BRICS and Southeast Asia: unlocking economic opportunities through strategic cooperation

Economic Factors

The economic appeal of BRICS is a major driving force behind Southeast Asian countries' interest. BRICS, currently comprising Brazil, Russia, India, China, South Africa, Iran, Egypt, Ethiopia, Saudi Arabia, and the United Arab Emirates, represents a significant portion of the global economy and offers a vast market for Southeast Asian goods and services. The group's collective GDP accounts for about of the world's economy, and its influence is expected to grow further as it seeks to expand its membership. 

Together, the BRICS nations account for approximately 30 per cent of the Earth's land area and 45 per cent of the global population. South Africa stands as Africa's largest economy, while Brazil, Russia, India, and China rank among the world's top ten countries in terms of population, land size, and GDP – both nominal and by purchasing power parity (PPP). Most members are part of the G20, collectively contributing a nominal GDP of US$28 trillion, which represents 27 per cent of the global economy. Their combined GDP (PPP) is around US$57 trillion (37.3 per cent of global GDP PPP), with total foreign reserves estimated at US$4.5 trillion.

Trade and Investment Opportunities

BRICS offers Southeast Asian nations opportunities to diversify their trade and investment partners. Countries like Indonesia, Malaysia, Vietnam, Thailand, and the Philippines are eager to tap into these markets, particularly China and India, which are major drivers of global economic growth. The Regional Comprehensive Economic Partnership (RCEP), which includes several BRICS members, already provides a framework for increased trade integration, making BRICS an attractive proposition for further economic collaboration .

Infrastructure Development

The New Development Bank (NDB), established by BRICS, is another attractive feature. It provides financing for infrastructure and sustainable development projects, which can significantly benefit Southeast Asia. For instance, Indonesia and Malaysia could leverage NDB funds to enhance their infrastructure, improving connectivity and access to regional markets.

Strengthening Political Influence

By joining BRICS, Southeast Asian countries could amplify their voices on the global stage, influencing decisions in international forums.

Regional Cooperation and Stability

BRICS also offers a platform for Southeast Asian nations to collaborate on regional issues, including security, environmental challenges, and sustainable development. The ASEAN Regional Forum (ARF) has traditionally been the primary venue for such discussions, but BRICS could provide an additional, more globally influential forum.

Geopolitical Factors

The geopolitical implications of BRICS membership are particularly significant for Southeast Asian countries. The region's strategic location, bridging the Pacific and Indian Oceans, makes it a focal point for global power dynamics.

Strategic Partnerships

Aligning with BRICS could strengthen Southeast Asian countries' strategic partnerships, particularly with China and India, two of the region's largest trading partners. This alignment could help them navigate the geopolitical landscape of the Indo-Pacific region.

Individual Country Perspectives

Indonesia

Indonesia, as the largest economy in Southeast Asia, has shown interest in BRICS. The chances of country’s potential membership in the BRICS economic group has increased and the decision will most likely be made during the next government term under new President-elect. 

Vietnam

Vietnam is keen on joining BRICS, recognising the economic and political benefits it offers. The official position as of now is the country's willingness and proactiveness to actively contribute to the activities of global, inter-regional and regional cooperation organisations and groups. Moreover, the country has strengthened its economic ties with BRICS nations, particularly China, Russia, and has sought to expand cooperation in infrastructure development and technology transfer. Vietnam's participation in the Belt and Road Initiative (BRI) further complements its potential BRICS membership.

Philippines

The Philippines' interest in BRICS is largely driven by economic considerations, particularly the desire to increase trade and investment with BRICS countries, especially with China.

Thailand

Thailand has expressed interest in joining BRICS by submitting a formal request to join the group, emphasising the potential for economic cooperation and regional stability. The country's strong economic ties with China, a key BRICS member, make it a natural candidate for membership. Thailand's active participation in BRICS-related initiatives, such as the Belt and Road Initiative, underscores its commitment to closer collaboration with the group.

Malaysia

Malaysia is exploring the benefits of BRICS membership, focusing on economic opportunities and regional cooperation. The country has strengthened its trade and investment ties with BRICS nations, particularly China, and has participated in BRICS-related initiatives. Malaysia's strategic location in the South China Sea and its role in the Belt and Road Initiative further enhance its prospects within BRICS.

Moreover, Malaysian Prime Minister Anwar Ibrahim has accepted an invitation to visit the upcoming BRICS summit in Kazan on October 22-24, while Malaysia officially filed an application to join BRICS in July 2024. 

The growing interest of Southeast Asian countries in joining the BRICS group reflects it rising economic and political influence. The potential benefits of BRICS membership, including increased trade, investment, and political influence, are significant factors driving this interest.

This article was provided by Duane Dizon, expert on Strategic and Crisis Communications of International Digital Economies Association (iDEA), Alexander Titov, Deputy Secretary General of iDEA and Cristina Amor Maclang, Secretary-General and Co-Founder of iDEA and Oliver Nalevanko, International Business Manager of iDEA.