HANGZHOU, Sept 25 — Prime Minister Datuk Seri Anwar Ibrahim's recent three-day working visit to Shanghai and Hangzhou, China, is not just a routine diplomatic trip but a new benchmark for continuing strategic relations that strengthen cooperation in various fields between the two countries.
Amid global geopolitical and economic uncertainties, Putrajaya's MADANI Diplomacy approach has proven fruitful, strengthening Malaysia's role as Beijing's main strategic partner in Southeast Asia.
The working visit, at Beijing's invitation, not only strengthens bilateral relations but also opens new opportunities for Malaysia to expand investments, export markets, and cooperation in strategic and high-value economic areas.
Among the main returns of the visit was the potential investment worth RM28.6 billion from meetings with 26 Chinese companies, including five of the republic's giants, particularly in high-impact sectors such as semiconductors, mainstreaming artificial intelligence (AI), robotics, electric vehicles, battery materials, advanced optics, biotechnology, and advanced manufacturing.
Companies such as robotics giants AgiBot Innovation, ZTE Corporation, Alibaba Group, Geely Automobile Holdings, and Huawei Technologies are increasing investment, reflecting confidence in the stability and policies implemented by the MADANI government.
The visit also resulted in potential exports to China worth RM8.2 billion over one to three years.
Strong relationship between Malaysia and China
Summarising the overall outcome of the visit, Anwar, who is also the Finance Minister, said the relationship between Malaysia and China is now very strong and developing positively.
Describing the close relationship between Malaysia and China as having gone beyond the usual diplomatic framework, he said the bilateral relationship is based on mutual trust, sincerity, and confidence, bringing prosperity and benefits to the people of both countries.
During the packed working visit, Anwar emphasised the long-standing trust and mutual confidence forming the basis of the Malaysia-China bilateral relationship and cooperation that goes beyond traditional diplomatic ties.
The relationship also extends to a broader agenda covering connectivity, protection of local enterprises, the digital economy, as well as talent and skills development.
Delivering a keynote address at the plenary session of WorldSkills Shanghai 2026, he said Malaysia has elevated Technical Vocational Education and Training as the core of the country's industrial policy and an instrument of economic transformation, particularly to ensure talent development goes hand in hand with investment inflows.
“Malaysia and China are well positioned to do more together; investments come to Malaysia for various reasons. But we all know that it grows especially when there are sufficient skills to support it,” Anwar said.
While in Hangzhou, Malaysia's first-ever participation in the Fifth Global Digital Trade Expo (GDTE) provided exposure to new technologies and AI applications that deserve to be learned from China's rapid progress.
Malaysia also offers a stable, well-connected and business-friendly base for partners from China and globally to forge strategic partnerships.
Recognition of Malaysia’s participation in Worldskills, GDTE
Malaysia's participation in both important Chinese events, and the Prime Minister's presence to deliver the keynote address at the WorldSkills Conference 2026 and GDTE, is a strong recognition of Malaysia and the country's leadership.
He had the opportunity to voice his stance on the importance of ethical digital technology, fair and free digital trade and shared prosperity through strategic national cooperation.
Anwar also acknowledged China's rapid progress in digital technology and AI, as well as its role in sharing technological advances with countries in the Global South.
The bilateral meeting and discussions between the two Malaysian and Chinese delegations at the West Lake State Guest House in Hangzhou highlighted the personal chemistry between Anwar and Chinese Premier Li Qiang.
The close relationship between the two leaders is not a secret. Repeated meetings since Anwar took office in November 2022 reflect a high level of mutual trust that goes beyond formal diplomatic protocols.
This closeness allows complex issues such as supply chains, the implementation of infrastructure projects, and regional and international geopolitical stability to be discussed in a frank and relaxed, yet effective manner.
Among the matters discussed during the bilateral meeting was the agreement between Malaysia and China on the proposal to extend the East Coast Rail Link project from Kota Bharu to Rantau Panjang, Kelantan, thus providing economic spillover and prosperity to rural areas in Kelantan.
The concerns of micro, small, and medium enterprises in Malaysia about foreign market domination that could affect local interests were also given attention.
“This matter has been raised directly, and we have received assurances from the relevant companies, including Alibaba and Li himself, that the best method will be sought so that business dealings do not affect the interests of MSMEs in Malaysia," said Anwar.
This working visit not only maintains China's status as Malaysia's largest trading partner, but also redefines the landscape of cooperation from traditional commodity trade to the digital economy, artificial intelligence and high skills.
China has been Malaysia's largest trading partner for 17 consecutive years, with bilateral trade reaching US$113.82 billion (RM456.68 billion) for the period January to August this year.
The combination of pragmatic MADANI Diplomacy and the close relationship between Anwar and Li puts Malaysia in the best position to maximise economic benefits for the people's well-being.
