The world 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Some of these norms are outdated, easily abused by the powerful and in need of comprehensive reform. Others underpin the system of peace and prosperity on which many countries 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 international climate. The rise of post-truth politics has fostered a dangerous environment in which 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.
Illustration: Mountain People
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 competition between the US 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 become a source of tension.
If the 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.
For countries such as Malaysia and other ASEAN members, the erosion of multilateral cooperation and the growing sense of distrust represent a dangerous new normal. However, 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.
To this end, we must recognize that the world is no longer shaped solely by a few dominant powers. Emerging economies such as South Korea, India, the United Arab Emirates, Saudi Arabia, Turkey, Brazil and South Africa 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 (GCC) offers a useful model. Its 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 20th century, these shifts are revitalizing the region’s economies, driving legal and cultural progress.
In ASEAN, we are not simply observing these changes — we are engaging with them. In May, Kuala Lumpur is to 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.
Despite the challenges facing the global south, Malaysia remains steadfast in its commitment to protecting and advancing its national interests. We not only know what we want, but also who we are and what we stand for. That 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. It will continue to promote an inclusive and sustainable approach to peace and security, within our immediate region and beyond.
As this year’s chair, 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 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 would 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 Malaysia’s 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 such as Malaysia cannot afford simply to endure. Clarity of purpose must drive its 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. It will continue to engage with all countries, big and small, upholding the principle of non-alignment as it charts its 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.
That commitment to inclusion and sustainability lies at the heart of Malaysia’s development agenda, enabling it to withstand the relentless pressures of global competition and the sometimes-uncompromising demands of the world’s most powerful countries.
Its efforts are already bearing fruit. Last year, Malaysia demonstrated strong economic performance, with GDP increasing by more than 5 percent, inflation remaining stable below 2 percent and record-high trade figures.
The international community has taken notice. Owing to Malaysia’s mature institutions and favorable investment climate, its manufacturing and services sectors attracted nearly US$85 billion in foreign investment, from both the East and West, last year.
However, it cannot be complacent. In an increasingly volatile world, stability depends on adaptability. In that respect, Malaysia’s deepening commitment to the semiconductor industry reflects its forward-looking vision. With the launch of its National Semiconductor Strategy, Malaysia aims to strengthen its position in the global semiconductor supply chain.
Already the world’s sixth-largest exporter of semiconductors, it is determined to move up the value chain, focusing on front-end activities. In the coming weeks, it will unveil its second chip-design park — less than a year after launching its first.
Furthermore, Malaysia is at the forefront of driving innovation within ASEAN, championing data centers and artificial intelligence, and exploring the potential of cryptocurrencies and digital assets. However, it is doing so with a deep commitment to sustainability. Malaysia has set a clear goal: to shift away from fossil fuels and generate 70 percent of its energy from renewables by 2050.
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. However, it will not lose sight of its paramount goal: sustainable, inclusive and equitable growth. The country is also determined to solidify its 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, the 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. Its 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. Malaysia’s 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 such as 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.
Anwar Ibrahim is the prime minister and minister of finance of Malaysia.
Copyright: Project Syndicate
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