The global geopolitical landscape is undergoing a seismic shift. For decades, American dominance economically, militarily, and diplomatically that defined the post–Cold War international order. Today, that dominance is increasingly challenged by emerging powers and shifting global alignments.
The rise of competing powers,
growing distrust of U.S. intentions, and the resurgence of nationalist economic
policies, particularly under Donald Trump’s second term, are accelerating the
fragmentation of global power.
In place of a U.S.-led unipolar
order, a multipolar world is emerging one increasingly defined by the rivalry
between the United States, an emerging axis of Russia–China–India (RCI), and a
recalibrated European Union.
Trump’s recent moves to impose
tariffs on a wide swath of countries, including traditional allies like the
European Union, Canada, South Korea, and India, mark a decisive turn away from
multilateralism. The U.S. under Trump appears less interested in preserving
alliances than in asserting economic leverage to secure short-term national
interests.
India, for instance, faces U.S.
tariffs due to its continued oil trade with Russia, while European states face
penalties despite shared democratic values. These actions have weakened global
trust in American leadership and encouraged other powers to seek alternatives
to the U.S.-centric system.
The result is a slow but steady
alignment of interests among Russia, China, and India. While not formal allies,
these countries are cooperating more closely in trade, defence, and energy.
Russia remains a key energy supplier and geopolitical counterweight to the
West.
China, with its vast economic
influence and Belt and Road Initiative, offers an alternative vision of
globalization. India, although traditionally aligned with the West, is
asserting a more independent foreign policy, strengthening its role in the
Global South, and resisting U.S. pressure on Russia-related issues.
Together, these powers are
exploring financial systems outside of SWIFT, expanding BRICS collaboration,
and discussing alternative trade currencies, actions that directly challenge
U.S. economic hegemony.
Meanwhile, the European Union,
once America’s closest ally, is rethinking its dependency. Trump’s economic
aggression and his transactional approach to diplomacy have led EU leaders to
prioritize strategic autonomy.
The EU’s efforts to develop
independent digital, defence, and energy strategies alongside deeper engagement
with Asia, Africa, and Latin America that signal a broader desire to avoid
entanglement in U.S.-China rivalry. The EU may not align with the RCI bloc, but
it is increasingly pursuing a third path, forming a new pole in the global
order.
For Malaysia, this changing world
order brings both uncertainty and opportunity. As a middle power deeply
embedded in global trade networks, Malaysia cannot afford to take sides in
great power competition.
At the same time, it must not be
passive. Malaysia’s long-standing commitment to neutrality, rooted in its
non-aligned foreign policy tradition, must evolve into an active strategy of
diversification, engagement, and resilience.
First, Malaysia must reaffirm and
modernize its policy of strategic neutrality. This means rejecting rigid
alignment while maintaining open channels with all major powers. Malaysia’s
position within ASEAN provides a crucial platform to strengthen regional voice
and unity. By championing ASEAN centrality, Malaysia can help prevent Southeast
Asia from becoming a theatre for proxy competition and preserve the region’s
collective autonomy.
Second, Malaysia needs to invest
in economic resilience. This includes diversifying its trade partnerships,
moving up the value chain, and integrating further into regional economic
frameworks like the ASEAN Free Trade Area and the Regional Comprehensive
Economic Partnership (RCEP). Strengthening ties with non-traditional partners including
the EU, Middle East, and Africa will reduce exposure to U.S.–China volatility.
Third, Malaysia should enhance
its regional security role. Without entering into formal alliances, Malaysia
can support multilateral defence dialogues, invest in maritime domain
awareness, and participate in joint capacity-building exercises. The South China
Sea remains a sensitive flashpoint, and Malaysia must defend its sovereignty
while advocating for peaceful, rules-based resolution mechanisms such as
UNCLOS.
Fourth, Malaysia must remain a
vocal proponent of multilateralism and international law. As powerful states
bend or break norms to serve national interests, smaller nations like Malaysia
have every reason to insist on the sanctity of global institutions. Supporting
the United Nations, World Trade Organization, and regional conflict-resolution
bodies will be critical in upholding a predictable international environment.
Finally, Malaysia should embrace
its role as a bridge builder. As a Muslim-majority democracy with deep ties to
both East and West, Malaysia is uniquely positioned to mediate, convene, and
foster dialogue. It has a track record of hosting peace talks, and its balanced
relationships allow it to engage credibly across ideological divides. This
middle-power diplomacy can be a powerful asset in a divided world.
The rivalry between the United
States and the RCI axis, along with the EU’s pursuit of strategic independence,
marks the dawn of a new global configuration. Power is no longer concentrated
in one capital or alliance but spread across regions, ideologies, and networks.
This is not necessarily a more
dangerous world but it is a more complex one. For Malaysia, the path forward
lies not in choosing sides, but in choosing principles: sovereignty, regional
cooperation, economic inclusivity, and peaceful engagement.
In a time of shifting alliances
and contested norms, Malaysia must act with foresight, agility, and unity. Its
strength will lie not in military might or economic scale, but in its ability
to stay true to its values while adapting to the winds of change.
The world may be entering a new
order, but with the right strategy, Malaysia can help shape it rather than be
shaped by it.
02.08.2025
Kuala Lumpur.
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