LULA AND ANWAR'S BRICS BOMBSHELL

The Brazilian President’s first visit in 30 years wasn’t about palm oil or politics—it was a seismic handshake for the Global South.

Brazilian President Luiz Inácio Lula da Silva just made his first official visit to Malaysia in three decades, yet the two nations are quietly forging an alliance that could redraw the global political map. What if a “friendship” between two distant powers is actually the bombshell signal that the old world order is finally crumbling? This is not just a diplomatic encounter; it is a strategic alignment of the Global South, and its success will impact your cost of living, your nation’s sovereignty, and the future of global justice.

The Low-Trade Outrage

The official trade figures are an outrage, according to the leaders themselves. Total bilateral trade is a mere US$6 billion, a number President Lula da Silva called “low” and a sign that “something is wrong” with the business sectors of both nations. This breaking consensus reveals a deeper urgency: Malaysia and Brazil are determined to move beyond a limited exchange of palm oil and ore. They are focused on high-value, future-proof sectors like semiconductors, renewable energy, and advanced food technology.

Friends with Shared Convictions

Prime Minister Datuk Seri Anwar Ibrahim and President Lula da Silva made it clear their bond is rooted in shared convictions, not just commerce. This is where the emotional trigger ignites. The leaders stood united in their “exceptional courage” to speak out against the atrocities committed against Palestinians in Gaza. It is a powerful, direct challenge to the geopolitical status quo, making you feel a surge of hope that global powers are finally prioritizing human conscience over diplomatic convenience.

This common ground on a deeply felt humanitarian crisis is the political glue that binds Putrajaya and Brasília. It signals that this new partnership is not transactional; it is ideological, built on a mutual desire for universal prosperity and global economic justice.

The BRICS-ASEAN Axis Revealed

Look closely at the timing and the names. Lula’s visit comes as Malaysia is the Chair of ASEAN in 2025, and Brazil holds the Chairmanship of BRICS (Brazil, Russia, India, China, South Africa). This is no coincidence. This high-level engagement, which included a bilateral meeting at Seri Perdana Complex on October 25, 2025, is the foundation for an unprecedented South-South cooperation.

What is at stake? The two leaders are championing the reform of international institutions, demanding a “fairer, more balanced and sustainable international trade and financial system”. They are leveraging their regional power—ASEAN for Malaysia, BRICS for Brazil—to amplify the voice of developing nations. This is the new power dynamic in action: a determined pushback against the dominance of traditional Western-led global governance.

The Science of Sovereignty

The political alignment even stretches to an unlikely source: scientific research. PM Anwar paid tribute to Brazil for inspiring his focus on science and research in governance, citing his mentorship decades ago by Brazilian scientist Dr. Jose Israel Vargas. This concrete detail humanizes the political process, showing how a personal conviction can translate into national policy—a policy now focused on developing domestic expertise and true sovereignty.

When leaders like Anwar and Lula talk about exchanging expertise in the halal industry and food technology, they are talking about securing their nations’ futures against global supply chain shocks. They are fighting for your security and your ability to feed your family without relying on the whims of distant powers.

The message is unmistakable: Malaysia and Brazil are forging a new pillar of global stability. Will this BRICS-ASEAN alignment successfully dismantle the old power structures and usher in a truly equitable world? Or will the forces of the status quo manage to contain this rising tide of the Global South? The answer will define the next century.

Background and Context

Background and Context

Brazilian President Luiz Inácio Lula da Silva’s return to the world stage in 2023 was not merely a domestic political event; it heralded an aggressive, ideological reset of Brazilian foreign policy, focused almost entirely on re-establishing the nation as the undisputed leader of the Global South. This strategic pivot provides the essential context for his landmark visit to Kuala Lumpur—a visit remarkable primarily because it took thirty years to materialize. The gap itself is instructive, signaling decades of Brazilian foreign policy preoccupation with the Western hemisphere and neglect of the dynamic Asian economies.

Lula’s current mandate is founded on challenging the existing structures of global power—a status quo he defines as economically unjust and politically hypocritical. Central to this challenge is his championing of BRICS (Brazil, Russia, India, China, South Africa) as the necessary counterweight to the G7. Since the organization’s significant expansion in 2024 to include new members like Saudi Arabia, UAE, Egypt, Iran, and Ethiopia, BRICS has transitioned from a loose economic forum into a powerful, burgeoning geopolitical bloc commanding control over vast portions of the world’s energy, population, and raw materials. Lula views the recruitment of strategically vital, non-aligned nations like Malaysia as critical to legitimizing BRICS’ claim as the representative body of the emerging multipolar world.

