MALAYSIA: Prime Minister Datuk Seri Anwar Ibrahim reaffirmed Malaysia’s commitment to non-alignment in a speech at the China Conference Southeast Asia 2025 held in Kuala Lumpur. Addressing an audience of high-level Hong Kong delegates, PM Anwar underscored Malaysia’s determination to avoid entanglement in great power rivalries.
In his speech, PM Anwar reiterated the country’s foreign policy doctrine of neutrality and pragmatism.“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,” PM Anwar stated, as quoted by Malay Mail.
This stance comes at a time when geopolitical tensions between the United States and China are intensifying, particularly over trade, technological dominance, and security concerns in the Asia-Pacific region. By choosing non-alignment, Malaysia seeks to preserve its sovereignty and economic interests without being pressured to take sides.
Balancing Chinese and Western interests
While reaffirming neutrality, PM Anwar also emphasised Malaysia’s strategic partnership with China, describing it as integral to regional economic growth. “China is a crucial trading partner whose friendship underpins Southeast Asia’s ambition to engage with all blocs in an increasingly multipolar world,” he noted.
This reflects ASEAN’s broader strategy of maintaining engagement with China and Western countries rather than exclusively aligning with one bloc. ASEAN nations, including Malaysia, have long sought to manage their relationships with global superpowers carefully, leveraging economic opportunities while mitigating risks associated with geopolitical conflicts.
PM Anwar further elaborated that ASEAN’s approach must go beyond its traditional partners. “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,” he said, as reported by Malay Mail.
Strengthening Malaysia-China economic ties
China has remained Malaysia’s largest trading partner for over a decade, a trend that has only deepened amid global economic shifts. In 2023, bilateral trade between the two countries reached US$190.24 billion (S$255.19 billion). Of this, China’s exports to Malaysia totalled US$87.38 billion, while imports from Malaysia reached US$102.86 billion.
The strong trade relationship reflects Malaysia’s role as a vital component of China’s supply chain. The two nations have developed extensive economic connections in sectors such as electronics, manufacturing, and technology, with Chinese firms investing heavily in Malaysia’s infrastructure and industrial base.
Under PM Anwar’s leadership, Malaysia has actively sought to deepen these ties. Since taking office in late 2022, he has visited China three times, engaging in high-level discussions with President Xi Jinping. Both leaders have described the Malaysia-China relationship as being at a “critical juncture,” signalling a new phase of economic and diplomatic cooperation.
Impact on regional supply chains
Malaysia’s expanding trade and investment ties with China are part of a broader regional effort to insulate supply chains from external shocks. The US-China trade war and shifting global economic conditions have prompted many ASEAN nations to recalibrate their trade strategies.
PM Anwar noted that Malaysia plans to make supply chain integration a top priority for ASEAN in 2025 as the nation assumes the chairmanship of the regional bloc. The aim is to build more resilient and diversified supply chains, reducing vulnerabilities associated with over-reliance on any single market.
Trade diversification is becoming increasingly important as companies look to reduce risks by establishing production bases outside China. Malaysia, with its strategic location, strong infrastructure, and business-friendly policies, is positioning itself as a preferred destination for multinational firms seeking alternative manufacturing hubs.
Malaysia’s vision for a green and digital economy
Beyond trade and supply chain resilience, PM Anwar emphasised Malaysia’s commitment to technological innovation and sustainability. He stated that the next phase of ASEAN-China economic cooperation must be driven by technological collaboration, sustainable growth, and human capital development.
As ASEAN chair, Malaysia is championing initiatives aimed at transforming the region into a key green and digital economic hub. This involves the integration of artificial intelligence, renewable energy investments, and digital economy initiatives.
“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,” PM Anwar said, as published in Malay Mail.
This vision aligns with Malaysia’s broader economic goals of fostering innovation, developing a skilled workforce, and transitioning to a low-carbon economy. Malaysia has already launched various initiatives to attract green investments, including incentives for electric vehicles, renewable energy projects, and digital transformation efforts.
Public sentiment and concerns over Malaysia’s China policy
While PM Anwar’s emphasis on non-alignment and strong economic ties with China reflects Malaysia’s strategic priorities, public sentiment on the matter remains mixed. Some Malaysians support neutrality as the best course of action, while others express concerns about Beijing’s growing influence and territorial ambitions in the South China Sea.
One Facebook comment circulating on social media captures the cautious approach many Malaysians advocate: “Besides being neutral, the best stance now is to be silent.” This view reflects a belief that staying quiet on contentious issues, rather than making bold geopolitical statements, may be the most pragmatic way to avoid unnecessary tensions with global powers.
However, not all Malaysians are comfortable with strengthening ties with China without addressing security concerns. Another comment highlights this apprehension: “But at the same time, we fear the PRC flag…” This suggests an underlying wariness about China’s expanding regional influence, particularly in matters such as economic dominance and territorial disputes.
A stronger critique came from another observer who asserted: “We can’t favour our east friends until they stop threatening our sovereignty. Full stop.” This likely references China’s maritime claims in the South China Sea, where Chinese vessels have repeatedly been reported encroaching into Malaysian waters. Many Malaysians see this as a direct challenge to the country’s territorial integrity, making it difficult to reconcile economic cooperation with unresolved security concerns.
Safeguarding Malaysia’s future
Malaysia’s decision to remain non-aligned while strengthening economic ties with China reflects a pragmatic strategy for navigating global tensions. By balancing relationships between major powers, Malaysia aims to safeguard its national interests while playing an active role in shaping ASEAN’s future.
As trade and geopolitical dynamics continue to evolve, Malaysia’s focus on supply chain resilience, green technology, and digital innovation positions it as a key player in the region’s economic transformation. Anwar’s leadership will be crucial in ensuring that Malaysia benefits from its close ties with China and remains strategically relevant in the broader global landscape.
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