JUNE 10 — As Timor-Leste prepares to become Asean’s 11th member state by October 2025, the moment is marked not only by celebration but by heightened global attention.
The announcement has sparked enthusiasm among investors and development partners.
For many, this signals a new chapter; a nation once ravaged by violence now standing as a sovereign, democratic partner within South-east Asia’s most prominent regional institution.
Yet, beneath this celebratory mood lies the need for reflection, particularly about the kind of economic future Timor-Leste is stepping into and the principles that should guide it.
Timor-Leste’s entry into Asean is more than ceremonial. It carries implications for regional integration, investment opportunities, and geopolitical engagement.
The Asean Economic Community (AEC) opens pathways to trade, capital flows, and partnerships.
Already, there is visible momentum. From oil and gas to agriculture and tourism, sectors once seen as remote or underdeveloped are now being reframed as opportunities.
The government, for its part, has reformed investment laws, offering fiscal incentives and promoting development zones such as the Special Administrative Region of Oecusse to attract foreign capital.
This optimism is both necessary and welcome. As one of the poorest countries in Asia, Timor-Leste needs sustainable and inclusive economic growth.
Nearly half of its 1.3 million population still lives below the poverty line, and the country relies heavily on its Petroleum Fund to finance state operations. Diversifying the economy is not merely an ambition; it is a necessity.
At the same time, such economic enthusiasm must be tempered with caution. Development is never neutral. The way investments are shaped, who benefits, and how power is distributed all have long-term consequences.
Timor-Leste’s political system, though democratic, is still evolving. Factionalism among veteran resistance leaders continues to dominate the political landscape, and institutional capacity remains uneven.
In this environment, foreign economic interests, however well-intentioned, can unintentionally reinforce elite networks, reduce transparency, or contribute to unequal development outcomes if safeguards are not in place.
The controversy surrounding the Tasi Mane petroleum infrastructure project serves as a reminder.
Envisioned as a transformative national initiative, it has raised concerns around transparency, feasibility, and environmental impact.
Civil society actors, such as La’o Hamutuk, have been vocal in calling for greater accountability and long-term thinking.
These debates reflect a maturing public discourse in Timor-Leste, where development is not blindly embraced but interrogated for its social and ecological consequences.
Looking beyond the domestic, Timor-Leste’s geopolitical location adds another layer of complexity.
Situated between Australia and Indonesia, with growing engagement from China and Japan, the country finds itself at a strategic crossroads.
Chinese-supported infrastructure projects, including roads, public buildings, and telecommunications, have expanded Dili’s physical and digital connectivity.
Yet, this has also sparked discussions about influence, debt, and long-term alignment.
Similar trends can be observed across Asean, where strategic competition plays out through infrastructure, investment, and technology.
A view of Dili, Timor-Leste. Situated between Australia and Indonesia, with growing engagement from China and Japan, the country finds itself at a strategic crossroads. — Unsplash pic/Jaime Gusmao
As Timor-Leste integrates further into Asean, these dynamics are expected to intensify. Business decisions will no longer be purely commercial; they will intersect with diplomacy, ideology, and regional positioning.
In this light, ethical business is not merely a moral choice but a political and strategic imperative.
Companies and states must approach Timor-Leste not as an economic frontier to be “tapped,” but as a partner in shaping a just and resilient regional future.
This is particularly important when considering Timor-Leste’s demographics.
Over 60 per cent of the population is under the age of 25. For these young citizens, the promise of Asean integration will only be meaningful if it translates into tangible benefits such as quality education, decent employment, accessible healthcare, and opportunities to participate in shaping their country’s direction.
Investments that fail to consider this human element may appear successful on paper but ultimately fall short in practise.
Timor-Leste’s cultural and historical context also requires careful consideration.
The country’s post-colonial identity, shaped by Portuguese heritage and a long struggle for independence, demands development that is grounded in local contexts and culturally sensitive.
In sectors such as tourism or agriculture, the commodification of tradition or memory without community ownership can undermine the very dignity and sovereignty that development is meant to uphold.
None of this is to suggest that investors or regional partners should stay away.
Quite the opposite. Timor-Leste needs and welcomes engagement. But this moment calls for a more thoughtful approach.
Ethical investment does not mean avoiding profit or suppressing ambition. It means aligning commercial objectives with values of transparency, inclusion, and sustainability.
It means co-designing development projects with local communities, ensuring open and competitive procurement, and supporting institutional capacity so that Timor-Leste can be an equal participant, not merely a recipient.
This spirit of shared responsibility resonates with Asean’s own vision for the future. Under the Asean Community Vision 2045, member states commit to promoting a people-centred, inclusive, and sustainable regional community.
Timor-Leste’s membership offers an opportunity to translate these ideals into practise. The country’s experience, resilience, youthful population, and vibrant civil society can enrich Asean, just as Asean can support Timor-Leste’s aspirations.
That support, however, must be more than symbolic. It must include technical assistance for regulatory frameworks, capacity-building for public institutions, and platforms for civil society to engage meaningfully in regional dialogue.
Investors and regional stakeholders must also recognise this moment as one that calls for long-term partnerships, rather than quick wins.
Timor-Leste stands at a threshold, not only for Asean membership but also for defining the contours of its economic future.
This is a moment of immense promise, but it must also be handled with care.
The hope is not to discourage investment, but to encourage better investment; investment that listens, shares, and commits to the idea that growth is most sustainable when it is just.
As we look ahead to October 2025 and beyond, the challenge is clear. Timor-Leste’s admission into Asean must not be reduced to a diplomatic checkbox or an investment trend.
It must be embraced as a shared responsibility to build a future that benefits all, from the rural youth in Lautém to the policymaker in Dili.
Only then can this moment become more than a milestone; only then can it become a model.
* Khoo Ying Hooi, PhD, is an associate professor at Universiti Malaya.
** This is the personal opinion of the writer or publication and does not necessarily represent the views of Malay Mail.
