The 46th ASEAN Summit was held in Kuala Lumpur from May 26 to 27, 2025, bringing regional leaders together to address economic, security, and diplomatic challenges. Image Source: iStock

Southeast Asian leaders convened for the 46th ASEAN Summit in Kuala Lumpur under the theme “One Vision, One Future: Advancing Regional Stability in a Fragmented World.” The summit sought to reaffirm ASEAN unity while navigating the pressures of global protectionism, regional security threats, and intensifying great power competition. Hosted by Malaysia, the summit gathered heads of state, ministers, and senior officials across ASEAN’s ten member states, as well as observer delegations from Timor-Leste, Papua New Guinea, China, the United States, and the Gulf Cooperation Council (GCC).

Key themes emerging from the summit included the bloc’s deepening economic coordination amid external pressure, its struggle to balance maritime assertiveness with diplomatic hedging, and the push to position ASEAN as a credible, forward-looking actor in a shifting global order.

U.S. Tariffs and Economic Development

The summit’s most urgent economic agenda centered on the recent imposition of sweeping tariffs by the United States on key ASEAN exports. U.S. President Donald Trump's administration levied tariff hikes ranging from 10% to 49% on electronics, rubber, palm oil, and garments, citing national security concerns and the need to counter Chinese supply chain entanglements.

Malaysian Prime Minister Anwar Ibrahim, chairing the summit, urged ASEAN to adopt a unified position, proposing a collective negotiation strategy with Washington. A task force was established to evaluate the economic impact and formulate a diplomatic counter-response. Leaders agreed that any bilateral trade agreements with the U.S. must not disadvantage other ASEAN members—an uncommon expression of regional economic solidarity. While some states voiced concern about potential retaliation, others saw the tariffs as a wake-up call for ASEAN to strengthen internal trade and investment resilience.

In parallel with this response, ASEAN unveiled a new five-year strategic blueprint aimed at deepening regional economic integration. The plan prioritizes harmonized trade standards, enhanced financial connectivity, and the freer movement of skilled labor and services. It also integrates long-term goals for digital transformation and climate adaptation, aligning with ASEAN’s ambition to become the world’s fourth-largest economy by 2045.

As an extension of its economic strategy, ASEAN hosted—for the first time—a trilateral dialogue with the Gulf Cooperation Council (GCC) and China to bolster financial resilience and diversify investment partnerships. As U.S. tariffs strain traditional trade routes, the bloc turned to Beijing and the GCC for economic hedging.

Chinese Premier Li Qiang used the forum to advocate for the removal of trade barriers and to reaffirm China’s support for ASEAN infrastructure and digital development under the Belt and Road Initiative. Meanwhile, the GCC pledged sovereign wealth fund investments into Southeast Asian logistics, renewable energy, and fintech. While these engagements expand ASEAN’s role in global economic diplomacy, they also reignite concerns over strategic overdependence on external powers.

South China Sea: Philippines Urges Legally Binding Code

Territorial tensions in the South China Sea once again surfaced, with Philippine President Ferdinand Marcos Jr. calling for the finalization of a long-delayed Code of Conduct (CoC) with China. Marcos emphasized that only a legally binding framework could prevent miscalculations and protect the sovereignty of ASEAN claimant states.

The Philippines highlighted repeated Chinese incursions into its exclusive economic zone, including aggressive maneuvers by Chinese coast guard vessels.

Backed by Vietnam and Malaysia, the Philippines highlighted repeated Chinese incursions into its exclusive economic zone, including aggressive maneuvers by Chinese coast guard vessels. Though China sent an observer delegation, its representatives avoided formal comment. ASEAN leaders pledged to restart CoC talks before the end of 2025. While China sent an observer delegation to the summit, it avoided direct comment on the maritime issue. ASEAN leaders agreed to expedite negotiations on the CoC by the end of 2025, though enforcement mechanisms remain unclear.

Malaysia Champions ASEAN Power Grid Initiative

One of Malaysia’s signature proposals at the summit was the revitalization of the ASEAN Power Grid (APG), aimed at enhancing cross-border electricity trade and energy security. Anwar pitched the APG as a strategic infrastructure initiative that could position ASEAN as a global leader in renewable energy interconnectivity.

