Chinese Premier Li Qiang announced on Wednesday that China is prepared to collaborate with Malaysia to explore the possibility of connecting the East Coast Rail Link (ECRL) with Thailand’s rail network.
The $50 billion ECRL, part of China’s Belt and Road Initiative, is currently under consideration for extension closer to the Thai border. Initially proposed in 2017, the 665-kilometer rail line, being constructed by China Communications Construction Co Ltd’s Malaysian unit, aims to link the east and west coasts of peninsular Malaysia by the end of 2026.
Premier Li’s visit to Malaysia, spanning three days, underscores Beijing’s effort to strengthen ties with Malaysia, a nation striving to maintain neutrality amid growing US-China tensions. On Wednesday, Li met with Malaysian Prime Minister Anwar Ibrahim in Putrajaya, where they witnessed the signing of several bilateral agreements, including the export of fresh durians from Malaysia to China. Previously, Malaysia could only export durian products and frozen whole durians to China.
The new agreement allows Malaysia, a major durian producer, to join Thailand and Vietnam in supplying fresh durians to China’s lucrative market.
In addition to the durian export deal, China and Malaysia have agreed on a comprehensive economic and trade cooperation plan extending to 2028, as per a statement from Anwar’s office. The two nations also pledged to discuss further visa exemptions, enhancing the mutual visa-free entry policy.
The leaders also concurred that disputes in the South China Sea should be managed independently by China and the relevant ASEAN countries, according to Xinhua News Agency. The maritime region is contested by China, Vietnam, the Philippines, Brunei, Malaysia, and Taiwan.
Li’s visit is the first by a Chinese premier to Malaysia since 2015 and aligns with Prime Minister Anwar’s strategy to balance relations with both China and the US, while promoting Malaysia as an attractive investment destination. Last month, Anwar committed at least 25 billion ringgit ($5.3 billion) to bolster Malaysia’s semiconductor industry amidst the US-China trade rivalry affecting global supply chains.
“We refuse to be defined by how major powers see the world. So we will continue to strive for our national and strategic interests, defined on our own terms,” Anwar stated in a Facebook post on June 7. “Malaysia maintains a strong and fruitful relationship with both China and the United States.”
In recent weeks, Malaysia has announced multiple technology investment commitments from both US and Chinese firms, including ByteDance, Google, and Microsoft. Despite political disagreements with both nations over issues like the South China Sea claims and the Israel-Hamas conflict, Malaysia continues to engage economically with both powers.
China has been Malaysia’s largest trading partner since 2009, with bilateral trade reaching $98.9 billion, according to the Malaysian Foreign Ministry. Li’s visit also marks the 50th anniversary of diplomatic relations between China and Malaysia.
