LETTER | It was reported that US President-elect Donald Trump has belted a threat that his government will impose 100 percent tariffs on countries within the Brics bloc if they commit to creating a new currency for international trade.

In late October 2024, Malaysia officially became a partner country in the alliance following a confirmation by Prime Minister Anwar Ibrahim in July that Malaysia had applied for full membership.

Trump’s warning, “Comply or kiss US market goodbye” is a concern that calls for serious consideration by Malaysia.

This is a legitimate concern for all Malaysians given the fact that in 2023 alone, the trade value between the United States and Malaysia saw our nation “exporting goods worth US$35 billion (RM160 billion) to the US” (Scoop, Dec 1, 2024).

US’ warning that Brics countries “should expect to say goodbye to selling into the wonderful US Economy,” matters much to countries like Malaysia given the disproportionate export currency earnings that help to develop nations.

While we may seemingly take comfort in the fact that Brics now has some 34 countries interested in the bloc, can Malaysia develop sizeable markets in order to forgo US trade to reduce our reliance on the US dollar?

Have we taken cognisance of the prospect that the “new” currency within Brics is unlikely, “given the alliance’s internal economic and geopolitical disparities” (Scoop, Dec 1, 2024)?

Trade not a charity

We could be taking comfort in the expansionary trade wings of China. But have we taken into consideration that trade is never about charity and sacrifice or sheer corporate social responsibility for any ambitious nation?

It is no surprise that the two nations spearheading the Brics thrust (Russia and China) are in partnership to challenge the “American leadership”.

Suppose Trump bulldozes his painful tariff threat, what are our safety net alternatives in so far as foreign (US and Europe) investments in the country, our export earnings, food supply and supply chains as well as the huge investments our government-linked companies, government-linked investment companies and other government agencies including entities like Majlis Amanah Rakyat are concerned?

Former Goldman Sachs economist Jim O’Neill predicted (first seeded the notion) that these Brics countries would challenge the global dominance of Western economies. But we must not lose sight of the fact that many analyses and predictions have gone wrong too.

Today the Brics bloc comprising 45 percent of the world’s consumer population wields power over 28 percent of the global economy. But will the US allow that percentage to go on a trajectory?

While Anwar’s strategic aims to maintain the nation’s economic and geopolitical independence should not dismissed in its entirety, we nevertheless need convincing answers to what are our assuring alternatives towards striking a balance in our national trade and investment plans for the future.

Has Anwar’s assertion that Malaysia’s position along the crucial Strait of Malacca - a key shipping route that facilitates global crude oil transport - is our best bet for courting Brics equally taken stock of China’s interest in alternative shipping routes?

Indeed no leader or political party in power should trap our beloved nation into a painful future.

We need a united, learned, national decision and all Malaysians must be concerned as the ultimate responsibility and consequences will fall on everyone’s shoulders - citizens, lawmakers and rulers.

The views expressed here are those of the author/contributor and do not necessarily represent the views of Malaysiakini.