Malaysian Prime Minister Anwar Ibrahim recently made his first official visit to India, from August 19 to 21. During his time in New Delhi, he spoke about a big idea—changing how countries handle money when trading with each other. He suggested that the world, especially countries in the Global South (developing nations), should stop relying so heavily on the US dollar and start using their own local currencies for trade. This, he said, would help these countries take back control of their economies.
Speaking at the Indian Council of World Affairs, a major government think tank, Ibrahim called the current financial system, which is heavily dependent on the US dollar, “obsolete.” He even posed a powerful question: “Why should we be obsessed with the US dollar?” This bold statement caught the attention of many in the audience.
Ibrahim argued that when countries peg their local currencies to the US dollar, they lose some of their power to control their own economies. He explained that the US controls the dollar from Washington, which means countries around the world are affected by decisions made in the US. This, according to Ibrahim, causes problems for other nations. He suggested that if countries traded using their own currencies instead of the dollar, they could avoid these negative impacts.
As an example, Ibrahim mentioned that Malaysia is already trading about 20% of its goods with China in local currencies, while Thailand does about 18% of its trade with China in their own money. He added that Malaysia and India are also moving in this direction by expanding trade deals that use their own currencies—the Malaysian ringgit and the Indian rupee.
Ibrahim emphasized that the Global South is becoming more powerful, and this shift can’t be ignored by the larger global powers. He believes that these countries, which make up 85% of the world’s population and contribute to 40% of the global economy, are ready to reclaim their voice on the international stage.
He praised India for its leadership, especially after its successful presidency of the G20. Ibrahim called India a “beacon of hope and democracy” in the region and expressed confidence that India would play a critical role in shaping the future of the Global South. He also mentioned that India was supportive of Malaysia’s push to join BRICS, a group of major emerging economies that includes Brazil, Russia, India, China, and South Africa.
Ibrahim revealed that Malaysia had officially applied for BRICS membership as part of a broader strategy to diversify its economic partnerships. He believes that joining BRICS would open up new opportunities for Malaysia to collaborate with other powerful economies and explore new areas of growth.
India’s Ministry of External Affairs confirmed its support for Malaysia’s BRICS membership bid. A top Indian official, Jaideep Mazumdar, said that India had “no hesitation” in backing Malaysia’s application. This diplomatic support reflects the strong ties between the two nations.
Prime Minister Narendra Modi also highlighted the deepening relationship between India and Malaysia during a joint press event. He announced that the two countries had decided to elevate their partnership to a “Comprehensive Strategic Partnership,” meaning they would work more closely together on a variety of issues.
In fact, the leaders of India and Malaysia signed eight agreements during Ibrahim’s visit. These agreements cover important areas like the recruitment of workers, traditional medicine, digital technology, youth engagement, arts, tourism, and public administration.
Both leaders also reiterated their belief in the importance of ASEAN, a group of Southeast Asian nations, in maintaining security and stability in the Indo-Pacific region.
In summary, Prime Minister Anwar Ibrahim’s visit to India was about more than just strengthening ties between the two countries. He brought bold ideas to the table, advocating for a shift away from reliance on the US dollar and pushing for more unity among developing countries in the Global South. His visit may mark the beginning of new economic collaborations that could reshape the global financial landscape.
