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Kathrin Hille in Kuala Lumpur and Mercedes Ruehl in Singapore

Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.

Malaysia’s Prime Minister Anwar Ibrahim surprised many when he sought closer ties with China after coming to power in 2022 in an effort to boost his country’s flagging economic growth.

But as Chinese Premier Li Qiang visits the south-east Asian country this week, many in Kuala Lumpur wonder whether Beijing is reciprocating those efforts.

The two countries will sign a memorandum of understanding on Beijing ’s Belt and Road Initiative and a long-delayed five-year economic co-operation plan during Li’s three-day visit, which begins on Tuesday, according to people familiar with the preparations.

But the absence of President Xi Jinping, who sent number-two official Li in his place, has dejected some in the government in Kuala Lumpur, according to Malaysian officials and political observers.

“Anwar has gone out of his way to satisfy them, and what are we getting for that?” asked a person close to the Malaysian prime minister. Another person familiar with the talks said there had been “initial disappointment”.

Anwar, initially viewed by some political observers as pro-western, has encouraged warmer relations with Beijing, a stance that has made Malaysia the most pro-China among the rival claimants in the South China Sea.

In an interview with the Financial Times this year, he sharply criticised what he called widespread “China-phobia” in the west. “Why must I be tied to one interest?” he said.

The Malaysian prime minister travelled to China — Malaysia’s largest trading partner by far — twice last year. The visits produced MOUs for RM190bn ($40bn) in Chinese investment and procurement, including a refinery project, a joint venture with Chinese carmaker Geely, a port expansion, a waste-to-energy plant project and digital economy and green technology deals. He intends to visit again in November for the China International Import Expo in Shanghai, according to two people familiar with the plans.

Anwar has also praised Xi and his flagship BRI infrastructure framework, and revived talk of an Asian Monetary Fund, with China’s renminbi as the reserve currency.

On Tuesday ahead of Li’s visit, Anwar told Chinese media that Malaysia had decided to join the Brics bloc of Brazil, Russia, India, China and South Africa, and last year expanded to include Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates. The country would commence “formal procedures soon”, he said. 

Despite these overtures, Xi did not take up Anwar’s invitation to visit Malaysia for the 50th anniversary of the countries’ diplomatic relations this year, opting instead to come in 2025 when Malaysia will chair the Association of Southeast Asian Nations. 

“Some are disappointed, and rightly so,” said Kuik Cheng-Chwee, a professor of international relations at the National University of Malaysia. “I think China today is taking Malaysia for granted. Some other countries in the region, such as Vietnam, are masters in hedging, but Malaysia has appeared to be too deferential to China, on many fronts.”

Successive Malaysian governments have sought close economic and political ties with China since the early 1990s. “China is a superpower, and a superpower in our region. So like it or not, we will have to live with China, whether it is a re-fragmented China or a powerful, benign China or an imperial China,” said Thomas Daniel, a senior fellow at the Institute for Strategic and International Studies in Kuala Lumpur.

The modest scope of the expected agreements to be signed by Li may not meet high expectations driven by Anwar’s efforts. The new BRI memorandum “is mostly symbolic,” said Ngeow Chow Bing, director of the Institute of China Studies at the University of Malaya.

As China’s own economy is grappling with slowing growth, “the money that is available under the BRI has shrunk ”, he added.

Some earlier Malaysian bets on BRI projects have also stalled indefinitely or been cancelled. A rail link between the country’s under-developed east coast and the capital, which was to be financed and built by China, has been halved from its initial $13bn price tag and with much lower technical specifications following a corruption scandal that toppled a former prime minister.

“This is one of the reasons Anwar prefers now to focus on green and digital projects rather than mega-infrastructure investments,” said one person familiar with the talks. 

Li’s visit will deliver several MOUs on green economy and digitisation, such as smart city development, according to one Malaysian official involved in the discussions. Officials also expect an agreement on vocational training.

