Malaysia Just Changed the Future of Asia with THIS One Move!

Summary

The video discusses Malaysia and Thailand's decision to join the BRICS alliance, highlighting the geopolitical implications for Asia. It emphasizes China's strategic gains, especially concerning the Strait of Mala, a vital shipping channel for its oil imports. The alliance's goal to reduce reliance on the US dollar in trade is underscored, with Malaysia expressing a desire for economic independence. The video also touches on Turkey's interest in BRICS and the potential shift in global economic power dynamics.

Takeaways

• 🌏 Two Southeast Asian economies, Thailand and Malaysia, are joining the BRICS Network, signaling a shift in the geopolitical landscape.
• 🗣️ Malaysian Prime Minister Anwar Ibrahim emphasizes the need for countries to break free from Western control and express themselves independently.
• 💼 The combined GDP of Thailand and Malaysia adds over $1 trillion to the BRICS alliance, strengthening its economic power.
• 🚢 The Strait of Malacca is a crucial waterway for global trade, with 25% of the world's traded goods passing through it annually.
• 🇨🇳 China is highly dependent on the Strait of Malacca for its oil imports, making it a strategic interest for the country.
• ⛓️ The potential blockage of the Strait of Malacca poses a significant risk to China's economy, prompting it to seek alternative routes and alliances.
• 🔄 The Suez Canal Crisis illustrates the impact of naval conflicts on global shipping and trade, serving as a cautionary example for China.
• 🛤️ China's Belt and Road Initiative, including the China-Pakistan Economic Corridor, aims to secure alternative trade routes, but faces challenges due to Pakistan's economic instability.
• 🤝 China has been building strong relationships within ASEAN, increasing trade with the alliance and becoming a dominant trading partner.
• 📊 A significant shift in Southeast Asia's preferred ally favors China, with over 50% of ASEAN countries now favoring China over the United States.
• 💰 BRICS members, including Malaysia, are seeking to reduce reliance on the US dollar in trade, moving towards local currencies to insulate from monetary policy changes and currency volatility.

Q & A

What significant development in the BRICS alliance is mentioned in the script?

The script mentions that two of Southeast Asia's most important economies, Malaysia and Thailand, have announced their plans to join the BRICS alliance.

What is the Malaysian Prime Minister's view on the West's role in controlling discourse?

The Malaysian Prime Minister, Anoir Ibrahim, believes that the West should no longer control the discourse as they are not colonial powers anymore, and independent countries should be free to express themselves.

Outlines

00:00

🌏 Geopolitical Shifts in Southeast Asia and the BRICS Alliance

This paragraph discusses the significant geopolitical shifts in Southeast Asia with Malaysia and Thailand's decision to join the BRICS alliance. Malaysian Prime Minister Anwar Ibrahim emphasizes the need for independent countries to break free from Western control and establish a more balanced world order. The addition of these economies, valued at over $1 trillion in GDP, strengthens the BRICS alliance. The strategic importance of the Malacca Strait for China's oil imports is highlighted, with over 80% of China's oil passing through it. The potential vulnerability of this supply line is illustrated with the Suez Canal Crisis, emphasizing the need for China to secure its energy supply through alliances and strategic projects like the China-Pakistan Economic Corridor. The paragraph also touches on China's growing influence in the region through the ASEAN alliance and its trade growth with Southeast Asian countries, positioning China as a dominant force in the region.

05:02

🔄 Shifting Alliances and the Decline of the US Dollar in International Trade

The second paragraph delves into the changing alliances in Southeast Asia, with a particular focus on the US's waning influence compared to China's growing dominance. It presents data showing a shift in preference for China as a strategic partner among ASEAN countries, with Malaysia leading this trend. The 50-year diplomatic relationship between Malaysia and China is highlighted, along with significant Chinese investments in Malaysia, such as the East Coast Rail Link project. The paragraph also addresses the BRICS alliance's move away from the US dollar in trade, with the establishment of a trading platform to increase the use of local currencies. This is further exemplified by Malaysia's decision to join the BRICS network, aiming to insulate the country from US monetary policy changes and currency volatility. The potential inclusion of Turkey in the BRICS alliance and the broader implications for the US dollar's role in international trade are also discussed.

10:03

💰 Diversification and the Role of Precious Metals in a Changing World Economy

The final paragraph shifts focus to the investment strategies in response to the geopolitical and economic changes discussed earlier. It emphasizes the importance of diversification, as exemplified by Malaysia's balanced relationships with both the US and China. The paragraph introduces Lear Capital as a sponsor and discusses the historical context of gold as a hedge against inflation and currency decline. Lear Capital's role in helping investors purchase gold and silver is highlighted, along with their offer of a report on the impact of digital dollars, dollarization, and debt on the US dollar's future status. The US national debt's record high and its effect on the US dollar's purchasing power are noted, with gold prices reaching all-time highs as a result. The paragraph concludes with an invitation for viewers to learn more about gold investment opportunities with Lear Capital, offering a special credit for contacting the company.

