Speaking ahead of the 2025 Asean Business and Investment Summit, Nazir warned that the region’s openness to trade and investment – long seen as a strength – also made it vulnerable.
“Asean is very exposed. We are open economies, dependent on trade, capital flows and foreign direct investment (FDI). Without FDI, we cannot meet our development goals,” he said.
“For example, Asean’s energy needs will double by 2040. Where is the money going to come from?”
Nazir also cited the impact of US tariffs which had slowed investment, and ongoing security concerns in the South China Sea and between Asean members.
He warned that a more inward-looking US could further weaken the global rules-based system.
“Asean is vulnerable because there are areas of tension in the South China Sea, and between us as well,” Nazir said, referring to recent bilateral stand-offs between Asean members Thailand and Cambodia.
“If America pulls back, who enforces the rules… the sanctity of boundaries? The policeman is gone,” he added.
Nazir also urged Asean to uphold its central role and adopt a flexible approach.
“We need to navigate the new world order together, remaining neutral but multi-aligned – working with China on some issues, with the US on others.”
But while acknowledging the challenges, he said disruption also offered opportunity.
“Chaos is a ladder. As the new order forms, how we behave in the next few years is more important than ever.”
He noted growing global interest in the region, with countries such as Canada, New Zealand, Australia and Russia seeking closer engagement.
He also pointed to Asean’s coordinated response to US tariffs as a sign of progress.
Washington imposed different levels of tariffs across Asean, where members themselves compete against each other economically, making it difficult to respond as a bloc.
But the Southeast Asian grouping did not “go back to behaving individually”, instead collaborating to a significant extent.
“Asean members quickly agreed not to retaliate with tariffs, to share information on negotiations, and to form the Asean Geo-economic Task Force,” Nazir said, describing this as encouraging progress for the region.
Geoeconomic coordination and Asean’s role in a shifting global order will be key themes at the Asean Business and Investment Summit, which runs from Oct 25 to Oct 26 at the Malaysia International Trade and Exhibition Centre in Kuala Lumpur.
For participation details, visit https://abis.aseanbac.com.my.