26-05-2025
Evolving ties: Malaysia and China shift from trade to innovation partnership
KUALA LUMPUR: Malaysia and China's partnership is evolving from traditional trade to a deeper collaboration based on innovation, talent, and shared development goals, says Science, Technology and Innovation Minister Chang Lih Kang.
He stated that China has been Malaysia's largest trading partner for 16 consecutive years; however, the relationship was evolving from transactional exchanges to transformational cooperation.
'We're not just exchanging goods anymore—we're sharing ideas, talent, and innovation,' he said during a speech at the Asean-China Economic Forum & The Third China International Supply Chain Expo Roadshow on Monday (May 26).
Chang highlighted Malaysia's strategic position at the heart of Asean, supported by its multilingual workforce and pro-business environment, as a natural partner for global enterprises.
"With China's technological scale and Malaysia's regional connectivity, both nations can jointly build smart and sustainable supply chains, "he said.
Outlining Malaysia's innovation agenda, Chang said the government was investing in areas such as the hydrogen economy, AI, robotics and semiconductors through initiatives like the Hydrogen Economy and Technology Roadmap and the upcoming National Semiconductor Strategy.
'These efforts are in line with the Malaysia Madani government's vision to create a future-ready, inclusive and resilient economy.
'In today's uncertain world, no country can stand alone. We must work together to create resilient, diverse, and responsive ecosystems that meet global challenges,' he added.
Malaysia-China Business Council (MCBC) chairman Tan Sri Low Kian Chuan said the recent upgrade of the Asean-China Free Trade Agreement (ACFTA 3.0), which includes new chapters on the digital and green economies, supply chain connectivity, and SME cooperation, has further strengthened regional ties.
Low said that Asean and China remain each other's top trading partners, with China holding the position for Asean since 2009 and Asean becoming China's largest partner since 2020.
'Countries like Malaysia, Indonesia, Thailand and Vietnam are emerging as competitive production hubs, navigating geopolitical shifts while deepening economic ties with China,' he added.
The Malaysia-China Business Council (MCBC) and the China Council for the Promotion of International Trade (CCPIT) jointly hosted the Asean-China Economic Forum & The Third International Supply Chain Expo Roadshow, aimed to strengthen Asean-China economic ties, promote resilient and sustainable supply chains, and showcase collaboration opportunities in key sectors such as advanced manufacturing, green agriculture, the digital economy, smart infrastructure, and healthcare.
The Forum and Roadshow supported the upcoming Third China International Supply Chain Expo, to be held from July 16 to 20 in China.
Low stated that the event provides opportunities for large firms and enables SMEs to integrate into China's extensive supply chain network.
'This platform promotes greater inclusivity, resilience and sustainable growth,' he said.
As Asean Chair this year, Malaysia is well-positioned to drive regional supply chain integration in semiconductors, renewable energy, EVs, and digital technology sectors.
'Our strategic location and capabilities make Malaysia an ideal hub. With the National Energy Transition Roadmap offering RM637bil in opportunities by 2050, and China's strengths in solar and hydropower, we see strong potential for collaboration,' Low said.
He invited Chinese and Asean businesses to partner with Malaysia in building 'long-term, win-win cooperation,' saying innovation and smart manufacturing would be key to future growth.
