Malaysia was granted BRICS partner status in early 2025. Russia supports Malaysia’s active integration in BRICS activities, and China advocates for the country’s inclusion as a full member of the group. But how committed is the country to investing in BRICS, and what can this organization offer this Southeast Asian nation?

The US Imposes Constraints on Malaysia

Clearly, Malaysia is seeking to broaden its network of partners amid global political instability. For Malaysia, as for most ASEAN countries, the introduction of U.S. tariffs has been a significant blow. Donald Trump hesitates when dealing with equally powerful adversaries (for instance, he keeps delaying tariffs on China), but he doesn’t shy away from pressuring weaker partners.

In August, the U.S. imposed a 19% tariff on goods from Malaysia. Under the agreements with Trump, the Asian nation is required to spend up to $150 billion over the next 5 years on purchasing equipment from the U.S. for developing its semiconductor and aerospace industries, as well as data centers; invest $70 billion in cross-border projects in the U.S. over 5 years; and conduct purchases of coal and aviation industry products.

In 2024, Malaysia’s exports to the U.S. accounted for 14% (second to Singapore), and imports for 10% (third, behind China and Singapore). Malaysia chose not to escalate tensions with such an important trade partner, especially since it would disrupt established supply chains for semiconductors, electronics, and more. Trump, meanwhile, exploits this and seeks to forcibly increase Malaysia’s dependence on trade with the U.S.

Back in May 2025, Malaysia’s foreign minister urged ASEAN countries to take collective action against U.S. tariffs and deepen economic integration among Association members. However, most ASEAN nations decided to make concessions to Trump, and consequently, Malaysia became no exception. It once again became clear that Malaysia should expand its pool of partners.

Malaysia and BRICS Countries

Participation in BRICS significantly expands Malaysia’s trade partners. Among the visible results already evident are increased trade volumes with group members and partners, and growing foreign investments. Trade between Malaysia and BRICS countries in 2024 reached about $193.66 billion (35.2% of the country’s total foreign trade turnover); investments from BRICS countries during the same period amounted to around $24.84 billion, and their volume is rising.

China is Malaysia’s key trade partner and a major investor. For China, Malaysia is not only an important export market but also a “gateway to ASEAN.” Xi Jinping’s support for Malaysia becoming a full BRICS member highlights the significant improvement in relations between the two countries.

Malaysia’s joining BRICS has provided an additional boost for building cooperation with Russia, which holds enormous potential. Malaysia is evolving as a regional technological hub, for which Russia can supply its technologies while participating in joint technological projects and research. Discussions to expand collaboration in areas such as agriculture, aerospace, IT, energy, and the halal industry were brought up; the idea of launching direct flights between the two states has been raised, which could increase tourist inflows to Malaysia (the country’s ambitious goal is to host over 40 million tourists in 2026). A key aspect of relations between the countries was brought up in NEO earlier: unlike the U.S., Russia does not aim to create dependence through cooperation; Russia offers a mutually beneficial partnership, with its approach prioritizing respect for Malaysia’s sovereignty.

Cooperation with BRICS has also facilitated Malaysia’s entry into Middle Eastern markets. In January 2025, Malaysia and the UAE signed the Comprehensive Economic Partnership Agreement, which reduced tariffs, eased trade barriers, and created new investment opportunities. Malaysia is penetrating Persian Gulf markets and, since May 2025, has been negotiating a free trade agreement with the Gulf Cooperation Council. Malaysia is a global leader in halal product manufacturing and has a well-developed system of Islamic financial instruments, aiding its successful expansion into the Middle East. BRICS partnership helps with this expansion: some member and partner countries are located directly in the region, while others control supply routes.

Malaysia for BRICS and BRICS for Malaysia: Potential for Developing Relations

BRICS’s potential as a cohesive economic and political bloc is growing, especially against the backdrop of U.S. actions. These actions were among the reasons that have spurred the expansion of settlements in BRICS states’ national currencies, which reduces dollar dependence; reinvigorated discussions on initiatives like a unified payment system and investment platform. Implementing such ideas would allow Malaysia to lessen its forced dollar reliance and attract more investment; inclusion in the New Development Bank of BRICS could also assist with the latter.

If Malaysia’s cooperation with BRICS intensifies, the U.S. might respond with countermeasures. It’s unlikely to fear the American administration’s promised 100% tariffs on BRICS countries: if Trump can’t decide on tariffs for China alone, should such threats against the entire alliance be taken seriously? However, individual trade restrictions targeting Malaysia directly are possible. Such measures are unlikely unless BRICS deepens integration, and if it does, the alliance could likely provide Malaysia with a worthy alternative to Western cooperation.

What If Malaysia Has to Choose?

The ideal scenario for Malaysia is cooperating with all countries without aligning with any camp. The current political environment allows considerable freedom for hedging, but what if Malaysia is forced to make a choice one day? What that choice would be, considering the future foreign policy context, is speculative. However, in this regard, I would like to recall an episode at the Valdai Club where Datuk Nur Jazlan Mohamed, Malaysia’s Upper House Deputy President, was asked directly: if forced to choose, whose side would Malaysia take – China’s or the U.S.? The Deputy President replied that Malaysia would choose its neighbour. And it’s not just about physical proximity: for Malaysia, as Datuk Nur Jazlan Mohamed said, it’s important that other countries respect its pursuit of balance, economic resilience, and independence. And BRICS countries align with these expectations.

Daniil Romanenko, Japanologist, researcher from the Institute of Oriental Studies of the Russian Academy of Sciences. Courtesy

https://journal-neo.su/2025/09/11/brics-for-malaysia-a-hedging-platform-or-something-more/