The 2024 Russia-ASEAN International Business Forum in Kuala Lumpur stands as a significant milestone in strengthening economic, technological, and cultural bonds between Russia and ASEAN nations.

Under the banner of “World of Opportunities,” this forum transcends mere diplomatic formalities to become a strategic platform for navigating an increasingly multipolar world.

It underscored the shared ambition to bolster regional resilience and drive mutual prosperity.

Malaysia’s role as the host underscores ASEAN’s stature as a dynamic and forward-thinking economic partner on the global stage.

In current techno-social realities, cultivating meaningful international partnerships has never been more critical.

The Russia-ASEAN collaboration, rooted in shared aspirations and mutual interests, offers a rare chance to redefine the region’s economic, technological, and educational trajectories.

With both sides demonstrating a clear commitment to strengthening ties, the potential for innovation, sustainability, and long-term prosperity is boundless.

A foundation for economic sovereignty

In today’s volatile geopolitical climate, reliance on a single currency like the U.S. dollar exposes nations to external risks and economic instability.

Recognising this shared challenge, Russia and ASEAN have expressed a mutual interest in reducing their dependence on the dollar.

ASEAN has already taken meaningful steps through the adoption of local currency settlement mechanisms, while Russia is advancing innovative blockchain-based solutions to streamline cross-border transactions.

A concerted effort between these partners to diversify currency usage could significantly bolster economic sovereignty, safeguard trade relationships, and pave the way for a more resilient and stable financial ecosystem.

A potential initiative could involve piloting blockchain-based trade systems or forming a joint study group between ASEAN central banks and Russia to explore innovative financial frameworks, including unconventional solutions highlighted by EMIR Research in “BRICS’ currency dilemma: A necessary quality leap beyond the dollar.” 

Such measures would strengthen economic ties and position the region as a global leader in financial innovation and resilience.

Smart city development

Russia’s expertise in smart city technologies – spanning IoT for urban management, scalable AI platforms for city services, and advanced infrastructure engineering – offers significant opportunities for collaboration.

Notably, the smart city initiatives in Thailand, championed by the Russia-ASEAN Business Council, demonstrate the potential of such partnerships.

Building on this success, Russia and ASEAN can co-develop scalable, technology-driven solutions to address urban challenges and enhance the quality of life across the region.

Renewable energy and sustainability

Nuclear energy presents a compelling opportunity for collaboration, particularly given Russia’s extensive expertise in nuclear physics.

Incorporating nuclear power into Malaysia’s energy mix holds the potential for transformative impact, offering a safe, sustainable, and reliable energy source, as outlined in “Nuclear power as an option in Malaysia’s energy mix.”

Small Modular Reactors (SMRs) represent a particularly promising avenue. While still an emerging technology attracting global investment, operational SMRs currently exist only in China and Russia.

Russia is advancing its first land-based SMR, the RITM-200N, with a 55 MW capacity and commissioning slated for 2028, following the success of its earlier SMR, the KLT-40S, used in a floating nuclear station.

Collaboration with Russia and China would enable Malaysia to tap into their advanced technologies and extensive expertise, accelerating progress in nuclear energy development and securing long-term energy resilience.

Educational partnerships in science: Shaping our digital future

Partnering with Russian institutions to train local specialists in fields critical to Malaysia’s digital future, such as nuclear and quantum physics, presents a significant opportunity.

Russia’s globally renowned universities, which lead cutting-edge research in these areas, offer a pathway to transform Malaysia’s educational and workforce landscape.

For example, the Moscow Engineering Physics Institute (MEPhI) is already engaging in initiatives to support international collaboration, and working with such institutions could greatly enhance Malaysia’s expertise in nuclear science and technology.

Quantum computing represents another vital area where Malaysia must accelerate its efforts, as a skilled talent pool is indispensable for success (“Quantum sovereignty: Is Malaysia prepared?”)

Russia, a global leader with a robust national quantum strategy, brings invaluable expertise to this domain. Collaborating with Russian experts could bolster Malaysia’s capabilities, propelling advancements in quantum technologies and positioning the nation at the forefront of this transformative field.

Aggrotech

Food security remains a top priority for ASEAN, and leveraging Russia’s advancements in agricultural technology – such as precision farming and biotechnology – could significantly enhance productivity while fostering sustainable food systems across the region.

For Malaysia, empowering smallholder farmers is a central focus, as highlighted in “4IR enabled farmers: Solving national food security.” 

Russia’s expertise and readily deployable solutions in this domain represent a valuable resource that Malaysia and ASEAN must actively engage to address food security challenges effectively.

Expanding beyond traditional markets

Our partnership should expand beyond traditional sectors to include high-growth industries such as aerospace, pharmaceuticals, and logistics.

Exploring these untapped opportunities will not only inspire businesses to move beyond conventional trade but drive innovation in emerging markets.

For instance, collaborating with Russia on infrastructure projects offers immense potential, particularly in transportation and urban planning.

Russia’s expertise in railway technology could significantly enhance Malaysia’s development of railways, ports, and airports, bolstering connectivity and economic growth.

Space technology presents an exciting frontier for collaboration.

By partnering with Russia in satellite development, launch services, and satellite-based communication systems, Malaysia can leverage advanced space technologies to enhance telecommunications, weather forecasting, and disaster management capabilities.

Joint ventures in space research could further open new scientific and technological horizons.

With Russia’s unparalleled expertise in aerospace engineering, space exploration becomes a particularly promising avenue.

Entrepreneurs and governments are already eyeing the moon, asteroids, and other celestial bodies as untapped resources for sustaining humanity, offering materials such as water, gold, cobalt, and iron.

This collaboration could position both nations at the forefront of a new era in space exploration.

In the pharmaceutical sector, partnering with Russia offers the chance to produce affordable generic medicines, improving healthcare accessibility for Malaysia and the region and controlling medical inflation.

Joint efforts in drug development and clinical trials could address pressing regional health challenges, fostering innovation and strengthening public health systems.

Overall, expanding our trade portfolio lays a robust foundation for sustained economic growth.

Diversification not only ensures long-term stability but also unlocks avenues for innovation across industries, fostering an agile and resilient economy.

The opportunities before us are vast and ripe for exploration.

When partners collaborate with a spirit of diplomacy and mutual respect – rejecting the use of trade, financing, investment, knowledge sharing, and technology transfer as instruments of coercion – such alliances inevitably yield profound and measurable outcomes and impacts for many!

Together, we hold the power to realise a shared vision of resilient, innovative, and inclusive economies.

By aligning our efforts, we can transform collective aspirations into tangible progress, forging a future defined by shared success and enduring prosperity.

(Dr Rais Hussin is the Founder of EMIR Research, a think tank focused on strategic policy recommendations based on rigorous research.)