“Industry mostly wants money [from these visits]. Malaysian companies want more funding and commitment . . . But we need to create the space for them to flourish,” said the Malaysian official, who added that “our sovereign fund is not as big as theirs so matching one to one is more difficult”.

For Anwar, who failed to win a majority among ethnic Malays in the last election, demonstrating economic benefits and restoring stability after five years of political upheaval in Malaysia is critical, Kuik said.

“Winning the next election will rely on two things: the identity card and the economic performance card. The first is beyond anyone’s control, but the second one is manageable — with the help of economic powerhouses like China.”

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PM ANWAR’S VISIT TO CHINA TO BOOST KL-BEIJING STRATEGIC TIES

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BEIJING, March 29 — Prime Minister Datuk Seri Anwar Ibrahim’s three-day official visit to China from Thursday is expected to open a new chapter in strengthening the strategic relationship between Kuala Lumpur and Beijing in a more comprehensive way.

This is Anwar’s maiden visit to this East Asian country since taking office last November.

Foreign Minister Datuk Seri Dr Zambry Abdul Kadir said this visit is historic and meaningful, considering that the prime minister had received an invitation from the Chinese government to visit the republic only four months after being sworn in to lead the new Malaysian government.

This year also marks the 10th anniversary of the establishment of the Malaysia-China Comprehensive Strategic Partnership and the two countries would also celebrate the 50th anniversary of their diplomatic relations next year.

“This clearly shows the aspirations of the Chinese government, especially President Xi Jinping who has just been appointed as President for the third term, to forge closer ties with the Anwar’s Unity Government,” he told the media here late last night.

Zambry said Anwar is also one of the first world leaders to visit Beijing after Xi’s re-appointment earlier this month.

The prime minister is expected to arrive here on Thursday evening after attending the Boao Annual Forum for Asia in Hainan and to be met on arrival by China’s Deputy Foreign Minister Sun Weidong.

Zambry said Anwar is scheduled to pay a courtesy call on President Xi on Friday, where discussions will focus on new steps that can be taken in various fields to boost and strengthen bilateral relations.

“They will also discuss concrete measures that can be taken in the field of trade, political cooperation, prevention of corruption, and civilisational issues,” he said.

Zambry said the two leaders will also exchange opinions on the direction of bilateral relations taking into account the increasingly challenging international scenario.

This will be followed by a meeting with the Chairman of the National People’s Congress Zhao Leji where the discussion will focus on cooperation at the parliamentarian level of both countries.

On Saturday evening, Anwar will be accorded an official welcoming ceremony at the Great Hall of the People by Chinese Premier Li Qiang, which will be followed by a bilateral meeting.

“The discussion between the two leaders will focus on detailing the steps that can be taken, especially in the fields of economy, trade and investment,” said Zambry.

He said in addition to deliberating concrete efforts to increase trade and closer relations between the two countries, Anwar is also expected to discuss issues of mutual interest during his meeting with the Chinese leaders including international and regional geopolitical issues, as well as security and stability in the Indo-Pacific.

The prime minister is also scheduled to deliver a public lecture at Tsinghua University, which is one of the most distinguished universities in China, in addition to attending a round-table meeting with high-profile investors and Chinese captains of industry.

Anwar is also scheduled to deliver a keynote address at a business forum which will be attended by nearly 1,000 participants from Malaysia and China.

Despite his jam-packed itinerary, Anwar is also scheduled to attend a breaking of fast ceremony with Malaysians in China organised by the Malaysia-China Chamber of Commerce, which will also be attended by leaders of Muslim communities in China, Zambry said.

During the three-day visit, at least 14 memoranda of understanding (MoUs) related to trade and agriculture will be signed between the two countries.

Apart from Zambry, the Malaysian delegates comprised Minister of International Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz, Minister of Transport Anthony Loke, Minister of Local Government Development Nga Kor Ming, Minister of Science, Technology and Innovation Chang Lih Kang and Minister of Tourism, Arts and Culture Datuk Seri Tiong King Sing.

