BRICS gives Malaysia room to manoeuvre

As an institution, BRICS is loose, with no permanent secretariat, and decisions require consensus. The declarations are often broadly worded, while initiatives may sound impactful and innovative but can take years to materialise.

The bloc attracts a fair amount of scepticism, and some of it is understandable. It might be rightly described as a “geoeconomic coalition of the willing”, but for China and India, that could just be the willingness to continue as strategic rivals rather than collaborators.

Iran and the UAE arrived for the BRICS Summit in New Delhi with sharply divergent positions on the Middle East conflict. Russia and China, on the other hand, are “more willing” to cast the bloc as a counterweight to Western influence. India and Brazil have generally focused more on economic cooperation and reform of existing institutions.

But judging BRICS on whether it can become a common market or a strategic alliance misses the point entirely. It was never designed to be either. Despite its inherent weaknesses, BRICS operates as a flexible, non-binding coalition designed to challenge Western hegemony and reform global governance.

“It’s the economy, stupid” might well be a mere political catchphrase in an election campaign, but for Malaysia, there are practical interests at stake. BRICS brings together economies that matter greatly to us. It offers another avenue for trade, finance and political dialogue, and may help Malaysia reduce its dependence on arrangements controlled elsewhere, or as Prime Minister Anwar Ibrahim put it, “to be weaned off overreliance on traditional Western markets”.

The past year has strengthened the case. US tariffs showed how decisions in Washington can affect manufacturers in Penang or furniture makers in Johor. War in the Middle East has raised energy and shipping costs and threatened vital sea lanes. Malaysia has limited influence over such developments but must live with their consequences.

No country can escape such pressures. Malaysia can, however, spread its exposure more widely by drawing on BRICS for alternative markets, financial connections and technology.

Turning economic weight into practical gains

Data compiled by the Financial Times from official and institutional sources illustrates both the scale of BRICS and how far it still needs to go. The expanded bloc accounts for roughly 40% of global output at purchasing-power parity. Intra-BRICS goods exports have grown more than 13-fold since 2003, reaching about US$1.2 trillion in 2025.

These figures do not prove deep economic integration. Much of the trade would have happened anyway, and BRICS has no common regulatory framework. But its economic scale is undeniable. Malaysia should therefore pursue practical arrangements that widen its options and diversify its economic relationships.

Payments are a promising field. India’s Unified Payments Interface has more than 550 million users and processed US$3.4 trillion in the year to March. Brazil’s Pix has over 170 million users and handled US$6.8 trillion last year. Instant-payment systems across BRICS economies processed more than US$10 trillion in the past 18 months. In some of the bloc’s largest domestic markets, they have overtaken Mastercard and Visa.

Yet very little of this activity crosses borders. Currencies are not always directly exchangeable, some face capital controls and trade imbalances create further complications. BRICS members are exploring ways to connect payment systems and settle more trade in local currencies.

Malaysia already has experience with cross-border payment links through DuitNow. Similar arrangements with BRICS economies could shorten settlement times and reduce conversion costs. The gains would be gradual, but potentially significant.

The New Development Bank (NDB) also deserves a measured assessment. By the end of 2025, it had approved 139 projects worth nearly US$43 billion, far below the World Bank’s lending scale. The NDB is therefore no replacement for the World Bank, but it gives developing countries another source of financing and offers local-currency lending that can reduce exposure to exchange-rate swings.

Anwar addressed this at the summit, arguing that no country should have to choose between servicing its debts and meeting its obligations to its people. He also highlighted Islamic capital markets and called for greater cooperation and training in semiconductors and artificial intelligence.

Talking through differences

The Delhi summit also tested whether BRICS members could manage their political differences. In May, its foreign ministers failed to agree on a joint statement as Iran and the UAE could not accept the same language on the Middle East.

India nonetheless secured agreement on a declaration expressing deep concern over the conflict. It called for restraint, civilian protection, respect for sovereignty and territorial integrity, and the safeguarding of trade, energy flows and maritime security.

President Masoud Pezeshkian also met Abu Dhabi crown prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan on the sidelines, marking the highest-level contact between the two sides since the conflict began. The meeting did not resolve their differences, but it preserved contact during a period of acute regional tension.

Anwar also used the summit to press Malaysia’s position on Palestine, condemning Israel’s actions in the Middle East and urging BRICS to speak plainly against occupation and settler terrorism. “No life weighs less for where it is lived,” he said.

Strategic autonomy in practice

The gathering also gave Malaysia opportunities on the bilateral front. During his visit to New Delhi, Anwar held meetings with Russian president Vladimir Putin, Iran president Masoud Pezeshkian, Indian prime minister Narendra Modi and Ethiopian prime minister Abiy Ahmed.

Malaysia should not expect BRICS to replace the existing international order. The country’s trade and financial stability still rely heavily on established institutions, while its relationships with the US, Europe and Japan remain vital.

BRICS is likely to remain most credible when it focuses on development, finance, trade and technology. A greater role in security and defence would test its cohesion, given how differently its members approach those questions.

Malaysia’s status as a partner country suits this approach. It allows the government to pursue useful projects without endorsing every position taken by the bloc or its members. Malaysia remains free to cooperate elsewhere, as it must.

Anwar defined strategic autonomy in New Delhi as Malaysia’s freedom to choose its own course and the courage to stand by that choice. Such freedom depends partly on having other markets, sources of finance and diplomatic channels available when established arrangements come under pressure.

For Malaysia, BRICS is one way of giving that idea practical effect.

Faiz Abdullah is executive chairman of the Institute of Strategic and International Studies, Malaysia.

The views expressed are those of the writer and do not necessarily reflect those of FMT.

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