ASEAN AT THE CROSSROADS
CAMBODIA’S PIVOTAL ROLE IN SHAPING A SUSTAINABLE FUTURE
By Dr. Digby James Wren (Khmer Times)
The US assault on global trade has intensified ASEAN’s vulnerability, disrupting regional supply chains through escalating tariffs on all exports to the United States. Despite ASEAN’s expected 6% GDP growth in 2025, reliance on dollar-centric systems persists, exposing economies to sanctions targeting exports that rely on RCEP member tech and intermediate goods transshipments, especially China and its key partners such as Cambodia, Vietnam and Malaysia.
In Beijing recently Chinese President Xi Jinping called for building a community with a shared future with neighboring countries and striving to open new ground for China's neighborhood work. President Xi, who concluded a historic three nation tour of Malaysia, Cambodia and Vietnam last week, summarised the achievements and experience of China's neighborhood work and outlined the goals, tasks, ideas and measures for the next phase of neighborhood work in the lead-up to his three nation visit, which concluded in Cambodia on 18 April 2025.
In Kuala Lumpur two weeks ago, the12th ASEAN Finance Ministers’ and Central Bank Governors’ Meeting (AFMGM) and associated conferences was attended by over 300 delegates, including ministers, central bankers, and private sector representatives from ASEAN states, Japan, Korea and EU met to address economic challenges resulting from US tariffs. The meeting underscored the importance of deepening financial integration to bolster trade, investment, and economic resilience within Southeast Asia.
As the chair of ASEAN, Malaysia prioritised key economic deliverables (PEDs) including the introduction of the ASEAN Infrastructure Fund (AIF) Action Plan 2025–2028 in partnership with the Asian Development Bank (ADB) and high-level dialogues with the ASEAN-US and ASEAN-EU Business Councils, alongside private sector engagement, to enhance the region’s attractiveness as a trade and investment hub.
The meetings in Beijing and Kuala Lumpur highlight regional efforts towards economic independence through collaborative financial strategies, infrastructure development, and partnerships. The outcomes of those discussions also influenced the agenda for Xi’s regional tour to Malaysia, Cambodia and Vietnam and strong focus on collective action against external economic pressures.
Cambodian Prime Minister Hun Manet has previously emphasised “the need to harmonise RCEP and BRI frameworks to counter external pressures threatening our unity.” The bloc’s 2024 Economic Integration Report warns that US policies, which are an attempt to fragment the bloc both politically and economically, could erode over $180 billion in regional trade unless ASEAN accelerates BRI-aligned digitalisation and green industrialisation. Central to this vision is Cambodia, emerging as a critical node in supply chains through strategic digital, agricultural, and industrial investments.