Unlocking new horizons: Malaysia’s path to economic growth with BRICS

We need to enforce our sovereignty, exercise absolute discretion and pivot away from overdependency on a single superpower

MALAYSIA joining BRICS (comprising Brazil, Russia, India, China and South Africa) is not a subject for debate. In a world that is becoming increasingly multipolar, the submission to join BRICS is not at all surprising. It is a strategic and progressive move and is expected of a country and economy like ours.

We need to enforce our sovereignty, exercise absolute discretion and pivot away from overdependency on a single superpower. Malaysia can bolster economic growth through diversifying its international alliances and one such move is by leveraging on the economic opportunities presented by BRICS cooperation.

On July 28, Malaysia welcomed a significant diplomatic visit from Russian Foreign Minister Sergey Lavrov who expressed Russia’s support for Malaysia’s bid to join the BRICS alliance. Russia and Malaysia enjoy robust diplomatic relations, characterised by high-level visits, bilateral agreements and joint initiatives.

This relationship is driven by a shared interest in promoting stability and prosperity in the Asia-Pacific region and beyond. Russia’s renewed diplomatic vigour underlies its strategy to build stronger alliances in South-East Asia, with Malaysia being a key partner.

In recent months, I was an invited panel speaker at two major economic forums in Russia; The Kazan Forum and St Petersburg International Economic Forum. We engaged in dialogues aimed at

fostering practical cross-border and cross-sectoral cooperation between Russia and countries like Malaysia as well as its role in stimulating technological progress and their impact on the global economy.

Last year, bilateral trade between Malaysia and Russia stood at a mere US$3 billion (RM13.62 billion) in comparison to Malaysia with China which recorded a staggering US$207 billion. There is significant trade and investment opportunities to be realised via BRICS. Malaysia and ASEAN region are at a critical juncture now as they explore deeper economic and human capital collaboration with Russia and other BRICS member states across multiple sectors.

There is a synergistic opportunity between Russia and Malaysia which could potentially enhance energy security and economic growth for both nations. Russia has vast reserves and technological prowess and Malaysia has an established oil and gas (O&G) infrastructure.

One of the possible areas for partnership would be in joint exploration and production. Russia will have access to new markets in particular ASEAN as we are strategically located and have an established infrastructure. We can leverage on Russia’s advanced technology on drilling, extraction and refining processes to enhance operational efficiencies and output. Such collaborations are mutually beneficial for both countries.

Russia can also play a crucial role in enhancing the infrastructure and technological capabilities of Sarawak Energy Bhd, the state’s power utility company. The state has successfully transitioned its energy generation mix from 92% fossil fuels in 2010 to 70% hydropower in 2015. It has already significantly decarbonised its grid emission intensity by 72% between 2010 and 2020.

Joint research and development initiatives between Malaysia and Russia can lead to breakthroughs in clean energy solutions, reducing carbon emissions and promoting energy security. Russia’s experience

in integrated hydrogen production and refuelling technologies can complement Sarawak’s pioneer- ing initiatives, such as the hydrogen fuel cell electric buses initiative.

This partnership not only supports Malaysia’s energy transition goals but also positions Sarawak as a key player in the Asia Pacific’s green energy landscape, driving regional progress towards a sustainable future.

Renewable energy (RE) represents a critical area for future collaboration, particularly in the context of sustainable development. Sarawak is poised to become a significant player in RE as it has embarked on its ambitious vision to become “Asia’s Renewable Energy Powerhouse”. In the coming years, as outlined in the Sarawak Post-Covid-19 Development Strategy 2030, it will not only aim to achieve a high-income state but a major player in RE producer.

Malaysia can leverage on Russia’s advanced expertise in RE technologies further enhance Sarawak’s capacity for sustainable energy production by tapping into its technical expertise in hydropower, solar, wind and biomass, and accelerate the development and implementation of innovative projects like cascading dams and floating solar farms.

Russian support in technology transfer and joint ventures can help enhance Sarawak’s potential to generate 30 gigawatts (GW) of hydropower, which already boasts a current capacity of 5.4GW.

Space exploration is another promising domain. Russia’s long-standing expertise in space technology and exploration can significantly benefit Malaysia and the broader ASEAN region. Developing and launching satellites for communication, weather monitoring and navigation purposes can be a focal point of collaboration.

Joint space research initiatives can drive advancements in scientific knowledge and technology. Training and development programmes in space sciences and engineering can build local expertise and capabilities.

There needs to be conducive and favourable conditions to facilitate collaboration, the Special Economic Zones (SEZ) and Technology Parks are an integral part of this process. SEZs in Sarawak, could potentially focus on the energy sector, infrastructure development, education, food security, science and technology cluster and cross-border trade.

Developing SEZ in Sarawak could be strategically located in Miri. This northern city is close to the border of Indonesia and Brunei and stands to capitalise on the relocation of Indonesia’s new capital to Nusantara, in East Kalimantan.

Miri’s existing infrastructure and its position as a hub for the O&G industry make it an ideal location for an SEZ, attracting businesses and investors. Enhanced connectivity and economic activities in the SEZ would boost Sarawak’s growth, creating job opportunities and facilitating technology transfer. Its proximity to the next big city Bintulu with its significant concentration of high-tech and heavy industries and a deep-sea port will further enhance the SEZ.

It is imperative that a SEZ is established in Sarawak. The Ministry of Economy should no longer be deliberating on this. It should be adop- ting a whole-of-nation approach as the benefits will cascade from Sarawak to the entire nation.

It is my view that Malaysia will stand to benefit immensely if we continue to proactively engage with Russia. This is underscored during my panel discussions with the Association of Clusters, Technology Parks and SEZ at both the prestigious Kazan Forum and St Petersburg International Economic Forum. I had highlighted that there is a path towards robust collaboration in RE and sustain- able development.

BRICS will bring Malaysia closer to economic cooperation between its member countries within the bloc. BRICS nations represent nearly half of the world’s GDP. This economic clout presents vast opportunities for Malaysia to tap into larger markets, enhance trade and attract investments. By integrating more deeply with BRICS economies, Malaysia can diversify its economic partners and drive domestic economic growth through increased trade and investment flows.

BRICS includes major global superpowers which are critical to Malaysia’s strategic and economic interests. China, as Malaysia’s largest trading partner, offers substantial benefits in terms of trade expansion, technological exchange and infrastructural investments under initiatives like the Belt and Road Initiative (BRI).

Similarly, Russia provides opportunities in energy cooperation, given its status as a leading global energy supplier. By aligning more closely with these superpowers, Malaysia can secure advantageous trade deals, access advanced technologies, and participate in significant infrastructure projects that can drive long-term economic growth.

Joining BRICS allows Malaysia to cultivate a more diversified and balanced set of international relations. This diversification is crucial in mitigating risks associated with dependency on a single country for economic and security needs. By engaging with multiple superpowers and emerging economies within BRICS, Malaysia can enhance its geopolitical leverage, ensuring that its national interests are better protected in a complex multipolar landscape.

Participation in BRICS also offers Malaysia a platform to enhance its influence in regional and global affairs. BRICS, as a coalition, plays a significant role in shaping global economic policies and advocating for the interests of developing countries. It is clear that Malaysia stands to gain a great deal from this organisation. My deepest hope is that we will be accepted into BRICS this year.