Asean Business Advisory Council chairman Nazir Razak said Malaysia being made a BRICS partner country was an extension of the policy of neutrality. (Bernama pic)
PETALING JAYA: Asean countries, including Malaysia, can pursue business ties with Russia as the Southeast Asian bloc adheres to the principle of neutrality, the Asean Business Advisory Council (Asean-BAC) said today.
“So, as far as business with Russia is concerned, I wish to say that Malaysia and Asean are independent in their foreign policy,” said Asean-BAC Malaysia chairman Nazir Razak.
He said that in 1971, the founding Asean nations adopted the concept of Zopfan – zone of peace, freedom and neutrality.
“That is the principle we have adhered to throughout (the decades since),” he said during the plenary session of the “World of Opportunities: Russia-ASEAN’ International Business Forum”.
Nazir said Malaysia being accepted as a partner country of BRICS recently was “an extension of that policy of neutrality”.
“So, we would like to do more business with Russia and the rest of the world. Our companies are basically impartial. The issue is how can we do it without risking sanctions,” he said, alluding to sanctions imposed on Russia by the US and its allies following the outbreak of the Russia-Ukraine conflict.
However, Nazir noted such challenges could be overcome, citing his own personal experience.
“I had invested in a Singapore-based company (involved in the coffee business) which is doing thriving business in Russia, Ukraine and Kazakhstan. It is a huge market for businesses in Asean.
“We encourage Asean companies to look for opportunities in Russia, especially the consumer market,” he added.
Russian industry and trade deputy minister Alexey Gruzdev, who spoke at the session, acknowledged sanctions imposed by the West had impeded business activities between Russia and other countries.
Despite the challenges, he said Russia had continued to strengthen its partnership with Asean countries including Malaysia.
He added the Russian Federation is seeking to expand its business with Asean countries, which has a combined population of about 700 million, and is negotiating to eliminate tariff barriers in the region.
He said the inclusion of four Asean nations – Malaysia, Indonesia, Thailand and Vietnam – as BRICS partner countries provide a “window of opportunity” for the countries.
Gruzdev also said it was a myth that Russia could only offer oil and gas to the world. He added the country was a leader in areas such as nuclear energy, satellite technology, petrochemical, pharmaceutical products, software, cybersecurity, agricultural products and fertiliser.
He added Russia plays a crucial role in Asean’s food security via the provision of fertiliser. Russia is the world’s biggest exporter of fertiliser.
Meanwhile, Malaysia External Trade Development Corp (Matrade) deputy CEO Abu Bakar Yusof said Russia’s trade with Malaysia had been growing steadily, citing the double-digit growth in trade last year.
He said the positive trajectory had continued this year as trade with Russia also registered double-digit growth from January to October.
Malaysia’s main exports to Russia are machinery, processed food, and electrical and electronic goods.
Both countries can further diversify their partnership including technological collaboration, renewable energy, and green technology, Abu Bakar added.
The two-day forum, organised by Roscongress Foundation, drew some 250 participants from various Asean countries and Russia.
Roscongress, established by a decree of Russian president Vladimir Putin in 2007, is a non-financial development institution dedicated to enhancing Russia’s economic potential.
