China
Strengthening Economic Relations and Opportunities Between China and Malaysia
Malaysia, strategically located in Southeast Asia, is a vital gateway to ASEAN markets. In 2023, China remained Malaysia’s largest trading partner, with bilateral trade at US$190.24 billion, despite a slight decline. China is also the top source of tourists for Malaysia.
Malaysia is strategically located at the heart of Southeast Asia and serves as a gateway to ASEAN’s 650 million people and a combined GDP of US$3.2 trillion. Its geographical advantage positions it as a hub for accessing ASEAN markets and connecting to the Middle East, Australia, and New Zealand.
In 2023, bilateral trade between China and Malaysia amounted to US$190.24 billion. Of this, China’s exports to Malaysia totaled US$87.38 billion, while imports from Malaysia reached US$102.86 billion. China has remained Malaysia’s largest trading partner for 15 consecutive years. Major imports from Malaysia include integrated circuits, computers and their components, palm oil, and plastic products. Key Chinese exports to Malaysia consist of computers and their components, integrated circuits, apparel, and textiles.
China has implemented a unilateral 15-day visa exemption policy for ordinary Malaysian passport holders, while Malaysia offers 30-day visa-free entry for Chinese citizens. According to Malaysian statistics, over 1.47 million Chinese tourists visited Malaysia in 2023, maintaining China’s position for the seventh consecutive year as Malaysia’s largest source of tourists outside ASEAN.
Malaysia was China’s 10th largest global trading partner and the second largest within ASEAN. However, due to factors such as the decline in international commodity prices (including palm oil and natural gas), uncertainties arising from geopolitical conflicts, and a high base from the previous year, China-Malaysia bilateral trade experienced a slight decline in 2023, decreasing by 5.2 percent year on year.
Despite these fluctuations, China remains Malaysia’s primary source of imports and second-largest export destination, underscoring the deep economic ties between the two nations and Malaysia’s pivotal role as China’s second-largest ASEAN trading partner.
China-Malaysia Trade Value, 2019-2023
| This article was first published by China Briefing , which is produced by Dezan Shira & Associates. The firm assists foreign investors throughout Asia from offices across the world, including in in China, Hong Kong, Vietnam, Singapore, and India . Readers may write to info@dezshira.com for more support. |
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