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Southeast Asia’s Calculated Response to BRICS Expansion: Balancing Economic and Strategic Interests

BRICS, the bloc of emerging economies originally comprising Brazil, Russia, India, China, and South Africa, held its annual summit on October 22-24, 2024, in Kazan, Russia.

This year’s gathering is particularly significant as it introduced new members such as Saudi Arabia, Egypt, the UAE, and others into its fold, potentially renaming the group “BRICS+.”

With over 30 nations, including several from Southeast Asia, expressing interest in joining, the bloc’s influence on global economic and strategic affairs is steadily increasing. This expansion comes at a critical time, as countries in Southeast Asia carefully weigh their positions between the opportunities and challenges posed by BRICS’ growing influence.

The appeal of BRICS for Southeast Asia

For Southeast Asian countries, BRICS is appealing due to its potential to boost trade, investment, and influence on the global stage.

Malaysia and Thailand have already expressed interest in joining, with both countries aiming to benefit from stronger ties with China, a dominant economic force in the region. Currently, BRICS accounts for nearly 45% of the world’s population and approximately 28% of global economic output.

For countries in Southeast Asia, joining BRICS would mean access to broader trade markets and diversified economic partnerships.

Southeast Asia’s deep economic ties with China are a crucial factor in its interest in BRICS.

China has been the largest trading partner of both Malaysia and Thailand for over a decade, and for the Philippines, China remains the top trading partner. By joining BRICS, these countries could further solidify their relationships with key players in the bloc, ensuring greater participation in a multipolar world order that is less reliant on the West.

The Philippines’ position on BRICS

The Philippines’ stance on BRICS is still under consideration, with Finance Secretary Ralph Recto indicating that the DOF is exploring the possibility, but there have been no formal discussions in President Marcos’ cabinet.

While the country enjoys long-standing ties with Western nations, particularly the United States, its increasing trade reliance on China and the shifting global economic landscape make BRICS an attractive proposition.

However, the decision for the Philippines is not straightforward.

Geopolitically, the Philippines has become a focal point in U.S.-China competition, especially as the U.S. seeks to increase its military presence in the region. Joining BRICS would symbolize a shift in the Philippines’ alignment, possibly tilting it toward a more independent foreign policy, where it can benefit from both the West and the emerging economies of the Global South.

Given China’s importance as a trading partner and investor, the Philippines could find greater leverage within BRICS, using its position to enhance economic growth while mitigating the risks of over-reliance on any one major power.

Why Southeast Asia, including the Philippines, may join BRICS

The Philippines’ interest in BRICS could be driven by both economic and political motivations.

Economically, BRICS membership would provide opportunities for trade expansion and increased foreign direct investment. As more ASEAN nations express interest in joining, it becomes clear that BRICS offers an alternative path for Southeast Asian economies looking to navigate a more multipolar global environment.

Politically, joining BRICS would give Southeast Asian nations like the Philippines greater autonomy in global affairs. It would enable these countries to balance their relations between traditional Western allies and the rising powers of the East, without being forced into choosing sides. The growing momentum within ASEAN toward BRICS membership reflects a broader desire to assert regional influence and shape global economic and political frameworks.

BRICS Expansion and its impact on Southeast Asia’s role in global politics

With the BRICS bloc expanding to include countries like Saudi Arabia, Iran, and the UAE, Southeast Asia’s integration into the group could significantly alter its role in global politics. BRICS has been vocal about challenging the Western-led international order, which Southeast Asian countries often view as skewed toward the interests of more developed nations.

By joining BRICS, Southeast Asian countries would have a more prominent voice in global governance, allowing them to advocate for fairer economic and political policies that better address the needs of developing nations.

The potential for BRICS to introduce a new reserve currency, de-dollarizing global trade, could also hold significant appeal for Southeast Asian countries that wish to reduce their dependence on the U.S. dollar and avoid the economic repercussions of sanctions or global market fluctuations.

The Philippines, with its growing digital economy and trade reliance on China, could benefit from this shift, positioning itself as a key player in the region.

A new era for Southeast Asia in the Global South

As Southeast Asia considers its future, the potential advantages of BRICS membership cannot be overlooked. For countries like the Philippines, joining BRICS offers the promise of greater economic opportunities, diversified investments, and increased geopolitical autonomy.

While the decision is still in the early stages, the expanding BRICS bloc presents a compelling alternative to the traditional Western-led financial and political institutions that have long dominated the region.

For the Philippines and its Southeast Asian neighbors, joining BRICS signals a broader trend toward the Global South’s rising influence in the international arena. It reflects a desire for a more balanced global order, one where emerging economies can thrive without being constrained by the interests of the West.

The future of Southeast Asia in BRICS is yet to be determined, but the momentum toward a more integrated and multipolar world is undeniable.

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