Expert: 'Mahathir’s visit seeks to strengthen bilateral economic ties with China'

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02:20

Malaysian Prime Minister Mahathir Mohamad is paying an official visit to China, as he seeks to strengthen ties between the two countries.

Prime Minister Mahathir is no stranger to China. He made seven visits to the country during his first term as prime minister between 1981 and 2003.

But this visit will be Mahathir's first after his latest appointment in May. What is he seeking to achieve this time around?

“During his previous visits, the importance was emphasized on bilateral trade between the two countries,” said Chong Mei Ghee, a Malaysian consultant from PricewaterhouseCoopers. “The outcome we see today is that China has been the largest trading partner of Malaysia for the past nine years consecutively.”

Bilateral trade expanded by 10.5 percent year-on-year to 96 billion US dollars in 2017. China has also been the largest investor in Malaysia's manufacturing industry for two years.

The purpose of his eighth visit, according to Ghee, is to further strengthen the cooperation and relationship between the two nations.

“This trip will focus on political, security or special strategic resources, science and technology,” added Ghee.

Malaysia's Prime Minister Mahathir Mohamad (R) meets China's Foreign Minister Wang Yi (L) at the prime minister's office on August 1, 2018, in Putrajaya, Malaysia. /VCG Photo

Ghee pointed out that aside from cooperation in traditional areas such as promoting agricultural products like palm oil, Malaysia is eager to explore new opportunities with Chinese corporations in the fields of e-commerce, science and technology.

“It is demonstrated by his visit to Alibaba and Geely’s headquarters in Hangzhou,” Ghee said.

Ghee maintained that this visit also serves as a chance to deepen strategic partnerships with China in order to develop the economy of Malaysia in the long term.

She stressed that the Belt and Road Initiative can offer more opportunities to Malaysia as the country’s current development priorities are logistics industry and real estate.

“As one of ASEAN’s more developed markets, Malaysia has seen a proliferation of China-backed infrastructure, real estate and industrial investments,” Ghee said. “Some of the largest infrastructure projects in Malaysia involve Chinese investors, contractors or consultants, ranging from new port and railways in Kuala Lumpur and Kuantan to industrial zones across the country.”

Ghee claimed that China plays a key role in Malaysia’s construction industry, and that Mahathir’s visit will strengthen bilateral trade and investment.

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