BRICS gives Malaysia room to manoeuvre

BRICS, an organization without a permanent secretariat, relies on consensus for decision-making. Its declarations are often worded broadly, and initiatives can take years to achieve. Critics question its effectiveness, viewing it as a coalition of countries willing to remain strategic rivals rather than collaborators. Iran and the UAE brought conflicting positions on the Middle East conflict to the BRICS Summit in New Delhi, while Russia and China are more inclined to promote the bloc as a counterweight to Western influence.

India and Brazil have focused more on economic cooperation and reform of existing institutions. However, it is essential to understand that BRICS is not designed to become a common market or strategic alliance. Instead, it is a flexible, non-binding coalition aimed at challenging Western hegemony and reshaping global governance.

For Malaysia, BRICS offers an avenue for trade, finance, and political dialogue, potentially reducing dependency on traditional Western markets. BRICS accounts for around 40% of global output at purchasing-power parity and has seen a significant increase in intra-BRICS goods exports since 2003. However, much of the trade would have occurred without BRICS, and the bloc lacks a common regulatory framework.

Payments are a promising area for Malaysia to explore. India’s Unified Payments Interface and Brazil’s Pix have both processed vast sums of money within the bloc. Yet, cross-border activity remains limited due to currency exchanges, capital controls, and trade imbalances. The New Development Bank (NDB) provides an additional source of financing for developing countries, offering local-currency lending that reduces exposure to exchange-rate fluctuations.

During the Delhi summit, Malaysia's Prime Minister Anwar Ibrahim addressed political differences, urging all members to speak plainly against occupation and settler terrorism in the Middle East.