By Voon Miaw Ping
KUALA LUMPUR, Jan 14 – 2024 marks an important milestone for Malaysia and China as both nations commemorate the Golden Anniversary of their diplomatic ties.
Formal diplomatic relations between Malaysia and China were established on May 31, 1974, marking Malaysia as the first ASEAN nation to extend a hand of friendship to Beijing.
The decision of Malaysia’s second Prime Minister, Tun Abdul Razak, to make the historic journey to Beijing during that period was hailed as bold and visionary, laying the foundation for mutual understanding between the two countries.
According to Assoc. Prof Khoo Ying Hooi, Head of the Department for International and Strategic Studies at Universiti Malaya, the Malaysia-China relationship has undergone significant evolution over the years. This transformation has been influenced by various factors, including trade and economy, investment, infrastructure development, diplomatic relations, geopolitical dynamics, as well as cultural and educational exchanges.
“Malaysia had generally maintained friendly bilateral relations with China. It can be described as a blend of cooperation and careful navigation of geopolitical complexities, driven by economic interests while mindful of regional dynamics and sovereignty concerns,” she said.
President of Centre For New Inclusive Asia Prof Koh King Kee said the turning point for the fledging bilateral relationship then was the lifting of travel restrictions by Malaysia in 1985 during Prime Minister Tun Dr Mahathir Mohamad’s tenure.
“It had greatly facilitated engagements and interactions between the people of the two countries, thus promoting people-to-people bond and solidifying the foundation for strong bilateral ties both culturally and economically,” Koh said.
He emphasised that under the current leadership of Prime Minister Datuk Seri Anwar Ibrahim, Putrajaya is giving increased significance to fostering robust relations with Beijing. Anwar himself has visited China twice within a year since assuming office in November 2022.
“The Prime Minister’s recent statement that Malaysia’s 40-year-old Look East Policy should include China, no doubt indicates his commitment to elevate Malaysia-China relations to new heights,” he said.
Malaysia-China trade has grown from US$388 million in 1985 to US$203.6 billion in 2022, an increase of more than 500 per cent in 37 years, according to Koh.
“Malaysia’s early support of China’s Belt and Road Initiative serves as a big boost for investments from China,” he added.
While Malaysia and China uphold a stable and amicable diplomatic relationship, they encounter challenges in their interactions, particularly concerning the contentious territorial disputes in the South China Sea.
According to Koh, the enduring relationship has empowered both nations to navigate and address their differences in a mature manner. However, he highlighted that issues such as territorial claims in the South China Sea, which have evolved into a “battlefield” for US-China strategic competition, could potentially disrupt their bilateral relations if not handled with care.
“Though there is no easy solution to the problem, Malaysia and China should continue to have dialogues and consultations to seek a win-win outcome on the issue.
In the realm of international affairs, Malaysia and China have generally maintained a positive and cooperative relationship. They frequently collaborate on matters related to regional stability, climate change, and global governance, demonstrating a commitment to mutual respect and finding common ground to address various global challenges.
“Over the last 50 years, Malaysia and China diplomatic ties may have faced challenges and differences.
“However, the ability of both nations to navigate and resolve such issues demonstrates the resilience and maturity of the bilateral relationship,” he said.
As Malaysia and China celebrate their 50th anniversary of diplomatic relations, there is a positive outlook that this enduring partnership will persist in strengthening and evolving. The optimism extends to the anticipation of mutual benefits for both nations in the coming years, contributing to regional stability and cooperation.
While emphasis is placed on fortifying ties at the government-to-government level and enhancing trade and investments, there is recognition of the importance of deepening people-to-people interactions, particularly among younger generations. Such efforts can play a crucial role in fostering greater understanding and friendship between Malaysia and China.
It is noteworthy that China has consistently been Malaysia’s largest trading partner for the past 14 years, underlining the economic significance of the relationship between the two countries.
Malaysia-China bilateral trade hit a record high of US$203.6 billion (US$1= RM4.657) in 2022, while Chinese investments in Malaysia amounted to US$12.5 billion (RM60 billion), accounting for 33.9 per cent of Malaysia’s total Foreign Direct Investment (FDI) in the same year.
For the first nine months of 2023, trade with China was recorded at RM410.01 billion, with exports at RM174.55 billion, mainly comprising shipments of electronics and electrical (E&E) products, palm oil and palm oil-based agriculture products as well as iron and steel products.