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Western aid cuts risk fracturing Asean unity

As the wealth gaps between its members widen, Asean risks becoming a two-speed bloc, making consensus on core economic issues harder to achieve.

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As the gap between wealthier and poorer members widens, Asean risks becoming a two-speed bloc, says the writer.

As Western governments focus inwards, they risk forfeiting decades of influence in one of the world’s most dynamic regions.

PHOTO: LIANHE ZAOBAO

Alexandre Dayant and Grace Stanhope

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A casual scan of the gleaming skylines of Bangkok, Jakarta or Ho Chi Minh City, and it’s easy to believe that South-east Asia is thriving. But a mounting challenge lurks beneath the surface bustle of these cities. As Western powers pull back from global development, billions in foreign aid are vanishing, placing the region’s poorest countries, and Asean’s unity, at risk.

The scale of the aid pullback is striking. Earlier in 2025, the

Trump administration suspended nearly all American overseas assistance

– amounting to around US$60 billion (S$77 billion). The UK soon followed, cutting US$7.6 billion from its annual aid budget.

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