A New South–South Axis

This diplomatic achievement was not a coincidence. It was built upon Malaysia's vision of re-energising the Global South through tangible economic, scientific, and technological partnerships. Brazil, under President Luiz Inácio Lula da Silva, and Malaysia under Anwar, share a worldview shaped by social inclusion, sustainability, and equitable globalisation. 

When the two met in Kuala Lumpur, the convergence of their agendas – green transition, bio-economy, semiconductors, and multilateral reform – created a political chemistry rarely seen between ASEAN and South America.

Malaysia's Group Chair role amplified that resonance. As ASEAN's representative voice in dialogues with the G7, BRICS, and now the G20, Malaysia was positioned to translate regional consensus into global recognition. 

The G20 observer seat – always available but never actively deployed until 2025 – was finally actualised in recognition of ASEAN's stabilising role during the US–China trade détente held in Kuala Lumpur earlier the same week.

Anwar's Strategic Sequencing

Anwar's strategy combined sequencing and symbolism. First came the ASEAN-US market-access accord with President Donald Trump, showing that Malaysia could secure trade gains even amid the MAGA era. 

Next, the engagement with Brazil projected that same pragmatism beyond the Pacific. Rather than aligning with any bloc, Anwar positioned Malaysia as the interlocutor of all – Washington, Beijing, and Brasília alike.

This sequencing appealed to G20 members. In an age of fragmented multilateralism, Malaysia's ability to host trade negotiations, mediate ceasefires, and champion equitable growth offered precisely the credibility needed for observer recognition. 

Brazil's strong advocacy inside the G20 Sherpa Track sealed the deal, arguing that ASEAN's voice –channelled through Malaysia – was essential to ensuring that the Global South shaped the next development agenda rather than merely adapting to it.

From Palm Oil to Processors

The Malaysia-Brazil breakthrough rests not just on diplomacy but on industrial synergy. Brazil's agricultural technology and biofuel innovations complement Malaysia's renewable energy transition and palm oil sustainability reforms. Conversely, Malaysia's semiconductor ecosystem in Penang, Kulim, and Johor offers Brazil access to the advanced manufacturing know-how needed for its own digital-industrial transformation.

The two leaders agreed to expand cooperation in chip packaging, agri-biotech, and climate finance. Brazilian research institutions such as EMBRAPA and Malaysia's MARDI are finalising joint labs on tropical agriculture and precision farming. 

Meanwhile, Petronas and Petrobras are exploring carbon capture partnerships in the South Atlantic and the South China Sea. The scope of cooperation reflects what Anwar termed a "360-degree South-South connectivity" – a partnership that combines trade, technology, and trust.

Diplomacy Beyond Geography

What makes this breakthrough remarkable is how it redefines geography. 

Traditionally, ASEAN looked eastward to East Asia and northward to Europe. Engaging the Latin world required political courage and creative diplomacy. Anwar's outreach to Lula was therefore both strategic and civilisational: two pluralistic democracies, shaped by post-colonial struggles and multicultural resilience, aligning their destinies to rewrite the grammar of the Global South.

The diplomatic dividends are already visible. Malaysia's observer status at the G20 means ASEAN has quietly participated in working-group discussions on sustainable finance, digital economy, and food security. It gives Southeast Asia an indirect seat at one of the world's most influential economic tables, allowing it to shape norms rather than react to them.

ASEAN's Expanding Horizon

For ASEAN, Malaysia's success sets a new precedent. It shows that regional leadership can translate into global representation when executed with vision and credibility. The observer role will likely rotate among ASEAN members, but Malaysia's stewardship has established the institutional pathway.

Moreover, the Brazil-Malaysia rapport could serve as the foundation for an eventual ASEAN-Mercosur Economic Partnership. Lula's government has expressed interest in linking the two regions through a framework that goes beyond trade to include education, renewable energy, and climate diplomacy. Such an agreement would echo the spirit of the Bandung Conference of 1955, where the seeds of Global South solidarity were first sown.

G20 Recognition as Diplomatic Validation

The observer status of the Group Chair of ASEAN in G20 can now serve as validation of Malaysia's non-aligned, omnidirectional diplomacy. While great powers often oscillate between rivalry and rapprochement, Malaysia has mastered the art of "strategic fluidity" – remaining principled without becoming predictable. This adaptability impressed G20 members, who saw in Malaysia a mediator capable of engaging the US, China, Russia, India, and the EU without alienating any of them.

From Anwar's perspective, the G20 seat is not a trophy but a tool. It allows Malaysia to champion debt relief for developing nations, fairer trade rules, and equitable technology transfers. It also strengthens Malaysia's position within ASEAN to coordinate positions on energy transition, carbon markets, and sustainable finance.

Brazil's Backing, Malaysia's Momentum

Brazil's role in this process cannot be understated. As 2024 G20 Chair, Brasília leveraged its convening power to invite Malaysia and ASEAN into observer deliberations, arguing that the Indo-Pacific and South Atlantic must no longer remain disconnected theatres. This solidarity revived the ethos of the "South-South Dialogue," updating it for an era of climate transition and digital interdependence.

For Malaysia, this endorsement from a G20 heavyweight amplifies its diplomatic brand: a middle power that punches above its weight by building coalitions rather than confrontation. It vindicates Anwar's belief that moral clarity – combined with strategic consistency – can yield tangible outcomes even in a world dominated by major-power politics.

A Future of Shared Stewardship

The Malaysia-Brazil partnership now carries both symbolic and structural weight. Symbolically, it reaffirms that the Global South can define its own narrative of progress – rooted in sustainability, equity, and scientific advancement. Structurally, it institutionalises ASEAN's role in global decision-making through Malaysia's leadership.

As the G20 convenes next in Johannesburg, Malaysia will attend as ASEAN's official observer, with a mandate to speak on behalf of Southeast Asia's collective interests. For Kuala Lumpur, this is not the end of a diplomatic journey but the beginning of a new chapter – one in which Malaysia's "group chair diplomacy" becomes a model for future middle powers seeking agency in global governance.

Conclusion: A Bridge Across the South

In a world increasingly divided by protectionism and rivalry, Malaysia's observer status at the G20 in 2025 – secured through partnership with Brazil – embodies the promise of constructive globalisation. It links two continents across the tropics, unites two democracies committed to social justice, and reminds the international community that leadership is not measured by size but by sincerity.

As Anwar Ibrahim often says, diplomacy is not about power over others but partnership with equals. Malaysia's latest achievement proves that when vision aligns with virtue, even small nations can move the world.

-- BERNAMA

Phar Kim Beng, PhD, is Professor of ASEAN Studies, International Islamic University Malaysia, and director at the Institute of International and ASEAN Studies (IINTAS). The views expressed in this article are those of the author and do not reflect the official policy or position of BERNAMA.