15-6-2024 (KUALA LUMPUR) Malaysian Prime Minister Anwar Ibrahim has firmly asserted his nation’s unwavering stance of neutrality, deflecting pressure to take sides while pursuing stronger economic and strategic bonds with Beijing to propel Malaysia’s transition to a high-tech economy.
Anwar adopted a defiant tone, emphasising Malaysia’s determination to prioritise its interests and continue business dealings with China. However, he stressed that this stance neither constitutes antagonism towards the United States nor capitulation to unilateral actions by any single country.
“If they have compelling evidence to suggest that any company or any country is causing mischief, then all right. They should adduce evidence,” Anwar stated. “But otherwise, we will not succumb to that sort of pressure. It is no longer neocolonialism or colonial rule. We are an independent nation.”
As Malaysia commemorates 50 years of diplomatic ties with China this year, the Prime Minister underscored his ambition to leverage Beijing’s investment prowess and technical expertise across sectors ranging from manufacturing to renewable energy.
In recent years, Southeast Asia has witnessed an influx of fresh tech investments worth tens of billions of dollars from companies seeking refuge from US sanctions that bar China from accessing cutting-edge chips essential for developing sophisticated artificial intelligence, supercomputers, and high-tech weaponry.
The sanctions imposed by Washington are the latest volleys in an extended trade war between the two nations, disrupting global supply chains and rendering neutrality a precarious balancing act for countries like Malaysia. Nevertheless, China has retained its position as Malaysia’s top trading partner for the 15th consecutive year in 2023, while the US has maintained its status as the Southeast Asian nation’s leading investment partner over the same period.
Last year, the US and European Union cautioned Anwar’s government against potential national security risks if it were to engage Chinese telecommunications giant Huawei in the development of Malaysia’s 5G high-speed mobile broadband network. The Malaysian government, however, remained steadfast, vowing to secure the “best deal” without excluding Huawei from the list of potential partners, dismissing US claims of enabling Beijing’s espionage capabilities.
Anwar defended the decision to deepen ties with China, citing the country’s willingness “to accommodate and listen” to Malaysia’s suggestions and concerns. This includes collaborations in building Malaysia’s digital economy, renewable energy and AI capacities, as well as greater Malaysian involvement in joint ventures.
“They have been most receptive and they collaborate well, and they are frank and make no display of arrogance,” Anwar remarked. “That’s why … we are seen to be a bit closer to China. The exchange between ministers, between party leaders, between students and researchers, is because of China’s response to Malaysia’s engagements.”
Anwar also acknowledged Hong Kong’s significance as an international financial hub and gateway between mainland China and the rest of the world, dismissing negative narratives about the city’s future.
While conceding that Malaysia had previously grappled with “lopsided” Chinese deals due to “poor governance” by his predecessors, Anwar expressed confidence in securing better arrangements moving forward, buoyed by his optimism in China’s eventual post-pandemic economic resurgence despite its slower-than-expected recovery.
Addressing the long-standing territorial dispute with Beijing in the South China Sea, Anwar acknowledged the issue’s existence but criticized the West’s “obsession” and “tendency to exaggerate the problem.” He underscored the absence of any “serious clashes or problems” and advocated for resolving disputes through bilateral engagements and discussions within ASEAN, rather than third-party intervention.
On the Taiwan issue, Anwar expressed little concern over the prospect of war, citing his belief in Beijing’s ability “to navigate the situation” and calling for a peaceful, amicable resolution between the two sides.
