Malaysia's BRICS entry seen as boosting trade ties with India

KUALA LUMPUR: Malaysia’s participation in BRICS, alongside India’s established presence in the group, presents opportunities for the two nations to deepen their economic collaboration.

Asean-India Business Council (Malaysia) founder Datuk Ramesh Kodammal highlighted that Malaysia’s integration into the inter-governmental organisation of Brazil, Russia, India, China and South Africa (BRICS) will provide a strategic advantage in strengthening economic ties with India.

He said this alignment with BRICS, combined with shared interests in the Indo-Pacific region, positions Malaysia as a pivotal trade and investment hub.

"India is already a key member of BRICS. Malaysia's upcoming membership in the group presents a valuable opportunity for both countries to leverage this platform for mutual benefit.

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"Enhanced cooperation within BRICS will enable Malaysia to bolster its economic engagement with India and capitalise on this strategic partnership," he said in a recent interview.

He had been asked to comment on the expected key discussions between Prime Minister Datuk Seri Anwar Ibrahim and Indian ministers during the premier’s maiden official visit to the Indian capital of New Delhi from Monday to Wednesday (Aug 19 to21).

BRICS was established in 2009 as a cooperation platform for emerging economies, initially comprising Brazil, Russia, India, and China, with South Africa joining in 2010.

In January, Iran, Egypt, Ethiopia and the United Arab Emirates were admitted as new members.

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Earlier, Anwar announced that Malaysia would first become a "partner country” of BRICS before finalising its full participation in the grouping.

Ramesh also anticipated that one of the key discussions between Anwar and the Indian government would be to continue and potentially expand the visa-free policy to boost tourism.

Indian nationals currently enjoy visa-free entry into Malaysia for up to 30 days.

The policy, implemented on Dec 1 last year, will be in effect until Dec 31 this year.

The Indian government has reciprocated by allowing Malaysians to visit India on a 30-day double-entry electronic visa at no cost from July 1 this year until June 30 next year.

Applications can be made online through the Indian visa portal, with the electronic tourist visa required to be used within 120 days of issuance.

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Regarding Malaysia's Asean chairmanship next year, Ramesh said Anwar should engage with his Indian counterpart during his visit to emphasise the key role Malaysia could play as a major trading hub for the region.

Ramesh noted that Malaysia, leveraging its significant Indian diaspora – approximately 2.8 million strong – intends to advocate for a robust Asean-India partnership.

The Indian media reported that several agreements are expected to be signed between India and Malaysia during Anwar's visit, including in trade, investment, technology, regional security, labour, defence and tourism.

Anwar visited India in January 2019 to participate in a conference in New Delhi and met Indian Prime Minister Narendra Modi at that time, but Monday's trip will be his first to the country since becoming Prime Minister in November 2022.

The diplomatic relationship between India and Malaysia, which dates back to 1957, grew from a Strategic Partnership in 2010 to an Enhanced Strategic Partnership in 2015.

India-Malaysia bilateral trade surpassed the US$20bil (RM88.6bil) mark last year and is projected to reach US$30bil (RM132.9bil) by next year. – Bernama