Trump-Xi in Beijing, Sultan Ibrahim in Moscow: Malaysian Investors Between BRICS and the US

May 2026 is more than just hot news - it marks a turning point in the world's geopolitical landscape. Within less than a week, two major events unfolded in parallel: President Donald Trump visited Beijing and met Xi Jinping on 15 May 2026, while Sultan Ibrahim, Malaysia's Yang di-Pertuan Agong, attended Moscow as Vladimir Putin's guest of honour at the Victory Day parade on 9 May 2026.

What does this have to do with you as a Bursa Malaysia investor? The answer: a lot. When two global superpowers meet and when Malaysia leans closer to the BRICS bloc, capital flows, the ringgit, and specific sectors on Bursa will feel direct impact. This article will explain what actually happened, share Professor Jiang Xueqin's view on China's "pragmatic policy", and most importantly - what you should do as an investor.

The Trump-Xi Meeting in Beijing: More Than Just Diplomacy

Trump's official visit to Beijing on 15 May 2026 set several records. It was the first US presidential visit to China in nine years, and the second face-to-face meeting between Trump and Xi since they met in Busan, South Korea last October.

According to an NPR report, both leaders walked out of the meeting with a joint document called "new understandings" - a framework expected to be the basis of US-China relations for the next few years. Interestingly, the two sides published different summaries of what was actually agreed. The US emphasised China's commitment to supply chain stability, while China highlighted US recognition of China's status as an equal power.

The global energy crisis, especially the Iran and Strait of Hormuz issue, became a major agenda item. The US wants China, as Iran's largest oil buyer, to use its economic leverage to force Tehran to fully reopen navigation. For investors following this issue, we have previously explained the importance of the Strait of Hormuz to Asia's economy.

From a Malaysian investor's perspective, this meeting matters because it produced three signals:

1. Tensions will ease temporarily - good for global stock market sentiment
2. US-China tariffs will not be removed - supply chains will continue shifting to ASEAN, especially Malaysia
3. China remains dominant in energy and supply chains - demand for Malaysian commodities like palm oil, rubber, and electronics remains stable

China's Pragmatic Policy: The View From "Professor" Jiang Xueqin

Jiang Xueqin, a Beijing-based educator and Yale University graduate who has become a viral geopolitical commentator online, has made several widely cited predictions. While the "Professor" title is informal (he is a school advisor, not a university professor), his views attract attention because several of his predictions came true - including Trump's 2024 election win and the US escalation against Iran.

According to an analysis in the South China Morning Post, Jiang's core view on China's foreign policy can be summarised this way: China is practising pure pragmatic policy - willing to negotiate and collaborate with anyone, regardless of ideology, as long as it serves Beijing's strategic interests.

The implications of this view are quite profound:

• China no longer picks "ideological friends" - it will work with the US on one table, and with Russia on another
• Countries like Malaysia become highly valuable - as neutral nations that can trade with all sides
• "New Plaza Accord" - Jiang says Trump is trying to push China back into the US dollar system through a grand bargain, but Beijing will offer only controlled concessions while continuing to build alternatives

For Bursa investors, this means sectors that connect the US and China in Malaysia will be the winners. Examples: ports, logistics, semiconductors, and commodity processing.

Sultan Ibrahim in Moscow: History in the Making

On 9 May 2026, Sultan Ibrahim made history as the first Malaysian head of state to attend Russia's Victory Day Parade at Red Square. According to The Rakyat Post, the personal invitation from Putin was considered "the highest recognition Russia has ever extended to Malaysia."

Interestingly, only two international heads of state attended this year's parade - Laos President Thongloun Sisoulith and Sultan Ibrahim. Russia's guest list this year was the shortest in modern Moscow history.

In bilateral talks at the Kremlin, Putin stated that Russia would help Malaysia "get acclimated to BRICS work" - referring to Malaysia's growing integration with the BRICS economic bloc. Sultan Ibrahim in turn invited Putin to visit Malaysia in 2027 to mark the 60th anniversary of Malaysia-Russia diplomatic relations.

Important note: Putin has not yet visited Malaysia - the invitation is for a state visit in 2027. The one who went to Moscow was Sultan Ibrahim, and he met Putin as a guest in Russia.

This visit, although protocol-wise is a government-to-government relationship, sends a strong signal to global markets: Malaysia is seriously diversifying its diplomatic relationships.

Malaysia and BRICS: Where Do We Stand?

For investors still confused about Malaysia's status in BRICS, let us clarify:

Malaysia officially became a BRICS Partner Country starting 1 January 2025, following approval at the 16th BRICS Summit in Kazan in October 2024. This status is not full membership - it is a transition stage that gives Malaysia access to BRICS cooperation in trade, investment, and special projects, but without voting rights in decision-making.