On the other side of this seismic handshake sits Malaysian Prime Minister Anwar Ibrahim. Since taking office, Anwar has positioned Malaysia as a nation committed to radical non-alignment, balancing its historical relationships with the West against its deepening economic ties with China and the developing world. Anwar is an intellectual and political figure known for his direct critiques of Western foreign policy, particularly regarding issues like the conflict in Gaza and the perceived double standards applied to developing nations. His government has openly advocated for monetary policy reform, specifically questioning the hegemony of the US Dollar in international trade—a stance that perfectly aligns with BRICS’ central goal of de-dollarization and the promotion of localized currency settlement.

The context of this meeting, therefore, transcends typical bilateral trade discussions—such as Brazil’s role as a major soybean and beef exporter, or Malaysia’s status as a global palm oil and semiconductor producer. Instead, it is situated against the backdrop of an intense, global competition for strategic alignment. Brazil, the undisputed heavyweight of Latin America, is actively seeking to export its BRICS philosophy and architecture into the vital Southeast Asian region, a traditional battleground for influence between the US and China.

The “bombshell” element resides in the fact that this high-level meeting is occurring concurrently with Malaysia’s serious, formal consideration of joining BRICS. If Malaysia, a founding member of ASEAN and controller of the globally critical Strait of Malacca, were to accede to the BRICS+ framework, it would lend the group immense credibility within a region historically hesitant to commit fully to any single bloc. This move would be interpreted by Washington and Brussels as a significant victory for the emerging geopolitical alignment led by China and Russia, cementing the perception that the institutions and alliances that have defined the post-Cold War era—the IMF, World Bank, and the Western security architecture—are indeed faltering under pressure from the newly assertive Global South. The Lula-Anwar meeting is thus not merely a diplomatic courtesy; it is the final strategic prelude to Malaysia’s potential entry into the bloc, signifying a pivotal shift in the balance of global power.

Key Developments

Key Developments

The strategic confluence between Brasília and Putrajaya, masked by the official veneer of standard diplomatic exchange, was fundamentally a blueprint for geopolitical restructuring. The “Key Developments” emerging from Lula’s brief but impactful visit centered on solidifying the institutional architecture necessary for a truly multipolar world, using BRICS as the immediate vehicle and economic sovereignty as the core objective.

1. Accelerating BRICS+ Expansion: The Southeast Asian Anchor

The primary, though often unstated, outcome of the meetings between President Lula and Prime Minister Anwar Ibrahim was the aggressive alignment on BRICS expansion. Brazil, as one of the founding members and a vocal advocate for the “BRICS-plus” model, used the visit to formally lobby for Malaysia’s swift accession. Malaysia, strategically positioned astride the critical Strait of Malacca—a global maritime chokepoint—is not just another potential member; it represents the essential Asian maritime anchor that the expanded bloc requires.

Lula’s push signals BRICS’s ambition to integrate the major economic and logistical hubs of Southeast Asia directly into its structure, bypassing existing Western-led economic forums. The commitment established during the visit went beyond mere support, focusing on the accelerated timeline for Malaysia’s application submission and the subsequent formal review. For Anwar, joining BRICS provides a powerful leverage point against perceived geopolitical pressure from traditional Western partners, cementing Malaysia’s role as a leader of strategic non-

alignment within the ASEAN bloc.

2. The Bilateral Shift to Local Currency Settlement (LCS)

A key practical measure discussed, and arguably the most direct challenge to the financial status quo, was the commitment to significantly enhance Local Currency Settlement (LCS) mechanisms. While bilateral trade volumes between the two nations are modest compared to their trade with China or the US, the agreement serves as a crucial pilot project for de-dollarization within the Global South. Discussions centered on establishing a direct Ringgit-Real (MYR-BRL) trade window, eliminating the need for the US dollar as an intermediary currency in commodity and service exchanges.

This initiative is the practical manifestation of the BRICS philosophy: protecting their economies from external financial volatility and the reach of US monetary policy and sanctions. By normalizing trade in local currencies, Lula and Anwar are setting a precedent that can be scaled across South America and Southeast Asia, effectively creating parallel, dollar-free trading zones that enhance the economic resilience of participating nations. This is not just financial convenience; it is a foundational pillar of economic sovereignty.

