As part of a broader strategy to diversify its global partnerships, Malaysia updated income tax treaty with Russia, signed in November 2024. This treaty aims to eliminate double taxation and encourage bilateral investments. The partnership with Russia is also motivated by the need for more consistent commercial access to defense equipment/infrastructure and oil and natural gas.
Russia-Malaysia trade reached approximately USD 3.5 billion by September 2024, demonstrating a significant economic relationship. It has been made evident that Malaysia is increasing cooperation with Russia to strengthen economic, political, and security relations through several meetings between the two countries’ leaders. These needs could motivate US companies to seek further collaboration and position themselves as reliable and unbiased partners to Malaysia.
Malaysia's recent official designation as a BRICS partner country underscores its ambition to pivot towards emerging economies. Malaysia seeks to leverage BRICS to counter potential disruptions from a return of Trump-era tariffs. This arrangement signifies its intent to reduce overreliance on traditional Western partners, a notion that should encourage US developers to pursue a diplomatic, balanced approach to doing business.
