Malaysia: Malaysia has called for urgent reforms to the global governance and multilateral system, warning that the current framework is no longer sustainable in addressing mounting global challenges affecting developing nations.
According to BERNAMA News Agency, Foreign Minister Datuk Seri Mohamad Hasan spoke during the BRICS Partners' Foreign Ministers' Meeting, highlighting that the existing global governance system was 'creaking under the weight of humanity's most pressing worries', including widening inequalities, unsustainable debt burdens, climate crises, and unilateral trade measures. He emphasized that these issues had significantly eroded trust in multilateralism and international cooperation over the years.
Mohamad pointed out that nations in the Global South have long faced significant gaps in representation, access, and influence within the international system. Despite these challenges, he stressed that multilateralism remains essential for ensuring a rules-based international system where all nations, regardless of size or power, have a fair voice.
He warned that without meaningful reform, the deficit in trust and hope would continue to widen, particularly concerning the global financial architecture and debt crisis. He criticized the current international financial structures as outdated and failing to account for the unique circumstances faced by developing countries. He specifically mentioned the Bretton Woods institutions, such as the International Monetary Fund (IMF) and World Bank, as being out of step with their methodology.
Mohamad also noted that the COVID-19 pandemic and other interconnected global challenges had worsened the debt crisis, with nearly 40 percent of developing countries facing severe debt-related problems. He highlighted that approximately 3.4 billion people live in countries spending more on debt servicing than essential services like healthcare and education.
The minister advocated for a more equitable financial system, including effective debt relief and restructuring mechanisms. He emphasized the importance of ensuring countries have sufficient liquidity to respond to crises and invest in sustainable development.
The two-day meeting, which started yesterday, serves as an important preparatory platform ahead of the BRICS Leaders' Summit in 2026. Malaysia's participation allows it to contribute early to discussions on issues affecting developing economies, including supply chain stability, access to financing and technology, and the broader impact of global disruptions on economic growth and development.