KUALA LUMPUR: Malaysia and Asean’s relationship with China should continue to be built on mutual respect and trust, particularly when it comes to driving high-value industries, fostering innovation and promoting sustainable development, says Tengku Datuk Seri Zafrul Tengku Abdul Aziz.
The Investment, Trade and Industry Minister said Asean must step up and embrace great power rivalries, economic shifts and opportunities in technological advancement, including through its relationship with China.
“This is especially significant as, in 2023, the trade volume between China and Asean reached close to US$1trillion (RM4.42trillion), making China the grouping’s third-largest source of foreign direct investment,” he told a press conference at the China Conference Southeast Asia organised by Hong Kong-based news outlet South China Morning Post here yesterday.
The minister said the close Asean-China relations is crucial, anchored on the strong ties between Malaysia and China, which celebrated their 50th anniversary of diplomatic ties last year.
Tengku Zafrul also said Putrajaya is optimistic that it could conclude the upgrade of the China-Asean Free Trade Agreement, adding that it is an important upgrade to cover the digital economy, in particular the green economy.
He said since the Regional Comprehensive Economic Partnership (RCEP) agreement came into place, trade between China and Asean has increased considerably.
Among the 10 Asean member countries, Malaysia, Vietnam and Indonesia are China’s top trade partners, with a turnover of up to 13.7%, 24.1% and 4.1%, respectively, according to statistics by the Chinese General Administration of Customs.
On the impact of the United States’ decision to impose a 25% tariff on all steel and aluminium imports, the minister said Malaysia is likely to experience minimal impact from the move.
He said this was because there is an ongoing moratorium on the expansion and diversification of Malaysia’s steel industry.
“We are not a major exporter of steel and aluminium. Our biggest exports to the US are electrical and electronics products.
“Export of steel and aluminium is insignificant so, I don’t see much impact from there,” Tengku Zafrul said.
On Feb 10, President Donald Trump raised tariffs on steel and aluminium imports without any exceptions and exemptions in a move to aid struggling industries in the United States.
To a question, Tengku Zafrul denied being Malaysia’s next ambassador to the United States, disputing recent talk about the appointment.
“The answer is no,” he said.
Last Friday, Prime Minister Datuk Seri Anwar Ibrahim said the candidate to fill the vacant role of Malaysia’s ambassador to the US has been identified.
Datuk Seri Nazri Aziz’s two-year term as ambassador there ended on Feb 8.
