Joining BRICS will highlight Malaysia’s potential as Asean economic activity gateway

Joining BRICS will highlight Malaysia’s potential as Asean economic activity gateway

22 Aug 2024

Malaysia’s participation in BRICS will underscore the country’s potential as a gateway for economic activities in Asean countries, said an economist.

INCEIF University economic analyst Baharom Abdul Hamid said Malaysia is also able to take advantage of trade opportunities to increase market access, thereby attracting more investments from the BRICS countries.

He said Malaysia has applied to join BRICS, a cooperation bloc for emerging economies established in 2009 and includes Brazil, Russia, India, and China, followed by South Africa’s participation in 2010.

In January 2024, countries including Iran, Egypt, Ethiopia, and the United Arab Emirates also joined as new members.

“When we join an economic bloc, we will enjoy some (benefits, such as) tax relief, non-tariff barriers and others.

“Brazil, for example, is one of the biggest contributors of halal meat imports to Malaysia. Therefore, Malaysia has the potential to become a major gateway for halal food from Brazil at a lower cost.

“We can use this opportunity to be a gateway not only for food sources in Malaysia but as a hub for other Asean countries’ food sources,” Baharom said during Bernama TV’s ‘Ruang Bicara’ programme yesterday.

In addition, Malaysia, one of the world’s largest semiconductor producers, has the potential to expand cooperation with China, the main producer of electric vehicles.

“We need to continue our cooperation with China as a complement to the semiconductor sector for industrial use in China. At the same time, we should also expect China to further increase investments in Malaysia,” he said.

Baharom also stressed the importance of Malaysia’s participation in BRICS to be accompanied by strategic planning, ensuring economic spillover to several sectors and industries in the country as well as maximising trade and investment potentials that benefit the domestic economy.

“We need to make sure that by joining the BRICS, micro, small, and medium enterprises (MSMEs) are also protected.

“We do not want there to be an overflow of foreign goods that could otherwise affect local MSMEs,” he said.

For that purpose, careful planning should be done to evaluate which sectors are suitable to be opened and which should be protected.

In the meantime, Baharom urged the government to make periodic reports with transparency and integrity to see the overall impact of BRICS membership on the national economy.

Source: Bernama