Anwar: Foreign policy must prioritise national interest, not foreign pressure
ISKANDAR PUTERI: Malaysia has always prioritised national interest in its foreign policy and will not be dictated by external powers, said Prime Minister Datuk Seri Anwar Ibrahim.
Speaking at the closing ceremony of the two-day Nikkei Forum Medini Johor at Sunway BigBox today, Anwar said the country's approach to international engagement must be guided by its own needs and remain free from any interference.
"Our relationship with the United States must remain strong.
"But no one can dictate that we be too friendly to the US, China, or Japan.
"We are an open trading country, and our policies must reflect the best interests of our people," he said.
Anwar, who is also finance minister, reaffirmed Malaysia's commitment to a principled and multilateral trade approach, noting that while the US remains the country's largest export destination, Malaysia will not condone unilateral tariff actions.
"Malaysia will continue strengthening relations with Asean countries, China, Japan, Korea, and other regional allies," he said.
He noted that 60 per cent of Malaysia's exports currently go to the US, making it the country's top trading partner.
However, he stressed that the government draws a firm line when it comes to policy.
"We do not endorse or support any unilateral action. Despite our close ties, Malaysia does not condone the imposition of tariffs," he said.
Malaysia, he added, will continue to engage with China, South Korea, Japan, and other Asean allies to defend a rules-based multilateral trading order.
Anwar also said that the Johor-Singapore Special Economic Zone (JS-SEZ) as a regional game changer that has drawn strong interest from investors in Japan, China, South Korea, and the European Union.
He described the zone as "a collaboration between two countries based on total trust".
"The zone is quickly becoming an international investment magnet due to its strategic infrastructure, political stability, and clarity of policy," he said.
Touching on global trends, Anwar criticised the rise of protectionism, saying many decisions today are driven by political and economic arrogance.
"Decisions today are often made based on greed and military might, not values, ethics, or justice," he said, urging governments to centre governance and trade on ethics and human values.
He also reaffirmed Malaysia's strong ties with China, pointing to back-to-back visits from President Xi Jinping and Premier Li Qiang as evidence of strong bilateral confidence.
"Few countries can boast of that kind of access.
"China has been consistent in offering investment, technological transfer, and trade cooperation, much like Japan has done for decades," he said.
Citing Malaysia's industrial master plan, energy transition roadmap and digital ambitions, Anwar said what sets the country apart is its resolve to act with urgency and reform.
In a rare moment of reflection, he acknowledged past weaknesses in governance and pledged his administration's commitment to clean and effective leadership.
"I assure you, my Cabinet has the humility to accept criticism and make necessary adjustments. We are not living in a perfect world," he said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Focus Malaysia
an hour ago
- Focus Malaysia
Anwar's dilemma grows as allies compete for Cabinet posts
THE resignations of PKR's Datuk Seri Rafizi Ramli and Nik Nazmi Nik Ahmad as economy and natural resources ministers have sparked a race among unity government parties for the vacant Cabinet posts. This has deepened the dilemma faced by Prime Minister Datuk Seri Anwar Ibrahim. UMNO, eyeing its seventh ministerial slot after Tengku Datuk Seri Zafrul Abdul Aziz's defection to PKR, has proposed names like Datuk Seri Johari Abdul Ghani, sources said. Johari is the current Plantation Industries and Commodities Minister. Second Finance Minister Datuk Seri Amir Hamzah Azizan is also mentioned as a potential interim economy minister. Meanwhile, Amanah also is pushing for more representation, citing its strong track record, while MIC and MCA demand fairer Barisan Nasional (BN) representation, criticising UMNO's dominance. While Anwar faces pressure to balance coalition dynamics, both MIC and MCA have so far been denied ministerial posts, though they are under the BN banner, and BN is a loyal party to the Madani regime. Reports now suggest Johari is among those tipped to act as interim economy minister, replacing Rafizi, who made it clear he is not coming back to Anwar's cabinet. However, Anwar could also appoint Johari, analysts said, as a permanent economy minister in a portfolio swap between UMNO and PKR. A portfolio swap could happen, but the quota balance remains. Some reports are saying UMNO could propose others to replace Johari at the Commodities, such