Asean must strengthen integration to guard against geopolitical risks: Foreign Minister Balakrishnan

LANGKAWI - Asean needs to double down on regional integration to enhance the grouping’s competitiveness, especially at a time when changes to geopolitical structures and economic policy are taking place worldwide, said Singapore Foreign Minister Vivian Balakrishnan.

“(Asean) cannot control the agendas of the superpowers, or indeed the larger powers, but we can, and we should focus on integrating ourselves, strengthening our economies, and our connectivity,” he told Singapore media in a wrap-up interview following

the Asean foreign ministers’ retreat in Langkawi, Malaysia,

on Jan 19.

Acknowledging the global shift towards more protectionist and nationalistic policies, including the threat of tariffs and trade-restrictive measures by incoming US president Donald Trump, who will be inaugurated on Jan 20, Dr Balakrishnan said Asean will have to adapt accordingly.

“We look forward to his inauguration and to the policies, and we will have to make the necessary adjustments even as he makes changes to his policies,” he said.

But to bolster against external pressures, Asean will have to “double down” on regional integration as well as connectivity, and make itself as competitive as possible as a trading partner, an investment destination, or even as an investment source, he said.

“(These can be achieved) by having long-term policies which are consistent, which are reliable, which are trustworthy, and to keep open engagements in an inclusive way with all the major powers – America, China, Europe, India and Japan,” said Dr Balakrishnan.

The closed-door gathering among foreign ministers and representatives from the political and economic grouping’s 10-member states took place in Langkawi, and is the first high-level Asean meeting to be hosted by Malaysia, the 2025 chair.

Already, Asean has strengthened its economies and connectivity through several existing trade agreements, both within the region and with its dialogue partners.

During his interview with Singapore media, Dr Balakrishnan said the ministerial meeting discussed upgrading the existing Asean Trade in Goods Agreement as well as its free trade agreements with China, South Korea and India.

Multilateral agreements, including the

Asean Digital Economy

Framework Agreement,

are also on the table to foster greater links within the members, said Dr Balakrishnan.

The agreement, launched in September 2023, serves as a road map for Asean’s transformation into a digital economy and society, and will facilitate trade, data flows and online payments within the region.

Negotiations for the agreement are expected to conclude in 2025.

Dr Balakrishnan also highlighted the proposed Asean Power Grid as a “concrete” project that will promote regional trade, investments and connectivity. The initiative will enhance cross-border energy trade and promote the region’s green energy transition.

“This will enable a more stable and a more cost-effective way of making that transition into both energy efficiency as well as green and sustainable energy, but it requires a multilateral, forward-looking and long-term vision to achieve,” he said.

The gathering in Langkawi took place against the backdrop of heightened geopolitical tensions, including conflicts in the Middle East and Ukraine, and the broader US-China rivalry.

The increasing tensions in the disputed South China Sea as well as the ongoing conflict and humanitarian crisis in Myanmar were also raised during the Asean ministerial discussion.

Myanmar, which has been engulfed in civil war since the coup of February 2021, was represented at the retreat by Mr Aung Kyaw Moe, permanent secretary of the junta-controlled Foreign Ministry.

Myanmar’s ruling generals remain barred from formal Asean meetings over their failure to comply with an Asean peace plan. Among other things, the plan, also known as the Five-Point Consensus, calls for an immediate end of violence, dialogue among all stakeholders, and to allow an Asean special envoy to visit Myanmar to meet all parties.

At a press conference at the end of the retreat on Jan 19, Malaysian Foreign Minister Mohamad Hasan said that former Malaysia diplomat Othman Hashim has been appointed Asean’s special envoy on the crisis in Myanmar.

The special envoy assumes a one-year rotating term, with a new appointment made each time the Asean chairmanship changes hands.

During the meeting, Asean leaders continued to reaffirm the Five-Point Consensus and called on all parties in Myanmar to cease hostilities immediately.

However, the situation in Myanmar is nowhere near resolution, Dr Balakrishnan told Singapore media.

“Myanmar remains an integral member of Asean, but it needs to sort itself out. It needs national reconciliation, (and) to the extent that Asean can act as a convener for all the different stakeholders in Myanmar to come together, we will seek national reconciliation in a longstanding, fair and forward-looking way.”

On Asean’s convening power, Dr Balakrishnan said leaders discussed the grouping’s ability to bring together key economic partners through its platforms such as the East Asia Summit.

With Asean at its core, the East Asia Summit brings together eight major partners – Australia, China, India, Japan, New Zealand, South Korea, Russia and the US – for dialogue.

“Virtually everyone who has a stake and is relevant to Asean is represented, and we look forward to this meeting that will be chaired by Malaysia as chairman of Asean, to be able to generate some form of consensus and alignment among Asean and all our major economic partners,” he said.

Meanwhile, there has been a growing interest in other international groupings, including Brics, an alliance that includes Brazil, Russia, India and China.

In recent months, Asean members Malaysia, Vietnam and Thailand became Brics’ partner countries, while Indonesia was the first South-east Asian country to be given full membership.

Pointing to other groupings, including Aukus, a security alliance between Australia, the United Kingdom and the US, and the Quad, a diplomatic partnership between Australia, India, Japan and the US, Dr Balakrishnan said there has been a proliferation of new or expanding networks.

“Basically, this is a period of uncertainty, and countries are trying to expand their networks, build new opportunities economically, make more friends and hedge, or keep their options open.”

He said that Singapore, which fundamentally has good relationships with all, assesses and monitors the strategic and economic coherence of such groupings.

“My bottom line is, we keep our options open. We are not against the emergence of these groupings and, where possible, if we can work together with them, we will happily do so.

“As for membership, we will have to look far more carefully before we sign on to anything,” he said.

While in Langkawi, Dr Balakrishnan also met Vietnamese Deputy Prime Minister and Foreign Minister Bui Thanh Son. They spoke about expanding the scope of cooperation in emerging sectors such as renewable energy, carbon credits and the digital economy.

The countries will upgrade the bilateral ties to a comprehensive strategic partnership in 2025, said Dr Balakrishnan in a social media post on Jan 19.

There will also be an exchange of visits between Singapore Prime Minister Lawrence Wong and the General Secretary of the Communist Party of Vietnam To Lam in 2025.

Dr Balakrishnan also met his Malaysian counterpart, Mr Mohamad, and they discussed follow-up priorities from the 11th Malaysia-Singapore Leaders’ Retreat held on Jan 7.

The Johor-Singapore Special Economic Zone agreement was finalised at the earlier bilateral retreat in Putrajaya, during which the prime ministers of both nations also touched on collaboration in areas such as education and energy, and discussed complex issues regarding airspace, water and the delimitation of maritime boundaries.