By Leni Spooner, creator of Between the Lines.
The Calm After the Storm
When Mark Carney stepped to the podium in Kuala Lumpur, his tone was steady — the kind of composure that comes from long years at the financial front lines. Behind him, the ASEAN banners glowed in blue and gold: Inclusivity and Sustainability.
He thanked his Malaysian hosts, spoke of hospitality, then — without a hint of drama — outlined what might be Canada’s most significant economic pivot in a generation.
“We intend to double our non-U.S. exports over the next decade,” he said. “That alone will generate $300 billion in new trade — new orders for Canadian resources, Canadian industries, and Canadian expertise.”
The room was quiet, but not still. Canada, often treated as the northern annex of the North American market, was suddenly speaking like a nation with its own playbook.
A Bridge, Not a Break
It’s tempting to frame Canada’s pivot to Asia as a reaction — a hedge against an unpredictable White House.
But Carney’s language was deliberate. This wasn’t about retreat; it was about balance.
“We must build at home, and we must build strong at home,” he told reporters later. “Because the return on building at home is far greater than the hit from trade turbulence with the United States.”
That line will likely echo through every boardroom and policy memo between now and the 2026 CUSMA review. The message was clear: Canada’s resilience will be built on diversity of partners — and on the confidence to say no when a deal no longer serves the national interest.
The Indo-Pacific Awakening
ASEAN — the Association of Southeast Asian Nations — isn’t new, but it’s newly urgent.
With nearly 700 million people and a combined GDP of over $5 trillion, the region is the fastest-growing economic zone in the world.
And yet, for all that scale, ASEAN accounts for barely 10 percent of Canadian exports — a share that Carney says must double.
In Kuala Lumpur, Canada accelerated talks toward a Canada–ASEAN Free Trade Agreement, aiming for completion next year. Such a deal, the government projects, could add $1.5 billion to the Canadian economy and open doors in clean tech, aerospace, agriculture, and advanced manufacturing.
He also met with the leaders of Malaysia, Laos, Vietnam, and the Philippines — announcing new bilateral negotiations with Manila and a letter of intent with Kuala Lumpur to deepen cooperation in liquefied natural gas (LNG), oil, nuclear, and renewables.
For a country long defined by its north-south corridors, this was east-west thinking — a widening of the map.
What Canada Brings to the Table
Carney, characteristically, backed rhetoric with math. He ticked off Canada’s tangible assets like an economist listing the inventory of a nation:
- Energy: third-largest oil reserves; fourth-largest natural gas reserves.
- Clean grid: already 85 % non-emitting, with capacity to grow another 50 % by 2035.
- Critical minerals: deposits of 34 essential minerals; top-five global producer in ten.
- Human capital: the most educated workforce in the world.
- Finance and stability: world-class pension funds, strong banking, dependable rule of law.
This is the “Canadian value proposition” — less brash than America’s scale, less state-managed than China’s reach, but grounded in trust, transparency, and standards.
“The world has figured out what many of us already knew,” Carney said earlier in the week. “Diversification isn’t a luxury. It’s protection.”
The Energy Bridge
One of the summit’s quieter breakthroughs was energy cooperation — particularly between Malaysia’s PETRONAS and Canada’s LNG Canada project in Kitimat, B.C.
Phase 2 — now referred to the federal Major Projects Office — would make it the second-largest LNG facility in the world, creating tens of thousands of jobs and deepening Indigenous participation.
By 2030, Canada could be exporting 50 million tonnes of LNG annually; by 2040, double that — enough to supply Singapore five times over.
Carney was clear-eyed about the climate optics.
“Moving from coal to gas in this region means a material reduction in emissions,” he said. “Performance and investment will get us to net zero faster than prohibition.”
That pragmatic tone — decarbonization through engineering, not slogans — resonates in a region wary of Western lectures but eager for reliable partners.
Building at Home, Investing Abroad
Carney’s economic map is two-sided. On one face: trade diversification. On the other: domestic reconstruction.
“We will unleash hundreds of billions of dollars of investment right here at home,” he said. “Not right here, but metaphorically there — in Canada.”
That dual approach — build at home, bridge abroad — has become his doctrine.
It’s a builder’s version of industrial strategy, rooted in generational investment in clean energy, defense, and technology.
In the next five years, defense spending alone will quadruple, targeting cyber, AI, and advanced manufacturing.
By doing this now, Carney is effectively rebuilding Canada’s negotiating leverage ahead of the next CUSMA review. When domestic capacity is strong and export markets are diversified, no single partner can dictate terms.
Reclaiming the Spirit of Middle-Power Leadership
Canada has long defined itself as a “middle power,” a phrase that once meant modesty but now sounds like resignation.
Carney’s tone suggests something different — middle as in pivotal, not passive.
“When uncertainty weighs down activity, you have to act big,” he said during the ASEAN Q&A. “You have to lead from the centre.”
Leading from the centre doesn’t mean neutrality. It means balance — positioning Canada as a reliable, values-driven partner between extremes.
In a global system “where the old order is disappearing and the new one has yet to emerge,” as Malaysia’s Prime Minister Ibrahim said, that posture matters. It’s the posture of a builder — not a bystander.
Why This Matters at the Kitchen Table
For most Canadians, talk of trade agreements and critical minerals feels distant. But the stakes land close to home.
Diversified trade means steadier prices on groceries, fuel, and goods when global supply chains convulse.
