KUALA LUMPUR, April 22 (Xinhua) -- Malaysia's close relationship and cooperation with China have greatly benefited the country's aspirations, not only in adopting new technologies but also in driving its industrialization forward.
"Malaysia has greatly benefited from its free and open trade policy, which stresses the importance of neutrality and avoiding bloc confrontation. Meanwhile, China has chosen friendly cooperation and engagement, building goodwill and expanding the international consumer base," Julia Roknifard, a senior lecturer at Taylor's University, told Xinhua.
She explained that Malaysia is unlikely to change its policy even with greater pressure, as seen in the U.S. Framework for Artificial Intelligence Diffusion, placing the country on Tier 2 of its chips export policy, which imposes significant restrictions with tight country-specific limits on chip imports.
"Malaysia's policymakers have shown nimbleness in navigating this highly charged environment," she said, emphasizing that trade restrictions will only push it towards greater integration with China, considering the Malaysian government has made significant efforts to position the country as a regional data center and high-tech manufacturing hub.
China is investing heavily in Malaysia's high-tech sector, particularly in areas like manufacturing, infrastructure, renewable energy, and digital technology, with the country being seen as a strategic location for diversifying supply chains.
Given its central location within ASEAN and its position along vital trade routes through the Malacca Strait, Malaysia is seen as a strategic hub for diversifying supply chains.
Experts also suggest that Malaysia has consistently presented itself as a business-friendly environment, bolstered by political stability. The country has also demonstrated strong enthusiasm for Chinese investments and business collaborations.
"By combining their strengths and focusing on mutual growth, Malaysia and China can advance their high-tech industries despite any political changes and challenges," said political observer Eugene Pek Chuen Khee.
The long-term success of these initiatives is evident in the Malaysia-China Kuantan Industrial Park (MCKIP), a joint venture between the two countries established in 2013. The MCKIP serves as a model for the "Two Countries, Twin Parks" program, focusing on high-end and high-tech industries, including digital and green technologies.
Recently, Malaysian Prime Minister Anwar Ibrahim stated in a commentary that Malaysia remains committed to fostering shared growth, strengthening regional cooperation, and remaining open to trade, development, and commerce.
"We will continue to promote an inclusive and sustainable approach to peace and security, both within our immediate region and beyond," he said.
Against this backdrop, Yeah King Leng, a professor of economics at Sunway University in Malaysia, highlighted that potential areas for further cooperation between the two nations include digital technologies, automation, AI services, and their applications in various industries such as agriculture, environmental protection, advanced manufacturing, healthcare, finance, and logistics.
Goh Lim Thye, a senior lecturer at the Department of Economics, Faculty of Business and Economics in the University of Malaya, also noted that China's investments in Malaysia are building towards high-tech sectors, recognizing Malaysia's key position in global supply chains.
Experts highlighted that with Malaysia's strategic role in the global supply chain and China's technological leadership, both countries are well-positioned to drive innovation and achieve sustainable economic growth in the coming years.
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