Ringgit-Ruble Transactions, Trade Agreement Can Strengthen Malaysia-Russia Economic Ties:

By Harizah Hanim Mohamed

KUALA LUMPUR, Nov 28 (Bernama) – There are untapped business opportunities that Malaysia can explore with Russian businesses, particularly amid concerns about rising tariffs, offering both countries a chance to grow trade volumes and strengthen economic ties.

The Electrical and Electronics Association of Malaysia (TEEAM) president Chang Yew Cheong said several established Russian businesses in Malaysia present opportunities for closer ties between businesses from both countries, while the geographical proximity of Russia to Malaysia offers a strategic advantage for trade between these economies.

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"For instance, we are used to Kasperksy’s products and if we look from another perspective, for instance, many of our members are currently doing business with Chinese counterparts, using ringgit-yuan transactions, which is more efficient.

“I believe we can do the same with Russia, they have advanced technology, while at the same time, Malaysian banks are well equipped to handle transactions in other currencies. We can look into ringgit-ruble transactions, however, we need to ensure that the transaction volume is significant enough,” he told Bernama after a panel discussion entitled “Prospects for Cooperation between Russia and ASEAN Countries in the Field of Digital Transformation”.

TEEAM currently has about 1,800 company and individual members, consisting of 10 state associations and divided into the engineering and construction services group, manufacturing group and trading group.

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The discussion was held in conjunction with the two-day ‘World of Opportunities: Russia-ASEAN’ International Business Forum held here.

Chang also emphasised that given the opportunities available for the business community, Malaysia should seriously consider forging a trade agreement to ensure seamless and smooth business transactions.

Prime Minister Datuk Seri Anwar Ibrahim had gone on a working visit to the Russian Federation on Sept 4-5 to attend the 9th Eastern Economic Forum (9th EEF) in Vladivostok.

“Maybe from there, we can work on some arrangements such as a facility to make it easier for export and import activities as we look into a trade agreement between the countries,” Chong added.

During the panel session, First Group chief executive officer Alexey Poroshin highlighted the importance of sovereign cybersecurity, emphasising that it goes beyond data protection to include the development of sovereign technologies and expertise within the country.

For context, sovereign cybersecurity is the practice of protecting a nation’s sensitive data from cyberattacks, leaks and foreign surveillance. It's a strategic challenge that affects businesses, citizens and public authorities.

“Russian cybersecurity companies can help (Malaysian businesses) with the missing elements in creating sovereign technologies, infrastructure and regulations (related to that),” he told the session.

To recap, in 2023, trade turnover between Russia and Malaysia rose by 11 per cent to US$3.11 billion versus US$2.79 billion in 2022 (US$1=RM4.45).

It was reported that Malaysia's exports to Russia grew by 13 per cent to US$619.3 million in 2023, while Russia’s exports to Malaysia rose by 10.8 per cent to US$2.49 billion. 

"Malaysia's exports in the electric and electronics sector to Russia grew by 96.9 per cent to US$154 million. Industrial goods remain the foundation of Malaysia's exports, increasing to US$575.1 million in 2023 from US$499.3 million in 2022.

Meanwhile, imports from Russia rose to US$2.05 billion in 2023 from US$1.4 billion in 2022.  

-- BERNAMA