Asean faces ‘moment of truth’; it must step up or risk losing relevance, says PM Wong

KUALA LUMPUR – Asean must step up and define a clear, purposeful role for itself in a changed world, or risk losing relevance, said Prime Minister Lawrence Wong on May 27.

He noted that the need for the regional grouping to accelerate its integration has become more urgent than ever, given the increasingly uncertain and turbulent global environment.

“In many ways, this is a moment of truth for Asean. We have to either step up and carve out a clear, purposeful role for ourselves in this changed world, or Asean will lose its relevance,” said PM Wong in an interview with Singapore journalists after the 46th Asean Summit.

PM Wong said he was glad that Asean leaders had held candid discussions on the new realities at the summit, and recognised the urgency of pushing for closer integration.

There was a renewed sense of urgency among leaders to move forward on this front, he added.

Significant announcements at the summit held in Kuala Lumpur included an agreement between government-linked firms from Malaysia, Singapore and Vietnam to jointly explore the export of renewable energy.

Under the pact, the three countries will collaborate on developing a new electricity link.

Ahead of the summit, Asean economic ministers also concluded negotiations to

upgrade the Asean Trade in Goods Agreement

at a meeting of the Asean Economic Community Council.

PM Wong said the concrete steps that Asean can take include the full implementation of existing agreements, making Asean completely tariff-free and reducing non-tariff barriers to make trade more seamless.

He had earlier pointed out at the summit that his officials found 24 economic agreements, some from as far back as 2015, which had been agreed to but still not implemented.

The grouping should also improve connectivity and make itself more attractive as an investment destination, said PM Wong.

“These are all traditional areas associated with trade and investments that we can work on,” he added. “And then there are also new areas to integrate, especially in terms of digital connectivity and power connectivity.”

He said that there is a “full agenda ahead” for Asean, and the leaders had very good discussions to ensure progress on these areas.

Asked about Asean’s approach to working with the United States, PM Wong said that while the US may prefer to deal with countries individually, the group coming together to engage America does not contradict these bilateral engagements.

This collective approach is complementary and reinforcing, he said, noting that Asean’s diversity means member states have different levels of economic development and trade balances with the US.

Some issues are also unique to individual countries, he noted.

“So Asean member states also want that flexibility to engage America individually,” he said. “But there is also a benefit for us to come together as a group to engage America as Asean, and the two are not mutually exclusive.”

He added that Asean’s objective in both bilateral and collective engagements with the US is to reduce barriers and strengthen trade and investment flows.

Turning to ongoing trade tensions between the US and China, PM Wong said he had a good conversation with Chinese Premier Li Qiang at the summit.

Premier Li had updated him on the discussions between the two countries, and PM Wong welcomed news of their deal to reduce tariffs.

On May 12, the US and China reached a deal to roll back some of the steep tariffs imposed by America.

But even with the deal, tariffs remain well above pre-Liberation Day levels, PM Wong noted.

“There will still be impact on both sides. Because of America importing goods from China, there will be an impact. It could impact their domestic inflation. It could have an impact on overall growth as well,” he said.

High tariffs will continue to affect growth prospects in the two economies, which are key engines of the global economy. PM Wong warned that the effects will spill over to the rest of the world, including Asean and Singapore.

“For Singapore, we will just have to redouble our efforts to work with like-minded partners to strengthen our trade and investment linkages with countries that are prepared to do so with us, and continue to find ways to steer our economy through these challenging times,” he said.

Asked about the progress of Timor-Leste’s accession to Asean, which was agreed in principle in 2022, PM Wong said that while the country has made good progress on the road map set out for its membership, some issues remain to be resolved, including certain economic agreements.

Asean leaders at the summit agreed to try and expedite the outstanding issues and provide full support to Timor-Leste, with the goal of welcoming the country as a full Asean member by the October summit in 2025, he added.

“Given the progress that has been made so far, the leaders agreed at this meeting that we will try and expedite the outstanding issues, provide full support to Timor-Leste, and we look forward to welcoming Timor-Leste as a full member of Asean by the end of this year,” he said.

PM Wong added that Singapore will do its part to support this process.

The Republic has conducted capacity-building courses for Timorese officials, and more than 800 have gone through them so far.

On Asean’s ties with the Gulf Cooperation Council (GCC), he said the grouping took the opportunity to deepen relations with what he described as an important strategic partner.

Singapore’s existing free trade agreement with the GCC could serve as a model for an eventual Asean-GCC FTA, creating more opportunities for trade and investment, PM Wong said.

He noted that the first-ever summit involving Asean, the GCC and China had taken place on May 27, highlighting South-east Asia’s efforts to expand its network of partnerships.

PM Wong acknowledged that discussions are still at an early stage, but said these dialogues are essential for broadening economic links.

The ongoing conflict in Gaza was also raised during discussions with the GCC.

PM Wong said all parties were saddened by the humanitarian disaster in Gaza, which is the result of Israel going too far in its actions.

Asean and GCC leaders called for a cessation of hostilities and the return of hostages, he said, as well as compliance with international law and humanitarian law to ensure aid can be delivered to those in need.

But he cautioned that a ceasefire alone would not be enough, as violence can recur after a temporary pause. A negotiated two-state solution is the only durable solution, he said.

“The international community is doing its best, and Singapore will do our part to facilitate these efforts as well.”

PM Wong also commended Malaysia’s leadership as Asean chair, describing it as “effective and energetic”.

Malaysia had played an important role in helping Asean navigate a range of global challenges, from US tariff actions to the humanitarian crisis in Myanmar and the conflict in Gaza, he said.

“These are all global issues that matter to us as well in Asean, and Malaysia has taken the lead to help Asean navigate these issues, and also taken the lead to help Asean forge stronger partners.”

PM Wong added that Singapore is already preparing to host its own Asean summit in the future, with officials taking notes and getting ready for that responsibility. The Republic is scheduled to take over the rotating chairmanship of Asean in 2027.