ASEAN Malaysia 2025: Inclusivity and Sustainability
- hub asean
- May 21
- 5 min read
Updated: May 22
ASEAN at a Crossroads: Leveraging Cultural Diplomacy Under Malaysia's 2025 Leadership
The Association of Southeast Asian Nations (ASEAN) faces a critical juncture as Malaysia assumes the chairmanship in 2025. Established in 1967, ASEAN has evolved from a security-focused organization to a comprehensive regional body encompassing political-security, economic, and socio-cultural pillars. Malaysia, as one of the founding members, brings significant experience to the leadership role at a time of mounting regional and global challenges.
Malaysia's chairmanship theme, "Inclusivity and Sustainability," reflects both regional aspirations and practical necessities as the bloc navigates intensifying great power competition, internal divisions, and emerging non-traditional security challenges. This report examines the key challenges facing ASEAN under Malaysia's chairmanship and analyzes potential pathways for addressing them.
The chairmanship centers around three main priority areas:
Strengthening ASEAN Centrality by promoting strategic trust among nations through sustained dialogues, diplomacy, and goodwill. Malaysia plans to work with member states to forge and expand economic partnerships beyond ASEAN borders.
Pushing for greater commitment to enhancing ASEAN intra-trade and investment. Malaysia aims to ensure ASEAN can leverage advances in science, technology, and innovation, and harness the benefits of digital transformation and new technologies.
Ensuring that inclusivity and sustainability take center stage in regional community-building efforts, including greater efforts at narrowing development gaps and inequalities, improving living standards, while mitigating the impacts of climate change.
Significant Challenges Facing the Region
1. Geopolitical Tensions and Great Power Dynamics
ASEAN currently operates in an environment characterized by heightened strategic competition between major powers, particularly the United States and China. Malaysia's chairmanship coincides with the second Trump administration in the United States, introducing additional variables to regional dynamics. The intensification of this rivalry places significant pressure on ASEAN's unity and its principle of centrality in regional affairs.
This competition manifests across multiple domains:
Economic influence: Competing trade and investment frameworks
Security architecture: Overlapping regional security mechanisms
Technological ecosystems: Digital infrastructure and standards competition
Diplomatic leverage: Pressure on ASEAN's consensus-based approach
Malaysia faces the challenging task of maintaining ASEAN's strategic autonomy while engaging constructively with both powers. Prime Minister Anwar Ibrahim's approach, characterized by pragmatic engagement and principled positions, will be tested as Malaysia navigates these complex relationships.
2. Regional Security Issues
Myanmar Crisis: Four years after the February 2021 military coup, Myanmar remains in a state of protracted civil conflict with significant humanitarian implications. ASEAN's Five-Point Consensus has yielded limited results, raising questions about the bloc's effectiveness in crisis management. Malaysia has advocated for a more assertive approach toward Myanmar's military junta, suggesting willingness to "carve Myanmar out for now" to prevent the crisis from impeding broader regional cooperation.
South China Sea Disputes: Territorial disputes continue to generate tensions among claimant states and with China. As a claimant state and the current country coordinator for ASEAN-China dialogue relations, Malaysia occupies a sensitive position. Accelerating negotiations on the Code of Conduct remains a priority, though progress has been slow. Malaysia's ability to balance its bilateral relationship with China against wider ASEAN interests will significantly influence regional maritime security.
3. Economic Integration and Resilience
Under its chairmanship, Malaysia plans for over 300 critical meetings focusing on various issues including artificial intelligence, renewable energy, and healthcare. It also plans to host the inaugural ASEAN-Gulf Cooperation Council Plus China Summit and high-level dialogues signaling the group's intent to foster meaningful partnerships beyond traditional frameworks.
Implications for Art, Culture, and the Creative Economy
Cultural Diplomacy Opportunities
Prime Minister Anwar Ibrahim has remarked that this era is not merely a continuation of previous efforts but a critical juncture for Southeast Asia's intellectual, cultural, and socio-political revival. He also noted that as Southeast Asia stands on the brink of transformation, it is necessary that ASEAN takes a transition from passive participation in global affairs to a proactive force shaping governance, economic models, and cultural narratives.
