Keep Malaysia-China ties separate from geopolitics: MCCC chief
KUALA LUMPUR: Malaysia should maintain an open, diversified and balanced trade policy and avoid allowing geopolitical tensions to dictate commercial ties, said an industry leader.
Malaysia should maintain a balanced approach to its trade policy with China, according to Datuk Shaun Lee Chong Leng, president of the Malaysia-China Chamber of Commerce (MCCC) in Melaka. Lee emphasized that businesses are grappling with increasing compliance requirements, approval procedures, and policy uncertainties, which often impose disproportionate costs on local companies, particularly small and medium enterprises.
Despite China being Malaysia's largest trading partner and a significant source of investment, Lee stressed that the relationship should not be clouded by geopolitical tensions.
He noted that Malaysian companies have benefited from China's market access, leading to business expansion, transformation, and internationalization. Cooperation in areas such as industrial supply chains, digital economy, and green development, as outlined in the Malaysia-China Five-Year Programme for Economic and Trade Cooperation signed in 2024, has further strengthened the ties. Lee reiterated that while national security is crucial, it should not restrict legitimate business exchanges.
The MCCC president rejected the idea that closer economic ties with China imply taking sides in geopolitics. He argued that deepening cooperation with China does not mean distancing Malaysia from other major economies or ASEAN partners. Instead, Malaysia should leverage its long-standing open and diversified foreign policy while maintaining relations with key players worldwide.
Lee called for improved policy stability and administrative efficiency, emphasizing that investors consider factors beyond tax incentives when deciding where to invest. He highlighted that political stability, policy continuity, efficient approvals, and predictable compliance requirements are equally important in attracting foreign capital.
Lee stressed that unclear procedures or shifting requirements could undermine investor confidence, potentially leading businesses to consider alternative ASEAN markets like Vietnam, Indonesia, or Thailand. For Malaysia, maintaining an independent, multilateral, and mutually beneficial approach to international economic relations remains its competitive advantage.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
