During a recent visit by Premier Li Qiang to Malaysia to commemorate 50 years of diplomatic relations, the two countries signed several trade and economic agreements. The leaders of both nations met in Putrajaya to discuss various pacts, including a new five-year deal focusing on economic and trade cooperation in priority sectors such as high-level manufacturing and the digital economy.
One significant agreement was the protocol allowing Malaysia to export fresh durians to China. This move will open up a new market for Malaysia, which has seen a surge in frozen durian exports to China in recent years.
While trade was a key focus, discussions also touched on the territorial disputes in the South China Sea. Both countries agreed that claimant nations in Southeast Asia should address the maritime issue through dialogue and cooperation.
Additional agreements were signed to promote investment in the digital economy, combat transnational crime, and enhance cooperation in various sectors including housing, urban development, higher education, and tourism.
Trade between Malaysia and China has been robust, with China being Malaysia's top trading partner since 2009. Last year, trade between the two countries amounted to $98.8 billion, making up 17% of Malaysia's global trade.
Malaysia's Prime Minister Anwar Ibrahim has been proactive in strengthening ties with China while maintaining relations with the U.S. Anwar emphasized the importance of engaging with Beijing and announced Malaysia's intention to join the BRICS bloc of developing economies.
During Li's visit, groundbreaking took place for the East Coast Rail Link terminal station, a significant infrastructure project under China's Belt and Road initiative. The rail link aims to enhance connectivity between Malaysia's west and east coasts, with potential extensions to Thailand and southern China.
The project, initially suspended in 2018, was revived after cost negotiations with the Chinese contractor. It is now scheduled for completion by the end of 2026.
The visit concluded with a dinner celebrating the 50th anniversary of diplomatic relations and engagements with the business community to further strengthen economic cooperation between Malaysia and China.