as Deputy Works Minister Datuk Seri Ahmad Maslan or Pahang Menteri Besar Datuk Seri Wan Rosdy Wan Ismail. We also have to note that last week, Amanah Johor called on the Prime Minister to allocate more cabinet positions to the party following the resignation of two ministers. Its deputy chairman Dr Zuhan Zain highlighted Amanah's strong performance and commitment to the unity government, citing leaders like the late Datuk Seri Salahuddin Ayub, Agriculture and Food Security Minister Datuk Seri Mohamad Sabu, and Health Minister Dr Dzulkefly Ahmad. While the vacant posts were previously held by Rafizi and Nik Nazmi, Zuhan argued that UMNO's nomination of non-PKR candidates opens opportunities for all coalition parties to propose their leaders. On the other hand, UMNO has been reminded not to behave as if it is the sole party representing BN in the coalition government. MIC strategic director R Thinalan criticised BN chairperson Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi's push to maintain UMNO's seven ministerial positions after Tengku Zafrul's departure, calling it disappointing to MIC grassroots. Thinalan argued that UMNO is not the sole BN representative, questioning why MCA or MIC cannot fill Cabinet roles. He emphasised that Tengku Zafrul's former ministry belonged to BN, not UMNO exclusively, and insisted that any Cabinet appointments must involve discussions with other BN component parties, highlighting the need for a fairer representation within the coalition government. — June 21, 2025 Main photo credit: Reuters
Malaysian Reserve
2 hours ago
- Malaysian Reserve
A new world order is here. Is your portfolio ready?
Global shifts are challenging US market dominance, putting diversification back in play by IFAST RESEARCH TEAM OVER the period from 1994 to 2024, US equities have consistently outperformed their international counterparts. For many young investors, it's hard to recall a time when the US did not dominate global markets. As a result, global diversification has long been a losing strategy for most investors. Not this year. The 'Liberation Day' market crash sparked by Trump's tariffs has coincided with rallies in other global markets, including Europe and China. While the S&P 500 recovered most of the losses year-to-date, the MSCI AC World ex-US Index is up more over the same period. While periods of underperformance by the US are not unusual, the gap this year has been particularly pronounced. A New World Order is Taking Shape For decades, there has been no bigger winner on the global stage than the US market, with its stellar performance over the years leading to an approximate 63.7% weighting in the MSCI AC World Index (as of 30 April 2025), up from 43.3% back in 2011. And rightfully so. Investors were drawn to America's exceptionalism: Its technological dominance, deep and liquid financial markets, leadership in free trade, willingness to underwriting global security and a government historically seen as a wise steward of the economy. However, president Trump's erratic policies — including his on-again, off-again tariff announcements and escalating trade tensions with China — along with his transactional approach to diplomacy, suggest a significant shift in America's position on the world stage. This has prompted the rest of the world to diversify trade partners, forge new alliances and pursue long-delayed economic reforms to boost growth and economic resilience. The European Union (EU), for instance, has launched a charm offensive to diversify its trade alliances in Asia and beyond. The bloc has resumed long-stalled negotiations with several countries, including India, Malaysia and Thailand. The clearest sign of the EU's renewed urgency is its revived deal with The Southern Common Market (MERCOSUR), a South American trade bloc that includes Brazil and Argentina. After 25 years of delay, an agreement was finally reached in December. While major European countries such as France and Poland remain opposed, Trump's tariffs could push them towards ratification. Austria, a staunch critic of the deal, has already abandoned its long-standing resistance to the trade agreement. Furthermore, with the US now stepping back from European security, the continent has significantly ramped up its defence spending. Even German lawmakers have voted to loosen the purse strings, allowing for a huge increase in defence and infrastructure investment — a seismic shift for a country traditionally known for its pacifism and fiscal restraint. The recently concluded UK-EU deal has also drawn a line under Brexit, signalling the start of a much closer relationship. Changes are Afoot in China Five years ago, regulators in China launched a sweeping crackdown on technology companies, casting a chill over the private sector. Now, the mood is shifting. Amid China's