中文
The China-Malaysia Qinzhou Industrial Park in Qinzhou, south China's Guangxi Zhuang Autonomous Region, June 13, 2024. [Photo/Xinhua]
By Loh Wee Keng
At the invitation of King of Malaysia Sultan Ibrahim and King Norodom Sihamoni of Cambodia, Chinese President Xi Jinping will start his state visits to Malaysia and Cambodia from April 15 to 18. With Malaysia assuming the rotating chairmanship of the Association of Southeast Asian Nations (ASEAN) for 2025, Xi's visit to Malaysia will be significant to China-Malaysia relations and China-ASEAN ties.
China and ASEAN have been each other's largest trading partners for years. Last year, the bilateral trade between Malaysia and China reached a record high of more than $212 billion, representing an important boost from less than $200 million when the two countries established diplomatic relations in 1974. In order to promote common development, China has invested in the manufacturing sector in Malaysia with a total of 17.9 billion Chinese yuan ($2.44 billion). More investment proposals in the pipeline are pending for approval.
As the U.S. administration unleashed a new tariff policy, triggering trade conflict against the world and creating uncertainty for the global economy, Xi's visit to Malaysia is not only timely but will also bring more economic opportunity and stability to the region.
It is widely recognized that the 15 countries in the Regional Comprehensive Economic Partnership (RCEP) have a combined population of approximately 2.3 billion, accounting for about 30 percent of the global population. In comparison, Belt and Road Initiative (BRI) partner countries represent about 60 percent of the world's population. Both RCEP and BRI economies are fast-growing emerging markets, characterized by a predominantly young demographic. The scale of these markets provides a strong foundation for sustaining industrial supply chains and consumer demand.
Therefore, if these two major cooperation frameworks can maintain a stable economic environment, they will contribute significantly to regional stability and to the overall well-being of the participating countries.
However, investor confidence is wavering, and consumer spending is shrinking due to uncertainty over the global economic outlook, which are factors that risk exacerbating the economic downturn. In such a challenging time, a major economy like China plays a crucial role in fostering regional stability and driving recovery.
China currently leads the world in electric vehicle manufacturing technologies and maintains a competitive edge in artificial intelligence (AI), both of which are in high demand across Malaysia and other ASEAN countries. Malaysia, for its part, boasts a well-established supply chain and a robust ecosystem for conventional automotive and electronics industries, laying a strong foundation for the development of the AI industry.
A staff member conducts tests on a Walker X humanoid robot at a sci-tech company in Shenzhen, south China's Guangdong Province, June 26, 2024. [Photo/Xinhua]
These synergies present a timely opportunity for Malaysian businesses to explore strategic cooperation in these high-growth fields. It would be highly beneficial for Malaysia to actively attract Chinese companies to collaborate with local entrepreneurs in co-developing innovative products, sharing intellectual property and expanding into global markets.
Digital currency and cross-border payment systems have enormous growth potential in the financial sector. With trade between China and ASEAN reaching almost $963 billion in 2024, the demand for a fast, reliable, and cost-efficient cross-border transaction system has become increasingly urgent. Against the backdrop of the high-level diplomatic exchanges with China, regional financial cooperation is anticipated to feature prominently on the agenda. Industry stakeholders should proactively position themselves to seize opportunities arising from these dialogues.
Malaysia was among the earliest supporters of the BRI, and it is expected that key BRI projects such as the East Coast Rail Link, the huge deep-sea port in Melaka, among others will feature prominently in the upcoming high-level discussions. These large-scale infrastructure initiatives are poised to deliver long-term benefits for Malaysia's economic transformation.
In addition, Malaysia holds vast reserves of rare earth, which are in high demand for China's emerging high-tech industries. While Malaysia restricts rare earth exports, the high-level bilateral dialogue provides an ideal platform for exploring mutually beneficial cooperation in this strategically important sector.
It's hoped that China will increase its imports from Malaysia in terms of traditional exports like palm oil and its derivatives, rubber products and agricultural products. Meanwhile, the services sector, where China is placing strong emphasis, offers tremendous opportunities for collaboration. Fields such as healthcare, design and architecture could greatly benefit from Malaysia's unique cultural blend of Eastern and Western influences, complementing China's innovative spirit and entrepreneurial drive.
In conclusion, Xi's visit to Malaysia promises to boost regional investment and pave the way for a new era of global economic cooperation and regional stability. It is sincerely hoped that a balanced and inclusive international economic order will soon emerge.
Loh Wee Keng, a special commentator for CGTN, is chairman of the Malaysian Chamber of Commerce and Industry in China.
