KUALA LUMPUR: There has been no proposal so far for Malaysia to join the New Development Bank (NDB), according to the Ministry of Investment, Trade and Industry (MITI). MITI stated that if there arises a necessity for Malaysia to join the NDB, the nation must be prepared to contribute to this financial institution, as this move would increase the country’s existing financial commitments.

According to BERNAMA News Agency, MITI emphasized the need to consider the government’s policy to limit national debt to 65 percent of the gross domestic product (GDP) and to primarily rely on local financial agencies, given Malaysia’s status as a graduate country among other multilateral development banks. This statement was made in response to a query by Senator Ros Suryati Alang on whether Malaysia would apply to become a member of the China-based NDB following the announcement of Malaysia becoming a partner country of BRICS.

The membership prospect was discussed between Malaysia’s Economy Minister and NDB President Dilm
a Rousseff during their meeting on the sidelines of the Heads of State and Government at the BRICS Outreach/BRICS Plus Conference in Kazan, Russia. MITI clarified that NDB membership is open to all United Nations members, irrespective of their BRICS membership status.

To evaluate the benefits of joining the NDB, MITI highlighted the necessity of conducting a comprehensive cost and benefit analysis. This analysis would assess Malaysia’s membership requirements, financial commitment, and voting power within the NDB. Furthermore, MITI stressed the importance of engaging sessions with relevant stakeholders, including economic and development agencies, to gather feedback and ensure membership aligns with the country’s development priorities.

As an initial step, Malaysia could consider applying to be an observer at the NDB board meetings. This approach would provide Malaysia the opportunity to gain insights into the NDB’s operations and governance before deciding on official membership.