Red Card for Malaysia
Issue 17 — Key Developments Across Brunei, Indonesia, and Malaysia
Editor’s Note
by Haniva Sekar Deanty, Lead Editor - Maritime Crescent Desk
This issue of Maritime Crescent highlights how identity, credibility, and strategy are being tested in Southeast Asia: through sport, currency, and trade.
In Malaysia, the sanction against the Football Association of Malaysia by FIFA has sparked more than outrage from fans. It has become a test of governance and accountability. The fines and bans are damaging enough, but the deeper blow is reputational—how can a country that prizes its standing in ASEAN and beyond reconcile this breach of trust in one of its most visible cultural arenas? For FAM, the challenge is now about transparency and reform, not just an appeal.
Brunei, meanwhile, is taking a symbolically powerful step by introducing a new family of banknotes and standardising the name “Brunei Dollar.” On the surface, it is a technical shift, but in practice it strengthens monetary identity and underscores the importance of clarity and security in uncertain global times. Currency is not just a medium of exchange—it is a reflection of credibility, and Brunei is making sure that message is clear both at home and abroad.
In Indonesia, after years of drift, Jakarta has repositioned itself as a deliberate trade strategist, sealing a landmark deal with the EU and pushing ahead with new partnerships. This is about more than market access: it is about building industries that can employ a growing workforce and securing resilience in a fragmented global economy. Yet with opportunity comes risk—Indonesia must ensure that diversification delivers lasting capacity, not just temporary leverage.
Together, these three stories show how Southeast Asia’s resilience is not just about weathering challenges but redefining itself in the process—whether on the football pitch, in the marketplace, or at the negotiating table.
Malaysia 🇲🇾
When Forged Lines Could Undermine National Integrity
by Muhammad Aiman Bin Roszaimi, in Cyberjaya
Malaysia’s football body now finds itself under a harsh spotlight.
In late September 2025, FIFA imposed sanctions on the Football Association of Malaysia (FAM), penalizing it for submitting doctored documents that allowed seven foreign-born players to represent Malaysia in an AFC Asian Cup qualifier. The sanctions: a fine of CHF 350,000 (≈ RM1.8 million) and 12-month bans on the involved players.
The sanction hits at the heart of Malaysian football’s ambition, but more than that, it raises probing questions about accountability, governance and national image in a region that prizes reputation and rule-based order.
In recent years, Malaysia has actively sought to strengthen its national team by incorporating so-called “heritage” or foreign-born players, those who claimed Malaysian eligibility through lineage or naturalization. But the crux of the issue here is that FIFA’s disciplinary committee determined the documentation used in this particular selection was falsified. They judged that FAM breached Article 22 of the FIFA Disciplinary Code on forgery and falsification.
FAM has pledged to appeal, maintaining that it acted “in good faith” and claiming that FIFA had previously cleared the players’ eligibility.
Still, in the court of public opinion, the damage is deeper than the sporting consequences. Fans, media outlets and social media have reacted sharply. Accusations of mismanagement, lack of transparency and betrayal of trust abound now dominate the conversation. Some even framed it as a moral failure, not just a procedural misstep.
In ASEAN and Southeast Asia more broadly, reputation matters. National branding hinges not merely on economic metrics or military posture, but on whether a country can credibly claim to honor rules, transparency and fair play. In that regard, Malaysia’s case is more than a sports story, it is a mirror reflecting institutional strengths or frailties.
When a national sporting body is found to have crossed ethical lines, it reflects on how seriously a country treats rule-based order even in domains often seen as cultural or recreational. For ASEAN countries watching, such missteps erode moral authority. Malaysia, which has in recent decades positioned itself as a voice for principled engagement in regional forums, now must reconcile this stain.
Looking forward, Malaysia must choose the path of redemption. For the FAM to restore faith, it must embrace transparency by permitting independent audits and welcoming scrutiny. Half-hearted denials or attempts at deflection will not suffice.
This moment can also be a genuine turning point. The appeal process should go beyond procedure and become a platform for institutional reform, with stronger checks and balances, and robust oversight. Football is not only a game but a national symbol, and it must reflect the same standards of accountability and integrity that Malaysians demand from their public institutions.
Aiman is a PhD candidate in Security and Strategic Analysis at the National University of Malaysia. His research focuses on Malaysia’s space policy, ASEAN regional security, and the strategic implications of emerging technologies. His work explores how Malaysia’s defense policy and strategic culture shape its approach to outer space.
Brunei Darussalam 🇧🇳
Identity and the Weight of a Dollar
by Wira Gregory Ejau, in Bandar Seri Begawan
On 22 September 2025, it was announced that Brunei Darussalam will be introducing a fresh family of banknotes by 2026, with the Brunei Darussalam Central Bank announcing new designs for the BND1, BND5, BND10, BND100, and BND500 series. Originally referred to as the ‘ringgit’, in line with the Currency Order of 2004, the announcement also precedes Brunei’s official standardisation of the term ‘Brunei Dollar’ across all denominations. While this may appear to be a technical adjustment that aligns terminology with long-standing legal definitions, it also represents a strong symbol of identity, security and economic intent.
For decades, Brunei’s currency has been pegged to the Singapore Dollar under the Currency Interchangeability Agreement, ensuring stability and international credibility. Yet, there remains an ongoing need for the Monetary Authority of Singapore to periodically update its guidance on the reaffirmation and encouraged acceptance of Bruneian currency amongst Singaporean vendors.
