KUALA LUMPUR: Malaysia's recognition as one of the 13 nations officially added to BRICS presents significant economic opportunities, opening doors to trade, investment, and cooperation with the world's largest emerging markets, including Brazil, Russia, India, China, and South Africa.
Universiti Teknologi MARA's Malaysian Academy of SME and Entrepreneurship Development (MASMED) coordinator Dr Mohamad Idham Md Razak said the move will give Malaysia access to these economies, boosting exports and attracting foreign direct investment (FDI) in sectors such as technology, infrastructure and energy.
"Opportunities for energy and infrastructure projects could arise, particularly with China and India, both of which are major players in renewable energy and technological advancements," he said.
Apart from Malaysia, the other 12 partner countries in the bloc are Algeria, Belarus, Bolivia, Cuba, Indonesia, Kazakhstan, Nigeria, Thailand, Turkey, Uganda, Uzbekistan, and Vietnam.
Mohamad Idham said Malaysia could also capitalise on the growing demand within BRICS for products like palm oil, electronics and rubber, as these countries continue to expand their industrial and technological capacities.
"BRICS membership offers tremendous potential for Malaysia to expand its export markets and diversify trade, particularly within the bloc.
"It grants Malaysia access to alternative financial and investment markets, including the use of non-traditional currencies in trade, which could reduce reliance on Western financial systems and mitigate currency risks," he said.
Additionally, Mohamad Idham said, Malaysia could leverage its diplomatic capital and neutrality as Asean chairman to encourage member states to form strategic alliances with BRICS, serving as a bridge between the two blocs.
However, BRICS integration can be a complex process that would require Malaysia to navigate geopolitical challenges and ensure its economic policies align with both regional and global interests, he said.
"Malaysia's trade is still heavily Western-oriented, and balancing strategic alliances with BRICS alongside Western economies could pose challenges.
"Furthermore, the BRICS economies differ in terms of economic maturity, making it difficult to align trade policies, regulatory frameworks, and foreign direct investment strategies," he said.
These challenges, he said, may prompt Malaysia to reassess its economic strategy by focusing on diversification, strengthening global supply chains, and enhancing diplomatic and economic relations with both developing and emerging markets.
"BRICS, often seen as a counterbalance to Western-dominated institutions like the International Monetary Fund and the World Bank, would give Malaysia a stronger voice in multilateral decision-making and in shaping a new global economic order.
"Ultimately, it could spur economic growth and diversification, positioning Malaysia as a key player in the Global South," he added.
BRICS, originally comprising Brazil, Russia, India, and China, was established in 2009 as a cooperation platform for emerging economies. South Africa joined the bloc in 2010.
The bloc has since expanded to include Iran, Egypt, Ethiopia, and the United Arab Emirates.
BRICS represents about 40 per cent of the global population and accounts for a cumulative gross domestic product (GDP) of US$26.6 trillion, or 26.2 per cent of the world's GDP, nearly matching the economic strength of the Group of Seven.– BERNAMA