What's Happening?
Malaysia's total trade with BRICS member countries reached RM846.5 billion in 2025, marking a 3.4% increase from RM818.04 billion in 2024. This trade accounted for 27.7% of Malaysia's total global trade. From January to June 2026, trade with BRICS nations
further rose by 20.0% to RM481.02 billion. Deputy Foreign Minister Datuk Lukanisman Awang Sauni stated that exports to BRICS countries increased by 17.4% to RM181.40 billion, while imports grew by 21.7% to RM299.62 billion. China, Indonesia, and India remain Malaysia's largest BRICS trading partners, contributing approximately 90% of the total trade. Malaysia's participation as a BRICS partner country is driven by a neutral, pragmatic, and principled foreign policy, aiming to diversify economic strategic partners and reduce dependence on traditional markets.
Why It's Important?
Malaysia's deepening trade ties with BRICS nations signify a strategic shift towards diversifying its economic partnerships and reducing reliance on traditional markets. This move is crucial for Malaysia's economic resilience, especially in a volatile global economic landscape. By expanding export destinations to countries like Brazil, Russia, South Africa, Ethiopia, Iran, and Egypt, where Malaysia may not have existing Free Trade Agreements (FTAs), the country can unlock new growth opportunities. The emphasis on promoting local currency use, such as the ringgit-renminbi, and more efficient cross-border payment systems, aims to reduce transaction costs and mitigate risks associated with fluctuations in intermediary foreign exchange rates, particularly the US dollar. This strategy could enhance Malaysia's financial stability and competitiveness on the global stage, while also advocating for the Global South agenda and supporting reforms in multilateral institutions for a more equitable and inclusive global economic governance.
What's Next?
Malaysia plans to continue prioritizing market expansion and strategic sectors aligned with its Madani economy aspirations, including the New Industrial Master Plan (NIMP 2030) and the National Energy Transition Roadmap (NETR). This involves increasing exports of electrical & electronics (E&E) goods, semiconductors, and palm oil, while attracting investments in new technologies such as green technology and cybersecurity to bolster the local innovation ecosystem. Furthermore, efforts will focus on strengthening the resilience of food and energy supply chains through agricultural cooperation and renewable energy transition projects. Malaysia also intends to expand its value-added service sectors, including tourism, education, healthcare, and promoting its expertise in Islamic finance to BRICS countries. The BRICS framework will also serve as a platform to address practical trade issues like trade facilitation, logistics connectivity, trade digitalization, and supply chain resilience, and to attract high-quality investments and technology transfers in strategic sectors like semiconductors, artificial intelligence (AI), and digital infrastructure.
Beyond the Headlines
Malaysia's engagement with the BRICS framework extends beyond immediate economic gains, reflecting a broader geopolitical strategy. By diversifying its economic partners and advocating for the Global South agenda, Malaysia is actively contributing to a more multipolar world order. This approach challenges the traditional dominance of Western-centric economic systems and promotes a more inclusive global financial architecture. The focus on local currency use and efficient cross-border payment systems could gradually reduce the influence of the US dollar in international trade, potentially leading to a more balanced global financial system. Moreover, the emphasis on technology transfer and investment in strategic sectors like AI and digital infrastructure highlights Malaysia's commitment to fostering innovation and building a resilient, future-ready economy, which could have long-term implications for its technological sovereignty and economic independence.
