BRICS Expansion: A Boon for ASEAN?

Indonesia’s recent formal application to join BRICS, confirmed by spokesperson Roy Soemirat, signals the bloc’s growing allure for emerging economies. Over the past 15 years, BRICS has navigated internal differences and external challenges to become a powerful force in global trade, development, investment, and financing. The bloc has emerged as a key player in promoting good global governance, reshaping the world order, and uniting Global South nations to address shared challenges.

ASEAN’s Evolving Interest in BRICS

This growing influence naturally attracts ASEAN member states. While Indonesia, Thailand, and Malaysia have formally applied to join BRICS, Cambodia and Myanmar have expressed interest in observer status. Vietnam and Laos show varying degrees of engagement with the grouping.

But what concrete benefits await ASEAN members who join BRICS “Plus”?

Expanding Trade and Investment Opportunities

Joining BRICS promises to significantly expand trade volumes for ASEAN members. They can leverage the bloc’s existing network to enhance trade with African and Latin American countries. The WTO reports that BRICS members now account for 21.6% of global trade, with intra- and inter-BRICS trade reaching an impressive $10.4 trillion by the end of 2023. This positions them as the second-largest trading bloc globally, surpassing even the US-Mexico-Canada Agreement ($7.6 trillion).

Furthermore, ASEAN members can attract substantial foreign investment. Access to funding from the New Development Bank (NDB), established by original BRICS members in 2015, becomes a reality. The NDB, a viable alternative to the Western-dominated World Bank and IMF, supports developing nations in their global economic competition.

Boosting Industries and Infrastructure

BRICS membership offers ASEAN nations opportunities to cultivate their industries. While China boasts complete industry chains, each BRICS member state possesses unique industrial strengths. Joining BRICS grants access to vast resources of energy, minerals, and agriculture in some member states, benefiting ASEAN countries applying to join.

Technology transfer plays a crucial role in this growth. BRICS fosters development in the digital sector, along with manufacturing and agriculture, through shared technological advancements.

Expanding Global Influence

BRICS offers a platform for ASEAN members to enhance their global influence. Thailand and Malaysia, for instance, can leverage its mechanisms to amplify their voices on international forums. Their ability to draw on support from two BRICS permanent members of the UN Security Council further strengthens their global standing.

Strengthening Ties with China

BRICS membership strengthens ASEAN’s relationship with China, the bloc’s largest economy. China has been ASEAN’s primary trading partner since 2009, with bilateral trade reaching $911.7 billion in 2023. By joining BRICS, ASEAN nations can deepen their South-South cooperation, contribute to global governance, and fully utilize China’s development opportunities.

Regional Development and Poverty Alleviation

BRICS membership can also drive regional development. ASEAN members can learn from BRICS’ experiences to effectively alleviate poverty and enhance their infrastructure.

Challenges and Uncertainties

While the benefits are enticing, challenges lie ahead. Internal competition within ASEAN and pressure from the US and its allies, who see BRICS as competition, could hinder some nations from joining.