Keywords

💡BRICS Network

The BRICS Network refers to an association of five major emerging national economies: Brazil, Russia, India, China, and South Africa. In the video, it is mentioned that Malaysia and Thailand are planning to join this network, which signifies a shift in the global geopolitical landscape. The BRICS alliance is seen as a counterbalance to Western influence and promotes a more multipolar world order.

💡Geopolitical Landscape

The geopolitical landscape encompasses the political, economic, and strategic distribution of power among countries. The video discusses how the BRICS alliance and the potential inclusion of Southeast Asian economies like Malaysia and Thailand are altering this landscape by challenging Western dominance and advocating for a more balanced and fair world.

💡Malacca Strait

The Malacca Strait is a crucial maritime passage located between the Malay Peninsula and the Indonesian island of Sumatra. It is vital for global trade, with 25% of the world's traded goods passing through it annually. The video highlights the strategic importance of this strait to China, as it is the main route for over 80% of China's oil imports, and its control or blockage could significantly impact the Chinese economy.

💡China's Dependence

The term 'China's Dependence' in the video script refers to the heavy reliance of China on the Malacca Strait for its oil imports. This dependence is a strategic vulnerability, as any disruption in the strait could severely affect China's economy. The video suggests that China is seeking to mitigate this risk through alliances and infrastructure projects.

💡China-Pakistan Economic Corridor (CPEC)

The China-Pakistan Economic Corridor is a flagship project of China's Belt and Road Initiative, aimed at building a railway from China's western province to the Arabian Sea. The CPEC is highlighted in the video as China's contingency plan to secure access to Middle Eastern oil in case the Malacca Strait is blocked. However, the project's future is uncertain due to the unstable Pakistani economy.

💡ASEAN (Aan Alliance)

ASEAN, or the Association of Southeast Asian Nations, is a regional intergovernmental organization comprising 10 member states in Southeast Asia. The video emphasizes China's growing trade with ASEAN, which has increased by 106% in seven years, making it China's most important trading partner. This trade growth signifies China's increasing influence in the region.

💡US Dollar Dominance

The dominance of the US dollar in international trade is a central theme in the video. It discusses how BRICS members, including Malaysia, are seeking to reduce their reliance on the US dollar in trade transactions. This move is seen as a way to achieve greater economic independence and reduce vulnerability to US monetary policy changes.

💡Diversification

Diversification in the context of the video refers to the strategy of spreading investments and alliances across multiple countries or economic blocs to mitigate risk and maximize opportunity. Malaysia, for instance, is highlighted as having good relations with both the US and China, thereby diversifying its geopolitical and economic relationships.

💡East Coast Rail Link

The East Coast Rail Link is a significant infrastructure project in Malaysia, undertaken by Chinese enterprises. The video mentions it as the largest standalone transportation infrastructure project by Chinese companies overseas, which will connect the east and west coasts of Malaysia, transforming its future and symbolizing the deepening ties between Malaysia and China.

💡Petro-Dollar Deal

The term 'Petro-Dollar Deal' refers to an agreement where oil is traded in US dollars, thereby reinforcing the dollar's status as the world's primary reserve currency. The video script alludes to Saudi Arabia's petro-dollar deal with the US potentially expiring, which could signal a shift towards selling oil in alternate currencies, impacting the US dollar's dominance.

💡Investing in Precious Metals

The video suggests investing in precious metals like gold and silver as a strategy to hedge against inflation and the declining value of the US dollar. It positions precious metals as an alternative asset class that can provide stability and growth in times of economic uncertainty and geopolitical shifts.

Highlights

Two of Southeast Asia's most important economies, Malaysia and Thailand, announced plans to join the BRICS Network.

Malaysian Prime Minister Anwar Ibrahim emphasized the need for independent countries to express themselves freely and not be controlled by the West.

The Malaysian and Thai economies together represent more than $1 trillion of GDP, a significant addition to the BRICS alliance.

The Strait of Mala is a crucial waterway for global trade, with 25% of the world's traded goods passing through it annually.

China is highly dependent on the Strait of Mala for its oil imports, with over 80% traveling through these waters.

The potential blockage of the Strait of Mala by foreign adversaries poses a significant risk to the Chinese economy.

China's Belt and Road Initiative includes the China-Pakistan Economic Corridor, a project aimed at securing alternative access to Middle Eastern oil.

China has been building strong relationships within the ASEAN alliance, increasing trade from $252 billion to $523 billion in seven years.