economic challenges, the government has recognised that revitalising the private sector is crucial to achieving an economy recovery — a task made even more urgent by Trump's tariff war. President Xi Jinping's handshake with Jack Ma — widely seen as the face of China's private sector but sidelined by authorities since the crackdown — at a symposium this year is the surest signal that the party wants the private sector to thrive again. China has also intensified its efforts to steer the economy toward a consumption-led growth model. A raft of stimulus measures, coupled with a revival in consumer and business confidence, is laying the groundwork for a sustained recovery. The government's strategic focus on artificial intelligence (AI) is also providing new momentum for tech leaders. Meanwhile, the recent revival of China's economic dialogues with Japan and South Korea — both of which have aligned more closely to the US in recent years — suggests that regional powers are reassessing their relationships in response to Trump's tariff-induced uncertainty. At the same time, the economic transformation in Japan continues, with inflation, wage increases and interest rate hikes all becoming entrenched. A virtuous cycle of rising wages and prices will stimulate consumption and capital expenditures, opening up a pathway for stronger economic growth in the longer term. Besides, Japan has shown that it can and will step up to provide international economic leadership. In the absence of the US, Japan has picked up the mantle of leadership in the Regional Comprehensive Economic Partnership (RCEP) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). As the US retreats from its traditional role as champion of free trade, Japan will likely step up to fill the void and provide trade leadership together with other open-market allies. As a new world order takes shape, the global economy likely to become more balanced, with Europe and Asia shouldering more responsibilities for driving growth and providing international leadership. Against this backdrop, diversification has taken on added importance in our portfolios. An Unprecedented Level of Uncertainty Persists Another reason for diversification: A great deal of uncertainty persists. Start with the tariffs. In just a matter of days, Trump's Liberation Day tariffs have injected the global economy with extraordinary levels of volatility and uncertainty. Trade decisions — along with a slew of other major policy decisions — are now made on Truth Social, often catching even his own advisors off guard. While the tariffs have since been paused, they have not been cancelled. The outcome of ongoing trade negotiations remains uncertain and there's a possibility that the punishingly high tariff rates could be reinstated once the deadline passes. The situation looks increasingly fragile. As if that weren't enough, the legal wrangling over the tariffs have added yet another layer of uncertainty. Most recently, a US trade court blocked the tariffs, ruling that Trump had overstepped his authority — only for them to be reinstated a day later, pending the appeal process. Trade talks will now be complicated by doubts over the administration's authority to follow through on its threats. Rather than offering relief, the development has introduced new complications at the worst possible time. Besides, even if trade deals are struck before the deadline, there's no guarantee they will hold. Given the unpredictable — and often arbitrary — nature of Trump's decision-making, he could very well renege on these deals. With no real clarity ahead, U.S. businesses are faced with an unprecedented level of uncertainty, which has been further compounded by other factors. Lower Market Correlations Help Enhance Diversification As a risk-mitigation strategy, diversification only reduces volatility if the markets involved have low or negative correlations. If all markets move in lockstep, it doesn't matter how many geographic regions you invest — diversification won't reduce risk. This has certainly been the case over the past two decades, as correlations between US and non-US stocks have risen significantly. In other words, most international markets have moved in tandem with the broader US market. To conclude, we're not suggesting an end to US exceptionalism. The US remains the largest and most liquid market in the world. It is also home to many high-quality companies that are dominant in the digital economy and semiconductor space. While it might be easy to boycott a company like Tesla Inc due to the availability of alternatives, it's much harder to avoid companies like Google LLC or Nvidia Corp. Therefore, maintaining exposure to the US remains important. However, for investors who already have a substantial US allocation, a global ex-US exchange-traded fund (ETF) can provide substantial diversification benefits. The views expressed are of the research team and do not necessarily reflect the stand of the newspaper's owners and editorial board. This article first appeared in The Malaysian Reserve weekly print edition
