China and Malaysia have signed a renewed five-year economic and trade cooperation agreement, marking a significant step in deepening bilateral relations as the two countries celebrate 50 years of diplomatic ties. The agreement was signed during Chinese Premier Li Qiang’s visit to Malaysia’s administrative capital, Putrajaya, on Wednesday, as part of his broader tour of the Asia-Pacific region.
Premier Li’s visit, aimed at enhancing China’s influence in the region amidst rising geopolitical tensions with the United States, culminated in the signing of various agreements. These included the economic and trade pact, which is expected to strengthen links between industries in key sectors such as high-level manufacturing and the digital economy.
The visit to Putrajaya was the final leg of Li’s regional trip, which also included stops in New Zealand and Australia. During his stay, Li and Malaysian Prime Minister Anwar Ibrahim engaged in private discussions and oversaw the signing of the renewed economic cooperation pact. Officials highlighted that the agreement would promote investment in green development, combat transnational crime, and support housing and urban development. Other areas of focus include higher education, science and technology exchanges, tourism, and cultural cooperation.
“China is ready to work with Malaysia,” Premier Li stated, emphasizing China’s commitment to advancing modernization through high-quality development. Prime Minister Anwar, who welcomed Li with full honors, expressed Malaysia’s parallel commitment to national development and cooperation with China.
Beyond the economic agreements, Prime Minister Anwar signaled Malaysia’s interest in joining the BRICS alliance, a group of emerging economies comprising Brazil, Russia, India, China, and South Africa. Anwar’s comments ahead of Li’s visit indicated Malaysia’s desire to align with the Global South, reflecting a broader geopolitical strategy.
In an interview with Chinese media, Anwar criticized the “Western narrative” regarding the conflict in Gaza and underscored the importance of China’s rise as a balancing force in global affairs. Malaysia’s potential membership in BRICS would further solidify its alignment with the economic interests of developing nations and diversify its international partnerships.
During Li’s visit, discussions were also expected to address the South China Sea disputes, a sensitive topic given the overlapping territorial claims by Malaysia, China, and other regional actors. Despite occasional tensions, Malaysia’s approach has been characterized by a preference for diplomatic engagement rather than public confrontation, partly to safeguard economic ties with China, its largest trading partner since 2009.
The agreements signed during Li’s visit underscore the enduring economic relationship between China and Malaysia. Last year, bilateral trade reached 450.84 billion ringgit ($98.90 billion), reflecting the significant economic interdependence between the two nations.
Malaysia’s Foreign Minister Mohamad Hassan highlighted the longstanding cooperation since the mid-1970s, affirming that the strong bilateral ties would help both nations address and resolve any emerging issues amicably.
Premier Li’s itinerary also included a meeting with Malaysia’s king, Sultan Ibrahim, and participation in a groundbreaking ceremony for the East Coast Rail Link (ECRL), a key project under China’s Belt and Road Initiative (BRI). The ECRL aims to enhance connectivity and economic development in Malaysia’s eastern regions, further cementing China’s role in Malaysia’s infrastructure development.
As China and Malaysia continue to deepen their economic and strategic partnership, the renewed cooperation agreement represents a significant milestone in their bilateral relations, aligning with broader regional and global economic trends.