Southeast Asian countries, including Malaysia, are increasingly favoring China as their strategic partner over the United States.

Malaysia and China celebrated the 50th anniversary of diplomatic relations, with strong economic ties and cultural connections.

The East Coast Rail Link project in Malaysia, undertaken by Chinese enterprises, is the largest standalone transportation infrastructure project overseas.

BRICS members, including Malaysia, are seeking to reduce their reliance on the US dollar in international trade.

The BRICS alliance aims to create a trading platform to increase the use of local currencies in trade among member countries.

Turkey, a NATO country, has expressed interest in joining the BRICS alliance, seeking an alternative to the European Union.

The BRICS alliance is gaining leverage in Southeast Asia, with the potential inclusion of countries like Turkey and Saudi Arabia.

Investing in precious metals like gold can be a strategy to diversify and offset geopolitical trends and inflation.

Lear Capital, a sponsor of the video, offers insights and investment opportunities in precious metals amidst changing geopolitical and economic landscapes.

Transcripts

well two of Southeast Asia's most

important economies have just announced

their plans to join the bricks Network

and if you aren't convinced yet that the

bricks Alliance is quickly changing the

entire geopolitical landscape just

listen to the words of Malaysian prime

minister anoir Ibrahim who had this to

say about his country joining bricks we

can no longer accept the scenario where

the West wants to control the discourse

because the fact is they are not

Colonial Powers anymore and independent

countes should be free to Express

themselves as each week passes we

continue to see more stories about the

developing World wanting to break free

from us and gmany and seek a more

balanced and fair World Malaysia is the

sixth largest economy in southeast Asia

and its decision to move forward with

bricks came just one week after Thailand

the second largest economy in southeast

Asia also announced plans to move

forward with bricks membership later

this year together the Thailand and

Malaysian economies represent more than

$1 trillion of GDP which of course will

be an incredible addition for the brics

alliance but more importantly there is a

larger geopolitical story happening

behind the scenes that could reshape the

entire future of Asia no surprise here

but the biggest winner of this new deal

will be China and for one very strategic

reason let's break it down you see the

story of Malaysia joining bricks

actually starts in this body of water

the straight of Mala which arguably is

the most important body of water in the

entire world the malakan straight is

over 800 kilometers in length and at its

narrowest Point only 2.8 kilm wide

making it one of the world's most

congested shipping choke points every

year more than 94,000 vessels pass

through these Waters and Incredibly 25%

of the world's traded Goods passes

through this straight but here is where

things get very interesting there is no

country in the world more dependent on

the straight of Mala than China has more

than 80% of China's oil imports travel

directly through these Waters simply put

if China were to ever lose access to

this vital Waterway it would absolutely

the Chinese economy it would be

the easiest way for foreign adversaries

to launch an attack on China let's

imagine a scenario where one day the US

and China are drawn into a larger

conflict the US military wouldn't have

to nor would they want to take on

China's military directly they could

simply travel over to Malaysia and block

Chinese shipping containers from passing

through the straight of Mala but what

would this look like in the real world

we simply need to look at what's

happening in Real Time with the sus

Canal Crisis to understand how

devastating a naval war in the region

could be in January Iran back houthi

Rebels took control of the suas canal

and are causing absolute chaos to the

shipping World in response to Israel's

war in Gaza the results have decimated

the shipping industry which saw a 50%

drop in suaz Canal trade in the first

two months of 2024 what's incredible

about this attack from the Yan Rebel

group is the impact it's had on global

Shipping take a look at this graph which

shows the plummet and shipping through

the suas canal in the red line and the

explosion of trade through the Cape of

Good Hope in the blue line because of

this conflict shipping companies are now

using thousand-year-old trading lines

and rerouting vessels all the way down

around the tip of Africa the risk is now

too high in the suas canal as multiple

ships have been sunk by the rebels there

is no doubt that China is watching this

situation very closely and in fact has

been working on a backup plan just in

case there was ever a conflict in the

malakan Strait in 2015 China launched

the flagship project of the Belton Road

initiative the China Pakistan economic

Corridor which would see a railway built

from China's Western Shang Province and

extend all the way down to the Arabian

Sea this project has a budget of nearly

$50 billion and would guarantee China's

access to Middle Eastern Oil if the

malakan strait was ever blocked but the

Pakistani economy has been in turmoil

for years and the Chinese government is

becoming less optimistic about the

future of this project in reality China

needs a backup plan they can't depend on

Pakistan for the security of its oil

imports China is the most dominant

country in Asia and wants to maintain

its Regional Supremacy with Malaysia now

joining the bricks Alliance and moving

closer to China this will help China

secure its access through the straight

of Mala for many years to come China has

been very strategic with this alignment

with Malaysia and in fact has been

working on building strong relationships

throughout the aan alliance a political

