KUALA LUMPUR: Prime Minister Datuk Seri Anwar Ibrahim’s four-day visit to China serves as a catalyst for Malaysia’s growth prospects, with economists pointing to stronger trade, deeper investment flows and new openings in high-growth sectors.
The trip, which ended yesterday (Sept 3) and was made at the invitation of Chinese President Xi Jinping for the Shanghai Cooperation Organisation summit, also underscored Malaysia’s confidence in its half-century-long partnership with Beijing.
China has been Malaysia’s largest trading partner for 16 consecutive years. In 2024, bilateral trade reached RM484.12 billion, representing 16.8 per cent of Malaysia’s total global trade.
DIFERSIFYING EXPORTS AND INVESTMENTS
Universiti Teknologi Mara Faculty of Business Management senior lecturer Dr Mohamad Idham Md Razak said the visit could help Malaysia tap into China‘s vast consumer base and regional reach to diversify exports.
“Agreements forged during the visit can open doors for Malaysian products not only in China but also in neighbouring markets aligned with Beijing.
“This reduces reliance on traditional buyers and gives exporters more stability and growth opportunities,” he told Business Times.
Idham noted that the trip could unlock prospects for joint ventures in manufacturing, technology, infrastructure and green energy, while boosting investor confidence in Malaysia’s role as a strategic regional partner.
He said Malaysian sectors likely to benefit most include palm oil and agriculture, electronics and semiconductor manufacturing, tourism, education and renewable energy.
SECTORAL OPPORTUNITIES
“China’s demand for high-quality agricultural products provides a strong growth avenue, while collaboration in advanced technology sectors can position Malaysia higher up the global value chain.
“Tourism and education exchanges will also benefit from people-to-people connectivity, while renewable energy projects align with China’s green transition agenda, offering new investment and growth opportunities,” he said.
Bank Muamalat chief economist Dr Mohd Afzanizam Abdul Rashid said the move also helps hedge against external risks.
He said developments in the US were beyond Malaysia’s control due to its unpredictable trade policies, making the broadening of partnerships the right step forward.
“But Malaysia must also strengthen its own fundamentals, from research and development to education, healthcare and governance, to be an effective global partner,” he said.
BALANCING EAST AND WEST
Economist Dr Geoffrey Williams highlighted Xi’s backing of Malaysia’s BRICS membership bid as one of the trip’s key takeaways.
He said BRICS represents a trade bloc of 3.2 billion people with a combined gross domestic product of US$26 trillion, and membership could bring investment inflows from member countries while opening new markets for Malaysian firms.
Williams also noted that as a small, open economy, Malaysia needs a broad mix of trade and investment partners, with BRICS offering a valuable alternative to conventional blocs.
“The additional trade and investment will increase demand for the ringgit and help support it in the medium to long term. Geopolitical issues will always be important too.
“Some countries might not like alignment with Russia, but Malaysia is non-aligned and independent, which means it can choose for itself who and who not to do business with. The economic balance of power is shifting and so Malaysia must respond positively,” he said.
He added that while pushback from the US in the form of tariffs is possible, Malaysia has not secured favourable terms with Washington, making diversification a more viable long-term strategy.
STRENGTHENING NEUTRAL PARTNERSHIPS
Meanwhile, Idham said Malaysia can deepen ties with China while maintaining strong relations with Western economies by taking a neutral and pragmatic stance.
“By ensuring transparency, aligning with international standards and pursuing win-win collaborations, Malaysia shows that its partnerships with China are complementary, not exclusive. This reinforces Malaysia’s role as a bridge between East and West,” he said.
Looking ahead, he added, the visit could strengthen Malaysia’s economic resilience and competitiveness through partnerships in the digital economy, renewable energy and supply chain connectivity.
“Access to Chinese expertise, capital and technology will accelerate Malaysia’s industrial upgrading and innovation capacity, while stronger ties enhance Malaysia’s bargaining power in global forums,” Idham said.
© New Straits Times Press (M) Bhd
