SPEECH BY DATO’ SERI ANWAR IBRAHIM PRIME MINISTER OF MALAYSIA

AT THE

NIKKEI CONFERENCE ON THE FUTURE OF ASIA 10 JUNE 2026

TOKYO, JAPAN

NAVIGATING STRATEGIC UNCERTAINTY

 

 

Excellencies, distinguished guests, ladies and gentlemen,

Allow me first to thank Nikkei for convening this significant gathering and for the honour of addressing such a distinguished audience.

 

Tokyo has long been a place where Asia comes to reflect on its future, and the Nikkei forum represents a key platform for geopolitical and geoeconomic discourse that is of consequence to the region.

Today, that conversation carries a special urgency, as we meet at a moment of profound disruption and uncertainty. But let us be clear, the uncertainty is strategic not because it has erupted overnight or even recently. In fact, it has been simmering for some time now.

This warrants an examination of the root causes. I daresay that among them is the fact that leaders have not really freed themselves of the old paradigm in geopolitics. It is one where the dictates of realpolitik and hegemonic considerations goad leaders to strive for power, constantly piling on their military and economic might in the name of strategic security.

The Cold War might have ended 35 years ago but, to be sure, history did not end with it. On the contrary, we are still held ransom to the classic zero-sum power dynamics where the strong continues to be invested in suppressing the weak. This is a formula for failure.

The continuing tragedy in Gaza, the tensions across West Asia and their compounding global effects, and the prolonged war in Ukraine remind us of the fragility of peace and the limits of international consensus. These are urgent and pressing concerns directly impacting the very fabric of international order. But this is not all.

Great power rivalry in this region, particularly, the South China sea disputes, pose a clear and present danger to maritime stability, placing Southeast Asia on edge. Meanwhile, we need to contend with the multi-layered threat posed by North Korea on account of its nuclear programs, not to mention its tremendous warfare capacities, both conventional and cyber.

Navigating this strategic uncertainty warrants more than passive acceptance of the state of play. It is the duty of political leadership to provide clarity to this strategic flux and not condone the excesses of realpolitik, let alone contribute to fanning the flames of discord.

Nor do we consider it appropriate, let alone useful, for nations to be coy about the real issues that matter. The elephant in the room must be pointed out. We shouldn’t lay the blame on the younger generation for their idealism. We need leaders with the courage of conviction to call out the injustices and hardship that continue to plague us and to advocate for a more proactive approach to peace and progress.

Ladies and gentlemen,

History teaches us that disruption is not uncommon. Long before the emergence of our modern states, the peoples of the Malay world and the Japanese archipelago learned to navigate uncertain waters. As maritime civilisations, we came to understand a simple truth: prosperity did not come from turning inward, but from engaging the wider world through trade, dialogue, and cooperation.

That heritage also taught us something else: the importance of navigation. For centuries, sailors crossed vast oceans without certainty about what lay ahead. They could not control the winds, but they knew where to look for direction. Those were centuries of peaceful co-existence that took us on the path of global convivencia in the pursuit of common prosperity.

Today, however, the world’s middle powers face cumulatively steep challenges as we find ourselves navigating an increasingly complex strategic landscape. Yet, even as we can neither control every geopolitical current nor predict every disruption, we must remain clear about the principles that provide our bearing, to guide us through the challenges before us.

The international system that supported decades of growth and development is under enormous strain. The multilateral trading system, once the cornerstone of global economic integration, faces mounting pressures from fragmentation, unilateral actions, and strategic competition. It appears that Trump’s failed “Liberation Day” tariffs are being given another new lease on life via new proposed impositions invoked under Section 301 of the Trade Act of 1974.

Across the global economy, export restrictions and industrial

policies are increasingly shaped by geopolitical rivalry. Most troubling is the growing tendency to weaponise economic interdependence. Supply chains, technology, critical minerals, finance, and market access are increasingly viewed through the lens of rivalry rather than mutual benefit.

For major powers, these may be harnessed as instruments of statecraft. For many others, however, they become sources of vulnerability. Asia’s prosperity was built on openness. Our economies grew because trade expanded, investment flowed, and markets became more interconnected.

 

Yet retreat to nostalgia can hardly be the way forward. The institutions that underpinned globalisation were designed for a different era. Today’s challenges, from economic security and industrial policy to digital trade and emerging technologies, require fresh approaches and revitalised institutions.

 

The task before us is neither to abandon the multilateral system, nor to preserve it unchanged. It is to reform and renew it. Our task is to hold fast to a system underscored by the principles of openness, transparency, predictability, and a rules-based framework that gives all countries the confidence to engage with the world.