According to Bernama, Malaysia joined 12 other countries as BRICS partner countries in the official announcement in early 2025. They include Indonesia, Thailand, Vietnam, and several African and Latin American countries.

The reality for 2026 and beyond:

• India holds the BRICS presidency in 2026 - India reportedly has reservations about Malaysia's full membership (ASEAN-India competition, especially in IT and pharmaceuticals)
• Indonesia "leapfrogged" Malaysia - becoming the first Southeast Asian country to gain full BRICS membership
• Anwar Ibrahim is applying diplomatic pressure - his visit to Moscow in May 2025 and growing relations with Putin are part of this strategy

What does this mean for investors? Malaysia does not yet have full access to BRICS financial systems like the New Development Bank (NDB), but Malaysia already has an "observer seat" at the table of the world's new power. Trade and investment flows from China and Russia to Malaysia will continue to grow, even without full membership.

Implications for Bursa Malaysia Investors

Now the most important part - what you should do as an investor. Let us break it down into winning sectors and at-risk sectors.

Sectors With Potential to Win

1. Ports and Logistics When China and Russia want to trade with ASEAN partners without relying too heavily on US-controlled traditional routes, Malaysian ports (especially Westports and Bintulu Port) become critical nodes. BRICS-ASEAN trade flows will increase.

2. Energy and Commodities With closer cooperation with Russia, Malaysia could secure more competitive crude oil supplies. Companies like Petronas Chemicals, Hibiscus Petroleum, and palm oil processing companies (IOI Corp, KL Kepong) can benefit.

3. Data Centres and Technology The geopolitical crisis in the Arabian Gulf is making global tech investors seek stable alternative locations. According to Utusan Malaysia, Malaysia is expected to receive an additional RM2.74 billion in data centre investment beyond the original forecast. Companies like YTL Power, TIME dotCom, and Bridge Data Centre are key players.

4. Banking and Islamic Finance As Malaysia prepares to integrate with BRICS payment systems (BRICS Pay), local banks with global capability - Maybank, CIMB, RHB - could become key bridges. Islamic finance is also gaining momentum as an alternative to the Western conventional system.

Sectors at Risk

1. Sectors Highly Dependent on US Exports Electronics, medical rubber, and certain manufacturing subsectors that rely heavily on the US market need to be cautious. Although the US Supreme Court has struck down Trump's tariffs imposed under IEEPA, the risk of new tariffs under other legal provisions remains.

2. Companies With Russia Exposure and Secondary Sanctions Risk Any Malaysian company dealing with Russian entities needs to be careful about secondary sanctions risk from the US and EU. This is especially relevant for banks and financial firms.

Bursa Malaysia and Foreign Capital Flows

One of the most important indicators for investors is foreign fund flow. For those who do not yet know how to read this data, we have a detailed guide on how to read foreign fund flow to predict Bursa direction.

Based on the May 2026 trend:

• Foreign funds from China and Russia are expected to grow gradually - but inflows are typically long-term (infrastructure, data centres, manufacturing)
• Foreign funds from the US and Europe may be more mixed - positive sentiment after the Trump-Xi meeting, but still wary about Malaysia's tilt toward BRICS

The reality is, although local institutions continue buying while foreign funds are still selling in recent months, this geopolitical landscape shift could change the tide. Smart investors will monitor fund flow data weekly.

For the ringgit, BRICS cooperation could provide medium-term support through:

• Increased trade in local currencies (not US dollars)
• Increased reserves with BRICS currencies as diversification
• Stable commodity prices (which support Malaysian exports)

But in the short term, the ringgit will still be influenced by Fed interest rates and global risk sentiment. We have previously explained the relationship between a falling ringgit and Bursa investors in more depth.

Risks Investors Should Watch

This new geopolitical game does not come without risks. Here are five key things to monitor:

1. US Retaliation Against BRICS Nations Trump has threatened to impose tariffs up to 100% on any bloc trying to create a rival currency to the US dollar. While this threat is more rhetorical than action-oriented, it remains a real risk.

2. Global Commodity Volatility The Trump-Xi meeting discussed Strait of Hormuz, Iran, and energy issues. Any "side deals" that fail could send oil prices soaring. This will hurt production costs in manufacturing and transportation sectors.

3. Secondary Sanctions Risk If Malaysia gets too close to Russia without careful steps, local companies could get caught on US or EU sanctions lists. This is not theory - there have already been cases of Asian companies being hit.

4. Indonesia-Malaysia Competition As Indonesia becomes a full BRICS member, it risks attracting much of the investment that should have gone to Malaysia. Investors need to watch this competition especially in manufacturing.