China has been Malaysia’s largest trading partner since 2009. The value of trade between Malaysia and China in 2022 has reached 17.1 per cent of Malaysia’s total global trade worth RM2.8 trillion.

The total trade between the two countries in 2022 was RM487.13 billion, which is an increase of 15.6 per cent compared to the previous year.

— BERNAMA 

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Malaysia’s Anwar faces balancing act on first China trip

The Malaysian leader is expected to navigate between deepening economic ties and tackling differences in talks with China’s Xi Jinping.

Kuala Lumpur, Malaysia – Malaysia’s Anwar Ibrahim is expected to navigate between deepening economic ties with his country’s biggest trading partner and tackling thorny issues such as the South China Sea during his first visit to China as prime minister, analysts say.

Anwar will meet Chinese President Xi Jinping on Friday as part of a four-day visit that will also see him hold talks with Chinese business leaders and Premier Li Qiang.

Anwar’s talks with Xi are expected to focus on “concrete measures that can be taken in the fields of trade, political cooperation, prevention of corruption and civilisational issues,” Malaysian Foreign Minister Zambry Abdul Kadir said on Wednesday.

Anwar, who arrived in China on Wednesday, is also scheduled to meet with National People’s Congress Chairman Zhao Leji and executives of the China Communications Construction Company, the contractor of Malaysia’s East Coast Rail Link project.

Anwar, who was elected as Malaysia’s 10th prime minister in November, is making his visit against the backdrop of an escalating United States-China trade and tech war that complicates Malaysia’s efforts to maintain positive relations with the world’s two biggest superpowers.

China has been Malaysia’s largest trading partner for 14 consecutive years, with bilateral trade reaching $203.6bn in 2022, but Kuala Lumpur also maintains close economic and security ties with the US – two-way trade hit $72.9bn last year – which has sanctioned numerous Chinese firms that form part of the global supply chain.

Malaysia is the world’s sixth-largest exporter of semiconductors, accounting for 6.3 percent of the world’s total. The chips, crucial components of everyday electronics, have been a key target of US sanctions aimed at hobbling China’s tech sector.

If Malaysia wishes to boost cooperation with China, especially in the tech sector, it will need to consider the possibility of US pressure and how to “navigate the delicate line of advancing technological cooperation for national interests while still being able to convince both US and China that such cooperation will not affect bilateral relations politically,” Hoo Chiew Ping, an international relations lecturer at the National University of Malaysia, told Al Jazeera.

Further US sanctions could potentially affect some Malaysian companies that form part of China’s supply chain, said Ngeow Chow Bing, the director of Universiti Malaya’s Institute of China Studies.

“So far that hasn’t happened yet on a large scale but that is something which we have to watch out for,” Ngeow told Al Jazeera. Shahriman Lockman, director at the Kuala Lumpur-based Institute of Strategic and International Studies (ISIS), said Malaysia “will simply have to adapt” and try to find opportunities even as US-China relations become more fraught.

“Anwar knows this,” Lockman told Al Jazeera. “In China, Anwar is bound to be effusive about the relationship. That’s simply what one does in Beijing. After all, this year is the 10th anniversary of the Malaysia-China comprehensive strategic partnership. And next year is the 50th anniversary of diplomatic relations.”

For Southeast Asia, which has traditionally sought to balance its relations with great powers, the US-China rivalry has been a blessing and a curse.

Malaysia has been among the biggest beneficiaries of trade and investment diversion as US and Chinese companies seek to diversify their geographic exposure to trade restrictions. A 2019 report by Nomura found that Malaysia was the fourth-biggest winner of the US-China trade war, after Vietnam, Taiwan and Chile, with exports of waste and scrap alloy, natural gas and benzol all benefitting from the tensions.

China’s overall direct investment in Malaysia rose to 9.7 billion Malaysian ringgit ($2.2bn) in 2022, up 23.5 percent from 7.9 billion ringgit ($1.8bn) in 2021. The US was Malaysia’s top source of investment last year, investing 43.9 billion ringgit ($9.9bn), followed by Singapore and Japan.

