Leaders Initiative Town Hall.

My name is Anita Woo, your moderator this afternoon.

Today we have the crème de la crème of ASEAN youth

right here, gathered in Kuala Lumpur, Malaysia

in University of Malaya's Tunku Chancellor Hall.

Having produced two Malaysia prime ministers,

this venue is no stranger to young leaders,

such as yourselves.

We are here because, as youth under the age of 35,

we currently represent 60 percent of the ASEAN

population, and being the single largest demographic

in ASEAN, we not only have an impact on our

respective nations, but also across the region.

From a global perspective, although ASEAN covers just

3 percent of land area, ASEAN is a single --

as a single identity would rank as the seventh largest

economy in the world; however, each nation

within ASEAN is in a different place in our

journeys towards development,

each journey unique.

Deep poverty persists in the region, but one of the

leaders tackling this issue is Indonesia's

Dr. Sri Mulyani Indrawati, who is currently managing

director of World Bank Group.

Similarly, although the record on upholding human

rights and democratic governance within the

region still leaves much to be desired,

(inaudible) heroic struggle and triumph

proves that mountains can be moved with

determination and tenacity.

ASEAN young entrepreneurs don't have to look far

to know that success is within their reach

as AirAsia Tan Sri Tony Fernandez carved his

success from within this very region, Moreover,

with a thriving scene in Southeast Asia --

creative scene -- who knows?

The next Jimmy Choo could be amongst

us this very moment.

As our region faces the challenges inherent

in a rapidly developing nation and economy,

where perspectives on education, business, environment

must change with the times, we should use our ingenuity

and entrepreneurial spirit to change how we plan

to overcome these obstacles and emerge

stronger than ever.

Southeast Asia is one of the diversity-rich

regions, home to an array of cultures

and histories, and as we know, it was once even

home to President Obama.

The future of ASEAN will lie in its ability

to not only celebrate this diversity,

but to harness it as a key building block for our success.

Today the President himself will be taking

questions directly from those present here,

as well as questions submitted to you --

submitted by you through Facebook and Twitter

from around the region.

Without further ado, please join

me in welcoming to stage the 44th President of the

United States, President Barack Obama.

(applause)

The President: Hello everybody!

The President: Well, good afternoon.

Selamat petang.

Please, everybody have a seat.

It is wonderful to be here and it is wonderful to see

all these outstanding young people here.

I want to thank, first of all,

the University of Malaya for hosting us.

I want to thank the Malaysian people

for making us feel so welcome.

Anita, thank you for helping to moderate.

These trips are usually all business for me,

but every once in a while I want to have some fun,

so I try to hold an event like this where I get

to hear directly from young people like you --

because I firmly believe that you will shape the future

of your countries and the future of this region.

And I'm glad to see so many students who

are here today, including young people

from across Southeast Asia.

And I know some of you are joining us online

and through social media, and you'll be able

to ask me questions, too.

This is my fifth trip to Asia as President,

and I plan to be back again later this year --

not just because I like the sights and the food,

although I do, but because a few years ago

I made a deliberate and strategic decision as President

of the United States that America will play

a larger, more comprehensive

role in this region's future.

I know some still ask what this strategy

is all about.

So before I answer your questions,

I just want to answer that one question --

why Asia is so important to America, and why Southeast Asia

has been a particular focus, and finally,

why I believe that young people like you have

to be the ones who lead us forward.

Many of you know this part of the world

has special meaning for me.

I was born in Hawaii, right in the middle

of the Pacific.

I lived in Indonesia as a boy.

(applause)

Hey!

There's the Indonesian contingent.

(applause)

Yes, that's where they're from.

(applause)

My sister, Maya, was born in Jakarta.

She's married to a man whose parents

were born here -- my brother-in-law's father

in Sandakan, and his mom in Kudat.

(applause)

And my mother spent years working

in the villages of Southeast Asia, helping women

buy sewing machines or gain an education

so that they could better earn a living.

And as I mentioned last night to His Majesty the

King, and the Prime Minister,

I'm very grateful for the Islamic Arts Museum Malaysia

for hosting an exhibit that showcased some of my

mother's batik collection, because it meant

a lot to her and it's part of the connection that I felt

and I continue to feel to this region.

