Editor’s Note
by Siu Tzyy Wei, Lead Editor - Maritime Crescent Desk
From diplomacy to public spending and football, national priorities are rarely defined by words alone. They are revealed in the partnerships countries cultivate, the resources they allocate, and the people they choose to back.
This week, we look at Brunei and Singapore’s diplomatic ties, Malaysia’s 2027 national budget, and Indonesia’s debate over the preference for Europe-trained footballers over locally developed talent. Across these different arenas, each story offers a glimpse into how Southeast Asian countries navigate competing interests, make strategic choices, and decide where their bets lie.
Brunei Darussalam 🇧🇳
Small States, Big Security
by Syimah Johari, in Bandar Seri Begawan
Over the weekend, Brunei and Singapore celebrated 50 years of bilateral relations. Marked by Singapore Prime Minister Lawrence Wong’s visit to Brunei, their longstanding partnership offers a glimpse into how small states can strengthen their security through cooperation. While they may have limited military resources compared with larger powers, small states can build relationships, share expertise and work together on common security concerns. In this sense, their influence is not determined by size alone, but also through the partnerships they cultivate.
Brunei and Singapore’s defence relationship has developed through regular training exchanges and close professional and personal ties between their armed forces and defence leadership. These longstanding connections have helped sustain cooperation over the years, supported by bilateral exercises, policy discussions and leadership engagements. More recently, the launch of Exercise Vanguard reflects the continued development of their military cooperation.
For small states like Brunei and Singapore, defence partnerships with each other and other countries provide opportunities to access training, develop capabilities and exchange views and best practices. This is particularly important as smaller states may have fewer personnel and financial resources available for defence than larger powers. Cooperation can therefore provide access to expertise and resources that might be otherwise difficult or costly to develop independently. However, defence partnerships alone cannot replace the need for states to maintain and develop their own military capabilities. Rather, such partnerships should complement national defence efforts and strengthen, rather than substitute for, domestic preparedness.
Multilateral platforms are also important to the security of smaller states. Through ASEAN, small states can participate in regional discussions, raise shared concerns and pursue their national interests alongside larger powers. Acting through a regional platform can give smaller states a collective voice and greater opportunities to shape regional discussions than they might have individually. However, ASEAN’s ability to act collectively depends on its members reaching a consensus, which can be challenging when their national interests differ. This highlights both the value and limitations of multilateral cooperation for smaller states.
Brunei and Singapore’s 50 years of defence relations demonstrate how sustained partnerships can contribute to the security of smaller states. Through bilateral cooperation and multilateral platforms such as ASEAN, small states can strengthen their capabilities, exchange expertise and pursue their interests within the wider regional security environment. While these partnerships cannot replace the need for strong national defence capabilities, they remain an important part of how smaller states navigate an increasingly complex security landscape.
Syimah is a graduate of King’s College London with a BA in International Relations. With a strong focus on diplomacy, regional cooperation, and development policy, she is passionate about contributing to meaningful change through public service. Currently, she is involved in poverty alleviation work through a local NGO.
Malaysia 🇲🇾
Reaching for the Skies
by Edrina Lisa Ozaidi, in WP Kuala Lumpur
Malaysia recently tabled the 2027 budget under the theme “Reaching For the Skies, White Anchored On Our Values”. Marked as the fifth MADANI Budget and the second under the 13th MP, how is this budget expected to perform, and what is the simple breakdown of the budget stacked up against Budget 2026?
Although the previous budget originally tabled RM419.2 billion, it was ultimately revised to R441.1 billion during implementation, with a projected fiscal deficit of 3.6% of GDP, expending total federal spending to a record RM459.8 billion - RM376.8 billion projected for operating expenditures and RM83 billion for development expenditure.
Despite the higher headline figure, the fiscal deficit is projected to narrow further to 3.3% of GDP, sending a strong signal to international credit rating agencies: the Ringgit remains stable, national debt is controlled, and giving the public hope that arbitrary currency devaluation will be prevented.
According to a review by PwC analysts, the budget reflects a careful balance between supporting the economy and maintaining fiscal responsibility, highlighting that higher revenue collections boosted by subsidy rationalisation and stronger economic momentum allowed the government to return disposable income to households without loosening fiscal targets.
