Chinese Premier Li Qiang’s visit to Malaysia on June 18, 2024, marked a significant turning point in the politics of competition and polarization spreading from the Western world to the Asia-Pacific. While countries around the world continue to be affected by the global United States (US) – China rivalry, Southeast Asian nations are keen to remain neutral in this competition. Malaysia is one of the countries that places great importance on maintaining neutrality in this rivalry.
Malaysia is eager to enhance its economic cooperation with China without jeopardizing its relations with the West. Indeed, during the recent visit of the Chinese Premier to Malaysia, the parties signed agreements to increase bilateral trade, boost tourism and green technology cooperation, and combat cross-border crime.[1] These engagements marked the first visit by a high-level Chinese leader to Malaysia in over a decade, making it particularly noteworthy.
For a long time, the defense support provided by the West and the established contextual partnerships have helped Malaysia maintain and advance its geopolitical interests. However, on the other hand, Malaysia also has the opportunity to benefit as much as possible from the economic prosperity provided by its geographical proximity to China and to gain significant advantages from the Belt and Road Initiative investments.
It is worth emphasizing that China has been Malaysia’s largest trading partner for 15 consecutive years. Malaysian Prime Minister Anwar Ibrahim has stated that his country aims to benefit from “this interaction with Beijing” and has described China as a “true friend.”[2] During the visit, the parties agreed to further cooperation, particularly through the Belt and Road Initiative and in various sectors, including semiconductors.
In this context, China is increasing its investments in Malaysia across various sectors, ranging from oil and gas to education and agriculture. This growing economic involvement is leading to heightened economic scrutiny by the US in Malaysia. Indeed, it can be said that Malaysia’s semiconductor investments and exports to China are under close watch by the US. As the US continues its pressures and sanctions on China in trade and technology sectors, third countries are also being affected by these measures.
In terms of Foreign Direct Investment (FDI), the United States continues to be Malaysia’s largest investment partner.[3] Malaysia, which meets 13% of global demand for semiconductors, can collaborate in this field with both the US and Chinese markets. However, Malaysia’s new partnerships with China in key digital areas such as 5G and artificial intelligence continue to be a source of concern in the Western world, particularly the US.
The US and the European Union have been pressuring Malaysia not to allow investments from the Chinese tech giant Huawei in its 5G networks. However, Kuala Lumpur’s government is resisting these pressures, asserting that it will remain open to all potential partners, including Huawei, and will prioritize securing the “best deal” for the country.
In foreign policy, Malaysia is striving to pursue a non-aligned strategy, openly expressing its intention to join BRICS and seeking support from China in this regard. The Malaysian Prime Minister stated, “We have made our policy clear, and we have made our decision. We will start the formal process soon. As far as the Global South is concerned, we are fully supportive.”[4] The Prime Minister also stated that China’s rise “brings a ray of hope in global power dynamics” and referred to Chinese President Xi Jinping as “an impressive leader and a unique figure.”[5]
One of the key determinants of Malaysia’s foreign policy is maintaining neutrality and balancing relations between the West and the East. Relations with the West significantly contribute to Malaysia’s ability to safeguard and advance its geopolitical interests. Particularly, close economic ties with the US and military cooperation with the UK contribute significantly to Malaysia’s regional interests.
On the other hand, China presents significant economic opportunities for Malaysia. Deepening relations with Beijing serves the country’s strategic interests. Particularly, collaborations in high-tech sectors such as semiconductors are areas where Malaysia excels and contribute to its strategic autonomy.
The pressure Malaysia faces from the West regarding advanced digital technologies like 5G and artificial intelligence complicates Kuala Lumpur’s efforts to maintain balance in its foreign policy, economy, and security. While the Kuala Lumpur administration asserts its commitment to an independent decision-making process and remaining open to all potential partners, the risk of secondary sanctions from the US continues to increase over time.
Malaysia’s support to the Global South and, in this context, BRICS membership initiatives aim to strengthen the country’s position in the global arena and its non-aligned foreign policy strategy. The intention to join BRICS could further consolidate Malaysia’s strategic cooperation with China. It can be said that Malaysia finds it in its national interests to maintain the global balance of power, and in this sense, it has a positive perspective on the rise of China.
In conclusion, Malaysia is striving to establish strong economic and strategic relations with both the West and the East. Its initiative to join BRICS is part of this effort. Leveraging its geopolitical position, the country aims to enhance economic prosperity and elevate its position as a significant player on the international stage.
[1] “Li Qiang’s visit spotlights Malaysia’s China-US diplomatic dance”, SCMP, https://www.scmp.com/week-asia/politics/article/3267592/li-qiangs-visit-spotlights-malaysias-china-us-diplomatic-dance, (Access Date: 25.06.2024).
[2] “Malaysian leader Anwar says China a ‘true friend’ and not to be feared as Premier Li ends visit”, AP News, https://apnews.com/article/malaysia-china-li-qiang-anwar-territorial-claims-fab6567d25d0567e881600a8939b8fe9, (Access Date: 25.06.2024).
[3] “Li Qiang’s visit spotlights Malaysia’s China-US diplomatic dance”, a.g.e., (Access Date: 25.06.2024).
[4] “Malaysia wants to join BRICS, China’s Xi an ‘outstanding leader’: Anwar”, Al Jazeera, https://www.aljazeera.com/economy/2024/6/18/malaysias-anwar-flags-brics-membership-praises-xi-as-outstanding-leader, (Access Date: 25.06.2024).
[5] Ibid.
