Malaysia Becomes a New Partner of BRICS: Analyzing Economic, Policy, and Technological Impacts

Recently, Malaysia was officially listed as one of the 13 new partner countries of BRICS, although it has not yet become a full member. This development signifies Malaysia’s growing importance on the global economic and political stage. According to a post by BRICS on social media platform X (@BRICSInfo), in addition to Malaysia, the other 12 new partner countries include Algeria, Belarus, Bolivia, Cuba, Indonesia, Kazakhstan, Nigeria, Thailand, Turkey, Uganda, Uzbekistan, and Vietnam.

What is BRICS?

BRICS (Brazil, Russia, India, China, and South Africa) was originally established in 2009 as a platform for cooperation among emerging economies, with the goal of fostering economic and political collaboration among its member countries. South Africa joined in 2010, making BRICS a group of five. In recent years, the group has expanded to include Saudi Arabia, Iran, Egypt, Ethiopia, and the United Arab Emirates. Together, BRICS nations represent 40% of the global population and have a combined GDP of $26.6 trillion, accounting for 26.2% of the world’s GDP, nearly matching the economic power of the G7.

The G7 (Group of Seven) is an informal group comprising seven advanced economies: Canada, France, Germany, Italy, Japan, the United Kingdom, the United States, and the European Union. The rise and expansion of BRICS reflect the increasing importance of emerging economies in the global economic landscape. As Malaysia becomes a partner of BRICS, this new international role will have profound impacts on the country’s economy, policies, and image.

Economic and Policy Impacts of Malaysia Joining BRICS

As an important economy in Southeast Asia, Malaysia’s inclusion in BRICS will provide greater opportunities on the global economic platform. BRICS offers its member nations a platform to promote international trade, investment, and financial cooperation. Malaysia stands to benefit significantly from increased economic ties with other emerging economies, particularly in terms of trade and investment with existing BRICS members.

The BRICS nations are advancing economic diversification globally, which aligns with Malaysia’s own development policies. As a trade-dependent economy, Malaysia can use the BRICS platform to further expand its export markets, particularly in key sectors such as agriculture, manufacturing, and energy. This will not only enhance Malaysia’s economic resilience but also help the country better manage uncertainties in the global economy.

Furthermore, Malaysia’s involvement in BRICS may prompt adjustments in domestic policies, especially in dealing with globalization and digitalization challenges. The country’s economic policies are likely to focus more on strengthening regional cooperation, promoting the sharing of technology and experience with other BRICS members, and fostering a more favorable investment environment.

Direct and Indirect Impacts on the Technology Sector

In addition to the economic and policy impacts, Malaysia’s involvement in BRICS will have significant direct and indirect effects on the technology sector. Among the BRICS nations, countries like China and India are leaders in technological innovation and digital economy development. Malaysia can leverage this platform to build closer technological cooperation with these nations, particularly in fields such as artificial intelligence, the Internet of Things (IoT), clean energy, and financial technology (FinTech).

Example 1: Growth in Digital Economy and Technology Cooperation
Malaysia has made notable progress in its digital transformation in recent years, especially in e-commerce, digital payments, and FinTech. Cooperation with BRICS members will further boost Malaysia’s digital economy. For instance, Malaysia can draw on China’s experience in building e-commerce platforms and India’s expertise in FinTech innovation to enhance its own competitiveness in the global digital economy.

Example 2: Green Technology and Sustainable Development
In addressing climate change and promoting the green economy, BRICS members like Brazil and South Africa have significant experience in renewable energy technologies. Malaysia can leverage its participation in BRICS to access more green technologies and energy solutions, advancing its domestic sustainable development goals. Additionally, Malaysia could attract green investments from BRICS countries to support its own green economy transition.

Enhancement of Malaysia’s Image and Global Standing

Becoming a BRICS partner will undoubtedly enhance Malaysia’s image and influence in the international community. As a country that integrates diverse cultures and economic systems, Malaysia can serve as a bridge within BRICS, linking emerging economies with developed nations and promoting cross-national cooperation and development. This new role will not only elevate Malaysia’s global diplomatic standing but also reinforce its strategic importance as a key economic player in Southeast Asia.

Conclusion

Malaysia’s inclusion as a partner in BRICS marks a significant step in the country’s rise on the global economic and political stage. Through cooperation with BRICS, Malaysia is poised to make important advancements in various fields, including economic growth, technological innovation, and global diplomacy. The development of the digital economy, acceleration of technological innovation, and enhancement of national image are all potential benefits for Malaysia in this partnership. As globalization and regional integration progress, Malaysia will have the opportunity to secure a more advantageous position in emerging markets worldwide, driving the nation towards higher levels of development and prosperity.