Malaysia seeks strategic ties with China's Anhui in digital, green tech, palm oil

New Straits Times

05-06-2025

HUANGSHAN: Malaysia is seeking to forge strategic partnerships with China's Anhui Province in the digital economy, green technology and palm oil sectors under the Regional Comprehensive Economic Partnership (RCEP) framework to expand future-oriented regional cooperation.
Malaysia's former Special Envoy to China, Tan Kok Wai, said the RCEP has created a conducive platform for deeper bilateral engagement, particularly in innovation-led industries such as e-commerce, electric vehicles (EVs), clean energy and digital infrastructure.
"Malaysia is ready to collaborate with Anhui's forward-looking enterprises to shape the next chapter of high-quality development," he said at the 2025 RCEP Local Governments and Friendship Cities Cooperation (Huangshan) Forum held here today.
Digital and clean energy cooperation in focus
Highlighting Malaysia's efforts to grow its digital economy, Tan said Malaysia welcomes participation from Anhui's top firms, including Sungrow Power and iFlytek, in projects related to green data centres and smart city development.
"Penang and Malacca are currently being developed as pilot smart cities, and Malaysia also aims to position itself as an ASEAN data hub – a move that could benefit from technological collaboration with Chinese innovators," he said.
He noted that strengthening interoperability between Malaysia's Touch 'n Go and China's Alipay would also accelerate cross-border digital payment systems, improving trade and tourism flows.
On the clean energy front, Tan said Malaysia is positioning itself as a regional EV hub and hopes to work closely with Anhui's automotive powerhouses such as Chery Group, JAC Motors and NIO.
"Proposed areas of collaboration include the development of a nationwide EV charging network through public-private partnerships, the establishment of a right-hand-drive vehicle manufacturing base to serve the ASEAN region, as well as investment in advanced battery research and development," he said.
Moreover, Tan, who is also the ASEAN Honourable Advisor of United World Chinese Association, expressed that Malaysia is keen to tap into Gotion High-Tech's expertise in battery labs to build a strong ecosystem for green mobility.
Boosting palm oil innovation and agri-tech exchange
As the world's second-largest producer of palm oil, Tan said Malaysia is looking forward to attracting 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.
He encouraged companies such as COFCO Anhui to collaborate with Malaysian suppliers to upgrade refining capacity and penetrate high-value segments of the Chinese market.
"Likewise, Malaysia also looks to leverage Anhui's agricultural technologies to enhance its tropical fruit processing capabilities, particularly in durians and pineapples, while boosting exports of niche products like bird's nest and coconut milk to meet rising Chinese demand," he said.
RCEP as a catalyst for trade and industrial park upgrades
On the RCEP, he said the framework, which came into force in Malaysia in March 2022, has significantly reshaped regional trade flows and reduced barriers.
Over 67.9 per cent of goods traded between Malaysia and China currently enjoy zero-tariff treatment, not only in traditional agricultural and industrial goods but also in expanding sectors like services and digital trade.
Bilateral trade between China and Malaysia hit a record US$212.04 billion in 2024, marking an 11.4 per cent year-on-year increase.
Tan further noted that 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 gross domestic product (GDP) by 2030.
He also called for greater cultural, tourism and educational exchanges between Malaysia and Anhui, and proposed the launch of a direct flight route between Kuala Lumpur and Hefei to support tourism and ease business travel.
Touching on industrial cooperation, Tan emphasised the need to upgrade the Malaysia-China Kuantan Industrial Park and China-Malaysia Qinzhou Industrial Park under the 'Twin Parks 2.0' strategy.
"This next phase of development will focus on strengthening cross-border industrial chains in sectors like EVs, bird's nest processing and photovoltaic components," he said.
He also highlighted the expansion of Kuantan Port to accommodate vessels of up to 180,000 tonnes, a move that will enhance its position as a strategic node in the China-ASEAN Land-Sea New Corridor.
For long-term success, Tan urged companies to localise their workforce, adopt strong environmental, social and governance (ESG) standards, invest in smart manufacturing and actively engage in cross-party dialogue and policy advocacy to manage political and regulatory risks.
"As we mark the 50th anniversary of diplomatic ties between Malaysia and China, we are tasked with forging the next Golden Fifty Years," he added.