Despite there being no question of the Brunei Dollar’s strength, the coexistence of ‘Ringgit’ and ‘Dollar’ in everyday usage has certainly created subtle ambiguity. Was Brunei’s currency an extension of a broader Malay linguistic tradition, or was it asserting its own distinct monetary identity?
By standardising the term ‘Brunei Dollar,’ the state answers this question with a firmer stance on its economic self‑definition. It reduces indecisiveness in how Brunei presents itself internationally, particularly in financial markets where clarity of denomination matters. The move also reinforces national identity at a time when Brunei must navigate the turbulence of global economic uncertainty and diversification.
Still, one must be cautious not to overstate the power of renaming. A stronger currency is not born from a new label. The Brunei Dollar’s credibility rests on the fiscal discipline and durability of its strength, especially compared to Singapore’s successes.
Recent CPI data, which recorded a 0.4 per cent year‑on‑year decline in August 2025, highlights how external factors, such as exchange rate fluctuations and imported food costs, continue to shape Brunei’s price environment. These dynamics point to the underlying vulnerability of a narrow economic base, reinforcing the reality that maintaining the credibility of its peg while advancing diversification is essential if measures like the renaming of the currency are to carry substantive weight
What the new notes do achieve, however, is modernisation.
In an era of rising cyber‑fraud and illicit financial flows, physical currency security remains a frontline defence. Counterfeit currency undermines confidence, and for a small state like Brunei, credibility is its most valuable asset. Tied to perceptions of stability, the recently updated security of banknotes through technological advancements represents a small but important step to maintaining trust in the Brunei Dollar that aligns with international standards in currency design.
The introduction of Brunei’s new banknotes in 2026 should therefore be viewed within the broader trajectory of the country’s economic management. Currency design, terminology, and security features are markers of intent, but their long‑term significance will depend on how effectively Brunei balances national identity with the economic fundamentals that underpin monetary credibility.
Gregory is an MSc candidate in Strategic Studies at the S. Rajaratnam School of International Studies (RSIS), Nanyang Technological University. He works as a freelance writer specializing in international history, conflict, and counterterrorism. With experience in academia, investigative journalism, and voluntary uniformed service, he focuses on regional security developments across the Asia-Pacific, combining strategic analysis with practical field insight.
Indonesia 🇮🇩
The More the Merrier
by Rayhan Prabu Kusumo, in Jakarta
Indonesia is in the midst of a diplomatic offensive that would have seemed improbable just a few years ago. The breakthrough Indonesia-EU Comprehensive Economic Partnership Agreement, concluded after a decade of negotiations, now sits alongside newly minted deals with Canada and accelerated talks with several other partners. The country has shifted from reactive trade participant to strategic calculator which deliberately repositions itself as the global economy fragments.
What’s driving this shift? American economic leadership has become a source of volatility rather than stability. Protectionist instincts in Washington have sent shockwaves through Asia. Tariff threats, trade war escalations, and the weaponized market access have altered how countries assess their economic security. Both Indonesia and the EU, previously comfortable letting the negotiation drift for a decade, suddenly found urgency in the same geopolitical realignment. The calculus has shifted for nearly every participant in global trade—hedging against American unpredictability has become standard operating procedure.
Indonesia’s main domestic imperative is to diversify its economic base beyond the natural resources and low-productivity services by building higher-value manufacturing sectors that provide good jobs for its fast-growing working-age population. The country cannot remain a commodity exporter when millions of young Indonesians enter the workforce each year expecting better opportunities than agricultural labor or the urban informal service jobs that currently absorb much of the population. This demographic pressure makes industrial upgrading politically essential, not merely economically desirable.
The nickel industry shows what’s possible and what’s at stake. Partnership with China transformed Indonesia from a nickel ore exporter into a processor of ferroalloys and nickel matte—a genuine industrial upgrading that created jobs and captured more value domestically. Yet this success created interdependency: Indonesian nickel processors feed directly into China’s manufacturing ecosystem. When Beijing adjusted its priorities, Indonesian producers felt immediate pressure. Industrial upgrading without diversification trades one vulnerability for another.
The new wave of trade deals offers Indonesia a similar path to China’s—investment capital combined with market access and technology transfer—while distributing risk across partners. The EU’s green transition creates demand for Indonesian processed materials: battery metals, sustainable palm oil for biofuels, or renewable energy peripherals where Chinese dominance isn’t entrenched. Other partners could bring different opportunities entirely.
The goal transcends export volumes or trade balances. These agreements should solve Indonesia’s issues by building genuine manufacturing capacity across value chains. As the United States and China view trade through security lenses, and other countries seek stabler corridors shielded from tensions, Indonesia positions itself as the pragmatic alternative—flexible, resource-rich, and hungry for industrial partnerships others hesitate to extend across rival blocs. It’s mutual: global partners get reliable resource and human capital access, Indonesia gets the investment and technology transfer needed to build diversified manufacturing sectors that employ its growing workforce.
The end goal is an economic architecture where multiple industrial partnerships deliver genuine upgrading, not just higher export volumes, ultimately transforming Indonesia into a regional power that shapes global commerce rather than responding to it.
Rayhan has a background in government affairs and public policy, with experience across government institutions and advisory firms. His work focuses on the intersection of geopolitics, policy, and risk, with expertise in advocacy, regulatory analysis, and stakeholder engagement. He holds a degree in Government from Universitas Padjadjaran, and has completed an exchange at Universitat Pompeu Fabra in Spain, focusing on global politics and sustainability.
Editorial Deadline 28/09/2025 11:59 PM (UTC +8)
