By INS Contributors

KUALA LUMPUR, Malaysia: Ongoing geopolitical tensions will see a realignment of priorities among members of the Association of Southeast Asian Nations (ASEAN) protectionism and coercion from its traditional partners is leading to the groupings pursuit of multilateralism and carving a place in the multipolar global trend.

This can particularly be seen through the ongoing and expanding ties between Russia and Malaysia, with the latter's leader Anwar Ibrahim embracing figures and countries that are decidedly at odds with the collective West.

Advocates for such a strategy have already noted that such policy is sound and is already yielding dividends following the imposition of unilateral sanctions aimed at Chinese manufacturers of solar panels in four Southeast Asian countries, including Malaysia.

Russia has taken noticeable steps to increase its engagement with Malaysia including visits by Foreign Minister Sergei Lavrov, Deputy Foreign Minister Andrey Rudenko and Deputy Minister of Industry and Trade Alexey Gruzdev besides sending several business and political delegations spearheaded by Roscongress Foundation, Russian Union of Grain Exporters and the Valdai Club.

Optimizing business ties

Business and trade has emerged as a key point of cooperation and contention over the past two years. Anwar had revealed that he recently rejected a call by  secretary of state Antony Blinken to stop being friendly with Russia: “I replied, ‘That’s your issue; don’t instruct us. We are an independent, sovereign country; we make decisions for our people and our nation’,” Anwar said.

Anwar himself acknowledged the sensitivity of engaging Russia in the current geopolitical climate. At the outset of his meeting with President Vladimir Putin, Anwar conceded that visiting Russia was “not an easy feat” but nonetheless affirmed it was “the right decision.”

The Roscongress Foundation recently concluded its "World of Opportunities: Russia-ASEAN" International Business Forum having emphasized the need for alternatives to the global trade and supply chain system especially in the movement of key strategic resources, commercial developments in nuclear power and other emerging critical sectors.

The need to maintain alternative payment systems and to prioritise economic cooperation above bloc politics was also discussed at length with Malaysian officials and speakers present emphasizing the role Malaysia plays as a central hub for the rest of ASEAN, not only through its government-to-government ties but also its location as a key maritime waypoint and being physically at the center of the region spanning the Malacca Straits and South China Sea.

Russian Deputy Minister of Industry and Trade Alexey Gruzdev said that despite attempts by certain countries to contain and sideline others, major economies of the emerging multilateral world order are confident that economic prosperity, trade and global cooperation will overcome isolationist and disruptive tendencies.

"I have never lost trust in the business (communities) because they are more about practical things and it is for the national interest for those who are flexible, open and cherish trust and mutual benefit," he told Xinhua on the sidelines of the "World of Opportunities: Russia-ASEAN" International Business Forum here.

Likewise Alexander Stuglev, chief executive officer of the Roscongress Foundation, said countries of the Global South and groups such as ASEAN are striving to maintain neutrality and avoiding bloc confrontation while working to develop trade and economic links, which bodes well for the global economy.

"Many countries like Malaysia are working to become partners and working for sustainable economic development. I am confident that our platform will continue to thrive both here in Malaysia and across ASEAN, and I want to emphasize the critical importance of the region," he said.

"I greatly appreciate a constructive, neutral approach taken by ASEAN companies, which has proven to be a solid foundation for partnerships, driving successful results in investment, trade, and resource development," he added.

The foundation, established by decree of the President of the Russian Federation in 2007, is a non-financial development institution dedicated to enhancing Russia’s economic potential and international image. As a leading organiser of national and global conventions, exhibitions, and cultural events, it provides insights into Russian and global economic issues, promotes social entrepreneurship, and facilitates investment.

Alignment of common interests

Malaysia had in the part been seen to be Western aligned but the country has gradually found itself leaning away from the West since the prime ministership of Najib Razak but under the Anwar administration it has taken a more proactive role applying to join the intergovernmental grouping BRIICS, ostensibly for economic reasons.

Anwar has also been an outspoken critic of the US with regards to its conduct in the Middle East, finding common ground with the BRICS and Global South nations and this is likely to see the country come under increased scrutiny over its trade links and contacts.

The country will officially assume the Chair of ASEAN on 1 January 2025 and has already signalled a plan to work closer with its ASEAN partners whether in engagement with intergovernmental organisations such as BRICS or in countering planned US tariffs including the recent hike on solar panels brought as a a trade case brought by Korea's Hanwha Qcells, Arizona-based First Solar Inc and several smaller producers seeking to protect billions of dollars in investments in US solar manufacturing.

As in the case of the economic destruction of the European Union (EU) as a means of "containing" Russia, the US is engaged in similar actions against China using the Southeast Asian states mainly by exploiting overlapping claims in the South China Sea, a policy that has seen only the Philippines taking the US side while others, even Singapore opting for a neutral pro-free trade and open economy stance.

Naturally US economic pressure will not yield the desired results and the possibility of various interest groups being mobilised in Malaysia and other ASEAN members is already underway in the hopes of effecting more direct effect on these governments.

ASEAN as a bloc is unlikely to fully align with either China or the US. Instead, most member states will continue to navigate the rivalry by adopting strategies of hedging, leveraging ties with both powers to maximize economic benefits while avoiding entanglement in their conflicts. This balancing act underscores ASEAN’s commitment to maintaining regional stability and autonomy.

This strategy has been exemplified by Malaysia and it remains to be seen what the limits of US interests versus China's influence will entail for economies in the region. That said engagement with other 'poles" besides the US and China will give countries in the region options, whether in economic terms, defense procurement, food security and technology exchanges.

Russia’s shifting focus towards Asia, accelerated by sanctions and the decline of its European trade, presents a timely opportunity for Malaysia. In 2023, Russia’s trade with Asia surged dramatically, with its exports and imports rising by 72 percent and 68 percent offering Malaysia a chance to capitalise on the new trade flows. At least for the time being, Malaysia sees the risks as worthwhile.