Kuala Lumpur: Malaysia is actively seeking strategic partnerships with China’s Anhui Province, focusing on the digital economy, green technology, and palm oil sectors under the Regional Comprehensive Economic Partnership (RCEP) framework to foster future-oriented regional cooperation.
According to BERNAMA News Agency, Malaysia’s former Special Envoy to China, Tan Kok Wai, emphasized the RCEP’s role in creating a conducive platform for deeper bilateral engagement, particularly in innovation-led industries such as e-commerce, electric vehicles (EVs), clean energy, and digital infrastructure. Tan stated that Malaysia is prepared to collaborate with Anhui’s forward-looking enterprises to shape the next chapter of high-quality development. This was expressed during the 2025 RCEP Local Governments and Friendship Cities Cooperation (Huangshan) Forum.
Tan highlighted Malaysia’s efforts to expand its digital economy and welcomed participation from top firms in Anhui, including Sungrow Power and iFlytek, in projects related to green data centers and smart city development. Penang and Malacca are being developed as pilot smart cities, with Malaysia aiming to position itself as an ASEAN data hub, benefiting from technological collaboration with Chinese innovators. Strengthening interoperability between Malaysia’s Touch ‘n Go and China’s Alipay is seen as a means to accelerate cross-border digital payment systems, enhancing trade and tourism flows.
Focusing on clean energy, Malaysia is positioning itself as a regional EV hub and seeks collaboration with Anhui’s automotive powerhouses such as Chery Group, JAC Motors, and NIO. Proposed areas of collaboration include developing a nationwide EV charging network through public-private partnerships, establishing a right-hand-drive vehicle manufacturing base for the ASEAN region, and investing in advanced battery research and development. Malaysia is keen to tap into Gotion High-Tech’s expertise in battery labs to build a strong ecosystem for green mobility.
In the palm oil sector, Malaysia, as the world’s second-largest producer, is looking to attract more Chinese investments in downstream processing and high-end oil product innovation. Malaysia exported RM10.57 billion worth of palm oil and related products to China in 2024, accounting for more than half of its bulk commodity exports to the country. Tan encouraged companies such as COFCO Anhui to collaborate with Malaysian suppliers to upgrade refining capacity and penetrate high-value segments of the Chinese market. Additionally, Malaysia seeks to leverage Anhui’s agricultural technologies to enhance tropical fruit processing capabilities and boost exports of niche products like bird’s nest and coconut milk to meet rising Chinese demand.
The RCEP, which came into force in Malaysia in March 2022, has significantly reshaped regional trade flows and reduced barriers, with over 67.9 per cent of goods traded between Malaysia and China currently enjoying zero-tariff treatment. Bilateral trade between China and Malaysia reached a record US$212.04 billion in 2024, marking an 11.4 per cent year-on-year increase. A study by the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) projects that the RCEP could contribute up to 0.8 per cent to Malaysia’s GDP by 2030.
Tan also proposed increased cultural, tourism, and educational exchanges between Malaysia and Anhui, suggesting the launch of a direct flight route between Kuala Lumpur and Hefei to support tourism and ease business travel. He emphasized the need to upgrade the Malaysia-China Kuantan Industrial Park and China-Malaysia Qinzhou Industrial Park under the ‘Twin Parks 2.0’ strategy, focusing on strengthening cross-border industrial chains in sectors like EVs, bird’s nest processing, and photovoltaic components. The expansion of Kuantan Port to accommodate vessels of up to 180,000 tonnes is also planned, enhancing its position as a strategic node in the China-ASEAN Land-Sea New Corridor.
For long-term success, Tan urged companies to localize their workforce, adopt strong environmental, social, and governance (ESG) standards, invest in smart manufacturing, and engage in cross-party dialogue and policy advocacy to manage political and regulatory risks. As Malaysia and China mark the 50th anniversary of diplomatic ties, Tan emphasized the importance of forging the next Golden Fifty Years.