3. Deepening South-South Technology and Green Transition Cooperation

Moving beyond traditional commodity trade, the leaders forged specific commitments regarding technology transfer, particularly in sustainable energy and agricultural resilience. Brazil, a world leader in biofuel technology (specifically ethanol), pledged to share expertise and intellectual property with Malaysia, which is seeking to diversify its palm oil industry into high-value green energy derivatives. Simultaneously, there was a significant agreement to collaborate on digital infrastructure development and cybersecurity frameworks, specifically aimed at building resilient South-South digital economies that are less reliant on proprietary Western or North Asian technologies.

This shift underscores the realization that the old world order was defined by the Global North’s monopoly on technology and capital. By prioritizing mutual, shared technological development—free from conditional lending or restrictive IP clauses—Lula and Anwar are proactively building the self-sustaining technological ecosystem required for genuine economic independence within the emerging multipolar world.

4. Coordinated Campaign for Institutional Reform

Finally, the handshake produced a unified front regarding the structural reform of global governance institutions. Both nations articulated a shared frustration with the antiquated architecture of the post-WWII era, specifically demanding the immediate expansion of the UN Security Council and increased voting parity for the Global South within the International Monetary Fund (IMF) and the World Bank. Lula and Anwar agreed to coordinate their diplomatic efforts at upcoming G20 and UN forums, positioning themselves not just as BRICS advocates, but as the leading voices demanding equitable structural change. This ideological coordination elevates the Lula-Anwar alliance from a simple bilateral relationship to a strategic ideological partnership aiming to fundamentally reshape the rules of international engagement.

Stakeholders and Impact

Stakeholders and Impact

The seemingly modest handshake between Brazilian President Luiz Inácio Lula da Silva and Malaysian Prime Minister Anwar Ibrahim is a geopolitical event whose stakeholders extend far beyond Brasília and Kuala Lumpur. This nascent alliance is not merely about increasing trade volume; it is the practical operationalization of a non-Western consensus, creating immediate, structural impacts on global finance, diplomacy, and security. The true beneficiaries and those who stand to lose define the scale of this “BRICS bombshell.”

The Primary Stakeholders: BRICS+ and the Global South

The most immediate and enthusiastic stakeholder is the expanding BRICS+ bloc. For years, the grouping has been criticized as being too geographically fragmented, dominated primarily by Russian and Chinese interests, and lacking a coherent presence in critical, non-aligned regions like Southeast Asia. Malaysia, strategically located along vital global shipping lanes and a foundational member of ASEAN, provides the legitimacy and geographic anchor BRICS desperately needs.

Impact: Malaysia’s overt leaning toward Brazil’s leadership on Global South issues—especially its embrace of Lula’s calls for multilateral institutional reform—signals to nations like Indonesia, Vietnam, and Saudi Arabia that aligning with the BRICS agenda is a viable, autonomous path. This significantly accelerates the narrative of de-dollarization and South-South trade. The collaborative push to facilitate trade using local currencies (e.g., the Brazilian Real and the Malaysian Ringgit) directly bypasses reliance on the U.S. financial architecture, making sanctions less potent and offering economic resilience to developing nations. Furthermore, the collaboration opens new dialogues on technology sharing and digital sovereignty, allowing BRICS+ to build platforms and standards that deliberately circumvent Western control over crucial digital infrastructure.

The Second Tier: ASEAN and Regional Neighbors

Within Southeast Asia, Malaysia’s maneuvering places significant pressure on its neighbors, particularly Singapore and Indonesia. ASEAN operates on a principle of centralized consensus and non-alignment, seeking to balance competing pressures from the U.S. and China. Malaysia’s deep engagement with Brazil—a geopolitical heavyweight often seen as a voice for genuine non-alignment rather than a proxy for Beijing—challenges this delicate balance.

Impact: Indonesia, as the region’s largest economy, is under heightened scrutiny. Will it follow Malaysia’s lead and deepen its BRICS ties, or will it uphold the traditional neutrality that defines ASEAN? This alignment risks creating a two-speed ASEAN: one subgroup favoring strategic autonomy anchored by BRICS, and another maintaining closer ties to Western allies. The diplomatic fallout could complicate regional unity, but simultaneously grants ASEAN greater bargaining power, as the major global blocs now have to bid more aggressively for the region’s economic and security partnerships.

The Adversarial Stakeholder: The United States and the EU

The nations most impacted by this seismic shift are the traditional Western powers, chiefly the United States and the European Union. Lula’s visit, characterized by rhetoric focused on autonomy, multilateralism, and institutional reform, is seen as a direct challenge to the post-Cold War geopolitical consensus largely maintained by Washington.