 

But we must also ensure that our institutions remain relevant to

 

the challenges of our time. They must be capable of responding to new realities rather than antiquated assumptions.

 

Middle powers have a particular responsibility in this endeavour. We may not possess overwhelming power, but we possess credibility. We understand the aspirations of developing nations and the concerns of advanced economies. We are uniquely positioned to build bridges where others see divides, and build consensus where others see discord.

 

Ladies and gentlemen,

 

Asia’s rise has been one of the defining achievements of our time. Economic integration expanded opportunities, lifted millions out of poverty, and transformed the region into a major engine of global growth. Yet the foundations of that success are increasingly under strain. Strategic competition risks dividing the region into competing spheres, while challenges such as climate change, demographic transitions, and technological disruption transcend national borders.

 

Artificial intelligence illustrates both the promise and peril of this new era. It has the potential to accelerate productivity, transform industries, and unlock new pathways to development. Yet it also risks widening inequalities, concentrating power, and leaving many societies struggling to keep pace.

 

The future of AI cannot be shaped solely by a handful of technological powers or private corporations. Whether it be in the guise of a new “civilising mission” or “digital colonisation”, we must reject any new-fangled manifestation of technological fascism. Developing nations must have a firm voice in shaping the rules and governance frameworks that will influence the lives of billions.

 

And that lesson extends well beyond AI. The challenges before us are simply too complex for any nation to address alone. Therefore, rather than capitulation, the answer lies in collaboration, encapsulating cooperation, trust, and institutions capable of bringing together diverse interests.

 

This is why ASEAN remains relevant. ASEAN centrality is not merely a diplomatic concept. It is a practical response to a more fragmented world. It reflects the conviction that inclusion must prevail over exclusion, dialogue over division, and cooperation over coercion.

 

Japan has long been one of ASEAN’s most valued partners in this endeavour. Together, we must continue strengthening an open and inclusive regional architecture that enables all nations to prosper.

 

Ladies and gentlemen,

 

 

Time and tide wait for no nation and history seldom rewards indifference. Progress belongs to those willing to shape events rather than merely react to them. When Penang embarked on its industrial transformation in the 1970s, Japanese firms helped lay the foundations for it to become one of Asia’s leading electronics and semiconductor hubs. The relationship was built not simply on investment, but on confidence, partnership, and a shared belief in long-term development.

 

Today, that spirit remains highly relevant, and must continue to ride on the mantra of proactivity over passivity. Thus, when the future of the Trans-Pacific Partnership was cast into doubt, Japan stepped forward to sustain the initiative and transform it into the CPTPP, widely regarded as the gold standard for modern trade treaties.

 

Likewise, when regional economic integration faced uncertainty, ASEAN members, including Malaysia, worked with Japan and other Dialogue Partners to bring the Regional Comprehensive Economic Partnership into force, creating the world’s largest free trade agreement by population and economic scale.

 

But the task before us is far from complete. The next chapter of regional cooperation will not be defined solely by market access. It will be defined by our ability to strengthen economic resilience, and build trusted supply chains. The challenge is how effectively we can accelerate the energy transition, harness artificial intelligence responsibly, and ensure that technological progress benefits all rather than a privileged few.

 

In this regard, while much has been pondered on the future of the Indo-Pacific, this much is clear: It cannot be built solely on strategic concepts. It must be anchored in practical cooperation that delivers tangible benefits to our peoples.

 

Above all, this is preconditioned on a relationship of mutual trust, a genuine aspiration and political will to ensure mutual benefits to be derived from economic collaboration. The crucial imperative of “geoeconomic transparency” in dealing with one’s partner cannot be overstressed.

 

In this vein, the ASEAN Outlook on the Indo-Pacific, Japan’s

 

vision for a Free and Open Indo-Pacific, and initiatives such as the Indo-Pacific Economic Framework reflect a common recognition: that prosperity, resilience, and stability are deeply interconnected. The challenge before us is therefore not to create ever more frameworks, but to ensure that existing initiatives produce meaningful outcomes. Frameworks must be matched by strong leadership, resolute commitment, and decisive action.

 

This is where Malaysia and Japan can make a meaningful contribution. In semiconductors, Malaysia’s growing strengths in assembly, testing, and advanced packaging complement Japan’s leadership in materials, equipment, and advanced manufacturing. Together, we have an opportunity to build more resilient and integrated technology ecosystems at a time when supply chains face increasing pressures.

 

In energy, our partnership can contribute to Asia’s transition towards a lower-carbon future while maintaining economic growth and energy security. Through initiatives such as the Asia Zero Emission Community, we are demonstrating that sustainability and development need not be competing objectives.

