KUALA LUMPUR, Sept 3 (Bernama) -- ASEAN’s ability to maintain friendly relations with both the United States (US) and China is one of its greatest political assets amid growing rivalry between the two global powers, said Prof Kishore Mahbubani.
The distinguished fellow at the Asia Research Institute, National University of Singapore, said ASEAN had demonstrated remarkable resilience by maintaining peace, growth and prosperity in the region despite shifts in global power dynamics.
Speaking at the FOREWORD KL 2026 investment forum here today, Mahbubani said the current geopolitical turbulence was driven by three major developments, the war in Ukraine, confrontation with Iran and the US-China strategic rivalry.
He described the US-China contest as the biggest geopolitical contest in human history and cautioned against underestimating either power, given China’s resilience and the United States’ economic strength after leading the global economy for more than a century.
“In geopolitics, please don’t think this is easy. But all of us can stick together and say to both sides, ‘we want to be friends with the United States, and friends with China’,” he was quoted in a statement by AHAM Capital Asset Management today.
Mahbubani said ASEAN’s most overlooked achievement was peace, which had largely gone unnoticed by the region’s own citizens despite the bloc operating amid geopolitical tensions in Northeast Asia, the South China Sea and the Korean Peninsula.
Meanwhile, AHAM Asset Management Bhd Deputy Managing Director and Chief Fixed Income Officer Esther Teo said Malaysia’s economy had continued to demonstrate resilience despite moderating global growth and geopolitical tensions.
She said steady domestic demand and Malaysia’s growing role in the global technology and semiconductor supply chain remained key strengths, particularly as the country approaches the 16th General Election (GE16).
“For institutional investors, who wins matters less than knowing which policies will endure regardless of the outcome, and whether Malaysia’s standing holds steady through the transition,” she said.
In a panel discussion on Malaysia’s political and macroeconomic landscape, former Health Minister Khairy Jamaluddin said policy certainty and institutional strength were important in ensuring investor confidence through electoral cycles.
He said Malaysia should reach a stage where businesses and investors were not overly concerned about the outcome of a general election, with institutions strong enough to ensure continuity regardless of changes in government.
“We have solid government-linked investment companies (GLICs), the regulators, the statutory bodies, the message we need to send to investors and businesses is that your money is safe and the rules are fixed,” he said.
On Malaysia’s economic fundamentals, Khairy said the country was well positioned due to its natural resources, diversified economic sectors and strategic advantages, noting that the country had multiple engines of growth, including oil and gas, electrical and electronics, palm oil, manufacturing, tourism and services.
Echoing the statement, Group Chief Executive Officer (CEO) of The Edge Media Group Datuk Ho Kay Tat emphasised that investors want clarity and do not like flip-flop policies.
Meanwhile, during the panel discussion “Unlocking Value in Local Equities: Regional ValueUp Programmes”, panellists said Asian markets including South Korea, Singapore and Malaysia are pursuing Value-Up reforms at the same time because they share a similar structural problem — low returns on equity (ROE), inefficient balance sheets, weak shareholder returns, governance concerns and insufficient investor engagement.
Value-Up programmes are policy-led efforts to push listed companies toward better capital discipline, stronger shareholder returns and clearer disclosure, so that their markets trade closer to fair value.
“Value-Up can be a catalyst for a sustained re-rating of Asian equities - but only if it leads to real behavioural change, not just better messaging,” said Amova Asset Management Head of Asian Equities Kenneth Tang.
“The markets that are most likely to benefit will be those where companies follow through with measurable improvements in ROE, dividends, buybacks, governance and investor engagement. That is when Value-Up becomes more than a theme; it becomes a structural reason for global investors to reallocate capital back into Asian equities," he added.
Meanwhile, AHAM Asset Management Bhd Deputy Head of Equity (Malaysia) David Loh said Malaysia’s Value-Up programme could be a game changer for the domestic market if implemented effectively.
He said the programme, involving the stock exchange, participating companies and GLICs, had the potential to drive a structural improvement in corporate behaviour.
The FOREWORD KL 2026 investment forum, themed “Navigating a Changing World: Geopolitics, Market Transformation & Malaysia’s Future”, brought together more than 350 institutional clients, financial institutions, distribution partners and wealth clients.
The forum was organised by AHAM Capital in collaboration with Amova Asset Management as part of AHAM Capital’s 25th anniversary celebrations.
-- BERNAMA