10-05-2025
- Business
- South China Morning Post
Will Malaysia gravitate further towards China in ‘new golden era' of ties?
Chinese President
Xi Jinping 's three-day visit to
Malaysia in mid-April has been described in glowing terms by both countries' leaders. Xi enthused that bilateral ties were entering a 'new golden era', while Prime Minister
Anwar Ibrahim affirmed that 'Malaysia will remain an unwavering and principled friend to China'.
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The effusive statements from the two leaders undoubtedly signal closer diplomatic and economic cooperation in the future. This is evidenced by the exchange of 31 memorandums of understanding, agreements and notes between Malaysia and China during Xi's trip. These follow the 14 MOUs signed in June last year when Chinese Premier
Li Qiang arrived in Malaysia to celebrate
the 50th anniversary of the establishment of diplomatic relations. Although the MOUs and agreements are only meaningful if they are implemented, they collectively indicate the direction of cooperation between the two countries.
One important MOU involves the extension of mutual visa exemption. The current reciprocal
visa-free arrangement , which was scheduled to end in December this year, will be extended by the MOU for another five years. This will boost business relations and tourism between the two countries in the medium to long term.
Chinese President Xi Jinping holds talks with Malaysian Prime Minister Anwar Ibrahim in Putrajaya, Malaysia, on April 16. Photo: Xinhua
Many of the MOUs are expected to enhance connectivity between Malaysia and China. One of them was signed to strengthen railway cooperation, a natural follow-up to
the East Coast Rail Link project due for completion and operation in 2027. It has also sparked chatter about the possibility of reviving the Kuala Lumpur–Singapore high-speed rail project with the involvement of Chinese state-owned enterprises.
The joint statement also expressed support for the ambitious
Pan-Asian Railway vision, a project that would strengthen China's rail connectivity with countries in the region.
Aside from railways, air logistics between China and Malaysia will also be consolidated through the development of a twin hub involving the Kuala Lumpur International Airport and Zhengzhou Xinzheng International Airport in Henan province, which serves central China. The Chinese airport is a major cargo hub with an adjacent economic zone that hosts the world's largest iPhone factory in Foxconn Zhengzhou Technology Park. The twin-hub air logistics project has the potential to strengthen supply chain linkages for the electrical and electronic industries in both countries.
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Malaysia has long been keen to upgrade its technological capabilities and expand its digital economy. One of the new MOUs will lead to the establishment of joint laboratories in emerging technologies, which include artificial intelligence (AI), blockchain, biotechnology, advanced material science and renewable energy.
In the area of AI, both countries have committed to undertaking technical exchange programmes and collaborations to strengthen AI infrastructure in Malaysia. Another MOU will pave the way for the establishment of an AI and new materials joint laboratory (chip design and fabrication) by the University of Malaya and Peking University.