Southeast Asia’s economic path narrows — but Malaysia rises with strategic clarity, says top economist Shan Saeed
By TENGKU NOOR SHAMSIAH TENGKU ABDULLAH
KUALA LUMPUR, May 24 — As Kuala Lumpur becomes the diplomatic epicentre for ASEAN deliberations, Malaysia is emerging as a key architect of regional economic recovery. With the ASEAN Summit set to take place from May 26–28, the country is asserting itself as a regional economic anchor amid a turbulent global environment.
According to Juwai IQI Chief Global Economist Shan Saeed, Malaysia’s strategic positioning, resilient growth, and clear macroeconomic direction offer valuable forward guidance for ASEAN as it navigates geopolitical and economic headwinds.
“Macroeconomic stability has become the hallmark for Malaysia’s growth outlook in 2025,” Shan told TNS News in an exclusive interview. “Malaysia is demonstrating resilience and is well-positioned to provide forward guidance to ASEAN nations.”
ASEAN Under Pressure, Malaysia Steps Up
The summit, chaired by Malaysian Prime Minister Datuk Seri Anwar Ibrahim, is expected to address some of the most pressing regional challenges: escalating geopolitical tensions, the ongoing conflict in Myanmar, and the disruptive impact of U.S. reciprocal tariffs targeting Southeast Asian exports.
Against this backdrop, Malaysia is positioning itself as a vital economic and diplomatic fulcrum in ASEAN.
“Malaysia is anchoring global recovery by playing her part strategically,” said Shan. “The country’s positioning as a hub for energy, data centres, and semiconductors is driving economic momentum.”
With a solid first-quarter GDP growth of 4.4%, Malaysia has outpaced regional expectations, thanks to its diversified economic strategy and strong fiscal fundamentals.
.Shan Saeed
ASEAN Outlook: Resilient But Moderating
While Malaysia posts robust figures, the broader ASEAN region is forecast to experience a slight moderation in growth. According to Shan, ASEAN GDP is projected to slow modestly, from around 5.0% in 2024 to 4.7–4.9% in 2025, and 4.4–4.7% in 2026.
“This moderation is due to external factors such as U.S. tariffs and a potential deceleration in many advanced economies,” Shan explained.
Nonetheless, the region’s internal strengths — including rising income levels, robust domestic demand, and ongoing infrastructure and tech investments — are expected to support steady growth.
“I am buoyant on the outlook of the ASEAN region due to macroeconomic stability and strong aggregate demand,” he added. “ASEAN remains on the global investor radar for the next 5 to 10 years.”
The Road Ahead: Regional Leadership Through Stability
As global power dynamics continue to shift and protectionism rises, the need for a unified ASEAN response becomes more urgent. Malaysia’s role as ASEAN Chair and its strong economic fundamentals could help shape a more resilient future for the region.
Prime Minister Anwar’s administration has made it clear that it intends to deepen economic integration, bolster digital connectivity, and uphold rules-based governance across ASEAN.
“By fostering regional stability and economic collaboration, Malaysia can help lead ASEAN towards a stronger and more resilient recovery,” said Shan.
About Shan Saeed
Shan Saeed is Chief Global Economist at Juwai IQI, a leading international real estate and investment advisory firm headquartered in Kuala Lumpur. With over 23 years of global financial market experience, he specializes in macroeconomic strategy, commodity forecasting, and real estate economics. He regularly advises institutional clients across Southeast Asia, China, and the Gulf region and is a frequent speaker at global economic forums.
–TNS News