Malaysia has had its share of defining moments. Independence in 1957. The Malaysia Agreement in 1963 on the rights of those agreeing to the formation of Malaysia.

This agreement is now before the courts on sharing of tax revenues.

Subsequently, to the chagrin of many, there was a parting of ways between Malaysia and Singapore which had to chart its path as an independent nation.

Fast forward almost seven decades later and Malaysia as chairman of Asean is playing a crucial role, a delicate power balancing act, as superpowers vie for influence in the region.

Three US presidents have passed this way, each to “protect” and enhance their interests in the region but the showmanship of Donald Trump is indeed a defining moment, what with the dance on the carpet, a ride in the Beast and the pocketing of a signing pen.

Where do we go from here? Already there are rumblings by certain quarters that as a consequence of the trade deal, Malaysia has given up a part of its sovereignty on certain themes which obliges it to follow the stance taken by the US on global issues. These are in the fine print, presumably.

The US ambassador has commented that Malaysia had entered into the trade agreement on its own accord, alluding perhaps that it is a “fair” deal.

The reality is that the trade deal was inked against a backdrop of the possibility of higher tariffs with its consequential loss of jobs and economic unpredictability to foreign investors.

It can be inferred that Malaysia was caught between a rock and a hard place based on justifications provided. Either play the game under new rules or get slapped with substantive tariffs.

The agreement commits to providing significant preferential market access to US industrial goods and agricultural products, encompassing various business sectors. These are defined.

On the converse, there will not be a ban or imposition of quotas on critical minerals and rare earth elements, the latter being crucial to the US to hedge against an uninterrupted supply.

The trade agreement ensures both robust export revenues and new investments in related activities in the supply chain to Malaysia.

This again is a defining moment against the pomp and splendour of the event and niceties verbalised to push the agenda through. By all means the deal is a success, but to whom?

At a stretch, one can argue that both parties benefit and it is the new norm on “globalisation”.

Unintentionally, Malaysia has carved out a benchmark which others in Asean will be prodded to follow, irrespective of the challenges in their respective economies which may need a custom fit template to fit individual political and economic aspirations.

The US has pre-empted its global competitor, China, which had its share of comments on the economic repercussions and the role that it will continue to play.

Pursuant to this trade agreement, the BRICS strategy for Malaysia will call for a revised game plan on this new operating platform,

The Asean chairmanship passes to the Philippines in 2026 and it will be interesting what unfolds given the issues that the Philippines, and Vietnam, particularly, have on maritime borders and unhindered sea lane protocols in the region.

The 50th anniversary of Asean looms ahead. What more has the region to accede to.

Myanmar continues to be a festering sore which has no tourniquet. This contrasts sharply with the relatively smaller border skirmishes between Thailand and Cambodia which, nonetheless, attracted disproportionate media hype with the peace accord.

The year 2025 is a defining moment for Malaysia, what with all the praises heaped upon Anwar and the country. The US has redefined its footprint and what it expects from its trading partners in Asean and beyond.

China will not be easily cowed by the diplomatic extravagances of Asean. It has to play its role as a counterweight to influences and the excesses of western powers

It will seek to further augment its presence in the region, given its proximity and the influence that it already has with the economies of most Asean members.

Only time will tell as Asean grows both in political and economic maturity.

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