At China conference, PM Anwar says Malaysia will stay neutral but sees Beijing as key trading partner

At China conference, PM Anwar says Malaysia will stay neutral but sees Beijing as key trading partner



Prime Minister Datuk Seri Anwar Ibrahim arrives at the China Conference Southeast Asia 2025 at St Regis Hotel, Kuala Lumpur on February 17, 2025. — Picture by Firdaus Latif

Monday, 17 Feb 2025 11:12 AM MYT


KUALA LUMPUR, Feb 17 — Prime Minister Datuk Seri Anwar Ibrahim told a conference attended by Hong Kong delegates here that Malaysia will always remain non-aligned and will not be drawn into rivalries between great powers.

Still, Anwar stressed that Putrajaya continues to view China as the main driver of regional prosperity amid rising geopolitical tensions sparked by the ongoing trade feud between Beijing and Washington.

Anwar described China as a crucial trading partner whose friendship underpins South-east Asia’s ambition to engage with all blocs in an increasingly multipolar world.

“Malaysia’s position is clear: we remain non-aligned and will not be drawn into great power rivalries. We reject economic coercion and unilateral actions that undermine regional stability,” he said, adding that Putrajaya supports a rules-based multilateral system that ensures fairness, transparency, and representation for all, particularly the Global South.

“Asean must also expand its global engagement beyond traditional partners. Strengthening ties with China, the Gulf Cooperation Council (GCC), Brics, and other emerging economies is not about choosing sides; rather, it is about ensuring Asean’s strategic relevance in a multipolar world,” Anwar continued.

Malaysia’s 10th prime minister spoke at the China Conference South-east Asia 2025, organised by the South China Morning Post, before some of Hong Kong’s top dignitaries. Hong Kong has had a free trade agreement with the Association of South-east Asian Nations (Asean) since 2019.

China has remained Malaysia’s largest trading partner for over a decade, with bilateral trade between the two countries peaking at US$190.24 billion (RM841 billion) in 2023.

Of this, China’s exports to Malaysia totaled US$87.38 billion (RM386 billion), while imports from Malaysia reached US$102.86 billion (RM452 billion).

Trade with China has grown significantly more important amid geopolitical tensions stemming from the second Trump administration’s aggressive protectionist measures, as Asian countries look to consolidate and insulate their own supply chains from potential shocks.

Under Anwar, Malaysia has sought to bolster its longstanding ties with China. The prime minister has visited the country three times since taking office in late 2022 and met with President Xi Jinping in November last year.

Anwar said he plans to make supply chain integration a top agenda item for Asean as Malaysia chairs the group this year.

Both leaders declared that Putrajaya-Beijing ties are now at a “critical juncture.”

In 2023, the Asean-China trade reached nearly a trillion dollars. Anwar said the next phase of Asean-China economic cooperation must be driven by technological collaboration, sustainable growth and human capital development. As chair of Asean, Putrajaya has set its sights on turning the region into a key green and digital economic hub with its own robust supply chain.

"We must embrace and support the integration of artificial intelligence into regional supply chains, ensuring that Asean remains at the forefront of the digital economy," the Malaysian prime minister said.