“Anwar is likely to promote Malaysia as the destination of choice for Chinese investors seeking to lessen the impact of the trade war as well as to find new markets in the region,” Yeah Kim Leng, an economics professor at Malaysia’s Sunway University and a member of an advisory committee to Anwar, told Al Jazeera.

“Since Malaysia imports more from China than it exports, it will be a good opportunity for the PM to push for China to import more from Malaysia,” Yeah said.

Yeah added that Malaysia could also tap into China’s rapidly advancing digital technologies to enhance the productivity and competitiveness of its small and medium-sized sectors.

Analysts suggest that Anwar will be cautious about raising sensitive issues during his trip, including China’s treatment of the Uighurs and other ethnic minority Muslims, whose plight he highlighted during his many years as an opposition leader.

“I believe that Anwar will take a pragmatic approach towards China. Being a prime minister and no longer a mere opposition leader, Anwar can no longer afford to make references of a less constructive character when it comes to China. It’s just what it is,” said Lockman of the Institute of Strategic and International Studies.

“So I don’t believe that he’ll be raising the issue of Uighurs, though he’ll probably underscore the need to respect international law in the South China Sea. Anwar needs to think of Malaysia first.”

Ngeow of Universiti Malaya said the possibility of Anwar raising the Uighur issue in private is “quite low” but cannot be ruled out. Ngeow added, however, that the South China Sea dispute – Beijing claims sovereignty over more than 90 percent of the strategic waterway despite the territorial claims of several Southeast Asian countries including Malaysia – is likely to be raised in private as well as noted publicly using restrained language.

Chinese Coast Guard ships have frequently sailed into Malaysia’s exclusive economic zone in the South China Sea, where Malaysia’s state-owned Petronas gas and oil company is drilling for hydrocarbons.

In 2021, 16 Chinese military aircraft came within 60 nautical miles (112 km) of Sarawak state, prompting Kuala Lumpur to summon the Chinese ambassador and accuse Beijing of posing a “serious threat to national sovereignty and flight safety”. China’s embassy in Kuala Lumpur said at the time its aircraft had been exercising “the freedom of overflight in the relevant airspace”.

Hoo of the University of Malaysia believes it will be crucial for Anwar to discuss the South China Sea issue during his trip. “One main issue is to avoid inevitable clashes on the sea between the Coast Guard and to ensure incidents like the PLAAF (People’s Liberation Army Air Force) incursion over Malaysian maritime airspace will not occur again in private conversation,” Hoo said.

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Malaysian PM Anwar calls for revived push for China’s Belt and Road projects

KUALA LUMPUR - Malaysian Prime Minister Anwar Ibrahim has called for China’s Belt and Road Initiative (BRI) to regain its momentum, saying that the development programme best exemplifies solidarity and cooperation between countries in Asia.

“Translating lofty ideals into practical reality, solidarity and cooperation is best exemplified in the realisation of the Belt and Road Initiative. With the pandemic behind us, we should try to regain its momentum,” said Datuk Seri Anwar in a speech at the Boao Forum for Asia conference in Hainan on Thursday.

Mr Anwar’s four-month-old administration wants to tap Malaysia’s largest trading partner China for foreign direct investment, with the BRI as a key source of investment in the country, say political analysts.

“Malaysia would want more quality investments in the BRI package such as digital economy and the renewable energy or the electric vehicle space,” said Mr Halmie Azrie Abdul Halim, a senior analyst at government regulatory affairs and political risk consultancy Vriens & Partners Malaysia.

“Mr Anwar’s speech is also a precursor to enticing China into being open to his idea for an Asian Monetary Fund that he floated recently.”

Malaysia has several BRI-related infrastructure and connectivity projects, including the Malaysia-China Kuantan Industrial Park, the East Coast Rail Link (ECRL) and the expansion of Kuantan Port.

Some of these developments, such as the Trans-Sabah Gas Pipeline, came under renewed scrutiny and were shelved following a change of government in 2018, but were later reinstated under the subsequent administration.

