East Timor joins ASEAN as Prime Minister Xanana Gusmao hails 'a dream realised'

East Timor’s Prime Minister Xanana Gusmao described his country’s long-awaited admission to the Association of Southeast Asian Nations (ASEAN) as a “dream realised” and a turning point for its future. Speaking at a formal ceremony in Kuala Lumpur, Gusmao declared, “Today, history is made,” as East Timor’s flag was raised alongside those of the ten other member states.

The event marked ASEAN’s first expansion since the 1990s and officially opened the bloc’s annual summit, which includes high-level meetings with key partners such as China, Japan, India, Australia, Russia, South Korea and the US. US President Donald Trump, on his first Asia trip since returning to the White House,  landed in  Malaysia  for the ASEAN Summit on Sunday, where he is set to witness an expanded ceasefire deal between Thailand and Cambodia and oversee pivotal trade talks with Malaysia.

Among the attending dignitaries were Chinese Premier Li Qiang, Canadian Prime Minister Mark Carney and Japan’s newly inaugurated Prime Minister Sanae Takaichi.

A milestone for the region’s youngest nation

East Timor, also known as Timor Leste, joins an economic community of around 680 million people with a combined GDP of $3.8 trillion. With its own GDP of about $2 billion and a population of 1.4 million, the country faces significant economic challenges, including high unemployment, poverty and malnutrition. Roughly 42% of its citizens live below the national poverty line, and nearly two-thirds are under 30, making job creation crucial.

Malaysian Prime Minister Anwar Ibrahim, whose nation currently chairs ASEAN, said East Timor’s membership “completes the ASEAN family” and reinforces a “shared destiny and deep sense of regional kinship.”

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Analysts say the move reflects ASEAN’s adaptability and inclusivity. “As protectionism rises, ASEAN’s expansion underscores its commitment to regionalism, openness and equal participation,” said Angeline Tan of Malaysia’s Institute of Strategic & International Studies.

East Timor’s path to independence was marked by struggle. Once a Portuguese colony, it was invaded by Indonesia in 1975, beginning a 24-year occupation that ended after a UN-supervised referendum in 1999. The nation gained full independence in 2002 and is now led by two independence heroes — Prime Minister Gusmao and President Jose Ramos-Horta, the 1996 Nobel Peace Prize laureate.

While its oil and gas reserves have long supported government revenues, dwindling resources have driven the country to diversify its economy. ASEAN membership offers access to free trade deals, investment and a wider regional market.

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East Timor applied for membership in 2011 and was granted observer status in 2022. Joanne Lin of Singapore’s ISEAS–Yusof Ishak Institute noted that integration “will require sustained technical and financial support” as the nation’s institutional capacity remains below most ASEAN members.

Gusmao called the moment “a beginning of an inspiring new chapter,” adding, “For us this new beginning brings immense opportunity in trade, investment, education and the digital economy — we are ready to learn, innovate and uphold good government.”

(With agency inputs)