It means farmers, miners, and manufacturers can sell more of what they produce under Canadian labour and environmental standards.
It means stronger paycheques and steadier jobs in regions long left behind.
And for small businesses, it means opportunity. A Canada less tied to one customer can grow its own — in clean tech, agri-food, AI, education, and services.
This is how “foreign policy” becomes domestic security.
Carney’s Style: The Builder’s Calm
Asked about the sudden cooling of trade talks with Washington, Carney didn’t flinch.
“It doesn’t pay to be upset,” he said. “Emotions don’t carry you very far.”
He didn’t deny the setback, or dramatize it. He simply reframed the conversation — as if to remind Canadians that in a world of volatility, composure is a strategy.
That’s what made his ASEAN visit feel consequential: not because of any one deal or handshake, but because it signaled a return to the kind of leadership Canada used to export — steady, measured, constructive.
What Canada Gained in Kuala Lumpur
Beyond speeches and symbolism, Prime Minister Carney’s ASEAN visit produced a handful of tangible outcomes — early building blocks for a more resilient Canadian economy and a broader global reach.
1. Accelerating a Canada–ASEAN Free Trade Agreement
Canada and ASEAN agreed to fast-track negotiations toward completion in 2026. The deal could add $1.5 billion to Canada’s economy and open access to 700 million consumers in a market worth over $5 trillion.
➡️ Sectors poised to benefit: clean technology, agri-food, aerospace, and advanced manufacturing.
2. Launching Canada–Philippines Trade Talks
Formal negotiations begin immediately, with a goal to conclude in 2026. This would expand export opportunities in critical minerals, agri-food, and energy technologies.
3. Deepening Energy Partnership with Malaysia
A new Letter of Intent commits both countries to greater investment in LNG, oil, nuclear, and renewables. PETRONAS reaffirmed its role in LNG Canada Phase 2, which will double production in Kitimat — making it the second-largest LNG facility in the world.
4. Expanding Aerospace Exports
Malaysia Airlines signed a deal with CAE to purchase a Canadian-built flight simulator, and Air Asia is exploring a major A220 aircraft order designed and built in Québec.
➡️ A boost for Canada’s high-value aerospace supply chain.
5. Growing Canada’s Digital Footprint
The BlackBerry Cybersecurity Centre of Excellence in Kuala Lumpur will expand into an international hub for cyber-intelligence and innovation, embedding Canadian expertise in Southeast Asia’s fast-growing tech sector.
6. Laying Groundwork for Trade Diversification
Carney reaffirmed Canada’s target to double non-U.S. exports within a decade, adding roughly $300 billion in trade.
Recent deals already signed include:
- 🇦🇪 UAE – AI and innovation
- 🇪🇺 EU – defence and broader trade
- 🇩🇪 Germany – critical minerals
- 🇲🇽 Mexico – agri-food
- 🇪🇨 Ecuador – free trade agreement eliminating tariffs on most Canadian exports
7. Expanding Defence and Regional Cooperation
Canada will quadruple defence-industrial spending over five years, creating export opportunities in defence manufacturing.
An upcoming Canada–Philippines defence cooperation framework will allow joint training and operations, strengthening regional security ties.
Taken together, these steps begin to shift Canada’s trade story — from dependence to design. Each new bridge gives the country one more route to stability, and one more reason to walk taller when the next CUSMA negotiation begins.
The Bridge We’re Building
Canada’s ASEAN moment is less about geography than philosophy. It’s the rediscovery of something older — the idea that strength isn’t loud, it’s built.
Carney’s phrase — “fortune favours the bold” — might sound like banker bravado. But here it’s civic courage: the willingness to invest, diversify, and trust Canadians to compete globally on their own terms.
This bridge — between East and West, between policy and people — will take time to finish. But it’s already changing how the world sees Canada, and how Canada sees itself.
Because confidence, as Carney’s calm reminded the room in Kuala Lumpur,
is built, not borrowed.
For those who like to see the policy beneath the headline — here’s the full ASEAN Business and Investment Summit interview with Prime Minister Mark Carney (Kuala Lumpur, October 26, 2025).
It’s an hour worth watching. What stands out isn’t the talking points, but the tempo — calm, precise, and anchored in the idea that confidence is built, not borrowed.
PM Carney in conversation at ASEAN Business and Investment Summit – October 26, 2025
💌 If you’ve found this essay thought-provoking, I’d love for you to subscribe to Between the Lines.
Subscribers get essays, digests, and occasional deep-dives exploring Canada’s shifting political, economic, and cultural landscape — all written in a calm, kitchen-table voice.
It’s free to sign up, and subscribers directly support the sustainability of this work.
💡 If you found this post valuable, thoughtful, or worth a second read—consider supporting my work with a coffee. Independent analysis takes time, and every bit helps fuel the next deep dive.
👉 Buy Me a Coffee (Thank you—truly.)
About the Author
Leni Spooner is a Canadian writer, researcher, and civic storyteller. She is the founder of Between the Lines | Kitchen Table Politics, a longform publication exploring how policy, economics, food systems, and everyday life intersect. Her work blends historical context with present-day analysis, helping readers see the deeper patterns that shape Canada’s choices — and the lives built around them.
If you enjoy thoughtful, independent writing, you can:
👉 Subscribe to Between the Lines to receive updates and new essays
👉 Buy Leni a coffee to support this work