This presents significant opportunities for cultural diplomacy initiatives that could:
Showcase ASEAN's diverse cultural heritage as a unifying force
Use arts and culture to promote shared regional identity and values
Leverage creative economy initiatives to address challenges of inclusivity and sustainability
Digital Transformation and Creative Industries
Malaysia's 2025 ASEAN chairmanship will spotlight the country's regional leadership role despite recent challenges. Malaysia has historically shaped key ASEAN efforts to manage shifting major power dynamics and advance community-building among diverse states.
The focus on digital transformation offers opportunities to:
Develop cross-border creative economy initiatives that leverage digital platforms
Enhance ASEAN's cultural and creative assets through innovative technologies
Create digital platforms to showcase and preserve Southeast Asian cultural heritage
Guidelines for Cultural and Creative Economy Stakeholders
For government officials and cultural stakeholders working on ASEAN initiatives, consider the following guidelines:
Align with the ASEAN Vision 2045: Malaysia's challenge is to link its national interests and objectives to evolving regional priorities. Malaysia's chair year is an opportunity to take steps to shore up the region's institutional foundations. High Stakes for Malaysia’s 2025 ASEAN Chairmanship - RSIS Cultural and creative economy initiatives should align with this long-term vision.
Emphasize Inclusivity and Sustainability: The emphasis on "inclusivity" is crucial at this juncture, given the current divisions that risk alienating member states and undermining confidence in ASEAN. The principles of respect, trust, and compassion are sorely needed to rebuild a cohesive and unified region. Malaysia’s Turn in the ASEAN Hotseat Cultural programs should model these principles.
Leverage Malaysia's MADANI Approach: Malaysia has unveiled the theme of its chairmanship as "Inclusivity and Sustainability." It reflects Prime Minister Anwar Ibrahim's philosophy of nationhood, Madani, which calls for a just and inclusive society. In the domestic context, it envisions the bold intent to elevate Malaysia's standing as a prosperous nation and provide a voice of moral clarity. Malaysia’s Turn in the ASEAN Hotseat Cultural initiatives can embody these values.
Address Regional Development Gaps: This will entail greater efforts at narrowing the development gap and inequalities, improving living standards, while mitigating the impacts of climate change. About – ASEAN Malaysia 2025 Creative economy initiatives should consider how they can contribute to reducing these gaps.
Build Cross-Sectoral Connections: Create programs that connect cultural initiatives with other priority areas such as digital transformation, sustainability, and economic integration.
INTER-REGIONAL ENGAGEMENT
Expanding Partnerships
Malaysia has signaled intentions to deepen ASEAN's engagement with other regional organizations and frameworks. Key initiatives include:
The inaugural ASEAN-Gulf Cooperation Council Plus China Summit
Enhanced ASEAN-EU cooperation on sustainability and digital transformation
Strengthened connections with the Indian Ocean Rim Association (IORA) and Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC)
Strategic engagement with BRICS+ as part of a Global South mobilization strategy
These partnerships reflect Malaysia's vision of ASEAN as a central node in a network of regional cooperation mechanisms, enhancing its strategic maneuverability in a multipolar world.
Global South Advocacy
Malaysia's chairmanship emphasizes the importance of strengthening ASEAN's position within the Global South. This orientation does not exclude engagement with the Global North but seeks to ensure ASEAN's interests are adequately represented in global governance structures.
Particular attention is given to ensuring that international norms and frameworks reflect diverse perspectives, including those of developing economies in Southeast Asia. This approach aligns with broader efforts to reform global governance systems to be more inclusive and equitable.
Malaysia's chairmanship of ASEAN in 2025 comes at a critical juncture for the region. The bloc faces significant challenges, from geopolitical pressures to internal cohesion concerns, yet also has opportunities to strengthen its centrality in regional affairs and advance shared prosperity.
While expectations should be tempered by the realities of a one-year chairmanship, Malaysia has positioned itself to make substantial contributions to ASEAN's development. The focus on inclusivity and sustainability provides a framework for addressing both immediate concerns and long-term aspirations. The success of Malaysia's chairmanship will ultimately be measured not only by immediate outcomes but also by how effectively it prepares ASEAN for subsequent leadership under the Philippines and Singapore. By establishing positive momentum on key priorities, Malaysia can reinforce ASEAN's foundations during a period of significant regional and global transformation.
