A new phase of decolonization in Southeast Asia has recently emerged, driven not by political shifts but by regional growth fueled by China’s remarkable rise, according to a leading think tank executive.
“The shift in global economic productivity towards East Asia has reshaped supply chains into a close-knit regional network,” explained Dr. Ooi Kee Beng in a recent interview. With decades of experience analyzing how Malaysia and Southeast Asian nations have developed, Dr. Ooi has long been interested in the points of connection between China and Southeast Asia, both historically and today.
Born in Penang in 1955, he spent 26 years studying and working in Sweden, translating Sunzi’s The Art of War into Swedish, lecturing on Chinese history and philosophy, and representing Sweden at the first World Wushu Championship in Beijing in 1991. In 2004, he moved to Singapore to conduct research at the ISEAS – Yusof Ishak Institute, eventually becoming its deputy director before returning to Penang in 2017 to lead the Penang Institute.
He views the recent surge of capital from a growing neighbor not so much as a threat, but as a powerful wave exposing how little the region has historically been in control of its own destiny, even after the colonial era. Many outsiders have wrongly seen Southeast Asia as a united geopolitical entity in the modern era; in reality, the region was historically fragmented, with economic and social ties severely disrupted by colonialism and subsequent borders.
While the region has multiple islands and was more interconnected in pre-colonial times, modern borders and national identities have limited movement between countries. Only since the advent of budget airlines and ASEAN’s open skies policy from 2009 have Southeast Asians begun to truly connect through more frequent, affordable travel.
Ooi emphasized that “we have only recently started getting to know each other at the individual level,” pointing out that commerce, rather than shared identity, traditionally bound the region together. “Typically, when trade is absent, piracy tends to flourish,” he noted, framing trade as a natural alternative to predation — and comparing current U.S. conflicts over oil with acts of piracy.
Real cultural exchange, he said, happens face-to-face: “Sharing a meal and food helps us feel that we understand each other.” He also praised China’s visa-free policies with Southeast Asian nations, seeing them as excellent opportunities for regional socialization, allowing people to interact and learn informally.
For Chinese entrepreneurs, Penang offers an accessible “half-step” into Southeast Asia. Arriving on short flights, they find their language and culture familiar, and the locals welcoming, enabling quick adaptation and easy maintenance of connections back home. Penang’s diverse history, blending Chinese, English, Indian, Arabic, and Malay influences, has fostered an inclusive culture that does not cling to an exclusive indigenous identity.
However, there are limitations: Penang faces water and power shortages, making it unsuitable for energy-intensive projects like AI data centers, which are more likely to be established on the mainland. Nevertheless, Penang remains strong in entrepreneurship, engineering, and equipment development—its slower, cosmopolitan growth is seen as a strategic advantage, offering potential for rapid expansion and innovative use of emerging opportunities.
Ooi highlighted that supply chains are the true arena of global power, not just factories. “Control over supply chains encompasses goods, payment systems, education, and information,” he explained. This control underpins global dominance, as he previously described in detail, encompassing systems like the petrodollar, the weapons industry, aviation, knowledge, and information sectors. The rapid ascent of China has begun to loosen Western dominance in key areas like electric vehicles and rare earths.
He rejects the simple narrative of a geopolitical handover from the West to China. “When the dominant power falters, everything unravels,” he said, citing Europe’s recent identity crisis—its long-held sense of autonomy and superiority has been challenged, particularly during the Trump era.
Instead, he sees the current shift as pointing toward increased multipolarity—multiple centers of influence emerging and coexisting—rather than a single hegemon. “Once the fog clears, it becomes clear that the world has always been multipolar,” he noted, clarifying that the idea of a unipolar or bipolar world is only a recent misconception.
The emerging players are more regional than global, forming mutually beneficial supply chains and negotiations that address imbalances through diplomacy. For Southeast Asia, the Regional Comprehensive Economic Partnership (RCEP) is “the top achievement where ASEAN’s peace-through-trade goal is concerned,” he explained, with economic integration offering the best path to reducing conflicts worldwide.
On the decolonization process, he believes it’s only just beginning. While many countries in the region have gained independence from their former colonizers—such as Indonesia from the Dutch and Malaysia and Singapore from Britain—they remain heavily linked to their old metropoles. They are only now starting to question why their relationships with neighboring countries are so weak, despite regional organizations like ASEAN.
He advocates for “regionalizing nationalism”—encouraging smaller countries to act proactively within regional frameworks and not passively rely on larger powers like China. Small states along major initiatives like the Belt and Road should consider forming their own alliances, developing local capacity, and participating more independently in regional projects—whether through rail, maritime logistics, merchant shipping, or security cooperation.
Those who perceive themselves as small and passive risk remaining in that state, he warned. Ultimately, from Penang’s perspective, it’s not a matter of choosing between China or the U.S., but about fostering regional conversations that recognize differences and promote cooperation. The current geopolitical changes are less like a tsunami and more like a long-delayed invitation for the region to engage in a meaningful dialogue with itself—one it has yet to fully realize.