Malaysia’s involvement in BRICS can strengthen its global economic position and reduce reliance on the traditional financial system, says the foreign minister.
SEREMBAN: Malaysia’s participation in BRICS is seen as having the potential to strengthen the country’s position in global economic competition, as well as reduce dependence on the traditional financial system dominated by major powers, said Foreign Minister Datuk Seri Mohamad Hasan.
He said the formation of the bloc aims to ensure that countries of the Global South are not continually sidelined, noting that BRICS accounts for about 30% of global gross domestic product (GDP) and represents a significant share of the world’s population.
“Our agenda is to ensure that BRICS countries are able to enhance and maximise their capabilities so that they are not left behind, especially in the post-COVID-19 period.
“Furthermore, many countries are burdened with debt, so I believe the global financial system also needs to be reviewed. We no longer want to be overly dependent on a single system,” he told reporters after launching the Sekolah Menengah Kebangsaan Seri Sendayan athletics championship here today.
Mohamad, who is also Rembau MP and Rantau assemblyman, said Malaysia is now expanding the use of local currencies in trade with neighbouring countries, including ASEAN members, to reduce reliance on third-party currencies.
He said, at the same time, efforts are being strengthened to boost trade among member countries and reinforce their respective currencies through regional economic cooperation.
“This is why the ringgit is strengthening, as the country’s trade volume has increased significantly. In fact, in the first quarter of this year alone, Malaysia’s total trade exceeded RM1 trillion.
“Malaysia is a trading nation. Any effort to enhance national trade must be carried out in an orderly manner. We do not want to be overly exposed to the use of foreign currencies; it is better for us to trade using our own currencies and through our respective central banks,” he said.
Meanwhile, Mohamad said Malaysia can play an important role in BRICS given its position as an ASEAN member and an active trading nation at the international level.
He said Malaysia can leverage the principles of multilateralism shared by BRICS and ASEAN to strengthen governance and enhance investor confidence in the country.
He added that Malaysia continues to be a preferred destination for foreign investors due to its clear, consistent and principled foreign policy, including its commitment to neutrality and its firm stance against human rights violations.
