China signals deeper trade and investment cooperation with Malaysia, proposing a new MoU focused on strategic sectors and ASEAN expansion
KUALA LUMPUR: China has proposed a new memorandum of understanding (MoU) to deepen trade and investment cooperation with Malaysia.
Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said the proposal followed recent discussions in Beijing on the Agreement on Reciprocal Trade (ART).
He stated the proposed MoU is at a preliminary stage and will focus on two-way investments and strategic sectors.
“We are also identifying strategic sectors in which Malaysia can support Chinese companies, both in establishing their presence here and expanding across ASEAN,” he told reporters after a dialogue session at Wisma Bernama.
Tengku Zafrul said a Malaysian team briefed Chinese officials on the ART’s wording and implications last week.
He noted China was satisfied with the explanation and signalled its intention to strengthen bilateral cooperation.
“In Beijing, they discussed it in greater detail — particularly their commitment to push for this MoU,” he said.
The minister added this demonstrates China’s desire for closer and more tangible collaboration with Malaysia.
On rare earth elements, Tengku Zafrul said Malaysia welcomes global investment but has received no formal proposals.
“We welcome China, the United States, Australia and others to invest in developing the midstream and downstream REE industry,” he stated.
He clarified that no licences have been approved for China or other countries apart from Lynas, as no applications have been submitted.
Regarding semiconductor manufacturer Nexperia, he said its Malaysian operations remain unaffected by reported expansion halts.
“Operations are still ongoing. As of today, it is still business as usual,” Tengku Zafrul said.
The minister completes his six-year tenure in the Dewan Negara on 2 December 2025.
He informed Prime Minister Datuk Seri Anwar Ibrahim of his intention to assist his successor following his ministerial term.
The prime minister will announce Tengku Zafrul’s new role tomorrow. – Bernama
