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Southeast Asia’s Tightrope Act: Malaysia and Singapore Juggle Neutrality in US-China Tech Cold War

Southeast Asia’s Tightrope Act: Malaysia and Singapore Juggle Neutrality in US-China Tech Cold War

Published:
2025-05-23 05:44:00
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Malaysia and Singapore are struggling to stay neutral in US-China trade war

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Zafrul has since held discussions with US Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer, including talks at an Asia-Pacific Economic Cooperation meeting in South Korea last week.

“They seem to understand [our position],” he said. “But the caveat is, they still need to convince the boss. This still depends on Trump.”

Zafrul warned that any new US levies explicitly aimed at the chip-making sector WOULD harm Malaysia’s economy. Semiconductors make up more than 60% of Malaysian exports to the US. “This is an ecosystem that has been built over 60 years,” he said. “For each multinational that is present in Malaysia doing this business, there are at least a few hundred Malaysian companies supporting it.”

As these shifts reshape global supply chains, South-East Asia finds itself at a crossroads. “We have to balance it by not choosing a side and by understanding each side’s concerns,” Zafrul said. “All countries [in the region] are having to navigate that. It is tough.”

Next week, leaders from the Association of Southeast Asian Nations and the Gulf Cooperation Council will meet in Kuala Lumpur. They aim to negotiate a broad trade agreement at a time when the world trading system is showing signs of breaking down. Chinese Premier Li Qiang is also expected to attend the gathering.

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