22/06/2026

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MONDAY | JUNE 22, 2026

Closer Malaysia-Russia ties will bring new opportunities

Ű BY KIRTINEE RAMESH newsdesk@thesundaily.com

PETALING Malaysia’s deepening economic engagement with Russia could support trade diversification, strengthen energy and technology cooperation and reduce reliance on the US dollar as both countries explore using local currencies and broaden strategic partnerships, economists say. A key proposal under discussion is the use of the ringgit and the ruble in bilateral trade, which economists say reflects a broader global shift towards dedollarisation. Putra Business School associate professor Dr Ida Md Yasin said trading in local currencies could reduce exposure to exchange rate fluctuations and improve trade efficiency between the two countries. “Traditionally, international transactions have been conducted using the US dollar. However, the world is changing, and we are seeing a move towards dedollarisation,” she told SunBiz . “This is a practical example of that shift. Malaysia is trading with Russia, not the United States, so there is no reason why both countries cannot use their own currencies for trans actions.” Ida said the initiative aligns with broader discussions within BRICS, of which Russia is a member, and that Malaysia has expressed interest in engaging with it. She noted that although Russia is not among Malaysia’s top trading partners, its large resource base and population present opportunities for deeper economic cooperation. “This could improve bilateral trade flows and create new opportunities for both countries. It is a win-win situation.” Beyond energy, Ida said agri culture, pharmaceuticals and digital PETALING JAYA: Petroliam Nasional Bhd (Petronas), through wholly owned subsidiary Petronas Carigali (Turkmenistan) Sdn Bhd, com memorated 30 years of operations in Turkmenistan by advancing a new phase of strategic growth through the signing of a series of agreements that reinforce its long-standing part nership with the country. The milestone coincides with the official visit of Prime Minister Datuk Seri Anwar Ibrahim to Turkmenistan, reflecting the enduring relationship between the two countries and three decades of collaboration built on mutual trust, shared aspirations, and sustained value creation in the energy sector. Building on the strong foundation, Petronas Carigali (Turkmenistan) signed agreements with State Concern Turkmennebit and State Enterprise Hazarnebit, deepening its presence in the Caspian Sea and expanding its upstream portfolio in the country. They comprise a production sharing agreement (PSA) covering the offshore Block-19 and Block-20, as well as a cooperation agreement (CA) on 2D Seismic Studies for the Northern Offshore Blocks. Together, they represent a shared JAYA:

technology- and knowledge-based growth, which is essential for long term resilience and global posi tioning,” Idham said. He welcomed the visa liberal isation talks between Malaysia and Russia, saying easier travel could strengthen people-to-people ties and unlock economic opportunities. “Visa liberalisation can boost tourism, encourage more business exchanges and lower barriers for investors.” Stronger connectivity, he added, could support trade diversification, joint ventures and cross-border investment in energy, education and digital services. Looking ahead, Idham said the impact of Malaysia-Russia co operation would depend on whether discussions translate into concrete outcomes. “If these discussions lead to projects, Malaysia could see high quality investments, technology transfer and stronger energy security over the next five to 10 years.” He added that deeper integration into global value chains, the creation of high-skilled jobs, and diversified energy partnerships would streng then Malaysia’s resilience against external economic shocks. development of the Galkynysh Field and opportunities in downstream and adjacent sectors such as oil refining, gas processing and gas chemicals. The signing ceremony was witnessed by Anwar and Turkmenistan President Serdar Berdimuhamedov. Speaking at the event, Mohd Jukris said that for three decades, Petronas and Turkmenistan have built a partnership defined by trust, shared ambition and a commitment to creating long-term value. “Today’s agreements reflect our confidence in the continued potential of Turkmenistan’s energy sector and our belief in what can be achieved through enduring partnerships anchored in mutual respect and technical collaboration.” As part of the commemoration, Petronas and Turkmennebit co hosted the Turkmenistan-Malaysia: 30 Years of Mutually Beneficial Co operation in the Oil and Gas Sector Forum and Exhibition, bringing together more than 500 participants, including representatives from local governmental agencies, local industry players, Malaysian companies operating in Turkmenistan and members of the wider energy community.