With support from Singapore and Thailand, the initiative includes feasibility studies for linking solar and hydroelectric grids across national borders. The long-term goal is to reduce reliance on fossil fuels while increasing economic integration through shared energy resources. The APG has been positioned as a flagship project under ASEAN’s new five-year economic integration plan.

Myanmar Crisis

The summit offered a mixed review of the ASEAN Five-Point Consensus on Myanmar. Informal dialogues between ASEAN mediators and both the military junta and opposition groups have yielded what Malaysian Prime Minister Anwar Ibrahim described as “significant” yet “fragile” progress. As he noted, “The steps may be small and the bridge may be fragile but as they say, in matters of peace, even a fragile bridge is better than a widening gulf.” ASEAN called for an expanded nationwide ceasefire to build trust and initiate inclusive dialogue. However, the Myanmar military continues to violate truce agreements with renewed offensives, drawing frustration from several member states. Proposals for appointing a permanent ASEAN envoy were discussed but postponed due to internal disagreements.

“The steps may be small and the bridge may be fragile but as they say, in matters of peace, even a fragile bridge is better than a widening gulf.”

ASEAN Expansion: Timor-Leste Advancing, PNG Debated

ASEAN reaffirmed that Timor-Leste’s full accession will proceed by October 2025. Indonesian President Prabowo Subianto used the summit to champion Papua New Guinea’s candidacy, citing strategic importance and shared regional challenges. While some member states expressed support, others raised concerns over PNG's economic disparities and political compatibility. Formal accession is unlikely in the near term without significant institutional reforms.

Summit Conclusions & Implications

The summit concluded with the signing of the Kuala Lumpur Declaration on ASEAN 2045: Our Shared Future. The declaration outlines ASEAN’s long-term priorities, including digital transformation, climate resilience, inclusive development, and regional security. It calls for a rules-based international order and reaffirms ASEAN’s commitment to multilateralism and peaceful dispute resolution. Leaders pledged to enhance institutional capacity to meet the demands of a rapidly shifting global environment.

Taken together with the summit’s more immediate outcomes, the declaration underscores ASEAN’s broader strategic recalibration. The 2025 ASEAN Summit revealed a bloc increasingly aware of its geopolitical vulnerabilities yet determined to act with cohesion. The economic fallout from U.S. tariffs and growing tension in the South China Sea have catalyzed a push toward strategic autonomy and deeper regional integration.

Malaysia and the Philippines emerged as key agenda-setters: Kuala Lumpur through its infrastructure and economic strategy, and Manila through its assertive stance on maritime law. The summit’s outreach to both China and the Gulf states signals a calculated pivot toward multipolar partnerships.

Still, questions linger about ASEAN’s effectiveness in managing internal crises, such as Myanmar, and its ability to present a unified front when confronted by global power rivalries. The adoption of the ASEAN 2045 Vision and new economic plan signal ambition, but the months ahead will determine whether this ambition is matched by coordinated action and political will.

REFERENCES

ASEAN. (2025). Kuala Lumpur Declaration on ASEAN 2045: Our Shared Future. https://asean.org/kuala-lumpur-declaration-on-asean-2045-our-shared-future/

Azhar, D. (2025, May 27). ASEAN leaders agree tariff deals with U.S. should not harm members. Reuters. https://www.reuters.com/world/china/asean-leaders-agree-tariff-deals-with-us-should-not-harm-members-2025-05-27/

Azhar, D., & Tang, A. (2025, May 27). ASEAN unveils strategic plan to integrate its economies. Reuters. https://www.reuters.com/world/asia-pacific/asean-unveils-strategic-plan-integrate-its-economies-2025-05-27/

Ng, E. (2025, May 26). ASEAN leaders seek Myanmar peace progress, trade strategies. Associated Press. https://apnews.com/article/73fcfea4374873da1591ae5aba68656b

The Nation Thailand. (2025, May 27). PM Anwar highlights Myanmar issue at ASEAN Summit. https://www.nationthailand.com/news/world/40050523