In the digital economy and artificial intelligence, we must work together to ensure that innovation remains people-centred and

 

inclusive, creating opportunities rather than deepening inequalities. Growth, not stagnation, empowerment, not subjugation,

 

Excellencies, ladies and gentlemen,

 

 

The sailors of old could not predict every storm. They could not control the currents, nor could they see beyond every horizon. What they possessed was a clear sense of direction.

 

Today, our world does not suffer from a shortage of power. It suffers from a shortage of clarity. Clarity that institutions must be reformed and renewed, rather than abandoned. Clarity that cooperation remains preferable to division. And, clarity that leadership requires initiative, not resignation.

 

If we remain guided by these principles, I earnestly believe we can transform today’s challenges into tomorrow’s opportunities.

 

Malaysia stands ready to work with Japan, with ASEAN, and with all like-minded partners who believe that peace is sustained through dialogue, prosperity is built through openness, and progress is achieved through cooperation.

 

Together, let us navigate this strategic uncertainty and chart the path forward.

 

Thank you

 

Q&A SESSION

QUESTION 1

In a more uncertain external environment, from tensions in the Middle East to higher energy cost and renewed supply chain pressures, how do you see these developments affecting ASEAN countries both economically and strategically?

 

ANSWER BY YAB PM

Thank you. You know I took the wrong seat. And in politics, it’s very dangerous to take people’s seat. Now, what we have done in ASEAN, there may be minor differences, but I think the unique feature of ASEAN is firstly, it’s one of the most stable and economic resilient region in the world. It is relatively most peaceful if you compare to the skirmishes, disruptions throughout the world.

So, let us therefore use it to then chart a clear policy. There’s a Vision 2045 that we built and addressed and achieved through consensus together on and the every single issue, like power or energy transition, digital transformation, connectivity. So, it is not just the pious platitudes of the normal arrangements, regional arrangements, but to be more constructive and engaged in all sectors.

So, the region, as I understand, it is probably the most vibrant in exchanges and discussions between not only the Heads of

Government, but also ministers and officials. So, when we chaired the ASEAN last year, the meetings were by the thousands because we make sure that all levels, from schools to university students to research, they start engaging and charting a programme together.

I think with that, I think we can come out with somewhat a formidable voice and also strategy in dealing with our colleagues and friends outside the region.

QUESTION 2

As you mentioned, Malaysia chaired ASEAN last year. While ASEAN deepens its economic integration, we also see different positions, including for the Middle East and South China Sea, economic disparities and tensions among member states. Do you think ASEAN could continue to play a central role in the forcing cohesion of the members? And how do you see the ability of ASEAN in translating discussions of member countries so as to together make concrete and effective actions?

ANSWER BY YAB PM

Well, let us put this way. On a broader framework, on general policies vis a vis other regions or international, more, I should say contentious issues, we may have slight differences, but I think on the issue of peace, on issues of collaboration among neighbours, which is essential, I mean to have, as I’ve always referred to, we referred to South China Sea and people just focus one country against the other. But we as a maritime nation have issues with all our neighbours, naturally, but we don’t have a problem that can exacerbate a crisis or cause further tensions.

We negotiate, we delay decision sometimes, but it did not stop us from collaborating in terms of cross border arrangements, be it visa, be it travels or join programmes like we are now working hard with, for example myself, with Prime Minister Anutin, on bordering of North Malaya and South Thailand, or the relatively outstanding performance of the Johor-Singapore Special Economic Zone, which is spectacular and we have many Japanese firms also involved. Then we have this excellent relationship with Brunei Darussalam and the Philippines and Indonesia, other than the Indochinese states.

But having said that, I’m not saying that we don’t have issues. We have issues of smuggling, we have issues of illegal fishing, but it does not disrupt relations. That’s important. And it’s still based on trust and we work well jointly. We cannot have worked with Thailand if we don’t have that measure of trust to work to jointly develop our borders, our border areas. We cannot have this excellent example or par excellence in terms of sub-regional cooperation between Malaysia and Singapore if there is not based on trust.

But mind you, it’s not necessarily easy. So, I don’t want to deny the fact that we have issues, of course. We have problems. How we view, for example, development in the West Asia or the Middle East, where may be shades of opinion, I mean there are differences and as a country perceived to be pro-West more than pro-East and I’ve been asked many times, why are you less pro this pro that?

