Asia House Outlook 2026 Keynote Speech
Seema Malhotra, Minister for the Indo-Pacific - Asia House Outlook 2026 Keynote Speech
Your Excellencies, distinguished guests.
Thank you, Dominic, and to Asia House for the opportunity to speak here today – and for your opening words setting the geopolitical context for today’s important discussions and how we must respond.
This year marks 30 years since Asia House was established, founded with the support of three British institutions with deep roots in Asia - HSBC, Standard Chartered and Prudential.
Their belief was simple, that the UK and Asia could benefit from deeper mutual understanding, stronger dialogue, and long-term partnership.
That purpose remains important – with our shared history now helping shape our shared future.
When I spoke at the Indo-Pacific Conference in December, I made the case that as the world has become more fragmented and unstable, Britain must enhance its partnerships in the Indo-Pacific.
Indeed, it is precisely because of this new age of fragmentation that we must do more across the Euro-Atlantic and Indo-Pacific.
Today, I take that argument further, to recognise three things:
First, why the UK’s partnership with the Indo-Pacific matters for managing that new age of fragmentation … …secondly, what we’ve achieved together for growth and shared prosperity… …and thirdly, how we can develop and the enhance innovative new partnerships to shape the future together.
First, why our partnerships matter.
Since Labour came into power, our focus in Government has been on stability for growth.
And alongside this, rebuilding trust and relationships with nations – with the EU and across the world, with the UK once again stepping forward confidently as an outward facing nation.
Because our partnerships are the bedrock of our security and prosperity.
It is only together that we can stand up for the rule of law and shape a more global economy.
And this is why the Indo Pacific matters.
It is a region of growing political and economic power - a priority region in our National Security Strategy.
We know that by 2050, more than half of global growth will come from the region.
Asia House’s Outlook highlights the challenges.
Challenges of trade uncertainty, an economic slowdown in China, shifts in US inflation.
Yet, it also says that the region’s fundamentals remain strong.
But those strengths aren’t guaranteed. Security challenges could undermine that.
NATO and European security remain critically important, but our priorities and responsibilities do not end with NATO.
The Euro-Atlantic and the Indo-Pacific security contexts are indivisible.
Take maritime security and global trade. They matter to us all.
And if the UN Convention of the Law of the Sea is undermined anywhere, it is undermined everywhere.
And as the Prime Minister set out at the Lady Mayor’s Banquet, we are also navigating a world shaped by three major economic giants - the US, the EU and China – with their interactions creating a new dynamic.
Our response will shape our future.
However, this is not a binary choice between conceding to great-power politics or retreating to the comfort of mid-20th century multilateralism.
Put simply, it means we don’t rely on one single way of working together.
We use different partnerships for different challenges, working multilaterally, plurilaterally, bilaterally, reflecting a modern, pragmatic foreign policy grounded in our progressive values.
This is true in the Indo-Pacific, where our partnerships are long and deep.
Our economies and societies have never been more connected.
Creating opportunities for our people and our businesses, while protecting our supply chains.
Because it is the partnerships we build abroad that also make us more secure at home.
That’s why the UK maintains an enduring commitment to a free and open Indo-Pacific.
That brings me to my second point, what we have achieved together.
The UK is building long-term partnerships, bringing our own strengths to the table.
We are the world’s sixth largest economy.
The fourth largest trader.
The third largest destination for global investment.
We are home to world leading research institutions and a clear, rules based regulatory environment. We have strong legal and professional services.
We have close working relationships with the EU and the US.
Our competitive advantages - in AI, clean and green energy, creative industries, education, life sciences - are underpinned by our 10 year Industrial Strategy.
This is combined with longstanding trust and shared ambition with our partners in the Indo-Pacific.
These are partnerships in practice, not theory, and they are already delivering the growth we need.
India is a clear example.
During my visit in November, I saw the growing momentum behind our Comprehensive Economic and Trade Agreement.
It is set to boost trade by over £25 billion.
Small and large businesses are excited by the new opportunities.
It is encouraging cutting edge research partnerships, such as between the University of Surrey and the Indian Institute of Technology as I saw in Chennai.
Our new Free Trade Agreement with The Republic of Korea will expand a relationship that has grown by a third over the last decade, across growth, defence, AI and the energy transition.
