Malaysia set to become BRICS ‘partner country’ soon: Anwar

[KUALA LUMPUR] Malaysia is likely to be admitted as a “partner country” of the BRICS group of economies, pending full membership in the economic bloc, Malaysia’s Prime Minister Anwar Ibrahim said on Tuesday (Jul 9).

He said during a Parliament session that the application for full membership in BRICS would take time, and that Malaysia might become a partner country before its full participation is finalised.

BRICS is an intergovernmental organisation comprising Brazil, Russia, India, China and South Africa. The group began expanding last year, and now counts Saudi Arabia, Iran, Ethiopia, Egypt, Argentina and the United Arab Emirates as its new members.

In South-east Asia, Malaysia and Thailand have announced plans to join the group; Indonesia, Laos and Myanmar are assessing the potential and requirements of joining the bloc.

In Malaysia, some market observers expressed concern that joining BRICS might invite closer scrutiny by Western nations regarding the alignment of Malaysia’s future policies.

But Anwar said that Malaysia’s bid for BRICS membership bid would not affect its domestic politics.

“Our decision is not to interfere in the domestic political affairs of each country, but to prioritise economic trade and expand our network so that the country and the people, especially traders and investors, will benefit from it,” he said.

Market analysts are optimistic that participation in BRICS would expand Malaysia’s trade horizon beyond the Asia-Pacific, and attract more high-value investments.

Oh Ei Sun, a senior fellow at the Singapore Institute of International Affairs, said membership in BRICS would strengthen Malaysia’s ties with major BRICS economies, potentially attracting more investments, boosting trade and opening new markets in smaller BRICS nations.

But policy analyst Liew Wui Chern does not expect a significant boost in trade any time soon, regardless of Malaysia’s status as a full member or partner country.

Dr Liew, an assistant professor at Universiti Tunku Abdul Rahman, told The Business Times: “Currently there aren’t any trade agreements between BRICS members, but there are some benefits joining BRICS as it could expand Malaysia’s network and connection to other continents, such as South America (through Brazil) or Eastern Europe (through Russia).”

Geoffrey Williams, provost for research and innovation at Malaysia University of Science and Technology, emphasised the importance of Malaysia having a diverse portfolio for trade and investment, including access to conventional and non-conventional trading blocs.

“The membership enables Malaysia to tap into the BRICS market, which has a population of 3.2 billion people and a gross domestic product of US$26 trillion. This offers access to a huge consumer market and possible inflows of investment into Malaysia,” he said.

Dr Williams also noted that any potential trade and investment opportunities would create demand for the Malaysian currency, which would help strengthen the ringgit over time.

“The global economic balance is shifting, and Malaysia, as a small, open economy, must adapt positively. Recent foreign direct investment deals involve independent United States multinational companies, not the US government. This direct engagement is what truly matters,” he added.