Malaysia Positioned as Bridge Between BRICS and ASEAN for Driving Collaboration

By Abdul Hamid A. Rahman

KUALA LUMPUR, Oct 25 (Bernama) -- Malaysia’s official admission as a BRICS partner country, along with its role as ASEAN chairman in 2025, positions the nation as a bridge in advocating for regional economic resilience and collaboration between the two blocs.

UOB Kay Hian Wealth Advisors head of investment research Mohd Sedek Jantan said that as ASEAN chairman in 2025, Malaysia occupies a pivotal role in fostering a deeper collaboration between ASEAN and BRICS.

“This leadership position offers Malaysia a unique opportunity to encourage ASEAN nations to explore the potential benefits of aligning with BRICS.

“Given that both ASEAN and BRICS comprise emerging markets with significant economic growth trajectories, there is a strong foundation for exploring complementary interests,” he told Bernama.

Apart from Malaysia, 12 other nations have been officially added to BRICS as partner countries, namely Algeria, Belarus, Bolivia, Cuba, Indonesia, Kazakhstan, Nigeria, Thailand, Turkey, Uganda, Uzbekistan and Vietnam.

Broadening Existing FTAs

Mohd Sedek, who is also a fellow of the Asian Financial Cooperation Association Think Tankers Committee, said that one of the ways Malaysia can lead is by championing the broadening of existing free trade agreements between ASEAN and individual BRICS members.

“For instance, the ASEAN-India and ASEAN-China Free Trade Agreements have been highly successful in facilitating trade flows. Malaysia could push for the expansion of these agreements to include a wider range of goods and services, as well as negotiate more favourable terms that lower trade barriers, streamline customs procedures, and enhance market access for ASEAN countries.

“This would create a conducive environment for more robust intra-regional trade and investment, particularly in key sectors such as infrastructure development, renewable energy, and digital technology,” he said.

Additionally, Mohd Sedek said that the New Development Bank (NDB), established by BRICS, provides a significant opportunity for ASEAN nations to diversify their sources of development financing.

“By promoting the NDB as an alternative to traditional Western-led financial institutions such as the World Bank and International Monetary Fund, Malaysia could help ASEAN countries secure funding for critical projects in infrastructure, technology, and sustainable development.

“This diversification would not only reduce dependency on Western financial systems but also offer more flexible, region-specific financial solutions,” he said.

Promoting Local Currencies, Halal Products

Mohd Sedek said another key area of focus could be on promoting the use of local currencies in cross-border transactions between ASEAN and BRICS countries.

“By encouraging currency swap agreements and reducing reliance on the US dollar, Malaysia could help lower transaction costs and enhance financial stability within the region.

“Such initiatives would reduce vulnerability to external shocks, such as fluctuating exchange rates, and offer ASEAN countries greater liquidity during times of economic stress,” he said.

As a global leader in halal food production, Malaysia is well-positioned to expand its exports to BRICS markets with substantial Muslim populations, he said.

“Countries like Indonesia and Saudi Arabia, which are part of or have close ties with BRICS, represent key markets for halal products.

“By collaborating with BRICS members on halal certification and standards, Malaysia could streamline its halal exports and tap into the growing demand for high quality, certified halal products across these markets,” he said.

Meanwhile, Mohd Sedek said that one of the primary challenges is managing the balance between deepening ties with BRICS and its commitments to ASEAN.

“Malaysia must ensure that its engagement with BRICS does not lead to divisions within ASEAN, particularly given that some members may view closer ties with China and Russia with apprehension.

“Striking the right balance between these relationships will be crucial for maintaining regional cohesion and ensuring continued cooperation on key issues,” he added.

-- BERNAMA