Malaysia’s BRICS aspirations

PRIME Minister Datuk Seri Anwar Ibrahim’s announcement of Malaysia’s interest in joining the BRICS bloc signifies an intention to shift towards multipolarity, alongside the hedging of domestic interests between a Western-led economic order and the rising global influence of China.

BRICS originally comprised Brazil, Russia, India, China and South Africa; its first summit was held in 2009 and South Africa joined in 2010. Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates were admitted in January this year.

What does Malaysia have to look out for if we join BRICS. Three questions ought to be asked:

Firstly, how far is Malaysia willing to commit to de-dollarisation with other members?

Most trade settlements in ringgit are still centred around countries in the Indo-Pacific, where Malaysia has a greater degree of influence. However, the extension of de-dollarisation within BRICS poses a concern for Malaysia – is this country capable of establishing the prerequisite trust in the ringgit?

Moreover, a majority of Malaysian trade is concentrated among countries that are not members of BRICS, which further signifies the inefficacies of BRICS as Malaysia’s tool towards de-dollarisation.

Secondly, will reliance on BRICS create the same pitfalls Malaysia is trying to avoid?

With the rising use of the Chinese renminbi as an alternative to settle bilateral trade between states such as Brazil-Argentina, Russia-Pakistan, etc, one might foresee Malaysia adopting its use with other BRICS member states in search of stability in trade currency.

Coupled with China’s substantial voting power in the Asian Infrastructure Investment Bank (27%) and the BRICS’ New Development Bank 55% quota allocated to the five founding members, it raises the question of whether BRICS is emulating methods of consolidating influence from within as the United States has done with its World Bank voting shares.

Should Malaysia’s middle- income status and decreasing regional influence persist, its aim of independence within any rising order may be stunted by the reliance on BRICS as an escape chute.

Thirdly, how effective can this organisation be?

Anwar’s comments about the “West controlling discourse” may be true about the ongoing humanitarian crisis in Gaza, but the unity of the “Global South” is still far from a reality.

BRICS members such as Iran and Saudi Arabia remain staunch adversaries in proxy conflicts over the Middle East, while China and India are still deadlocked over the Line of Actual Control (the notional demarcation line in the Sino-Indian border dispute).

The integration of more diverse, multifaceted nations with differing tensions highlights the impossibility of categorising middle powers into a monolith, and inhibits the BRICS’ goal of presenting a unified geopolitical front.

Nonetheless, Malaysia can potentially benefit from BRICS as a platform to solidify its neutrality. Rather than relying on BRICS as the saving grace from Western hegemony in global organisations, Malaysia should wield it as a tool in striving for equitable distribution of influence in the World Bank and International Monetary Fund.

This warrants the empowerment of Malaysia’s trade capacity and the ringgit’s strength as an alternative currency, as well as the re-emergence of Malaysia as a vital geopolitical actor in Asean and the greater Indo-Pacific.

With the Asean Chairmanship belonging to Kuala Lumpur in 2025, Malaysia should seize the opportunity to regain its status as a regional leader as the foundational basis for operating within BRICS.

SIM YANG MING

Research assistant

Bait Al Amanah (House of Trust)

Bait Al Amanah is an independent research institute that promotes policy and decisionmaking based on sound, independent, and multidisciplinary research.