o Deeper engagement could support trade diversification, strengthen energy and technology cooperation and reduce reliance on US dollar, say economists

focus on,” she said. Last week, the Prime Minister’s Office (PMO), in a statement, said Malaysia and the Russian Federation are exploring strategic areas of cooperation, including efforts to strengthen long-term energy and oil supply security, following talks between Prime Minister Datuk Seri Anwar Ibrahim and Russian President Vladimir Putin. Both leaders discussed various aspects of bilateral ties, with the energy sector identified as a strategic area of mutual interest. “Both sides also explored oppor tunities to expand economic co operation and welcomed Russia’s commitment to long-term colla boration in energy and oil supply,” it said. The discussions further covered potential cooperation in emerging technologies, cybersecurity, digital development, artificial intelligence (AI), modern agriculture and the pharmaceutical industry. The PMO also said Malaysia and Russia exchanged views on facili

technologies are key areas for potential growth in bilateral ties. Malaysia could expand agri cultural imports from Russia while increasing exports such as palm oil, she said, noting there is still room to grow existing trade. “We already export palm oil to Russia, but there is room for expansion. At the same time, cooperation in pharma ceuticals and digital technologies would help diversify Malaysia’s economic partnerships.” Ida said deeper engagement with Russia supports Malaysia’s strategy to diversify export markets and investment sources amid global uncertainty. “We want more options in trade. In an uncertain global environment, it is important not to depend on only one or two markets.” She pointed to tourism as an underdeveloped area, noting rela tively low numbers of Russian arrivals in Malaysia compared with Thailand and Vietnam. “Many Russians travel to neigh bouring countries, but fewer come to Malaysia. This is a market we should commitment to unlock future oppor tunities, enhancing subsurface under standing and supporting Turkmenistan’s position as a significant contributor to regional and global energy supply. The PSA was signed by Petronas COO and executive vice-president and CEO of upstream Mohd Jukris Abdul Wahab, on behalf of Petronas Carigali (Turkmenistan), and Turk mennebit chairman Guvanch Agajanov and Hazarnebit director Esetov Amanmuhammet. The CA was signed by Mohd Jukris and Agajanov. Under the newly signed PSA, Petronas Carigali (Turkmenistan) will acquire a 100% participating interest in Block-19 and Block-20, marking Petronas’ entry into new exploration acreage in Turkmenistan. Meanwhile, the CA provides for the acquisition of new seismic data to address existing data gaps and enable a more comprehensive evaluation of the Northern Offshore Blocks. In parallel, a framework agreement on long-term cooperation for the development of hydrocarbon resources of Turkmenistan was formalised between the Malaysian government, represented by Economy Minister Akmal Nasrullah Mohd Nasir, and the Turkmenistan

Ida (left) and Idham.

tating people-to-people movement through visa liberalisation initiatives and explored mechanisms to expand bilateral trade and investment using local currencies, namely the ringgit and the ruble. Universiti Teknologi Mara senior lecturer in economics Dr Mohamad Idham Md Razak said cooperation in AI, cybersecurity and digital develop ment is highly strategic for Malaysia’s long-term economic goals. “As Malaysia seeks to move up the economic value chain, these sectors are key enablers of a high-income, innovation-driven economy,” he said, adding that progress in these areas could boost productivity, strengthen advanced manufacturing and expand digital services. “Strengthening capabilities in AI, cybersecurity and digital techno logies will help Malaysia transition from cost-based competitiveness to

“Ultimately, success will be measured not only by increased trade but also by Malaysia’s ability to build domestic capabilities and move into higher-value economic activities,” Idham said. Petronas marks 30 years in Turkmenistan, signs agreements

Anwar (left) and Berdimuhamedov attending the opening ceremony of the forum in Ashgabat on Friday. – BERNAMAPIC

government, represented by Agajanov in his capacity as the deputy chairman of the Cabinet of Ministers of Turkmenistan.

The agreement provides a framew ork for exploring broader areas of collaboration, including the potential