While the previous budget was not as friendly for the M40’s income group, the 2027 budget adjusted the personal income tax framework by raising the basic tax relief from RM9,000 to RM12,000 and trimming tax rates for middle-income earners (RM70,0000–RM150,000 range). This directly increases liquid take-home pay for roughly 5 million middle-class (M40) taxpayers by up to RM1,600 annually. Although this is a big appeal to the M40’s as the previous budget disqualified them from cash welfare (like STR), they bear the brunt of inflation and subsidy cuts.
Small businesses face two major policy updates: a lower income tax rate (cut from 15% to 14% on the first RM150,000 chargeable income and a delay/exemption from mandatory RM2,000 minimum wage floors for smaller firms. Here, BDO Malaysia experts noted that the lowered MSME tax rates and higher small-value asset capital allowance thresholds offer immediate liquidity relief to over 300,000 small businesses facing elevated operational costs.
Meanwhile, healthcare receives RM47.7 billion, a 1.2 billion increase compared to last year, to help reduce hidden charges at medical facilities and hire 9,000 permanent medical staff to address public hospital overcrowding. For housing, the government maintained its support by allocating RM20 billion for SJKP housing guarantees, aiming to help 80,000 first-time homebuyers each year. Budget 2027, however, introduces better tranches for affordable homes and newly expanded renovation financing caps.
While Budget 2026 served as the heavy-lifting phase for structural fiscal reforms (implementing e-invoicing and paring down blanket subsidies), Budget 2027 functions as a redistributive plan. That being said, the success of Budget 2027 will depend on its execution, MSMEs ability to adjust accordingly. It also depends if the private domestic investments can sustain the projected 4.2% - 5.2% GDP growth trajectory in 2027.
Edrina is a communications professional with a background in international relations. She holds a degree from the University of Nottingham Malaysia and has worked across public relations and social media for organizations in the development, education, and corporate sectors. Her work focuses on crafting narratives around regional affairs and strengthening media engagement across Southeast Asia.
Indonesia 🇮🇩
New Beginnings
by Gemala Asyura, in Pekanbaru
On October 5, Gelora Bung Karno turned red. Indonesia beat Thailand 4-2 on penalties after a 2-2 draw to win the FIFA ASEAN Cup. Since 2000, Indonesia had reached six ASEAN Cup (also known as AFF Championship) finals, but lost them all. Fans even joked that the team was the king of the runners-up. Now, the wait for a regional trophy is over. The AFF Championship is scheduled outside FIFA’s international calendar, so clubs aren’t obliged to release players and promised stronger squads.
ASEAN had their own Cup since 1996, so why did FIFA finally decide to make another ASEAN Cup now? Is it to gain votes for the upcoming re-election of the FIFA President? Infantino now faces his biggest crisis since 2016, after backlash over a withdrawn plan to sell stakes in FIFA’s commercial rights. After Norway’s federation demanded FIFA’s committees to examine his conduct, and new reports allege undisclosed pay, he faces re-election on 18 March 2027. So far, critics’ suggested the tournament’s real impact may be the votes that fuels requests for scrutiny, but not conclusions that rules were broken.
Echoing Indonesia’s colonial history, many of Indonesia’s players grew up in Europe, mostly the Netherlands. Most athletes qualify through a parent or grandparent, a route relied on by Indonesia and the Philippines. However, critics say the naturalisation push has come at the expense of homegrown development, which they describe as under-resourced. The Jakarta Post argued that Indonesia’s win almost certainly would not have happened without overseas-born recruits, and that only a handful of homegrown players were left on the bench. Simultaneously, the Football Association of Indonesia (PSSI) binsists the approach is a long-term programme and that domestic development continues alongside it. Reflecting on the U-19 team’s 2024 AFF title, the open question is also whether youth programmes can produce players at a competitive caliber. Fans have mixed feelings about this - some celebrate a stronger team, while others worry that local players lose opportunities. Both reactions are understandable.
The harder question is whether Indonesia can build a system that develops its own players for the global stage. Japan launched the J.League in 1993 and invested heavily in youth academies and coach education. South Korea built a pipeline that produced Son Heung-min, who sharpened his game in a German academy. Neither country relied on imports. For Indonesia, heritage players are a bridge. They raise standards and bring habits from elite European academies. The goal is a pipeline where homegrown talent plays beside them, not behind them.
Gemala holds a degree in International Relations, with a focus on contemporary global issues. In addition to her years of undergraduate study, she has hands-on experience in early childhood education, having worked in both teaching and teaching assistant roles. She now pursues journalism as a practical extension of her academic background, with a focus and scope centered on ASEAN regional dynamics and social issues.
Editorial Deadline 10/10/2026 11:59 PM (UTC +8)
