Malaysia-China 11-month Trade Matches 2023 Total Trade, Signalling Strong Recovery - Tengku Zafrul

KUALA LUMPUR, Dec 18 (Bernama) -- Malaysia-China economic ties have continued to strengthen, with bilateral trade reaching nearly US$98 billion (US$1=RM4.467) in the 11 months of 2024, matching the total trade volume for all of 2023.

Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz said the 6.9 per cent year-on-year growth presents opportunities for further advancement in the years to come.

In his speech at the Malaysia-China Summit 2024 reception dinner today, Tengku Zafrul said that the foundation for the Malaysia-China 50-year partnership was laid many centuries ago, well before 1974.

bootstrap slideshow

“In 1971, reciprocal trade missions between Malaysia and China led to, among others, the export of 40,000 tonnes of Malaysian rubber for the Chinese market.

“In that same year, the total bilateral trade for Malaysia-China was a mere US$27.8 million. We established diplomatic relations with China three years later,” he said.

Investment-wise, from 1980 to June 2024, a total of 531 manufacturing projects with participation from China have been implemented, with investments valued at almost RM80 billion, creating over 88,800 jobs.

bootstrap slideshow

“I must also highlight that Malaysia’s regard of China as a valuable partner went beyond bilateral ties at multiple critical junctures.

“Since the Belt & Road Initiative (BRI) was officially launched in 2013, Malaysia has been one of its earliest and most supportive partners. During the China International Import Expo last month, both countries also exchanged additional documents for the BRI Cooperation Plan,” Tengku Zafrul said.

The minister said after ASEAN was initiated in 1967, Malaysia gradually brought China into the regional fold in the early 1990s, which also saw the kickstart of the China-ASEAN Dialogue.

“We then played an instrumental role in initiating the ASEAN Plus Three in 1997 and the East Asia Summit in 2005.

“One milestone moment in the ASEAN-China journey is the signing of the ASEAN-China Free Trade Area (ACFTA), ASEAN’s first free trade agreement (FTA) with external parties in 2002,” said Tengku Zafrul.

This led not only to significant tariff reductions and increased trade flows but also enabled China to officially become ASEAN’s largest trading partner just seven years later, surpassing the United States and the European Union.

“This remarkable progress did not happen by chance. It was built upon centuries of positive interaction between past leaders, as well as the business communities.

“It is not my intention to delve too much into history. I just want to provide the background to not only Malaysia-China relations but also the role Malaysia played in initiating and cementing ASEAN’s relations with China,” he said.

Tengku Zafrul emphasised that it is important for the China-ASEAN family to live in harmony in shaping their future roles in the new world order, particularly in an increasingly multi-polar world.

He said as the Chair of ASEAN in 2025, Malaysia intends to play its role in forging a better future for ASEAN and beyond.

“We stand ready to champion regional cooperation, enhance regional economic integration, as well as foster sustainable and inclusive growth. This is very much in line with our chosen theme: Inclusivity and Sustainability,” Tengku Zafrul said.

He highlighted that the MADANI values of Sustainability, Compassion, Respect, Innovation, Prosperity and Trust, align closely with President Xi Jinping’s vision of a better shared future for mankind, rooted in cooperation and inclusivity.

The reception dinner, also graced by Deputy Prime Minister Datuk Seri Fadillah Yusof, was held in conjunction with the two-day Malaysia-China Summit 2024, which began on Dec 17.

The summit was organised by Qube Integrated Malaysia in collaboration with the Malaysia External Trade Development Corporation (MATRADE) to commemorate 50 years of Malaysia-China diplomatic relations.

-- BERNAMA