Mr Anwar, who is on a four-day official visit to China until Saturday, is expected to meet the senior management of China Communications Construction Co, the contractor for the 665km ECRL.

Malaysia’s Ministry of Foreign Affairs said on Wednesday that Mr Anwar will meet Chinese President Xi Jinping to reinvigorate relations in the post-pandemic era.

China has been Malaysia’s largest trading partner since 2009. Total trade between the two countries reached RM487.1 billion (S$146.4 billion) in 2022.

China was also the top investor in Malaysia in 2022, contributing 21 per cent of the RM264.6 billion investments Kuala Lumpur approved that year.

In his speech at the Boao forum, Mr Anwar also urged countries to prevent competition in the technology and semiconductor industries from raising costs and impeding progress, as nations protect their intellectual property rights to stay ahead of rivals.

“The rivalry to be ahead in this can take either a productive or a destructive turn. Having said that, let me reiterate that unfettered competition must give way to spirited collaboration,” he said.

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BEIJING, May 21 -- Malaysia's Deputy Prime Minister I and Minister of Rural and Regional Development Dato' Seri Dr. Ahmad Zahid bin Hamidi will pay an official visit to China from May 22 to June 1, Chinese foreign ministry spokesperson Wang Wenbin announced on Tuesday.

Ahmad Zahid is invited by Ding Xuexiang, member of the Standing Committee of the Political Bureau of the Communist Party of China Central Committee and vice premier of the State Council, Wang said.

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Guangzhou [China], March 27 (ANI): Malaysian Prime Minister Lee Hsien Loong arrived in Guangzhou on Monday on his first trip to China in four years, accompanied by his wife and a delegation of about 50 Singapore officials, Strait Times reported.

The Singapore leader, accompanied by his wife, Madam Ho Ching, and a delegation of about 50 Singapore officials, was greeted on the tarmac at Guangzhou Baiyun International Airport at around noon by Chinese officials bearing umbrellas under a persistent drizzle.

The Malaysian PM and his delegation were greeted by Guangdong vice-governor Zhang Xin, China’s ambassador to Singapore Sun Haiyan, Guangdong Foreign Affairs Office director-general Liu Chenzi, and Guangzhou vice-mayor Tan Ping.

The southern city of Guangzhou in Guangdong province is Lee’s first stop on his week-long visit to China. He will be hosted to lunch by Guangdong party secretary Huang Kunming and will meet Singaporeans in Guangzhou.

PM Lee will also give a speech at the Boao Forum for Asia Annual Conference in Hainan before going to Beijing, where he is scheduled to meet President Xi Jinping and newly minted Premier Li Qiang, who will host a welcome ceremony and a lunch banquet for the Singapore delegation.

PM Lee will also meet National People’s Congress chairman Zhao Leji, Chinese People’s Political Consultative Conference chairman Wang Huning and Beijing party secretary Yin Li.

The Singapore Prime Minister’s last visit to China was in April 2019, when he attended the second Belt and Road Forum in Beijing.

He is accompanied by Foreign Minister Vivian Balakrishnan, Trade and Industry Minister Gan Kim Yong, Health Minister Ong Ye Kung, Senior Minister of State for Foreign Affairs and National Development Sim Ann, and Senior Parliamentary Secretary for Health and Law Rahayu Mahzam. (ANI)

This report is auto-generated from ANI news service. ThePrint holds no responsibility for its content.

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Halal diplomacy, high certification standard boost country's position in global sector

Friday, 13 Sep 2024

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Ahmad Zahid, seen here visiting the ChemPartner Pharmatech facility, hopes the company's agreement with UKM and Pharma Medical Sdn Bhd will help the country create a pharmaceutical hub producing halal-certified medicines. – BERNAMApic

SHANGHAI: Malaysia’s halal industry, supported by a certification system of high standard, has established a strong diplomacy network that strengthens the country’s position as a leading global player in the sector.

