Chinese President Xi Jinping will make a state visit to Malaysia next week, playing a critical role in promoting new investments in the Southeast Asian region, while also paving the way for further economic development and prosperity in the area.
Luo Weijian, president of the Malaysia-China Chamber of Commerce (MayCham), is confident of positive outcomes from this visit. He pointed out that China and ASEAN have significant potential in developing digital currencies and cross-border digital payment systems in the financial sector.
"Although the trade volume between China and ASEAN exceeded $900 billion in 2023 (1 USD equals 4.47 MYR), the region urgently needs an efficient and cost-effective cross-border transfer (payment) system."
"As the Chinese President embarks on a high-level visit, we expect this to be one of the main topics of discussion, so our industry players should be ready to seize the opportunities presented by the talks."
During a recent interview with Bernama, Luo Weijian mentioned that Malaysia was one of the earliest supporters of the Belt and Road Initiative. In light of this, it is expected that some Belt and Road projects, such as the high-speed rail, the Malacca port, green energy, and the Kuala Jidi power plant, will occupy important positions in the high-level discussions between China and Malaysia.
"These large-scale infrastructure projects will have a long-term impact on Malaysia's economic development." Luo Weijian said, the talks could also explore other issues such as rare earth exports.
"For example, Malaysia has abundant rare earth reserves, and China's industry has a high demand for rare earths; however, Malaysia does not allow rare earth exports, and China does not permit the transfer of rare earth extraction technology to foreigners."
He mentioned that, in this situation, the high-level meeting would serve as the perfect platform to discuss rare earth trade and achieve a mutually beneficial win-win situation.
Regarding traditional commodities like palm oil and its derivatives, rubber products, bird's nests, and agricultural products, Luo Weijian said there is potential for increased imports by China from Malaysia.
He noted that there is room for further growth in investments between China and Malaysia, as well as between China and ASEAN.
He added that China possesses the world's most advanced electric vehicle manufacturing and artificial intelligence technologies, which are in high demand in Malaysia and ASEAN countries.
"I strongly recommend that the Malaysian business community seize the development opportunities in these two areas and encourage Chinese companies to closely collaborate with Malaysian entrepreneurs to develop new products with shared intellectual property and market them globally."
Luo Weijian stated that the timing of Xi Jinping's visit to Malaysia is very appropriate, as it will bring more economic opportunities to ASEAN, especially amidst the trade war and global economic chaos triggered by the high tariffs imposed by the United States on ASEAN countries and China.
ASEAN, as the world's fifth largest economy with a GDP of $3.8 trillion and a total population of 680 million, has a strong collective power and should fully leverage its economic ties with China.