KUALA LUMPUR: BRICS countries have not agreed on any proposal related to de-dollarisation, the Dewan Rakyat was told.
Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said that although BRICS meetings discussed reducing dependency on the US dollar, nothing had been decided.
Tengku Zafrul said this in response to a question from Young Syefura Othman (PH-Bentong), who asked about Malaysia's stance on US President-elect Donald Trump's threat to impose 100 per cent tariffs on BRICS countries planning to replace the US dollar for trade.
He said any use of alternative currencies for trade and investment must be carefully studied.
Additionally, any decision on the matter must align with Malaysia's interests and policies, he said.
"It is important to understand the role and direction of BRICS, which aims to balance the economic power of Western countries. We need to take a more holistic view (on the matter).
"Given the US dollar's continued dominance in the global financial system, along with the US threat to impose a 100 per cent tariff on BRICS countries if the bloc moves forward with its plans to create a new currency, it is crucial for Malaysia to closely monitor any developments that may impact the country.
Zafrul said that in Malaysia's view, BRICS is an increasingly important platform for voicing views and positions on regional issues through dialogue, forums, or strategic discussions on a non-binding basis.
"At the same time, we cannot deny the high level of interdependence in trade and economic relations between Malaysia and the US, particularly in the semiconductor supply chain, where US companies are key investors in Malaysia.
"This mutually beneficial trade relationship can be seen based on 2023 statistics. For example, the US is Malaysia's third-largest trade partner, while Malaysia is the 19th largest trading partner for the US.
"Therefore, any move regarding a 100 per cent tariff would only harm both sides, as both are mutually dependent in efforts to prevent disruptions in the global supply chain," he added.