US-China rivalry on the economic front may derail ASEAN’s journey to become one of the largest economies in the world. As the world transitions into clean energy, several ASEAN members, such as Indonesia, are attempting to position themselves as critical players in industries such as electric vehicle production. Washington’s attempts to limit Beijing’s participation in the electric car industry may derail Jakarta’s ambition to be an industry player. Furthermore, the trade disputes between Beijing and Washington can affect ASEAN member economies given the regional reliance on trade.
These crises together create an arc of uncertainties for Southeast Asia. Yet, ASEAN’s responses are grounded by consensus decision-making and non-intervention policies, its operating framework since the grouping was founded in 1967. As a result, China took the lead in negotiating ceasefire agreements between the warring parties in Myanmar, while ASEAN seems to be incapable of responding to the security threat posed by an external power against the Philippines, one of its original members, in the South China Sea.
To compound the challenges that ASEAN is facing, the departure of Widodo and Lee will see leadership transitions in two key member-states, while another struggles with political uncertainty. Indonesia will go to the polls on 14 February, and Lee will likely hand over the premiership to his deputy towards the end of 2024. Meantime in Malaysia, rumours persist about an attempt to topple the current Prime Minister Anwar Ibrahim.
As a primer for the Melbourne summit, The Interpreter will feature a series of authors from across the region in the coming days, covering the foreign policy priorities of the countries involved, as well as themes relating to maritime security, climate change, and economics.
The world looks bleaker for ASEAN in 2024. But ASEAN is not alone. Middle powers such as Australia and Japan are potential partners that ASEAN can work with to shape regional security and economic environments. But first, ASEAN must exercise its agency to address regional crises and be visible in dealing with them, such as the Myanmar conflict and the South China Sea maritime disputes.
Suppose ASEAN could not even act cohesively to deal with regional crises? In that case, the regular refrain about “ASEAN centrality” amounts to just an illusion – a Shangri-La bubble while outside powers create and dictate reality.