The bilateral trade and economic relations between Malaysia and China are at all time high with the reflection of the mutual respect and close cooperation between the two nations.
China is Malaysia’s largest trading partner for 13 consecutive years. In 2021 total trade with China achieved a milestone with a record high figure of USD176.8 billion according to China statistics, accounting for 18.9% of Malaysia’s total trade in 2021.
The Trade achievements were revealed by Deputy International Trade and Industry Minister Datuk Lim Ban Hong in his address at the 4th Malaysia-China B2B Business Matching Session today. The event was convened in conjunction with the upcoming 19th China-ASEAN Expo (CAEXPO), which is scheduled from Sept 16 to 19, 2022 in Nanning, China.
“Malaysia’s participation in CAEXPO 2022 augurs well with the theme ‘Sharing RCEP New Opportunities, building a Version 3.0 China ASEAN Free Trade Area,’ Lim said, adding, exports to China rose by 20.6% — the highest value so far.
The expansion was driven by strong exports of manufactures of metal, E&E products as well as liquefied natural gas (LNG).
China was also Malaysia’s largest import source, accounting for 23.2% of total imports, an increase of 33%. Major imports were electrical & engineering (E&E) products, machinery, equipment and parts as well as chemicals and chemical products.
Trade with China in the first seven months of 2022 expanded by 16.9% compared to the same period of 2021. Exports grew by 13.2% boosted by higher exports of E&E products, LNG as well as metalliferous ores and metal scrap. While, imports from China climbed by 19.8%.
Lim said: “Based on the trade trend that we are seeing now, I am confident the bilateral trade between Malaysia and China could surpass USD190 billion this year and moving towards USD200 billion, of course, we have to work hard on this, and keep the momentum going.”
Collaboration by Leveraging RCEP
Another reason for this year to be special, Lim added, is because Malaysia became the 12th signatory country on March 18 to implement the Regional Comprehensive Economic Partnership (RCEP) Agreement.
The implementation of RCEP will create a more transparent, specific, rules-based framework for trade and investment among the signatories. It will also strengthen the integration of companies in the global value and regional supply chain notably between Malaysia and China as well, Lim said.
“The harmonisation of tariff concession under RCEP will directly give a boost to trade and enhance region integration in the region. It also provides opportunity for exporters to expand and diversify the outreach of their goods and services into more markets.
He added, Malaysia stands to greatly benefit from the larger market integration. As we are strategically located at the heart of this region, the reduced trade barriers and better trade facilitation will further enhance market access to other countries with lower costs for businesses.
Lim said: “The presence of RCEP provides a strategic platform for businesses to collaborate and closer economic integration will thus be built by leveraging on lower tariffs, stronger logistics connectivity as well as intensifying the trade of goods and services through a more robust trade ecosystem in the region.
