CHINA sees strong potential to deepen industrial, technological and people-to-people collaboration with Penang, Kedah, Perak and Perlis as its next five-year development plan aligns closely with Malaysia’s own growth priorities.
Chinese Consul-General in Penang Zhou Youbin said in an interview that China’s upcoming 15th Five-Year Plan, which will run from this year, placed heavy emphasis on high-quality growth, technological self-reliance and emerging industries.
These are areas that match Malaysia’s national plans on the digital economy, energy transition and industrial upgrading.
Zhou: Chinese investment shifted to automated, tech intensive and environmentally friendly sectors.
He said Chinese companies in sectors such as photovoltaics, electric vehicles and lithium batteries had in recent years expanded their presence in northern Malaysia.
Their efforts created clustering effects in locations such as Tanjung Malim Automotive Valley in Perak and Kulim Industrial Park in Kedah.
These clusters, he said, had attracted more upstream and downstream players, helping to build more complete industrial ecosystems and becoming key highlights of investment cooperation between the two sides.
In Penang, Zhou said the state government’s push to move the semiconductor industry upstream through initiatives such as integrated circuit (IC) design had opened up further room for collaboration, as China had made significant progress in this area, with some firms competing globally.
He said China was willing to deepen alignment between its five-year planning framework and Malaysia’s development agenda, particularly in semiconductors, new energy, artificial intelligence, tourism and related services to jointly develop what he described as new quality productive forces.
Addressing concerns about competition from Chinese companies and products, Zhou said Chinese investment in Malaysia had shifted over the years from lower-end processing activities to sectors that were more automated, technology-intensive and environmentally friendly.
He said Chinese firms were no longer merely investors or partners but were increasingly becoming long-term contributors to Malaysia’s industrial transformation, citing automotive and manufacturing cooperation in Perak as examples of technology and skills transfer.
Zhou said Malaysian small and medium enterprises could view competition as an opportunity to upgrade operations, improve efficiency and build brands rooted in local culture and craftsmanship, while working with Chinese firms to access wider markets through e-commerce, digital payment systems and social media platforms.
He added that Chinese companies operating overseas were required to comply with local laws, respect religious and cultural practices and fulfil corporate social responsibility.
On people-to-people ties, Zhou said cooperation in tourism, education and culture between China and northern Malaysia had expanded significantly following the mutual visa-free arrangement and a rise in direct air links between Penang and major Chinese cities.
He said Penang remained a key entry point for Chinese visitors, while other northern states offered attractions ranging from natural landscapes to historical sites, supported by growing promotional activities and exchanges.
Looking back on the 10 years since the establishment of the Chinese Consulate-General in Penang, Zhou said the mission had worked closely with state governments and local stakeholders to facilitate investment, exchanges and cooperation across economic, educational and cultural fields.
He said the consulate aimed to further strengthen engagement with the four northern states over the next decade, particularly in new technologies and emerging sectors, while continuing to support people-to-people exchanges and long-term cooperation.
