In a bid to pivot Malaysia’s economic success, renowned academic Michael Tai has emphasised the importance of sound governance alongside internal stability as it seeks to leverage opportunities from China. While navigating through the historic and complex geopolitical landscape, Malaysia finds itself at the intersection of shifting economic alliances and evolving global market dynamics.
Malaysia recently celebrated fifty years of diplomatic relations with China, marking a significant milestone since the bold establishment of ties by then Prime Minister Tun Abdul Razak in May 1974. This move marked the development of formal relations on May 31, a decision that expanded the international horizon for Malaysia during a period when Cold War ideologies were rampant globally.
In an era marred by political tension and power dynamics, Razak’s ability to perceive China not as a threat but as an integral ally underpinned the growth of their relationship. The narrative of this alliance goes back centuries, treading along the path of peace and mutual co-existence.
Dating back to the reign of Ming emperor Yongle (1402–1424), Malaysia as a maritime power, then named Malacca, became a tributary state of China. The nation’s eventual colonisation by Portuguese, Dutch and finally the British marked a significant transition in its international relations. However, the stark contrast between the international relations strategies of European colonial powers and the peaceful exchanges China maintained with its neighbours was not lost on Razak.
Razak’s strategic steps towards building relations with China was a diplomatic triumph for Malaysia at that time. His intuition proved to be a generational leap for Malaysia’s position, particularly in the Southeast Asian region, helping to reinforce its pre-existing ties with Europe and particularly its former colonial master, the UK.
Today, under the stewardship of Deputy Prime Minister Ahmad Zahid Hamidi and current Prime Minister Anwar Ibrahim, Malaysia continues to foster its comprehensive strategic partnership with China. This has been underscored by their recent participation in commemorations of the golden jubilee of the diplomatic relationship.
Recent initiatives undertaken by the Malaysian government reflect a reaffirmation of their commitment to a just and equitable world order. This is in line with President Xi Jinping’s vision of building a community of common destiny for mankind – anchored on inclusivity, equitable governance, and privileging national interests over the interests of a privileged race or class. Malaysia’s stance in advocating diplomatic initiatives reflects its discerned approach to avoiding blatant support for either superpower amidst global conflicts.
On the economic front, Malaysia has efficiently managed its relations with both nations, despite the trade and investment dichotomy persisting between the US and China. Over the past decade and a half, China takes the lead as Malaysia’s most influential trade partner. Nevertheless, recent domestic trends reveal underlying tensions – as evinced by boycott campaigns against local businesses, accusations of separatism against vernacular schools, and allegations of racial and religious antagonism.
Given this, it is crucial to recognise that the ability of Malaysia to capitalise on the expansive Chinese market potential will hinge greatly on internal stability and effective governance. Amplifying the role of the local Chinese diaspora and bilingual individuals in stimulating Sino-Malay transactions would serve as a strategic advantage. Known for their resilience, overseas Chinese communities have time and again demonstrated their capacity to thrive, regardless of their circumstances or proximity to their ancestral homeland.
As Malaysia finds itself at an inflection point, leveraging China’s meteoric rise in economic and technological space could invariably bolster its industrial competitiveness and economic resurgence post-pandemic. However, the key to this transition lies firmly within the realm of Malaysia’s domestic governance and socio-political stability.