So the Asia Pacific, with its rich cultures

and beautiful traditions and vibrant society --

that's all part of who I am.

It helped shape how I see the world.

And it's also helped to shape

my approach as President.

And while our government, our financial centers,

many of our traditions began along

the Atlantic Coast, America has always been

a Pacific nation, as well.

Our biggest, most populous state

is on the Pacific Coast.

And for generations, waves of immigrants from

all over Asia -- from different countries

and races and religions -- have come

to America and contributed to our success.

From our earliest years, when our first President,

George Washington, sent a trade mission

to China, through last year, when the aircraft

carrier that bears his name, the George Washington,

helped with typhoon relief in the Philippines,

America has always had a history with Asia.

And we've got a future with Asia.

This is the world's fastest-growing region.

Over the next five years, nearly half

of all economic growth outside the United States

is projected to come from right here in Asia.

That means this region is vital to creating

jobs and opportunity not only for yourselves

but also for the American people.

And any serious leader in America

recognizes that fact.

And because you're home to more than half

of humanity, Asia will largely define

the contours of the century ahead --

whether it's going to be marked by conflict or cooperation;

by human suffering or human progress.

This is why America has refocused our attention

on the vast potential of the Asia Pacific region.

My country has come through a decade

in which we fought two wars and an economic crisis

that hurt us badly -- along with countries

all over the globe.

But we've now ended the war in Iraq;

our war in Afghanistan will end this year.

Our businesses are steadily

creating new jobs.

And we've begun addressing the challenges

that have weighed down our economy for too long --

reforming our health care and financial systems,

raising standards in our schools,

building a clean energy economy, cutting our fiscal deficits

by more than half since I took office.

Though we've been busy at home, the crisis still

confronts us in other parts

of the world from the Middle East to Ukraine.

But I want to be very clear.

Let me be clear about this,

because some people have wondered whether because of what

happens in Ukraine or what happens in the Middle East,

whether this will sideline our strategy -- it has not.

We are focused and we're going to follow through

on our interest in promoting

a strong U.S.-Asia relationship.

America has responsibilities

all around the world, and we're glad

to embrace those responsibilities.

And, yes, sometimes we have a political system

of our own and it can be easy to lose sight

of the long view.

But we have been moving forward on our rebalance

to this part of the world by opening ties

of commerce and negotiating our most ambitious trade

agreement; by increasing our defense

and educational exchange cooperation,

and modernizing our alliances; by participating fully

in regional institutions like the East Asia Summit;

building deeper partnerships

with emerging powers like Indonesia and Vietnam.

And increasingly, we're building

these partnerships throughout Southeast Asia.

Since President Johnson's visit here to Malaysia

in 1966, there's perhaps no region on Earth

that has changed so dramatically.

Old dictatorships have crumbled.

New voices have emerged.

Controlled economies have given way to free markets.

What used to be small villages, kampungs,

are now gleaming skyscrapers.

The 10 nations that make up ASEAN are home

to nearly one in 10 of the world's citizens.

And when you put those countries together,

you're the seventh largest economy in the world,

the fourth largest market for American exports,

the number-one destination

for American investment in Asia.

And I'm proud to be the first American President

to meet regularly with all 10 ASEAN leaders,

and I intend to do it every year that I remain President.

(applause)

By the way, I want to congratulate

Malaysia on its turn to assume the chairmanship

of ASEAN next year.

(applause)

Malaysia plays a central role in this

region that will only keep growing over time,

with an ability to promote economic growth

and opportunity, and be an anchor of stability

and maritime security.

Now, one of the things that makes this region

so interesting is its diversity.

That diversity creates a unique intersection

of humanity -- people from so many ethnic groups

and backgrounds and religious and political beliefs.

It gives Malaysia, as one primary example,

the chance to prove -- as America constantly

tries to prove -- that nations are stronger

and more successful when they work to uphold the civil rights

and political rights and human rights

of all their citizens.

(applause)

That's why, over the past few years, Prime Minister

Najib and I have worked to broaden and deepen the

relationship between our two countries

in the same spirit of berkerja sama that I think

so many of you embody.

(applause)

The United States remains

the number-one investor in Malaysia.

We're partnering to promote security

in shipping lanes.