ASEAN, explained.
Malaysian Prime Minister Anwar Ibrahim is chair of ASEAN for 2025 (MOFA Malaysia)
Growing the regional bloc with Timor-Leste’s membership has been more than a decade in the making.
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Halfway through Malaysia’s watch, ASEAN expands its ambitionHalfway through Malaysia’s watch, ASEAN expands its ambition
As chair for 2025, Malaysia is steering the Association of Southeast Asian Nations under the theme “Inclusivity and Sustainability.” This marks Malaysia’s fifth term at the helm since ASEAN’s founding in 1967. Prime Minister Anwar Ibrahim hosted the ASEAN Summit in Kuala Lumpur last month, setting out a vision for ASEAN to reclaim its independent agency and avoid being swayed by major powers.
In order to move forward, the grouping also looked back, commemorating the tenth anniversary of the 2015 plan known as “ASEAN Community Vision 2025”. This was primarily centred on strengthening regional integration and was formed during a time of relative stability – a contrast with the circumstances today. A significant change in tone and strategic ambition can be seen in the new Vision 2045 presented at the summit, covering the next two decades, while still emphasising resilience and autonomy.
The summit showed a strong intent to expand its bloc by deciding to grant Timor-Leste full ASEAN membership later this year. By bringing in a small, developing nation, Malaysia, as ASEAN’s chair, sought to reinforce its inclusivity theme, showing the bloc is not a club of only economically advanced or politically stable states. ASEAN had agreed “in principle” to Timor-Leste’s membership in 2022, assuring it of observer status, but the long road toward regional integration began in March 2011 when Timor-Leste formally requested membership.
By supporting a small, post-conflict democratic nation, the bloc burnishes its image as a promoter of stability, democracy and development.
In February, at the ASEAN Future Forum in Hanoi, Timor-Leste’s President Jose Ramos-Horta met Anwar, repeating his joke that accession to ASEAN was harder than gaining entry to heaven. Anwar has been a strong supporter of Timor-Leste’s bid to join the grouping, having pledged US$ 200,000 to the Timor-Leste unit at the ASEAN Secretariat in Jakarta to accelerate the country’s membership. Malaysia is also leading efforts to streamline the membership roadmap, ensuring that Timor-Leste’s participation in almost 100 ASEAN legal instruments and agreements is facilitated.To ease the accession process, Malaysia is also negotiating to allow Timor-Leste to achieve compliance over three to five years after becoming a full ASEAN member.
José Ramos Horta, President of Timor-Leste (Greg Beadle/World Economic Forum)
One of the world’s poorest nations, questions have inevitably been raised about the ability of Timor-Leste to contribute significantly to ASEAN's development agenda. The country’s economy remains dependent on oil and gas resources with minimal diversification into other industries, and it struggles with high levels of unemployment, inequality, and malnourishment. It also has issues with human resource capability and infrastructural development, which are thought to be essential for successful engagement in the ASEAN economic community.
However, Timor-Leste will have access to ASEAN's sizable export market and more job possibilities as a result of achieving full membership. This opens the prospect to draw both domestic and foreign investments with a more predictable investment regime, gaining support for structural reforms and modernisation efforts. Joining ASEAN may also contribute to the transformation of Timor-Leste’s public administration.
Notwithstanding a clear roadmap, there are still worries that Timor-Leste's admission would impede the development of the ASEAN Economic Community and that the nation's ambiguous geopolitical position might affect ASEAN's consensus-based decision-making process. The region is grappling with the US-China rivalry, with the economic dimension made acute by US President Donald Trump’s tariff agenda. In 2023, Timor-Leste and China formed a Comprehensive Strategic Partnership, and Ramos-Horta last year speculated about involving Beijing further in the country’s development needs should partnerships with neighbouring Australia not be fulfilled.
Anwar, however, also sees Timor-Leste’s admission to ASEAN as a means of strengthening ties between the Southeast Asian grouping and the Pacific Islands Forum, which is also receiving increased attention from China. Timor-Leste enjoys cultural ties to the Pacific and is also located alongside key trading routes.
The inclusion of Timor-Leste as a full member of ASEAN would also enhance ASEAN’s global standing. By supporting a small, post-conflict democratic nation, the bloc burnishes its image as a promoter of stability, democracy and development – the foundational principles on which ASEAN was based. It is anticipated that ASEAN membership will create further educational and capacity-building possibilities for Timorese. It also gives the region a basis for cooperation on increased market access, improved connectivity, and streamlined trade, all while contributing to global norms and standards.
About the author
Simran Walia
Ms Simran Walia is a Research Analyst at the Manohar Parrikar Institute of Defence Studies and Analyses (MP-IDSA), New Delhi, and is pursuing PhD in Japanese Studies from Jawaharlal Nehru University (JNU), New Delhi.
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