The global satellite and telecommunications industry is entering a transformative period, shaped by geopolitical shifts and policy changes. The BRICS alliance is pushing for a multipolar technology ecosystem, while the potential resurgence of Trump-era policies signals a return to U.S.-centric protectionism. These developments are not only reshaping the global landscape but also hold significant implications for Malaysia’s growing satellite and telecommunications sectors.
BRICS: Redefining the Global Technology Order
The BRICS nations—Brazil, Russia, India, China, and South Africa—are accelerating their efforts to assert sovereignty over their technological ecosystems. Satellite systems, telecommunications infrastructure, and local manufacturing capabilities are central to their strategy to reduce reliance on Western technology.
The Satellite Race
China’s BeiDou navigation system and Russia’s GLONASS rival the U.S.-backed GPS, offering alternatives in global navigation services.
India’s ISRO is enhancing satellite communication capabilities, while Brazil and South Africa focus on regional satellite projects.
By leveraging these systems, BRICS nations aim to deliver affordable satellite services to underserved regions, challenging Western players like SpaceX’s Starlink. This could reshape the competitive dynamics in markets such as Africa, Asia, and Latin America.
Data Sovereignty and Local Manufacturing
BRICS nations are emphasizing local production of satellite and telecommunications equipment. This could limit market entry for international players while fostering homegrown industries. Additionally, their strong stance on data sovereignty introduces regulatory hurdles for global operators, requiring compliance with local data-hosting laws and practices.
Trump-Era Policies: Protectionism and Space Dominance
A potential return to Trump-era policies would bring renewed emphasis on an “America First” agenda, creating competitive barriers and heightened scrutiny for foreign telecommunications and satellite players.
Boosting Domestic Players
The Trump administration championed U.S. companies such as SpaceX, Boeing, and Lockheed Martin, providing significant funding and regulatory support. This trend could continue, widening the competitive gap between American firms and their global counterparts.
Sanctions and Trade Wars
Sanctions against Chinese tech giants like Huawei and ZTE disrupted global telecommunications markets under Trump’s leadership. A revival of these policies could exacerbate supply chain disruptions for satellite and telecom companies reliant on semiconductors and rare earth materials.
Space as a Strategic Domain
Trump’s prioritization of space technology, exemplified by the establishment of the U.S. Space Force, underscores the strategic importance of satellite communications. While this strengthens U.S. dominance, it also intensifies global competition, especially with BRICS nations expanding their own satellite systems.
Malaysia: Navigating a Shifting Landscape
Malaysia, positioned strategically in Southeast Asia, faces unique challenges and opportunities amid these geopolitical shifts. As a growing player in the telecommunications and satellite sector, Malaysia must adapt to a fragmented global market and evolving policy frameworks.
Telecommunications Impact
Malaysia’s telecommunications companies, particularly in the 5G space, could face supply chain disruptions due to the rivalry between U.S.-led and BRICS-aligned nations. Companies like Huawei, a significant provider of 5G infrastructure in Malaysia, may experience additional restrictions, potentially delaying Malaysia’s 5G rollout.
Furthermore, BRICS-backed affordable satellite internet projects could challenge local providers. To remain competitive, Malaysian companies may need to invest in partnerships with Western or BRICS-aligned players to offer competitive services.
Satellite Sector
Malaysia’s satellite industry, led by initiatives such as MEASAT, could benefit from the growing demand for regional satellite services. However, the market polarization between BRICS and Western nations could force Malaysian players to align with one bloc, limiting opportunities for cross-border operations.
Data Sovereignty and Compliance
As BRICS and Western nations enforce stricter regulations around data sovereignty and cybersecurity, Malaysian operators may face higher compliance costs. Balancing relationships with both blocs while adhering to domestic policies will be critical.
Risks and Opportunities in a Fragmented World Market Polarization
The global rivalry between BRICS and U.S.-aligned nations is likely to create two competing technological ecosystems, with limited interoperability. Malaysian players will need to navigate this divide carefully, deciding whether to align more closely with one bloc or maintain neutrality.
Innovation and Growth
Despite challenges, the competition between BRICS and U.S.-backed systems could drive innovation in satellite internet, 5G networks, and space-based communications. Malaysia, with its strategic location and growing technological expertise, is well-positioned to capitalize on these advancements.
Regional Cooperation
ASEAN, including Malaysia, could emerge as a neutral ground where both BRICS and Western players compete. By fostering regional cooperation, Malaysia could strengthen its telecommunications infrastructure and expand its influence in the global market.
Conclusion: Preparing for the Future
The interplay between BRICS-led initiatives and potential Trump-era policies underscores the complex relationship between geopolitics and technology. For Malaysia, the challenge lies in navigating a rapidly evolving landscape where national interests, global competition, and technological advancements intersect.
To succeed, Malaysia must focus on building resilient supply chains, fostering regional partnerships, and investing in homegrown innovation. By leveraging its strategic position and embracing technological opportunities, Malaysia’s telecommunications and satellite sectors can thrive in this fragmented but dynamic global environment.
This article first appeared in the Technology Column of MEDIA VARIASI, providing insights into how global trends are shaping Malaysia’s technology sector.
