KUALA LUMPUR: Malaysia's trade with BRICS member countries surged 20% to RM481.02bil in the first half of the year, as the government looks to the emerging economies bloc to expand export markets, attract high-value investments and reduce reliance on traditional trading partners.
Deputy Foreign Minister Datuk Lukanisman Awang Sauni said the figure marked a significant increase from RM400.73bil in the corresponding period last year.
He said exports to BRICS countries rose 17.4% to RM181.40bil, compared with RM154.57bil previously, while imports increased 21.7% to RM299.62bil from RM246.15bil.
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"China, Indonesia and India remain Malaysia's largest trading partners within BRICS, accounting for approximately 90% of total trade," he told the Dewan Rakyat on Thursday (Oct 29).
Lukanisman said Malaysia's total trade with BRICS countries reached RM846.05bil last year, an increase of 3.4% from RM818.04bil in 2024.
The bloc accounted for 27.7% of Malaysia's total global trade last year, he added.
He said Malaysia's participation as a BRICS partner country was guided by a neutral, pragmatic and principled foreign policy, with economic diversification among its central objectives.
"Our main objectives are to diversify strategic economic partners and reduce dependence solely on traditional markets, champion the Global South agenda and support reforms of multilateral institutions to make them more equitable and inclusive," he said.
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Lukanisman said the BRICS framework would also provide Malaysia with opportunities to penetrate markets where it currently has no free trade agreements (FTAs).
"BRICS serves as an important platform for expanding export destinations and entering markets where Malaysia does not yet have FTAs, including Brazil, Russia, South Africa, Ethiopia, Iran and Egypt," he said.
He added that cooperation within the bloc would complement Malaysia's existing bilateral arrangements and trade agreements rather than replace them.
The government is also looking to strengthen the use of local currencies in trade settlements, including the ringgit-renminbi arrangement, to reduce transaction costs and exposure to foreign exchange fluctuations.
"Cooperation through BRICS encourages the use of local currencies and more efficient cross-border payment systems, thereby reducing transaction costs and risks arising from fluctuations in intermediary foreign currencies such as the US dollar," he said.
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Lukanisman said the government was prioritising strategic sectors aligned with the Madani Economy framework, the New Industrial Master Plan 2030 (NIMP 2030) and the National Energy Transition Roadmap (NETR).
"The focus is on increasing exports of electrical and electronics products, semiconductors and palm oil, alongside attracting investments in emerging technologies such as green technology and cybersecurity to strengthen the domestic innovation ecosystem," he said.
He added that Malaysia also sought to strengthen food and energy supply chain resilience through agricultural cooperation and renewable energy projects.
He said efforts would also be directed towards expanding high-value services, including tourism, education, healthcare and Islamic finance, across BRICS markets.
"BRICS also provides a platform to bring together major markets to address practical trade issues, including trade facilitation, logistics connectivity, trade digitalisation and supply chain resilience.
"It opens up opportunities to attract high-quality investments and technology transfers in strategic sectors such as semiconductors, AI and digital infrastructure," he said.
Datuk Seri Dr Ronald Kiandee (PN-Beluran) wanted to know Malaysia's objectives in joining BRICS as a partner country, its advantages over existing trade agreements, and the priority markets and sectors targeted for trade expansion.
