Malaysia aims to enhance economic ties with US, China amid global power rivalries
17 Feb 2025
Malaysia is positioning itself as a key player in enhancing economic and strategic partnerships with both China and the United States amid the ongoing global power rivalries, according to Minister of Investment, Trade, and Industry (MITI), Tengku Datuk Seri Zafrul Tengku Abdul Aziz.
In his address at the China Conference Southeast Asia 2025, he said that Malaysia and Asean’s relationship with China must remain grounded in mutual respect and trust, with an emphasis on high-value industries, innovation, and sustainable development.
“China remains Asean’s largest trading partner, with trade volume close to 1 trillion USD in 2023. Furthermore, China is Asean’s third-largest source of foreign direct investment (FDI),” he said.
“Conferences like this are critical to fostering deeper understanding between Asean and China to capitalise on this momentum.”
At the same time, Tengku Zafrul underscored Malaysia’s commitment to strengthening ties with the United States, where he highlighted that the US remains Malaysia’s largest export destination and one of the leading sources of foreign investments in the past nine months.
“Malaysia views the US as a key trading partner. Despite global geopolitical shifts and challenges, we continue to engage with relevant US institutions and stakeholders through existing platforms. Trade and investments with the US remain a priority,” he stated.
Tengku Zafrul also addressed concerns about the US-China trade tensions and their potential implications for Malaysia and the region.
He noted that Asean has been a net recipient of FDI from both countries as companies realign their supply chains due to geopolitical factors.
Malaysia, he added, remains steadfast in its multilateral approach and its advocacy for Asean centrality and neutrality.
“While global FDI has seen a decline, Asia has continued to attract significant inflows from both the US and China,” he said.
“This highlights the region’s strategic importance in a multipolar world. Malaysia is committed to maintaining laws and policies that support investments from all countries,” Tengku Zafrul continued.
Addressing concerns about US tariffs and export restrictions, particularly on technology, Tengku Zafrul expressed confidence that Malaysia and other Asean countries could navigate these challenges by engaging with all stakeholders.
“The key moving forward is to address concerns through dialogue and proactive engagement,” he said.
He also revealed that the MITI is planning a trade and investment mission to the United States in the second quarter of the year, subject to cabinet approval.
“As part of the ministry’s role, we visit key trade partners like the US, China, and Europe annually to strengthen economic ties,” he stated.
“This year, the mission will cover both the East and West coasts of the US, aligning with our efforts to engage with global investors and promote Malaysia as an investment destination,” he continued.
As the global economic order evolves, Tengku Zafrul affirmed Malaysia’s belief in multilateralism and the importance of fostering balanced relationships with major powers.
He called on Asean to embrace emerging opportunities in the face of shifting economic dynamics, particularly in trade, investment, and technology.
“Asean must step up to leverage these opportunities, especially through its partnership with China, while maintaining strategic ties with the US. This balanced approach will ensure that the region remains resilient and competitive,” Tengku Zafrul concluded.
With the global economic landscape in flux, Malaysia’s pragmatic and inclusive approach signals its readiness to navigate the complexities of international trade and investment while ensuring sustainable growth and regional stability.
Source: NST
