANI Economy Framework, with the twin objectives of “raising the ceiling” through sustained economic growth and “raising the floor” by ensuring that prosperity is shared by all. Genuine inclusion, where prosperity is not an exclusive privilege but a collective right, is the surest form of societal resilience. This commitment to inclusion and sustainability lies at the heart of our development agenda, enabling us to withstand the relentless pressures of global competition and the sometimes-uncompromising demands of the world’s most powerful countries.
Our efforts are already bearing fruit. In 2024, Malaysia demonstrated strong economic performance, with GDP increasing by more than 5%, inflation remaining stable below 2%, and record-high trade figures. The international community has taken notice. Owing to our mature institutions and favorable investment climate, our manufacturing and services sectors attracted nearly $85 billion in foreign investment, from both East and West, in 2024.
But we cannot be complacent. In an increasingly volatile world, stability depends on adaptability. In this respect, Malaysia’s deepening commitment to the semiconductor industry reflects its forward-looking vision. With the launch of our National Semiconductor Strategy, Malaysia aims to strengthen its position in the global semiconductor supply chain. Already the world’s sixth-largest exporter of semiconductors, we are determined to move up the value chain, focusing on front-end activities. In the coming weeks, we will unveil our second chip-design park – less than a year after launching our first.
Furthermore, Malaysia is at the forefront of driving innovation within ASEAN, championing data centers and AI, and exploring the potential of cryptocurrencies and digital assets. But we are doing so with a deep commitment to sustainability. Malaysia has set a clear goal: to shift away from fossil fuels and generate 70% of its energy from renewables by 2050.
Strategic Flexibility in an Evolving Geopolitical Landscape
As a country that relies on international trade, Malaysia recognizes that the crosswinds of uncertainty and protectionism make it more important than ever to remain adaptive and ambitious. But we will not lose sight of our paramount goal: sustainable, inclusive, and equitable growth. We are also determined to solidify our position as a vital nexus of trade, investment, and technological innovation.
For these reasons, Malaysia made the strategic decision to join the BRICS group of major emerging economies. Contrary to some pundits’ claims, our decision was not about taking sides in the Sino-American rivalry. On the contrary, it reflects a clear-eyed understanding of the shifting geopolitical and geoeconomic landscape in which we operate.
Malaysia is not alone in this thinking. Our neighbors – Thailand, Vietnam, and Indonesia – have made similar decisions, not because they want to align with any particular bloc, but to expand their strategic options in these tumultuous times. Our pursuit of BRICS membership advances the goal of narrowing the development disparities between the Global South and Global North.
By engaging with rival power blocs and creating a diverse array of viable economic opportunities, middle powers like Malaysia can pave the way for lasting peace and prosperity for their citizens in the Global South. For us, that remains a critical goal and urgent priority.