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Wednesday, May 28, 2025

Towards closer ties and enhanced trade

 The strategic collaboration among Asean, the Gulf Cooperation Council and China will serve as a new driver of regional geopolitical and economic direction.

ASEAN-GCC-CHINA SUMMIT

From Mizan Aslam

Rather than just a platform to review progress in Asean’s political-security, economic and socio-cultural development, its 46th summit in Kuala Lumpur on May 26-27 also marks a transformative moment in the bloc’s role as a hub of inter-regional diplomacy.

Meanwhile, the Second Asean-GCC Summit and the inaugural Asean-GCC-China Summit also set the tone for deeper integration and strategic diversification in an evolving multipolar world order.

Foundational documents from the main summit such as the “Kuala Lumpur Declaration” and “Asean 2045: Our Future Together” chart a roadmap for building a resilient, innovative, and people-centred Asean.

Among the aspirations are achieving economic integration by up to 20%, sustaining an average GDP growth rate of 5.5%, reducing carbon emissions by 30% by 2035, and expanding public-private partnerships in critical infrastructure.

Prime Minister Anwar Ibrahim played a pivotal role in shaping these priorities, emphasising Asean’s transition from a reactive to a proactive bloc in addressing regional disparities, climate urgency, and digital transformation.

Unlocking potential

The Second Asean-GCC Summit serves as a strategic platform bringing together Asean and GCC leaders to discuss regional and international issues of mutual interest and to strengthen cooperation across various sectors.

The GCC is Asean’s seventh-largest trading partner, with total trade valued at US$130.7 billion (RM551 billion).

While there has been a small decline from the previous year, robust energy trade and expanding sectoral cooperation keep the outlook positive.

The GCC has already invested US$390.2 million (RM1.6 billion) in Asean, reflecting growing investor confidence and untapped potential for deeper economic collaboration.

The summit also represents a strong commitment from both regions to enhance ties that have existed since the 1990s.

The main focus of the summit is to drive the implementation of the “Asean-GCC Framework of Cooperation 2024-2028”, a key document outlining priority areas for collaboration in free trade, economic development, education, culture, and information.

In line with Malaysia’s Asean chairmanship, targeted initiatives are being rolled out through the Priority Economic Deliverables (PEDs) initiative to strengthen ties between the two regions.

This summit is expected to yield several important documents and decisions aimed at reinforcing the strategic partnership between Asean and the GCC.

Foreign minister Mohamad Hasan has been instrumental in realigning Asean-GCC diplomacy. Through targeted dialogues and bilateral engagements, Malaysia has brokered key commitments on diversifying energy cooperation (such as green hydrogen ventures), joint halal industry investments, and the establishment of the Asean-GCC knowledge-sharing platforms on sustainable urbanisation.

Tripartite synergy

The Asean-GCC-China Summit is a new initiative spearheaded by Malaysia in its capacity as Asean chair.

Its objective is to explore opportunities for trilateral cooperation in the economy and investment among Asean, the GCC and China.

Given Asean’s rapid economic growth — its GDP reached US$3.8 trillion (RM16 trillion) in 2023, making it the world’s fifth-largest economy — and China being its largest trading partner, with total trade amounting to US$696.7 billion (RM2.93 trillion), the summit is expected to act as a catalyst for a more sustainable and comprehensive trilateral economic partnership.

The primary focus of the Asean-GCC-China Summit is to enhance trilateral economic cooperation through an inclusive, sustainable, and mutually beneficial approach.

The emphasis is on integrating the three economies by focussing on trade, investment, infrastructure development, supply chain resilience, and digital connectivity.

Finally, the Asean-GCC-China Summit is expected to introduce a trilateral economic cooperation roadmap that serves the economic interests of the three regions.

With a combined GDP of US$24.87 trillion (RM104.92 trillion) and a population of 2.15 billion, this tripartite bloc has unmatched demographic and market leverage.

As Asean chair, Anwar has already made several proposals. They include:

  • The Asean-GCC-China Connectivity Corridor, a blueprint to enhance supply chains, improve port interconnectivity and synchronise digital trade infrastructures;
  • The Joint Asean-GCC-China Green Infrastructure Fund;
  • An integrated digital customs clearance system, and
  • A tripartite memorandum of understanding on labour mobility and skills certification across key sectors.

If the formal establishment of the Asean-GCC-China Economic Council is agreed to in Kuala Lumpur, it will definitely enhance collaboration among the three regions.

This institutional body should serve as a permanent multilateral secretariat tasked with coordinating economic policies, tracking trade flows, managing inter-bloc investment disputes and conducting joint foresight studies.

Locating it in Kuala Lumpur underscores Malaysia’s centrality and enhances Asean’s bureaucratic capacity to deliver on strategic outcomes.

In short, these summits, and the structural follow-ups they initiate, especially on the strategic partnership among Asean, GCC and China, may define not just Asean’s trajectory, but Asia’s place in a century where resilience, equity and regionalism reign supreme.

Malaysia now stands not only as a facilitator but as a driver of this transformation — with bold leadership, clear vision and diplomatic innovation at its core.

Through Malaysia’s assertive chairmanship, Asean is moving from consensus-driven rhetoric to implementable regional mechanisms. - FMT

Mizan Aslam is a professor at the department of international relations, security, and law at the National Defence University of Malaysia.

The views expressed are those of the writer and do not necessarily reflect those of MMKtT.

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