KUALA LUMPUR: Malaysia-China business cooperation is poised to move into a higher value, regional strategic phase by leveraging the Regional Comprehensive Economic Partnership Agreement (RCEP) and China’s Belt and Road Initiative (BRI), said Yeoh Soon Hin, deputy chairman of Tourism Malaysia.
Yeoh made the remarks during a recent engagement with the Malaysia-China Chamber of Commerce, where both sides exchanged views on regional supply chain integration, cross-border investment opportunities and evolving global trade dynamics.
He said the implementation of RCEP has created the world’s largest free trade area, covering about 30% of the global population, economic output and trade volume, offering unprecedented opportunities for deeper Malaysia-China business collaboration.
“Under the RCEP framework, gradual tariff reductions and improved trade facilitation will accelerate regional industrial integration, and Malaysia is strategically positioned as a key node within this ecosystem,” he said.
Yeoh added that China’s Belt and Road Initiative, which has attracted more than US$1 trillion in cumulative investment across infrastructure, logistics, energy and industrial development, continues to generate significant spillover benefits for participating countries. Malaysia, he said, has gained from sustained cooperation in ports, rail connectivity and industrial development.
On bilateral trade, Yeoh noted that China has remained Malaysia’s largest trading partner for several consecutive years, with bilateral trade in 2025 projected to exceed US$450bil. Cumulative Chinese investment in Malaysia has surpassed US$60bil, contributing to industrial upgrading and job creation.
The discussion also touched on the potential of China’s New Western Land-Sea Corridor, which links western China to ASEAN port networks. The corridor shortens logistics transit time by an estimated 30 to 40% compared with traditional routes, significantly improving cross-regional trade efficiency.
“Penang has strong advantages in port infrastructure, manufacturing and international logistics, positioning it well to serve as a key node in a Northern Malaysia-Western China-ASEAN supply chain network,” Yeoh said.
He added that Penang’s role as a regional electronics hub—accounting for above 5% of global semiconductor sales and roughly 13% of the outsourced assembly and testing market—provides a solid foundation for deeper technology and high-value manufacturing cooperation with Chinese enterprises.
Malaysia-China Chamber of Commerce president Loo Kok Seong said the chamber will continue to serve as a bridge for businesses, facilitating high-quality cooperation projects and helping enterprises seize regional growth opportunities.
Yeoh stressed that future competition will increasingly take place between supply chain systems rather than individual economies, and that deeper Malaysia–China cooperation under RCEP and the BRI could help build a globally competitive and resilient regional supply chain network.
