Joining the BRICS is the right step by Malaysia
BERNAMA
In line with the changes in the current global landscape, Malaysia's move to join BRICS, the largest and most influential geo-political grouping, is indeed the right move.
23/06/2024
KUALA LUMPUR: In line with the changes in the current global landscape, Malaysia's move to join BRICS, the largest and most influential geo-political grouping, is indeed the right move.
The grouping was founded by the countries of Brazil, Russia, India, China and South Africa, which form the acronym BRICS, but its membership continues to grow rapidly as more countries seek a multipolar platform.
Last week Thailand submitted its official request to join the group of emerging economies.
Thailand is reportedly hoping to join the grouping at the next BRICS summit in Russia in October, which would make it the first ASEAN country to join.
However, Malaysia's participation in BRICS will be more significant considering that it will be the Chairman of Asean next year.
Looking at the influence and prominence of the Prime Minister, Datuk Seri Anwar Ibrahim at the global level, it is certainly more significant.
BRICS' new member countries now include Saudi Arabia, Iran, Ethiopia, Egypt and the United Arab Emirates, and now more than 30 countries have expressed interest in joining the grouping, according to a Reuters report last week.
However, there are also parties who voiced concern over Malaysia's decision to join BRICS, a group they say is spearheaded by Russia and China.
They see these two countries that have challenged the world order led by the United States (US) and its western allies.
While this concern is understandable, it is not entirely accurate.
For example India, which is considered 'close' to the West, while often being reported to have 'many differences' with China, yet it also has a reputation for implementing very independent foreign policies.
Malaysia has repeatedly stated that it will not take sides in the dispute between the US and China, and is quite cautious in handling the difficult situation.
After all, Malaysia also benefits a lot from the US-China chip war, for example with Penang being the biggest beneficiary.
The state is reported to attract RM60.1 billion in foreign investment in 2023, greater than the combined amount received from 2013 to 2020.
Of course Malaysia will continue to welcome US investment in Malaysia, and will not do anything that will affect that friendship.
The report said that extensive restrictions on Chinese technology, especially for chip manufacturing, was the main reason for the attraction directed at neutral Malaysia.
At the same time, Malaysia is also aware that China has become its largest trading partner for the past 40 years.
Malaysia like other countries cannot ignore the fact that China has the largest Gross Domestic Product (GDP) among the BRICS countries.
When combined, the BRICS bloc has a slightly larger GDP than the US.
According to reports, BRICS now accounts for 37.3 percent of the world's GDP, or more than half of the European Union's 14.5 percent, but many of its member states are seen growing frustrated with their dependence on the American dollar.
Participation in BRICS will certainly further expand the market and most likely help reduce over-reliance on the US dollar for trade, with the use of the local currency.
As the chief economist of Bank Muamalat Malaysia Bhd, Mohd Afzanizam Abdul Rashid told Bernama, "it will effectively protect the country and the region from changes in US monetary policy and currency fluctuations, potentially increasing predictability in the currency market and reducing transaction costs business for exporters and importers.
The entry of new member states certainly gives BRICS an advantage, but like ASEAN, it also works on the basis of consensus.
The admission of new members is based on consensus among member countries. There is no automatic entry, and Malaysia still has to be on the waiting list.
Among the selection criteria for the New Partner Country Category, include good representation and close relations with BRICS member countries, a strong position in regional and international politics, as well as the economy, and not imposing any unilateral sanctions on BRICS member countries.
It is also not based on 'who can get it first', rather the political decision of the leaders of the BRICS member countries should be prioritized.
But when we look at Malaysia's qualifications and Anwar Ibrahim's stature, we will certainly be given the most appropriate consideration. - BERNAMA
