KUALA LUMPUR (Jan 9): As tensions between the US and China escalate, experts are urging Malaysia and other Asean nations to explore new trade partnerships.

Elina Noor, senior fellow of Carnegie Endowment for International Peace's Asia Programme, said there is a need for Asean to diversify its collaborations, citing the growing concerns of the Global South. 

"This is our opportunity to strike a mark and take Asean to greater places," Elina said. "We need to be thinking more creatively in engaging with the Global South, such as the Pacific Islands, Africa, and Latin America, because our concerns are often similar," she told a panel discussion titled, 'Asean Dynamism: Capitalising on opportunities & navigating transitions' at the Malaysian Economic Forum 2025.

The call comes amid growing concern over trade protectionism, particularly with president-elect Donald Trump's return to the White House. Known for his "America First" approach during his previous term (2017-2021), Trump has vowed to intensify his protectionist policies.

As he prepares for his second term starting Jan 20, 2025, Trump has promised sweeping trade measures, including a 10% tariff on global imports, a 60% tariff on Chinese goods, and a 25% tariff on imports from Mexico and Canada. These policies are expected to further strain global trade relations and create economic uncertainty for nations reliant on established trading partners.

Minister of Defence Datuk Seri Mohamed Khaled Nordin also spoke at the session, highlighting the untapped opportunities in sectors where Asean could find unique advantages. "Through BRICS, we can look into demand and opportunities that are different from those offered by G7 [Group of 7] economies," he said.

"In BRICS, we are focusing more on energy markets, raw materials, and investment in infrastructure development," Khaled Nordin added. "This opens up new areas for collaborations."

Khaled Nordin emphasised the importance of Malaysia's role as the current Asean chair, positioning the country as a leader in fostering regional cooperation. "With Malaysia being the chairmanship of Asean, we will be able to bring countries to Asean and contribute to development," he noted.

He pointed out that Malaysia, as a trading nation, would benefit from access to a larger, emerging market. "BRICS represents 45% of the world's population and 28% of the global economy [output]. We cannot ignore the potential that BRICS offers to Malaysia," he said.

By joining BRICS, Malaysia gains not only economic opportunities but also the chance to collaborate on critical global issues like climate change, research and development in emerging technologies, and best practices for sustainable growth, he said. However, Khaled Nordin clarified that joining BRICS does not mean abandoning Malaysia's traditional trading partners such as the US and the European Union (EU).

"We are not leaving dollar-based trading or dismantling any of our existing relationships," he stated. "We are simply adding more collaboration to have more diverse and strategic options. Therefore, joining BRICS aligns with both our policy and Asean principle, which is to be neutral and to engage with all as long as it brings benefit to us."

In October last year, Malaysia, along with 13 nations, became partner countries in the BRICS alliance, a bloc that collectively accounts for one-fifth of global trade.

BRICS, originally comprising Brazil, Russia, India, and China, was established in 2009 as a cooperation platform for emerging economies, with South Africa joining in 2010. The bloc has since expanded to include Iran, Egypt, Ethiopia, and the United Arab Emirates.

On Monday, it was reported that Indonesia will join BRIC as a full member, making it the first Southeast Asian member of BRICS.