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Malaysian Prime Minister Anwar Ibrahim surprised many when he came to power in 2022 and sought closer ties with China to boost the country’s sluggish economic growth.
But with Chinese Premier Li Qiang visiting the Southeast Asian country this week, many in Kuala Lumpur are wondering whether Beijing is reciprocating those efforts.
The two sides are expected to sign memorandums of understanding on Beijing’s Belt and Road Initiative and a long-delayed five-year economic cooperation plan during Premier Li Keqiang’s three-day visit that begins on Tuesday, according to people familiar with the preparations.
But Malaysian officials and political commentators say some in the Kuala Lumpur government are disappointed that President Xi Jinping has been replaced by his number two, Premier Li Keqiang, in his absence.
“Anwar tried his best to satisfy them, but what did we get in return?” asked a person close to the Malaysian prime minister. “There was a sense of disappointment initially,” said another person familiar with the talks.
While Anwar was initially seen by some political commentators as pro-Western, he has encouraged warmer ties with China, making Malaysia the most pro-China of the rival nations in the South China Sea.
In an interview with the Financial Times earlier this year, Trump harshly criticized the “Sinophobia” that is rampant in the West. “Why should we be tied down to one interest?” he said.
The Malaysian prime minister visited China, Malaysia’s largest trading partner by far, twice last year, during which he signed 190 billion ringgit ($40 billion) of memorandums of understanding on Chinese investment and procurement, including a refinery project, a joint venture with Chinese automaker Geely, a port expansion, a waste-to-energy plant project and digital economy and green technology deals. He plans to visit again in November to attend the China International Import Expo in Shanghai, according to two people familiar with the plans.
Anwar also praised President Xi Jinping and his flagship Belt and Road infrastructure initiative, and revived talk of an Asian Monetary Fund with the Chinese yuan as a reserve currency.
Despite these efforts, Xi declined Anwar’s invitation to visit Malaysia this year to mark the 50th anniversary of diplomatic ties between the two countries, opting instead to visit in 2025 when Malaysia chairs the Association of Southeast Asian Nations (ASEAN).
“Some people are disappointed, and rightly so,” said Kuik Chengchui, a professor of international relations at the National University of Malaysia. “I think China now takes Malaysia for granted. Other countries in the region, such as Vietnam, are masters of hedging, but Malaysia seems too subservient to China in many ways.”
Successive Malaysian governments have sought closer economic and political ties with China since the early 1990s. “China is a superpower, it’s the regional superpower, so whether we like it or not, we have to coexist with China, whether it breaks up again or whether it becomes a strong, benign China or an imperialistic China,” said Thomas Daniel, a senior fellow at the Center for Strategic and International Studies in Kuala Lumpur.
The agreements Li is expected to sign will be modest in scope and may not live up to the lofty expectations of Anwar’s efforts. Njo Chow Bin, director of the China Institute at the University of Malaya, said the new Belt and Road MOUs are “largely symbolic.”
As China’s economy struggles with slowing growth, the amount of funding available under the Belt and Road initiative is shrinking, he added.
Malaysia’s previously planned BRI projects have also been indefinitely halted or cancelled. A rail linking the country’s underdeveloped east coast to the capital was to be funded and built by China, but its original $13 billion price tag was halved and its technical specifications significantly reduced in the wake of a corruption scandal that ousted a former prime minister.
“This is one of the reasons why Anwar now prefers to focus on green and digital projects rather than big infrastructure investments,” said a person familiar with the talks.
Malaysian officials involved in the talks said Li’s visit is expected to include the signing of several memorandums of understanding on green economy and digitalization, including smart city development. Officials also hope for an agreement on vocational training.
“The industry is mainly looking for money. [from these visits]”Malaysian companies want more funding and involvement… but we need to create space for them to thrive,” the Malaysian official said, adding that “our sovereign wealth fund is not as big as theirs, so it’s difficult to match one-to-one.”
Kuik said it was crucial for Anwar, who failed to win a majority among ethnic Malays in the last election, to demonstrate economic gains and restore stability to Malaysia after five years of political turmoil.
“Two things are key to winning the next election: identity papers and economic performance. The former is beyond anyone’s control, but the latter can be managed with the help of economic giants like China.”