Focus Malaysia
4 hours ago
- Focus Malaysia
PMX's decree to stop using imported stuff at gov't functions defies commonsense, gets bashed
'ANWAR seems to have really lost the plot – that's not just my personal observation but also the sentiment echoed across several of my circles,' observed industrialist/thinker khalid karim STEMKITA (@khalidkarim in a recent post on X referring to Prime Minister Datuk Seri Anwar Ibrahim. 'Even some of his once-loyal supporters are expressing deep disappointment. I'm disappointed but still hoping he can turn it around.' Anwar seems to have really lost the plot — that's not just my personal observation, but also the sentiment echoed across several of my circles. Even some of his once-loyal supporters are expressing deep disappointment. I am disappointed but still hoping he can turn it around — khalid karim STEMKITA (@khalidkarim) June 19, 2025 Without a shadow of doubt, PMX seems to be getting a lot of flak lately for a series of pronouncements that not only seem to defy logic but detached or out-of-touch with man-on-the-street Malaysians. First, Anwar who doubled up as the Finance Minister was chastised for referring to GST as 'general services tax' in wanting to impose 'a little more tax' on avocado which implies imported fruits as part of Malaysia's expanded Sales and Services Tax (SST) which takes effect on July 1. His latest decree? For official government functions to stop using imported food items in a bid to promote the use of local products. Anwar has directed all government departments to stop using imported goods, especially food, at official events in a bid to promote local — The Star (@staronline) June 20, 2025 For this, the reformist Madani government commander-in-chief found himself widely ridiculed for his instruction with many of his subjects pouring scorn on the Pakatan Harapan (PH) chairman's eureka moment. Many commenters on The Star's X feed wittily pointed out that even basic food items such as mee siam or cekodok pisang (literally, 'fried banana balls') would contain imported stuff. A very unimpressed Aunty Ana (@Ana_makhzan) counselled PMX to try doing some research before making such lofty pronouncements (in the future). '@anwaribrahim, @fahmi_fadzil. I hope this is a joke. Ask @MSabu_Official (for) we import onions, garlic and dried chillies, hence there're imported material in mihun goreng (fried rice vermicelli),' lectured the commenter. 'Even the cekodok made from local banana contains imported wheat flour. Next time do verify first before issuing an instruction.' One commenter even accused PMX of targeting Chinese fruit importers with this decree while another suggested that tapioca should be made a staple at parliamentary functions in accordance with the call by Dewan Rakyat speaker Tan Sri Johari Abdul to resort to ubi kayu than to merely rely on rice. Other commenters chided PMX for not leading by example. Just use local marques instead of fancy luxury car models or even to stop barring the use of Evian mineral water or to start serving musang king durian at government events. One commenter observed that this was the same modus operandi implemented when Anwar was the finance minister during the 1998 Asian Financial Crisis. The response was no less scathing on the X feed of Malaysiakini. Anwar larang makanan import dalam acara rasmi — Malaysiakini (BM) (@mkini_bm) June 20, 2025 One commenter wryly observed that there would be no more buah kurma (dates) which is almost standard at government buka puasa functions during the fasting month. This news was also seized upon by a few commenters as a stick to beat PMX on the scarcity of local rice issue. One commenter came up with a brilliant alternate suggestion to save costs – just have fewer official functions while another wished the Madani administration best of luck given most local fruits at seasonal while those which are not such as bananas, guavas and pomelos have limited production (or even costlier). The temperature is definitely rising with the disgruntled comments seem to indicate. Has the long struggle to claim Putrajaya to be defined by a tenure scarred by the costs-of-living crisis, exacerbated by the Madani administration's numerous taxes? Judging by the tone of many commenters, it would appear PMX's popularity has taken yet another beating. Nobody said it was an easy job to be the #1 man in the country but perhaps it is advisable for PMX to rely on scripted text than to speak off the cuff on unfamiliar or complicated subjects. – June 21, 2025 Main image credit: Anwar Ibrahim/Facebook
