Advantages of Malaysia’s BRICS Partnership
Economists believe that Malaysia’s status as a BRICS partner country, rather than a full member, should be viewed positively. Following the recent BRICS Summit in Russia, Malaysia was recognized alongside 12 other nations as a “partner country.” Although there is no timeline for full membership, experts suggest that this interim status has distinct advantages.
Strategic Positioning for Future Membership
One key benefit of being a partner is that it positions Malaysia first in line for future full membership. Sunway University economics professor Yeah Kim Leng emphasized that being a partner allows Malaysia to access the latest developments within the group. This includes a greater chance of participating in growth initiatives aimed at emerging economies in the Global South.
Moreover, the other partner countries include Algeria, Belarus, Bolivia, Cuba, Kazakhstan, Nigeria, Turkey, Uganda, Uzbekistan, and ASEAN states Indonesia, Thailand, and Vietnam. This diverse group offers Malaysia potential networking opportunities that can foster collaboration and mutual growth.
Flexibility and Time for Adjustment
Transitioning to a partner status also provides Malaysia with the flexibility to navigate its foreign policy more carefully. Economist Niaz Asadullah pointed out that, given the current geopolitical landscape, this interim position allows Malaysia to assess the benefits and obligations of full BRICS membership against its national interests. This “interim status” gives Malaysia the chance to engage with BRICS nations without a full commitment.
Additionally, the waiting period allows Malaysia to make necessary economic adjustments to align with BRICS standards. This proactive approach can facilitate a smoother integration process when full membership is eventually granted.
Trade Considerations and Risks
However, concerns exist about the potential risks of full BRICS membership impacting Malaysia’s trade with the US. While joining BRICS could reduce dependence on Western financial systems, it might strain Malaysia’s trade relationships with the US and its allies. Niaz acknowledged these risks but noted that many BRICS members, including Malaysia, have maintained strong economic ties with the US. This suggests that joining BRICS would not necessarily harm those relationships.
In fact, Yeah argued that Malaysia could play a constructive role in easing tensions between major powers like the US and China. By acting as a neutral player seeking economic opportunities, Malaysia could help mitigate the risks associated with great power rivalry.
Asean’s Strategic Gains
The interest from four major ASEAN economies in joining BRICS reflects their strategic vision. Niaz noted that collectively, major ASEAN countries stand to gain from BRICS membership, as it could strengthen their bargaining power with Western nations. This would help protect against potential penalties while simultaneously negotiating ASEAN-wide infrastructure development and connectivity initiatives.
Building a New Global Financial Order
Furthermore, BRICS aims to establish an alternative to the US-dominated Bretton Woods financial system. Many countries in the Global South, including Malaysia, support this shift and the push toward de-dollarisation, with over 30 nations expressing interest in joining BRICS.
Niaz highlighted the skepticism surrounding reliance on Western institutions, particularly after the 1997 Asian financial crisis. Reducing dependence on the US dollar is increasingly viewed as a means to enhance economic independence and sovereignty.
Urgency of De-dollarisation
Both Yeah and Niaz agree that the urgency of de-dollarisation is rising due to various political and economic factors. Politically, the US dollar has been weaponized through sanctions and asset confiscation. Economically, concerns over the US’s unsustainable path, marked by twin deficits and growing government debt, drive the desire for alternatives.
Conclusion: A Path Forward for Malaysia
In summary, BRICS, originally comprising Brazil, Russia, India, and China and later joined by South Africa, is evolving to include more nations seeking greater economic sovereignty. The bloc’s expansion, with new members like Iran, Egypt, Ethiopia, and the UAE, signals a growing desire among Global South countries for an alternative financial system that reduces reliance on the US dollar. Malaysia’s current partnership status within BRICS presents a valuable opportunity for strategic growth and economic independence in the evolving global landscape.
