BRICS expansion: Opportunities, challenges, and Malaysia’s strategic considerations

BRICS, initially comprising Brazil, Russia, India, China, and South Africa, has expanded to include Saudi Arabia, Iran, Ethiopia, Egypt, and the United Arab Emirates. As an alliance of key emerging economies, BRICS plays a significant role in the global economic landscape.

Since its inception in 2009, the group has become a formidable force in international affairs, with a primary focus on enhancing trade, investment, and development cooperation. The growing influence of BRICS highlights the rising importance of emerging economies, challenging the established norms of global economic power. Through collective efforts, these nations aim to promote a multipolar world order that fosters a more equitable distribution of economic influence.

The inclusion of Saudi Arabia, with its vast oil reserves, and Ethiopia, with its burgeoning economy and natural resources, offers substantial economic and demographic advantages to BRICS+. This expansion increases the group’s collective GDP and population, strengthening its position as a global economic powerhouse.

The enlarged BRICS+ alliance has the potential to boost international trade, attract greater investment, encourage technological collaboration, and support infrastructure development. Furthermore, it may reduce reliance on Western institutions, paving the way for a more balanced and diversified global economic landscape.

Economically, BRICS+ nations, particularly China and India, have demonstrated impressive growth compared to the slower pace of G7 economies. With their combined resources and demographic strengths, BRICS+ could disrupt the existing global economic order, challenging the dominance of Western economies. The alliance has the potential to drive reforms in global financial systems, focusing on sustainability and addressing global inequalities.

BRICS+ also seeks to lessen dependence on Western financial systems by expanding partnerships with major oil-exporting countries like Saudi Arabia and Iran. This could reshape global energy markets, challenging the influence of established powerhouses such as the International Energy Agency (IEA) and the Organisation of the Petroleum Exporting Countries (OPEC). The inclusion of these nations signals a shift towards a more multipolar energy landscape, where emerging economies play a more significant role in global energy decisions.

Beyond economics, BRICS+ could serve as a geopolitical counterweight, ensuring that the interests of developing nations are represented on the global stage. The alliance encourages South-South cooperation, creating new financial institutions and trade agreements that challenge the dominance of Western-led bodies like the International Monetary Fund and the World Bank. Strengthening economic ties within BRICS+ can help address systemic inequalities in the international financial system and contribute to a more equitable global order.

Despite its potential, BRICS+ faces notable challenges. The diverse political systems and economic priorities of its members can hinder decision-making and cooperation. The absence of a formal institutional framework further complicates matters.

The inclusion of Saudi Arabia, with its unique political system and divergent goals, adds another layer of complexity. For effective integration, BRICS+ must focus on building robust institutions, increasing the frequency of meetings, and harnessing the strengths of each member nation. Learning from successful organisations can help BRICS+ navigate these challenges and bolster internal cohesion.

Political and geopolitical dynamics will be crucial for BRICS+ to function effectively. By promoting dialogue and diplomacy, the group can overcome obstacles and create a conducive environment for cooperation. Peaceful relations, respect for international law, and strategic planning are essential for BRICS+ to succeed in the long term. By addressing shared challenges and working together, the group can establish itself as a major player in international relations.

Sustainability is another key area where BRICS+ must concentrate its efforts. Investing in green technologies, raising public awareness, and improving governance practices are necessary to combat climate change and environmental degradation. Collaboration on sustainable development can lead to innovative solutions, economic stability, and a greener future.

One of the key benefits for Malaysia in joining BRICS+ is economic diversification and trade expansion. Membership would grant Malaysia greater access to large markets such as China, India, and Russia, boosting exports in sectors like electronics, palm oil, and manufactured goods. This diversification would reduce Malaysia’s dependence on traditional Western markets, enhancing its economic resilience.

BRICS+ membership could also attract increased foreign direct investment (FDI) from member nations, helping to modernise Malaysia’s infrastructure, advance technological innovation, and strengthen key industries. Joint ventures with BRICS+ countries could further stimulate economic growth and stability.

Another potential benefit lies in financial cooperation within BRICS+. The bloc’s financial institutions, such as the New Development Bank (NDB), provide funding for infrastructure projects in emerging economies. By joining BRICS+, Malaysia could access these resources to support its development initiatives.

Geopolitically, BRICS+ membership could elevate Malaysia’s global influence. As a member, Malaysia would have a stronger voice in international economic and political discussions, advocating for issues of concern to developing nations, such as trade equity, climate change, and global security. This increased influence could help reform global governance structures to better represent emerging economies.

Aligning with BRICS+ would also diversify Malaysia’s international alliances, reducing its dependence on traditional Western partners like the United States and the European Union. Carefully managing these relationships while deepening ties with BRICS+ will require astute diplomacy.

Being part of BRICS+ could provide greater diplomatic flexibility and enhance Malaysia’s role in regional and global initiatives. Furthermore, BRICS+ membership could benefit Malaysia through cultural, educational, and technological exchanges. Collaborations in science, technology, and education would enrich Malaysia’s human capital and support its social and economic development.

However, joining BRICS+ presents challenges. Economic and political differences between Malaysia and other BRICS+ members could complicate cooperation. Malaysia’s balanced approach to state intervention and market freedom may not align with the more state-driven economies of China and Russia, potentially necessitating difficult adjustments. Political and ideological differences could also pose challenges. Malaysia’s democratic governance might conflict with the more authoritarian regimes within BRICS+, potentially limiting its influence within the group.

Malaysia may also face difficulties navigating regional dynamics and rivalries among BRICS+ members, such as the border tensions between China and India. These complexities could pose risks to Malaysia’s foreign policy and regional stability.

Domestically, Malaysia would need to align its policies with BRICS+ standards, which could require significant changes in trade, finance, and regulatory frameworks. Striking a balance between meeting BRICS+ expectations and maintaining national sovereignty will be vital in protecting Malaysia’s long-term interests.

BRICS+ expansion presents both significant opportunities and substantial challenges. However, internal diversity, geopolitical tensions, and the absence of a formal institutional framework could impede effective cooperation.

Malaysia must carefully navigate these complexities to maximise the benefits of BRICS+ membership while safeguarding its national interests and maintaining diplomatic balance. Ultimately, BRICS+ represents both a transformative opportunity and a complex challenge for global economic governance.

Colonel Ahmad Hafizal Hashim is a senior officer in the Royal Malay Regiment of the Malaysian Army and is currently attending the National Resilience Course at PUSPAHANAS, Putrajaya.

The views expressed here are the personal opinion of the writer and do not necessarily represent that of Twentytwo13.