Kuala Lumpur: The half-century long diplomatic relationship between Malaysia and Bahrain takes on a new dimension this month, eyeing new collaborations in wide areas of fields from financial technology (fintech) to tourism in enhancing their existing cooperation. This came after the historic inaugural official visit by Prime Minister Datuk Seri Anwar Ibrahim to the West Asian country at the invitation of Bahrain’s Crown Prince and Prime Minister Salman Hamad Al Khalifa.
According to BERNAMA News Agency, both nations, which are significant players in Islamic fintech, agreed to partner in the pursuit of advancing global Islamic fintech and to enhance cooperation in education. The Global Islamic Fintech Report 2023/24 indicates that Malaysia retained its top position, while Bahrain is sixth in the Global Islamic Fintech (GIFT) Index, a global index comprising 64 countries that have conducive environments for promoting the growth of Islamic fintech.
“I believe these matters (Islamic fintech and education) can be implemented in a short time,” Anwar said, adding that these key areas and several new cooperation agreements are expected to be formalised before May. Bahrain, which was once a pearling nation, is now known as a Gulf nation with the most established financial hub and home to a robust and progressive financial services sector with the GCC’s largest concentration of financial institutions.
Throughout the two-day official visit, the Prime Minister said both nations also agreed to explore new areas of cooperation, including the semiconductor sector and emerging fintech such as cryptocurrency and sandbox platforms. He was also the only head of government to be given the honour to deliver a keynote address at the Intra-Islamic Dialogue Conference (IIDC), which he described as a recognition of Malaysia’s significant role on the global Islamic stage.
Meanwhile, speaking to Bernama, Malaysia’s Ambassador to Bahrain, Shazryll Zahiran, described the Prime Minister’s visit as very historical with monumental success. “It is truly significant as we celebrate our 50th anniversary of relations while giving greater depth to the ties. This is particularly when we have two of our kings, the Yang di-Pertuan Agong Sultan Ibrahim and the Bahrain King Raja Hamad Isa Al Khalifa together here,” he said.
Shazryll foresees that both nations would have great potential for economic expansion, including in the frontier of tourism, besides fintech and education. “Definitely Bahrain and Malaysia would be exploring ways to enhance this sector and to find ways to provide a much more conducive environment and connectivity between both countries,” he said.
Earlier, the Prime Minister also announced plans to reinstate direct Malaysia-Bahrain flights. He said Bahrain’s friendly business ecosystem would appeal to Malaysian companies, particularly small and medium enterprises, to open their bases there.
In 2024, Malaysia-Bahrain trade was valued at RM1.19 billion, with RM251.2 million in exports and RM943.3 million in imports. Bahrain was Malaysia’s ninth-largest trading partner in West Asia last year, while Malaysia was ranked as Bahrain’s third-largest trading partner among ASEAN countries and 18th globally in 2023.
Meanwhile, Global Communication Office Director-General of Bahrain National Communication Centre, Islam Abduljabbar, said Anwar’s visit marked a significant milestone in Malaysia-Bahrain’s longstanding friendship and shared commitment to advancing bilateral cooperation. “This visit has not only strengthened the bonds between our nations but also laid a robust foundation for future collaboration,” she said.
Bahrain, which means ‘two seas’, was the first Gulf nation to discover oil in 1932, transforming its socio-economic landscape. Besides oil, Bahrain is home to the world’s fourth-largest aluminium processing plant, a key export to Malaysia. Home to 297 Malaysians, Bahrain was the first Middle Eastern country to host a Formula 1 Grand Prix in 2004 and boasts one of the world’s highest-valued currencies.