China Signals Interest In Strengthening Trade And Investment, Proposes MoU With Malaysia
KUALA LUMPUR, Dec 2 (Bernama) -- China has signalled its intention to deepen trade and investment cooperation with Malaysia by proposing a memorandum of understanding (MoU), following recent discussions in Beijing on the Agreement on Reciprocal Trade (ART), said Investment, Trade and Industry Minister Tengku Zafrul Abdul Aziz.
He said the proposed MoU remains at a preliminary stage but is expected to centre on two-way investments and strategic sectors where Malaysian capabilities support Chinese companies.
“We had one meeting so far, and we will update accordingly (on the industries that will be covered).
“We are also identifying strategic sectors in which Malaysia can support Chinese companies, both in establishing their presence here and expanding across ASEAN,” he told reporters after a dialogue session with the Concorde Club at Wisma Bernama on Tuesday.
The session, titled “Farewell MITI, Hello New Horizons”, was chaired by Malaysian National News Agency (Bernama) chairman Datuk Seri Wong Chun Wai. The Concorde Club is an informal group comprising senior editors from local and foreign media organisations.
Tengku Zafrul said Malaysia sent a team to Beijing last week to brief Chinese officials on the wording and implications of the ART, following earlier discussions.
He said China was satisfied with Malaysia’s explanation and indicated its intention to strengthen bilateral trade and investment cooperation.
“They proposed the idea of an MoU, and even in Kuala Lumpur, they had already talked about that possibility. In Beijing, they discussed it in greater detail — particularly their commitment to push for this MoU.
“As I mentioned in Parliament yesterday (Monday), it was not that they do not want to work with us. In fact, it shows that they want to work even more closely with us, and they want this to be more tangible,” said Tengku Zafrul.
On rare earth elements (REEs), he said Malaysia welcomes participation from global players but has yet to receive formal proposals.
“We welcome China, the United States, Australia and others to invest in developing the midstream and downstream REE industry. However, we have not approved any licences from China or other countries apart from Lynas, as no applications have been submitted yet,” said Tengku Zafrul.
Commenting on reports that China had asked semiconductor manufacturer Nexperia in Negeri Sembilan to halt global expansion, the minister said Malaysian operations remain unaffected.
“Operations are still ongoing. I spoke to the Malaysian Investment Development Authority (MIDA) yesterday. So, we will wait for the company to respond to us. As of today, it is still business as usual,” he said.
Tengku Zafrul, who has served two terms as senator since 2020, completes his six-year tenure in the Dewan Negara on Dec 2, 2025. He was reappointed in December 2022.
He was first appointed as senator in 2020 to join the Cabinet under then prime minister Muhyiddin Yassin and has since served in multiple administrations, including under Ismail Sabri Yaakob.
On Nov 13, 2025, Tengku Zafrul informed Prime Minister Anwar Ibrahim of his intention to assist his successor following the end of his ministerial term.
The prime minister said he would announce Tengku Zafrul’s new role tomorrow.
-- BERNAMA
