SOUTH-EAST ASIA (Bernama): Economic cooperation between Asean and BRICS countries is expanding across key sectors, including energy, food security and manufacturing, but persistent barriers in logistics, trade regulations and cross-border payments could hinder efforts to establish a sustainable economic network by 2035, according to a TV BRICS analysis.
The analysis said stronger transport connectivity, streamlined trade procedures and more efficient financial mechanisms would be crucial to deepening economic ties between the two groupings.
It identified Indonesia, Malaysia, Thailand and Vietnam as key hubs for cooperation with BRICS, supported by their industrial capabilities, natural resources and growing investment links.
Economist and former New Development Bank Vice-President Paulo Nogueira Batista Jr cautioned against viewing financial infrastructure as the weakest link in ASEAN-BRICS cooperation.
"Cross-border transactions are increasingly being conducted in the national currencies of the participating countries. Furthermore, the People’s Bank of China has a network of bilateral renminbi swap lines with a number of central banks in the Global South, including some central banks in ASEAN countries.
"These swap lines can provide liquidity, which may prove useful in times of financial crisis,” he said.
Meanwhile, Mikhail Khachaturyan, an associate professor at the Financial University under the Government of the Russian Federation, said logistics constraints remained a major obstacle to expanding trade between ASEAN and BRICS.
He said ports, railways, road corridors and border crossings were operating at full capacity, which would need to be expanded by at least 50 per cent in the coming years.
"Different countries have varying railway track gauges, rolling stock specifications and containerisation requirements. This necessitates additional transhipments, which slow down the flow of goods through transport and logistics chains and lead to increased costs for shippers and consignees,” he said.
Khachaturyan also highlighted lengthy customs clearance procedures and the lack of uniform digital standards as factors contributing to delays and higher trade costs.
Economic expert Irina Rusak said China was ASEAN’s third-largest source of foreign direct investment (FDI) and could facilitate the relocation of production in the electronics, electric vehicle, energy and digital infrastructure sectors.
The analysis also highlighted ASEAN’s growing investment appeal, with FDI inflows reaching US$243.9 billion in 2025, surpassing the previous record of US$230 billion in 2023.
Despite these challenges, the analysis said ASEAN and BRICS were not moving towards a merger or the formation of a single economic bloc, but were instead developing an interconnected economic network through trade, investment and industrial cooperation.
-- BERNAMA
