KUALA LUMPUR (Oct 28): Malaysia has little economic and external trade benefits to gain from joining BRICS, though it may gain a geopolitical voice internationally in the newest bloc, said BIMB Securities.

Being part of BRICS could give Malaysia a platform to influence international policies, BIMB Securities said in a note. Malaysia can collaborate with BRICS nations on pressing issues, such as climate change, sustainable development, and economic stability, the research house said.

“Beyond economic benefits, joining BRICS could provide Malaysia with a platform for enhanced political influence, cultural exchange, scientific collaboration, and cooperation on security and social development issues,” BIMB Securities said.

Malaysia is now one of the 13 partner countries of BRICS that originally comprised Brazil, Russia, India, China and South Africa covering 20% of Malaysia’s exports and imports since 2015. Malaysia, however, imports more than it exports from BRICS.

Further, Malaysia already has bilateral and multilateral free trade agreements with BRICS’ top economies, namely China and India. China is also already Malaysia’s largest trading partner, though trade with Brazil, Russia and South Africa remained below 1.0% for more than two decades.

“As Malaysia continues to diversify its economic relationships, engagement with BRICS countries is likely to deepen, offering mutual benefits and increased economic resilience,” BIMB Securities said.

The entry into BRICS comes ahead of Malaysia’s chairmanship of the 10-member Association of Southeast Asian Nations (Asean) in 2025. Prime Minister Datuk Seri Anwar Ibrahim has also invited Russian President Vladimir Putin to the Asean Summit next year.

“Joining BRICS aligns with Malaysia’s membership of Asean, especially in tackling global challenges, while the knowledge gained through these partnerships can be shared with Asean, elevating Malaysia’s influence in both blocs,” BIMB Securities added. 

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