Malaysia’s Bid to Join BRICS: A Strategic Move to Diversify Economic Ties

• Malaysia seeks BRICS membership to diversify its economy and reduce Western reliance, and it is awaiting South Africa’s response.
• Russia supports Malaysia’s BRICS bid, promising economic ties and political platforms independent of Washington.
• BRICS membership could boost Malaysia’s trade, investment, and cooperation in various sectors, enhancing global economic standing.

Malaysia has formally applied to join BRICS, aiming to diversify its economic ties and reduce reliance on Western economies. Prime Minister Anwar Ibrahim confirmed the application was sent to Russia, the current BRICS chair. Malaysia seeks either full membership or a strategic partnership, anticipating a response from South Africa soon.

BRICS Expansion and Russia’s Support

Besides, BRICS recently expanded to include the UAE, Iran, Egypt, and Ethiopia. The group’s goal is to create a multipolar world and challenge the current global economic system. Russia supports Malaysia’s bid, with Foreign Minister Sergey Lavrov assuring Anwar of Moscow’s backing during his visit.

Anwar Ibrahim highlighted the potential benefits on Facebook, stating, “This potential membership holds substantial promise for both nations and shows our commitment to creating strong international collaboration.” He first expressed interest in BRICS before China Premier Li Qiang’s visit to Malaysia.

Economic and Political Benefits

Joining BRICS would grant Malaysia access to financing and a political platform independent of Washington. Anwar criticized America’s role in the Israel-Palestine conflict, advocating for a permanent ceasefire and full UN membership for Palestine.

Moreover, Russia is Malaysia’s eighth-largest European trading partner, with bilateral trade rising 15.6% to $3.1 billion in 2023. During his meeting with Lavrov, Anwar discussed boosting cooperation in investment, trade, science and technology, agriculture, defence, education, and tourism.

Connecting to BRICS’ New Development Bank is another potential advantage for Malaysia. While non-members like Bangladesh and Uruguay can still access its funds, full membership would strengthen Malaysia’s economic position. However, the bank’s founding document ensures that the original five members retain 55% of the voting power, with China providing most of the funds.

Regional Context and Global Implications

Thailand, which is also bidding to join BRICS, and Malaysia do not face short-term balance-of-payment pressures. Hence, the BRICS Contingent Reserve Arrangement is less relevant to them. For Thai Prime Minister Srettha Thavisin, joining BRICS isn’t a strategy for internal reforms since membership does not impose structural conditions.

Indonesia considered BRICS membership last year but decided against it. Argentina also withdrew its bid after Javier Milei became president. Meanwhile, Saudi Arabia remains hesitant, aware that joining BRICS might be perceived as an anti-Western move by the U.S., its security guarantor.

Consequently, Malaysia’s potential BRICS membership could enhance its global economic standing. The country awaits further developments as it navigates this strategic international collaboration.