• Of trade diversification and foreign relations
   
• BRICS+13 is more than one-third of Global Economy

• BRICS+ countries also back the idea of 'de-dollarisation'

• One fifth of Malaysia’s total trade goes thru original BRICS

• BRICS has not yet developed into a free trade area like ASEAN

Of trade diversification and foreign relations. On 24th October 2024, a significant milestone was reached in BRICS history with the addition of 13 new countries to the global political and economic coalition. The new members - Malaysia, Indonesia, Vietnam, Thailand, Algeria, Belarus, Bolivia, Cuba, Kazakhstan, Nigeria, Turkey, Uganda, and Uzbekistan - joined with the aim of diversifying trade, expanding market access, and enhancing foreign relations. Malaysia's inclusion, in particular, reflects strategic efforts towards these goals.

Malaysia as ASEAN chairman in 2025. Being the chairman, we foresee more multilateral engagements between ASEAN and BRICS members. In fact, Malaysia’s Prime Minister Anwar Ibrahim has invited Russian president Vladimir Putin to the 2025 ASEAN Summit during their meeting in September this year.

Economic Cooperation. BRICS was formed to foster economic collaboration among its members, who represent a significant portion of the world’s population and resources. The coalition aims to provide a counterbalance to Western-dominated global institutions like the IMF and World Bank, advocating for a multipolar world order. BRICS nations focus on sustainable development, infrastructure investment, and enhancing trade among member states. Importance of BRICS:

1. Economic Significance: BRICS countries collectively account for about 40% of the world's population and roughly 25% of global GDP. Their combined economic growth has significant implications for global markets.

2. Trade and Investment: The bloc promotes intra-BRICS trade and investment, facilitating economic ties and reducing reliance on Western economies.

3. Global Governance: BRICS serves as a platform for addressing global issues such as climate change, security, and development, representing the interests of emerging economies.

4. Cultural Exchange: Beyond economics, BRICS fosters cultural and educational exchanges, strengthening ties among member nations.

BRICS+13 is more than one-third of Global Economy. As of recent estimates, BRICS+13 nations contribute around 32.3% of the global GDP in 2022. The 13+ nations represent 5.3% of the global output. The new members, including countries like Malaysia, Indonesia, Nigeria, Turkey, and others, will further elevate the group's global economic standing. Their economies have been among the fastest-growing in recent decades, playing a critical role in global economic trends. BRICS represents a significant force in the global economy, emphasizing the importance of emerging markets in shaping future economic policies. By fostering collaboration among diverse nations, BRICS aims to enhance its members' global influence and contribute to a more balanced international order.

Source: BIMB Securities Research - 25 Oct 2024