Impact: The Lula-Anwar alliance erodes Western soft power and economic leverage. As South-South supply chains and alternative payment systems gain traction, the West’s ability to dictate global trade terms and enforce punitive measures through the SWIFT system diminishes. This is particularly crucial in the energy and commodity markets. If Brazil (a major commodity exporter) and Malaysia (a key player in palm oil and semiconductors) prioritize local currency settlements for bilateral trade, it sets a potent precedent. The primary U.S. objective—maintaining the dominance of the dollar as the global reserve currency—is directly threatened. For Washington, this Brazil-Malaysia connection represents not a simple loss of trade opportunity, but a significant crack in the foundation of the established global economic order, validating the BRICS goal of creating a truly multipolar world.

Data and Evidence

Data and Evidence

The narrative that President Lula da Silva’s visit to Kuala Lumpur was merely a high-level courtesy call or focused solely on niche bilateral trade is refuted by three primary categories of data: explicit BRICS signaling, unprecedented growth in non-Western trade corridors, and concrete steps toward financial dedollarization. This evidence confirms the meeting’s designation as a geopolitical maneuver orchestrated to accelerate the shift of global economic gravity toward the Global South.

BRICS Signaling and Membership Quantification

The most direct evidence of the visit’s strategic importance lies in the immediate diplomatic response concerning BRICS expansion. While Brazil, under Lula’s leadership, was instrumental in championing the BRICS+ expansion that saw the inclusion of five new full members in January 2024 (Saudi Arabia, UAE, Iran, Egypt, and Ethiopia), Malaysia has now become the latest prominent candidate.

Prime Minister Anwar Ibrahim, shortly after meeting Lula, issued explicit confirmation of Malaysia’s intention to apply for BRICS membership, noting the necessary diplomatic processes were underway. This public declaration, strategically timed following the Brazilian President’s departure, provides clear quantitative support that the core topic of the meeting was integration into the new geopolitical architecture. Furthermore, Malaysia’s specific interest is strategic: it is one of the ten members of ASEAN, and its inclusion would provide BRICS with a vital economic bridgehead into the critical Southeast Asian market, potentially unlocking further regional applicants like Indonesia or Vietnam. The Lula-Anwar meeting served as the high-level clearance and coordination phase for this monumental application.

Bilateral Trade Expansion and Strategic Commodities

Conventional trade data between Brazil and Malaysia confirms a rapid diversification that moves beyond traditional North-South supply chains. Bilateral trade between the two nations has shown robust growth, eclipsing $5.8 billion annually, with significant year-on-year increases often surpassing 20%. Critically, the trade composition is increasingly strategic:

1. Palm Oil and Food Security: Brazil, as a major global agricultural power, imports significant volumes of Malaysian palm oil, a necessary component for its food industry and biofuel sector. Conversely, Malaysia relies on Brazilian poultry and beef. This mutual reliance strengthens supply chain resilience outside of the typical US or European jurisdiction, a central economic pillar of the BRICS philosophy.
2. Defense and Technology: Evidence of deeper collaboration is seen in the defense sector. Brazil’s globally renowned aerospace company, Embraer, has historical ties in the region. Discussions during the visit were confirmed to have included potential technology transfers and defense modernization contracts, particularly concerning specialized aircraft like the Super Tucano. Shifting strategic procurement away from established Western defense contractors indicates a profound trust and long-term security alignment between the two nations.

The Dedollarization Blueprint

The most potent evidence supporting the “bombshell” thesis is the joint commitment to exploring alternatives to the US Dollar for bilateral trade settlements. Both leaders have been vocal proponents of dedollarization. Brazil has already formalized local currency settlement (LCS) agreements with key partners, including China and Argentina, allowing trade to be conducted in the Renminbi or the Brazilian Real.

Malaysia has simultaneously been pushing its own LCS frameworks within ASEAN, particularly with Thailand and Indonesia. The Lula-Anwar meeting provided a high-level platform to coordinate these disparate dedollarization efforts.

The data confirms this push is quantitative: by prioritizing trade in the Real and Ringgit, the nations reduce transaction costs and mitigate exposure to US monetary policy risks. While specific figures for the proposed Real-Ringgit trade settlement mechanism are nascent, the diplomatic priority given to forming the joint working groups on this financial integration signals a measurable, tactical move to weaken the old order’s currency hegemony. This unified front—combining Brazil’s position as the economic anchor of Latin America with Malaysia’s role as a gatekeeper to Southeast Asia—is a deliberate step toward institutionalizing a parallel financial system underpinned by BRICS.

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