But nope. You know how we as a country, emerging economy, how we receive your Prime Minister Takaichi in Malaysia? With great warmth, with great affection and support. How we receive President Donald Trump in Malaysia, as an exampler, and also President Xi Jinping, of course they say, but with Trump I dance a bit, with Xi Jinping I didn’t. It doesn’t make a difference because President Xi Jinping said, “I’m sorry Anwar, I don’t dance”, that’s all. Otherwise, I would have done the same.

So, what I mean is for countries and I think for the region, we have to engage and all of us agree on that point that we should continue to engage other regions. That’s why we have ASEAN of course, Japan, ASEAN-United States, ASEAN-China and next week ASEAN-Russia. Oh my dear. There’s more contentious, more difficult, but we are still proceeding. Why? Because ASEAN position is centrality. Do we agree with all the issues of or decisions by President Trump? Of course not. With Russia certainly we have differences, but we collaborate well.

QUESTION 3

Thank you. ASEAN may have to confront protectionist policies from the major powers while dealing with internal differences among the member countries. So, in order to deal with the situation effectively, how do you see the possibility of ASEAN transforming itself or collaborating with other multinational framework in the near future? Would you view ASEAN’s engagement with groups such as BRICS as part of a broader strategic diversification?

 

ANSWER BY YAB PM

Well, first on the tariff, of course we take our position very clearly. I mean, and I’ve been appealing to countries to be more affirmative, more pronounced in their view for free trade, for multilateralism, you know, and for independent countries, we should not be seen to be too timid. We can’t say it. I mean, do we agree that there should be punitive tariffs or discriminatory policies? We don’t. Do we support free trade? Then say it as a policy. Of course, you know the limits, of course. But then you have to say it. But otherwise, you’re not contributing to this new emergence of new thinking.

I was at the University of Tokyo yesterday. You see the young voice of the students are a bit different. They want us to be more affirmative, to say it with confidence, with conviction and stand to certain principles. It’s not as easy, of course it’s easier said than done. But that’s what leadership is all about. I mean, I maintain, because Malaysia is very dependent, United States is number one in terms of trade and investments. So, across the pattern we have excellent relations. But do we agree with the, the summarily imposing tariffs? We don’t. Do you choose to say that? Of course. You do this, say that. Did I say to President Donald Trump? Of course, I did say, although very politely, of course. I say I’m the host in the meeting. But for other countries too, we expect the same. Then we can build this consensus.

Now, how do we deal with it? Of course, countries will have their own priorities, but it’s not a zero-sum game. I don’t think, as perceived by the media, even some here, that I’m tilting towards one country to another. It’s not true, because I deal with, if you know the history of Japan, not only by my predecessors, but by me, I give a lot of importance. You see the visits here, the working visit, the engagement not only with Prime Minister and leaders,

with foundations, with universities, we have that. We don’t have that with every country, every region, which means there is that sort of special relationship. But it does not mean that I am therefore pro-Japan and against someone else. No, it’s not.

So, I think we should maintain that centrality, the independent line, because finally we support peace. We have some differences. I’ve been more pronounced in my statements against atrocities, against the killings of children, be it in Iran or Lebanon or wherever. Some countries choose to be more nuanced and guarded. There’s a choice, but it does not mean therefore, that it should influence the overall decisions of economy, trade and diplomatic engagement.

QUESTION 4

Last year I was covering ASEAN Summit in Kuala Lumpur and I saw so many leaders from all over the world. So, the ASEAN Summit brought together not only leaders from the major powers, but also leaders from emerging economies such as Brazil and South Africa.

Malaysia has also shown a strong interest in deepening ties with emerging economies, including those in the global so-called Global South. Over the longer term, what opportunities do you see in these relationships and how do they fit within Malaysia’s broader international outlook?

ANSWER BY YAB PM

Yeah, we were fortunate because as corollary of the engagement that we have all the countries, they took the ASEAN Summit very seriously. We have a session with the Gulf countries, the first of its kind in the history of ASEAN. It’s the ASEAN-GCC Summit and we included China because they wanted to engage with China too. But at the same time, we have engagement with the other countries, Japan, South Korea, India, Australia, and Canada. But then I thought that these emerging economies in Latin America, like Brazil and Africa, South Africa are important. And they said why can’t we bring them and to engage with them? And I thought there’s a new beginning to show the relative centrality that we talk about.

You alluded earlier to the issue of BRICS. Why BRICS? I said, I’m asking you, why not? We are with all countries, we are with APEC, why not APEC? Because APEC excludes some countries, but we are with APEC, and we have arrangements bilaterally, multilaterally with many countries. Now with BRICS, because sometimes we see, like I referred to the issue in Nikkei, we want an Asian voice. Asia is becoming really important, and we want it to be an objective representation of the voice of Asia.

