Anwar Ibrahim boosts Malaysia’s global standing by hosting the 47th ASEAN Summit 2025, marking historic ASEAN expansion, key trade deals, and regional peace initiatives.
KUALA LUMPUR: Prime Minister Datuk Seri Anwar Ibrahim’s highly-successful hosting of the 47th ASEAN Summit in 2025 marks a triumphant diplomatic achievement for Malaysia in validating its leadership in a rapidly evolving and sometimes tumultuous regional and global landscape.
Putrajaya’s role was further substantiated when ASEAN’s membership was expanded to 11 countries for the first time in 26 years with the inclusion of Timor-Leste, as well as by playing host to over 30 leaders and high-ranking officials and brokering an expanded ceasefire between neighbours Thailand and Cambodia.
The summit was by far the largest gathering of leaders in the region this year and clearly signalled Malaysia’s ability to convene diverse powers.
It brought together nations which were entangled in tense situations, especially with the arbitrary imposition of tariffs by the United States on almost all countries here in Kuala Lumpur.
Despite this, the summit culminated in countries committing to the common good and shared peace and prosperity.
Clearly, it reinforced Malaysia’s expert diplomacy in re-aligning and strategically playing a valuable peacemaker role within what is surely a new disruptive order and ensuring that both the nation and ASEAN do not lose out.
The historic presence of US President Donald Trump in KL for the first time reaffirmed Washington’s commitment to strengthen its security and economic cooperation with ASEAN and other Asian nations, underscoring its role as one of the grouping’s key dialogue partners despite the tariffs.
Under Malaysia’s stewardship, the summit went beyond political posturing to deliver meaningful economic discourse, anchoring the region’s position as a resilient and attractive investment hub.
Anwar himself also went beyond ASEAN’s traditional boundaries and operationalised ASEAN’s theme of “Inclusivity and Sustainability” by inviting leaders from outside ASEAN and its dialogue partner countries.
They included the likes of Brazil’s President Luiz Inácio Lula da Silva, who helms the BRICS (Brazil, Russia, India, China, South Africa) grouping, and South Africa’s President Matamela Cyril Ramaphosa, who will host the Group of 20 (G20) Summit in Johannesburg in November this year.
Other notable leaders who attended the 47th ASEAN Summit were China’s Premier Li Qiang, European Council President Antonio Costa, Japan’s new Prime Minister Sanae Takaichi, Canadian Prime Minister Mark Carney, Timor-Leste’s Prime Minister Kay Rala Xanana Gusmão and President José Ramos-Horta, as well as Indian Prime Minister Narendra Modi, who attended virtually.
At a time when global trade and supply chains are being recalibrated, Malaysia’s deft diplomacy and pragmatic leadership projected ASEAN as a credible partner for both established and emerging economies.
Among initiatives to this end included the world’s first region-wide, binding agreement focused exclusively on digital economy governance – the ASEAN Digital Economy Framework Agreement (DEFA), set to be signed in 2026.
DEFA, which would harmonise digital trade rules and unlock the potential of ASEAN’s digital economy and empower micro, small and medium enterprises (MSMEs), is a strategic blueprint enabling the region’s 680 million population to access a digital future that is open, secure and inclusive.
While tailored to ASEAN’s unique context, DEFA maintains global relevance by balancing ambition with flexibility, ensuring that all member states, regardless of their digital development stages, can share in its benefits.
According to the World Economic Forum (WEF), unlike digital and e-commerce provisions embedded in broader trade agreements such as the recent EU-Singapore Digital Trade Agreement, DEFA stands out as a dedicated and comprehensive framework to address the complexities and opportunities of the digital economy.
Meanwhile, the ASEAN Joint Foreign and Economic Ministers’ Meeting that preceded the 47th ASEAN Summit was undoubtedly a watershed moment for being a timely platform to address escalating geopolitical and economic challenges.
That these two ministerial structures need to be intertwined is vital to foster achievable outcomes and build regional stability and economic security.
It was also a significant step in addressing interconnected geopolitical and economic challenges and a notable departure as an adaptive response to a more unpredictable global landscape, as every economic policy carries political weight, just as every political decision has significant economic consequences.
By fostering dialogue on critical and cross areas, Malaysia not only demonstrated regional coordination but also highlighted its own readiness to lead in areas that define the next phase of global economic competition and geopolitical changes.
Timor-Leste’s accession as ASEAN’s 11th member was a much-touted highlight of the summit in KL. It is a historic milestone for Dili, signifying the expansion of ASEAN’s reach to include every sovereign state in Southeast Asia.
It was a long journey for Timor-Leste which officially applied for ASEAN membership way back in 2011.
The last country to join ASEAN before Timor-Leste was Cambodia, which became the 10th member on April 30, 1999.
The KL summit was also marked by a string of trade deals, including the one Malaysia sealed with the US, upgrade of agreements, discussions on tariff-related matters, and initiatives to further deepen regional integration.
Besides DEFA, other flagship initiatives are the advancement of the ASEAN Power Grid as well as the upgrade of trade deals with China (ACFTA 3.0), India (AITIGA) and among ASEAN states (ATIGA).
Additionally, the launch of the ASEAN Micro, Small and Medium Enterprises (MSME) Green Transition Centre underscores Malaysia’s firm commitment that no enterprise, regardless of size, should be left behind.
When MSMEs thrive, ASEAN prospers.
A notable highlight was the meeting between economic superpowers China and the United States, held amid heightened bilateral trade tensions as well as a Malaysia-brokered peace deal between Thailand and Cambodia, dubbed “KL Peace Accord,” following border clashes earlier this year.
The agreement between Bangkok and Phnom Penh was signed in the presence of the Malaysian Prime Minister and Trump.
However, no ASEAN summit is complete without deliberating on unresolved issues related to Myanmar and territorial disputes in the South China Sea.
On Myanmar, ASEAN reiterated its call on the administration to adhere to the Five-Point Consensus, namely an immediate end to violence, dialogue among all parties, appointment of a special envoy, humanitarian assistance by ASEAN, and the envoy’s visit to Myanmar to meet all stakeholders.
On the topic of South China Sea, Malaysia as the Chair has been persistent that the matter should not be dealt with defensiveness, but with a commitment to dialogue.
Anwar had on several occasions acknowledged that Malaysia has outstanding maritime border issues not only with China, but also with Thailand, Indonesia, Singapore, Brunei, and the Philippines, a reflection of the country’s unique geographical position.
Despite these difficulties, Anwar said that line of communication was always open to prevent any escalation of the disputes.
Throughout the year, the Prime Minister consistently and carefully addressed these concerns, reiterating Malaysia’s proactive and cooperative approach in pursuing peaceful and mutually beneficial resolutions.
This is the fifth time Malaysia has assumed the ASEAN Chair since the bloc’s inception in 1967, with the previous chairmanship in 2015, 2005, 1997 and 1977.
The annual event consists of the ASEAN Summit, the ASEAN Plus One Summits between ASEAN and seven dialogue partners, namely, Australia, China, India, Japan, South Korea, Russia, the US, as well as the ASEAN Plus Three Summit, East Asia Summit, ASEAN-United Nations Summit, and ASEAN-New Zealand Commemorative Summit to mark 50 years of dialogue relations.
The summits are also the culmination of Malaysia’s ASEAN Chairmanship 2025, before the Philippines assumes the next ASEAN chairmanship beginning Jan 1, 2026.