Singapore remains a gateway for innovation and capital, and a strong trading relationship worth over £25 billion.
And I’m proud also of the strength of our ties with regional organisations like ASEAN, which for the past fifty years has helped anchor peace and prosperity across the Indo-Pacific.
UK trade with ASEAN has grown by around 15% in the year to June 2025.
In October, I launched the first UK–ASEAN AI Innovation Summit in Malaysia, working closely with Minister Deo.
We’re also collaborating on the creative economy, digital transformation, and education, including through ASEAN Chevening Scholarships.
And our CPTPP membership is reinforcing rules-based trade and opening markets.
The agreement has seen tariffs on products like Japanese rice imports to the UK fall to 0%, while UK food businesses can export tariff-free to Japan.
Japanese leadership has been critical in this cutting-edge trade partnership.
My visit to Japan in December reflected our deepening economic relationship – from the visit to the UK by Japan’s premier business federation, the Keidanren, in November, to our Economic Security Partnership which I launched while there. And also where I marked one year of our membership on CPTPP.
CPTPP has also delivered our first ever FTAs with Malaysia and Brunei, and it is strengthening supply chains with Vietnam, where total trade has grown to £9 billion last year.
We also continue to strengthen and pursue bilateral ties, like with Thailand through our Enhanced Trade Partnership, building on investments, for example in Scotland’s Offshore Wind industry.
And as our economic ties are deepening, our security partnerships are strengthening too.
AUKUS is bringing multi-billion pound investment into communities across the UK, as well as Australia and the US.
While the Global Combat Air Programme will support thousands of jobs at home, and across Japan and Italy.
We are building long-term partnerships, based on shared interests and a consistent, long-term and strategic approach.
This is also our approach to our relationship with China – an approach rooted firmly in our global interests.
I spoke recently at the China Britain Business Council reception.
I spoke about our approach, where it is important that we co-operate where we can, challenge where we must and compete where we have different interests.
Strong on security, strong on the economy. A clear-eyed approach, in our long-term interests.
These principles guide everything we do.
Because choosing not to engage with China is no choice at all. Dialogue matters.
We can build on successes like our Economic and Financial Dialogues that have resulted in over 500 mutually beneficial agreements.
We must continue to find new opportunities to work together in all our interests, such as the use of new technologies in healthcare.
And recognise the longstanding links between regions and cities – such as the Manchester-Wuhan partnership, which will celebrate its 40th anniversary this year.
And that brings me to my third point, how we can work together to develop and to enhance our innovative partnerships for a shared, stable, prosperous future.
We will support CPTPP’s continued growth, and its dialogues with ASEAN and the EU, launched in November.
We will build on our new Maritime Partnership with Indonesia, which sustains jobs in Rosyth and supports the construction of vessels across Indonesia.
It is one of the foundation stones of our new Strategic Partnership and we look forward to the planned visit from President Prabowo to the UK next week.
We will also reach a milestone with ASEAN – it is the fifth anniversary of the UK’s dialogue partnership and I am grateful to the ASEAN London Committee for our regular engagements.
We will continue deepening cooperation in areas such as the ASEAN Power Grid, the Digital Economy Framework Agreement, and the creative industries.
Crucially, we will negotiate the next UK–ASEAN Plan of Action through to 2030, setting the direction for the remainder of this Parliament.
We also look forward to working with the Philippines as this year’s ASEAN Chair under the theme “Navigating Our Future, Together.”
And I hope to visit the Philippines and Indonesia to help drive this work forward.
Looking ahead, in 2027, the UK will hold the Chair of the G20 – with a focus on growth - and we will work with partners, including from the Indo-Pacific to address major issues facing the global economy.
So let me conclude by reaffirming the UK’s commitment to the Indo-Pacific.
In November 1945, Clement Attlee reminded us in his Mansion House address that – to paraphrase - “we cannot build a heaven at home” if there is unrest and instability outside.
He spoke at a time that demanded ambitious international partnership.
Our era is different, but the principle remains true.
The partnerships we build abroad make us more secure at home.
My conversations as a Minister have shown how important trust is to every relationship.
And we – governments and businesses - must have the confidence to pursue it.
So that, together, we develop and enhance our partnerships to shape a more secure and a more prosperous future.
Thank you.
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