SINGAPORE – The
recent armed clash between Cambodia and Thailand
was a setback not only for peace in the region, but also Asean’s credibility, said Foreign Minister Vivian Balakrishnan.
The territorial dispute raised questions about Asean’s ability to prevent and manage crises, and Dr Balakrishnan said while such disputes are not uncommon in South-east Asia, he emphasised that violence can be avoided.
When it does occur, it reflects a failure of leadership, said Dr Balakrishnan, who also cautioned against letting matters deteriorate into catastrophe, as the region faces rising geopolitical tensions and an increasingly fragmented global economic landscape.
Speaking at the 17th Asean and Asia Forum organised by the Singapore Institute of International Affairs on Aug 5, Dr Balakrishnan described the Cambodia-Thailand conflict as a serious blow for the grouping.
“There’s no need to put lipstick on this. This is a setback, a major setback, not just for peace and stability, but for credibility in Asean,” he told an audience of about 300 diplomats, academics and business leaders at the Parkroyal on Beach Road.
Countries in the region have long lived with unresolved territorial disputes between them, which Dr Balakrishnan noted “is not a short list”. But he stressed that the existence of such disputes does not mean they must result in violence.
“Just because you have got areas which have not yet been delimited or which are in contention, does not mean it has to lead to violence, and the fact that violence occurs is a failure of diplomacy, and arguably complicated when leadership is hamstrung,” he said.
The solution, said Dr Balakrishnan, is for nations to first take care of their own societies – a point he has often made by emphasising that foreign policy begins at home.
He noted that a backlash against globalisation and trade, including the weaponisation of tariffs and supply chains, often stems from domestic insecurity and a loss of confidence that existing systems are delivering fair outcomes for all segments of society.
“If your home front is not settled, it is very difficult to conduct economic or diplomatic (policy),” he said.
Dr Balakrishnan’s comments came
after a ceasefire was brokered on July 28 in Malaysia,
who is this year’s Asean chair, following five days of clashes between Cambodia and Thailand. The fighting left more than 40 dead and displaced over 300,000 people along their shared border.
The incident remains one of the most serious armed confrontations between Asean member states in recent years.
Asean Secretary-General Kao Kim Hourn, who spoke in a separate session at the same forum, said Malaysia’s chairmanship played a key role in calming tensions.
“The decisive decision by the Asean chair to intervene has been remarkable,” he said, adding that defence ministers from both sides have resumed talks in Kuala Lumpur and that progress is being made.
Malaysian Prime Minister Anwar Ibrahim said on Aug 5 that Putrajaya is prepared to deploy a monitoring team to the border if requested by both Thailand and Cambodia, though for now, the situation is being observed remotely via satellite and coordinated through Malaysia’s defence attaché.
The Cambodian-Thai tensions come as Asean continues to manage the fallout from the Myanmar crisis, which has seen ongoing violence and political instability
since a military coup in 2021.
The grouping has barred Myanmar’s ruling junta from key meetings due to their failure to implement peace plans and end the violence that has gripped the country since it seized power.
Dr Balakrishnan said the roots of the conflict there run deeper than politics, citing Myanmar’s long-standing failure to forge a cohesive national identity.
National reconciliation, moral leadership, and political imagination are essential, he said, adding that military force is not sufficient.
Both leaders in their separate sessions also spoke about the broader regional and global context, warning that the space for cooperation is narrowing amid growing economic fragmentation and weakening multilateral institutions.
To a question on how Asean will navigate the current economic situation, Dr Kao said that member states are responding both individually and collectively, though there is still considerable uncertainty ahead.
On the impact of US tariffs, he said the immediate priority is to minimise their effects and protect livelihoods. Governments are working to finalise the upgraded Asean Trade in Goods Agreement (Atiga), which is expected to be signed in October, as part of efforts to move closer to the grouping’s single market goal.
The Atiga, a key free trade agreement for the region, was signed in 2009 and came into force a year later. Negotiations to upgrade this agreement were concluded in May.
Meanwhile, Dr Balakrishnan described the current moment as the end of the post-Cold War era of rules-based globalisation.
The result, he said, is a “world disorder” in which international institutions such as the United Nations Security Council and the World Trade Organisation are increasingly paralysed.
He noted that since January, developments such as new United States tariffs and the so-called “Liberation Day” shift in trade policy have underscored the urgency of adapting Singapore’s external and domestic strategies.
While bilateral and regional deals continue to be signed, he warned that the erosion of global norms means small states like Singapore must navigate a more transactional and fragmented world.
Dr Balakrishnan said that Asean must engage all partners and practise flexible multilateralism but also acknowledged that operating by consensus can at times feel like a straitjacket that slows progress.
The goal, he said, is not to abandon consensus, but to recognise that insisting on unanimity can make decisions nearly impossible, especially when some members act as spoilers.
He stressed the need for a system in which if enough members want to move forward constructively, they should be allowed to do so. Asean should continue seeking compromises, but not allow consensus to become a permanent obstacle.
For Singapore to tackle global shifts, Dr Balakrishnan outlined a three-part strategy of reforming global institutions, deepening regional integration, and reinforcing the country’s domestic economic resilience.
Global institutions must be reformed in terms of representation, decision-making, and process, said Dr Balakrishnan. And on its part, Singapore is contributing to this effort through its nominations to international bodies.
He gave the example of veteran diplomat and international law expert Rena Lee, who will be fielded by Singapore for election as a judge at the International Court of Justice in 2026.
On regionalisation, Dr Balakrishnan noted that Singapore’s leaders have consistently attended Asean meetings, and the Republic is working with the grouping to expand key trade agreements and launch new economic frameworks.
Regarding efforts to reinforce Singapore’s domestic economic resilience, Dr Balakrishnan pointed to an ongoing review of the country’s economic strategy,
announced by Deputy Prime Minister Gan Kim Yong on Aug 4.
The review will develop long-term plans to boost Singapore’s global competitiveness and enhance the start-up ecosystem. Committees led by political office-holders will engage stakeholders and present their recommendations by mid-2026.
Singapore is also focused on managing its external partnerships carefully. Dr Balakrishnan said Asean remains Singapore’s “innermost core” politically, militarily and economically. He stressed the need for member states to “hang together or hang separately.”
Beyond the region, Singapore must also carefully manage its relations with the United States and China, Dr Balakrishnan said. This includes handling ties bilaterally, as well as navigating “space between them, and where we fit”.
“We don’t want to be forced on two sides, but we want to have a value proposition for both, so that they have a stake in our success and prosperity,” he said.