and E economic Union of 10 member states

in southeast Asia honestly you might not

believe the results China has achieved

in just a few short years in 2017

China's trade with the aan alliance was

$252 billion but in the past 7 years

that's increased

106% to $523 billion making aan the most

important trading partner for China more

than 80% of these Imports are

Electronics Machinery chemicals Plastics

aluminum and other industrial goods

basically all the industries that China

is a dominant force in while the US

government wants to Pivot to Asia and

become the dominant superpower in the

region this goal is simply unrealistic

the us simply can't compete with China's

manufacturing prowess and we've seen a

significant shift in the attitude of aan

Nations as a result if you remember one

chart from today's video let it be this

one which shows how Southeast Asia's

preferred Ally has switched in favor of

China let's start at the bottom of this

chart which show in 2023 only 38.9% of

aan countries wanted China as their

strategic partner fast forward to 2024

and that number has now increased to

over 50% surpassing the United States no

surprise here but Malaysia leads all

countries in aan with over 75% of the

population saying if they were forced to

align themselves with one strategic

rival they would choose China Malaysia

and China just celebrated the 50-year

anniversary of diplomatic relations this

past week and in fact Chin's Premier

lean just flew to koala lumur for a

3-day diplomatic visit with Malaysian

prime minister anir Ibrahim nearly 23%

of Malaysian population is Chinese

forming the second largest ethnic group

in the country with nearly one out of

every four Malaysians tracing their rots

back to Mainland China it should come as

no surprise that many Malaysians have a

positive image and a desire to work

closer with China China has poured

billions of dollars of investment into

Malaysia with the flagship project being

the 665 km East Coast Rail Link project

this Railway is the largest Standalone

Transportation infrastructure project

undertaken by Chinese Enterprises

overseas and will transform the entire

future of Malaysia connecting the East

and West coasts and many cities and

towns in between Malaysian prime

minister anoir said that China's rise

has brought us a glimmer of hope that

are checks and balances in the world one

of those checks and balances for

Malaysia and all bricks m MERS is

freedom from the US dollar in trade once

again the Malaysian prime minister

shares his thoughts last year Malaysia

had the highest investment ever but the

currency was still attacked it doesn't

make sense it goes against basic

economic principles why a currency that

is completely outside the trade system

of the two countries and is irrelevant

in terms of economic activities in the

country has become dominant purely

because it is used as an international

currency and this is the common theme

we've seen among all bricks members a

desire to shift away from using the US

dollar in trade in fact earlier last

month Russian President Vladimir Putin

who is also the rotating brics president

this year announced to the world how the

brics alliance will reduce its US dollar

trade rather than creating a common

currency bricks will create a trading

platform to increase the use of local

currencies in trade amongst member

countries with Thailand and Malaysia now

wanting to join the brics alliance this

now gives Russia and China incredible

amount of Leverage in Southeast Asia

Skeptics of bricks has long criticized

the organization and said that some

bricks countries like Ethiopia and Iran

are too small and bring very little

benefit to the organization but the

brics alliance is quickly changing this

talking point a few weeks ago turkey

followed a similar position and became

the first NATO country to express

interest in joining bricks after waiting

many decades for EU membership it's

clear that turkey has given up on this

dream and instead shifted their future

prospects to the brics alliance Turkish

foreign minister went on the record

saying that the China Le bricks Alliance

will offer turkey a quote good

alternative to the European Union this

is quite the statement from Turkey who

don't forget has been a full NATO member

since 1952 and contains the second

largest army in the NATO Alliance turkey

is the bridge between Europe and Asia

and will be a crucial Ally for the

bricks organization but once again the

main benefit from countries joining

bricks is freedom from the US dollar and

international trade here is the official

statement from one of Malaysia's most

important banks on its country's

decision to join the bricks Network it

will effectively insulate Malaysia and

the region from the changes in the

United States monetary policy and

currency volatility improving

predictability in the currency market

and lower transaction costs for

exporters and impor ERS Jeffrey Williams

an economist at the Malaysia University

of Science and Technology also shares

his thoughts on why this is so important

for the future of Malaysia's own

currency the economic balance of power

is Shifting hence Malaysia as a small

open economy must respond positively

there are trade and investment

opportunities with bricks and this will

create demand for the ring it and

strengthen the currency over time

everyone the world is quickly changing

around us and you need to stay informed

on the latest geopolitical trends I've

broken down everything you need to know

about turkey's Ascension into the bricks

organization and also a major story that

broke last week about Saudi Arabia's

Petro Dollar Deal expiring with the

United States and the chance for oil to

be sold around the world in alternate

currencies I'll provide a link to both

of those videos at the end of today's

presentation but now let's shift to the

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