So, we support the Nikkei Forum. And in BRICS we thought that countries less industrialised than the Third World, is not being heard effectively. That’s one.

But number two, why can’t we find out any additional collaboration with these countries, separately with BRICS? But it’s not zero-sum game because like Malaysia, we are too close and dependent as a trading nation. I mean with the United States, as I said earlier, about trade and investment. You mean attending a BRICS meeting would mean that we are not, we are forsaking that sort of relationship? No, no, I will not do that because I would do that at the expense of Malaysians of the country and general Malaysians, because the dependence on economic strength from there. So, therefore we have again BRICS.

We have… why the GCC? This was before the war. Because GCC is an emerging nation, very successful, vibrant in all this new technology, energy transition. We continue to work with the GCC and to me it is of critical importance for ASEAN to continue engaging vibrantly, aggressively with all the countries.

 

QUESTION 5:

Malaysia is widely seen as moving closer to high income status. As your government prioritises areas such as semiconductors, AI and green energy, what do you see are the key drivers of the country’s next phase of growth?

 

ANSWER BY YAB PM

Why do you ask me all these difficult questions? Because, when Nikkei invited me, he said, now come Prime Minister to Japan and talk to us. Engage and relax. Oh, I don’t think so, but thank you, thank you.

 

On a serious note, we have the nationals. You see, I am fortunate because although there were, you know, political differences and turbulence in the past that I had to, but I am objective. I do acknowledge the Malaysia even at the more critical worst period stood generally with some clarity and he has not gone down like a banana republic.

 

But we have to cease the moment we should not allow it to decline. So, I have to give some recognition to my predecessors. Notwithstanding some of my disagreement because they laid the foundation, and although there were huge allegations about corruption and abuse of power, but at least they did not fall and became so disruptive that the whole system was dismantled.

 

So, I’m fortunate. So, I inherited a system and that was some still working: the political system, democracy, civil service and the institutions, the central bank and the institution that still maintains its relative independence and respectability.

 

So, my duty is therefore to ensure that a reform take place gradually to fortify and strengthen, and this means with the political stability which we are fortunate. Then we start very clarity of policies.

 

What are the new areas? So, we talk about digitalization and AI which is not the priority placed by many emerging economies. I mean, of course Japan is and how do you in fact done it. Then we realise that quantum is missing. Now there are countries have done it better, Japan is of course emerging. So, I was at Keio University in the last few years and then yesterday Tokyo University, working with IBM for example, how to promote. So, that’s why I’m talking about clarity policy.

 

Semiconductor, we are more fortunate because now Malaysia has become somewhat the semiconductor hub in the region. Not only the low end but also now more high end. We’re talking about packaging and advanced packaging and that’s where the collaboration with Japanese industries and the support Japanese government is critical.

 

So, these are new areas that we talk about. And then of course energy transition. We are fortunate we have Petronas. Then we have this thinking of this ASEAN grid, which I promoted very strongly and supported by the Vietnamese government and the

Laos and now Singapore and we’re working with Sarawak.

So, these are new areas. I’m not necessarily saying that the old technologies, a past, this also the stages of growth, you know, the rostow and theory of stages of growth still applies although different form. But we can’t wait for the stage there’s some sometime we have to overtake, so we still maintain the old growth pattern but we embark on some new areas and disciplines.

So, that’s why I said but that means the whole ecosystem, education have to be transformed. We place very important emphasis on the national language, but now gaining importance of the English language. Then we have the issue of training pool and talent pool before institutions, academic institutions are relatively independent.

 

Because we don’t believe in utilitarianism in terms of education policy, of making schools and colleges as factories. But at the same time, we realise that whilst maintaining the co-curriculum about values and ethics in education, we need to have that strong synergy with the industry. So, the industry would come in, so the big industries, you see Mitsubishi, and the rest, this is very dangerous when you mention one company, you must. I don’t, I can’t mention 50. But for example, for example, you see, we are asking them, once they come in, we see, why don’t you also have

the synergy with one faculty, one university, instead of the university working in silence?

 

These are new arrangements that we make because of a more open policy that leaders have learned, and leaders are prepared to listen. And leaders that work together not only among political leaders and elites, but with the industry, with academicians, and with civil society.

 

CLOSING

Thank you so much. Unfortunately, we are running out of time. We  still  have  a  lot  of  questions  that  we  like  to  ask. His Excellency, much for your time today, Terima kasih banyak Prime Minister, Anwar Ibrahim of Malaysia. Please remain seated  and  give  him  a  big  round  of  applause.