5. Anwar Ibrahim's Policy Changes The "fiercely independent" foreign policy (in PM Anwar's words) depends heavily on domestic politics. Any leadership change could shift this direction.

Investor Strategies in a Multipolar World

Based on this new landscape, here are five practical strategies for Bursa Malaysia investors:

1. Sector Diversification Do not focus too heavily on one theme. Hold a mix of "BRICS-friendly" sectors (ports, commodities, data centres) and "US-friendly" sectors (semiconductors, exports). This protects you from thematic risk.

2. Hold Safe Haven Assets as Protection In an uncertain world, gold investment becomes effective protection. Gold is an asset not tied to any fiat currency.

3. Monitor Weekly Foreign Fund Flows Bursa Malaysia publishes foreign fund flow data weekly. This trend is an early indicator before stock prices move.

4. Understand Companies' Geographic Exposure Before buying any stock, check the annual report to see where the company sells products/services. Exposure to the US, China, or ASEAN will determine vulnerability to policy changes.

5. Stay Calm With Media Narratives Media often plays on emotions - "US vs China", "Malaysia switching sides". The reality of global trade is more complex. Trump has been called TACO (Trump Always Chickens Out) for often backing down from threats he himself made. Make decisions based on data, not emotion.

FAQ - Frequently Asked Questions

1. Is Malaysia already a full BRICS member? Not yet. Malaysia is a "BRICS Partner Country" since 1 January 2025. This status provides cooperation access but without voting rights. To become a full member, Malaysia needs support from all existing members including India - which still has reservations.

2. Did Putin visit Malaysia in 2026? No. What happened is that Sultan Ibrahim visited Moscow in May 2026 as Putin's guest. Sultan Ibrahim then invited Putin for a state visit to Malaysia in 2027 to mark the 60th anniversary of Malaysia-Russia diplomatic relations.

3. What is the direct impact of the Trump-Xi meeting on Bursa Malaysia? Global market sentiment usually rises after high-level meetings like this. For Bursa Malaysia, direct impact typically comes through (i) foreign investor sentiment, (ii) commodity prices (oil, rubber, palm oil), and (iii) export demand expectations from China.

4. Which sectors benefit most from BRICS-Malaysia cooperation? Ports and logistics, energy and commodities, data centres, and banks with global capability are the most promising. Manufacturing sectors serving the ASEAN-China supply chain will also benefit.

5. What is the risk if Malaysia gets too close to BRICS? The main risk is US retaliation in the form of new tariffs or secondary sanctions. Trump has threatened to impose 100% tariffs on countries supporting a rival currency to the dollar. Malaysia needs to carefully balance both powers.

6. What does Jiang Xueqin mean by China's "pragmatic policy"? It means China is willing to negotiate and collaborate with anyone - including competitors like the US - as long as it strengthens Beijing's strategic interests. China no longer picks friends based on ideology.

7. How can I start investing to benefit from this BRICS-ASEAN trend? The first step is opening a CDS account to begin buying Bursa Malaysia stocks or foreign stocks. After that, focus on sectors that will benefit from new trade flows - logistics, energy, data centres, and banking.

Conclusion

This new geopolitical game is not about "picking sides" - it is about recognising opportunities that emerge when the world becomes multipolar. The Trump-Xi meeting in Beijing opens doors for US-China cooperation on strategic issues, while Sultan Ibrahim's historic visit to Moscow shows Malaysia is building equal relationships with all major powers.

For Bursa Malaysia investors, this era offers big opportunities in ports, data centres, commodities, and Islamic finance - but also brings risks if we fail to read the currents correctly. The key is not to get swept up in emotion or media narratives; make decisions based on data and smart diversification.

To start taking practical action based on the analysis above, the first step is to have the right investment platform.

Open a CDS Mplus Account today to begin investing in Bursa Malaysia stocks, alongside access to foreign markets like the United States and Hong Kong which will also be affected by this new geopolitical game.

Not familiar with the basics of stock investing yet? Download the free Stock Market Basics Ebook to understand important concepts before investing in this increasingly complex world.

Further Reading

• Strategi China Kuasai Perdagangan Global Selepas Tarif Trump
• Mahkamah Agung AS Batalkan Tarif Trump - Apa Implikasinya kepada Malaysia dan Pelabur Kita?
• Foreign Fund Flow: Cara Baca Data Aliran Dana Asing Untuk Predict Arah Bursa
• Selat Hormuz: Laluan Sempit 33KM Yang Boleh Runtuhkan Ekonomi Asia
• Ringgit Jatuh - Apa Maksudnya untuk Pelabur Bursa Malaysia?