The halal diplomacy concept is compelling to foreign investors and positions the country as a model of quality, safety and integrity within the international industry.

The Malaysia-China Halal Business Forum held here on Tuesday (Sept 10) unlocked new investment potential in Malaysia’s halal sector, with approximately RM4bil worth of investment from Chinese halal industry players.

ALSO READ: Confidence in M'sian halal cert helped draw RM4bil in potential investment from China, says Zahid

Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi, who attended the forum as part of his five-day working visit to China, said the investment covers various sectors, including herbal medicine, food and beverages, vaccines, cosmetics and pharmaceuticals.

He noted that one of the main factors drawing international investors and industry players to Malaysia is the country’s credible and globally recognised halal certification system.

"This is further proven by Malaysia holding the top spot in the Global Islamic Economy Indicator (GIEI) for 10 consecutive years, reflecting the nation’s continued leadership in this key economic sector,” he said.

Ahmad Zahid added that Malaysia-China relations in the halal sector remain robust, with China being a primary destination for Malaysian halal exports.

As of July, Malaysia’s halal exports to China reached RM6.25bil, encompassing a wide range of products including food and beverages, industrial chemicals and cosmetics.

ALSO READ: Huge potential in halal diplomacy

During the forum, the Deputy Prime Minister also proposed the establishment of a Malaysia-China Halal Trade Corridor to boost halal trade within the framework of the Belt and Road Initiative.

"It would allow us to better meet the halal needs of BRICS nations, Asean and the Global South, while streamlining trade between China and Malaysia for a more efficient supply chain,” he said.

Additionally, Malaysia reaffirmed its commitment to emerge as a regional and global halal hub by offering comprehensive infrastructure and facilities for the sector in states such as Pahang and Perak.

Ahmad Zahid also witnessed the signing of a memorandum of agreement involving Universiti Kebangsaan Malaysia (UKM), China’s pharmaceutical company ChemPartner Pharmatech Co Ltd, and Malaysian company Pharma Medical Sdn Bhd, which he hoped would help the country create a pharmaceutical hub producing halal-certified medicines.

He arrived in Lianyungang, Jiangsu Province on Sunday (Sept 8) for a five-day working visit that concluded on Thursday (Sept 12).

During the visit, Ahmad Zahid, who is also Rural and Regional Development Minister, attended the Global Public Security Cooperation Forum Lianyungang (GPSCFL) 2024 and held discussions with State Councillor and Minister of Public Security Wang Xiaohong.

He said the commitment between China and Malaysia for cooperation and bilateral collaboration to combat cross-border crime is at the highest level, with both countries agreeing to enhance cooperation in areas such as training and the exchange of senior officers in the fields of enforcement and security.

"Malaysia and China’s cooperation in combating cross-border crime involving online gambling has shown positive results over the past few years, proving the effectiveness of our collaboration,” he said.

ALSO READ: ‘Make agreements materialise’

At the same time, Malaysia continues to explore the field of unmanned aerial vehicle (UAV) through collaboration with China, including through the exchange and sharing of expertise and technology.

The collaboration between Mara Aerospace & Technologies Sdn Bhd and China’s third-largest UAV technology company, Honeycomb Aerospace Technologies (Beijing) Co Ltd, will enable Malaysia to develop such technology.

Ahmad Zahid said the technology is widely used in agriculture and border security, and this partnership would allow Malaysia to develop UAV technology to meet local and international market demands.

Through the cooperation, the company will transfer the technology to the University Kuala Lumpur Malaysian Institute of Aviation Technology (UniKL MIAT) in Sepang to train students in UAV production, with the first assembly expected to begin next month.

Next year, the Chinese company will also invest RM100mil to establish a permanent facility to train students in the field of technical and vocational education and training (TVET). – Bernama

Tags / Keywords: Deputy Prime Minister , Ahmad Zahid Hamidi , China , Official Visit , Halal Diplomacy , Halal Hub , UAV Technology , Halal Trade Corridor , Belt and Road Initiative

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