Malaysia-Bahrain Half-century Long Relation Enters New Dimension With PM Anwar’s Visit
By Nik Nurfaqih Nik Wil
MANAMA (Bahrain), Feb 22 (Bernama) -- The half-century long diplomatic relationship between Malaysia and Bahrain takes on a new dimension this month, eyeing new collaborations in wide areas of fields from financial technology (fintech) to tourism in enhancing their existing cooperation.
This came after the historic inaugural official visit by Prime Minister Anwar Ibrahim to the West Asian country at the invitation of Bahrain’s Crown Prince and Prime Minister Salman Hamad Al Khalifa.
Among others, both nations, which are significant players in Islamic fintech agreed to partner in the pursuit of advancing global Islamic fintech and to enhance cooperation in education.
According to Global Islamic Fintech Report 2023/24, Malaysia retained its top position, while Bahrain is sixth in the Global Islamic Fintech (GIFT) Index, a global index comprising 64 countries that are perceived to have the most conducive environments for promoting the growth of Islamic fintech.
"I believe these matters (Islamic fintech and education) can be implemented in a short time," Anwar said adding that these key areas and several new cooperation agreements are expected to be formalised before May.
Bahrain which was once a pearling nation, is now known as a Gulf nation with the most established financial hub and home to a robust and progressive financial services sector with the GCC’s largest concentration of financial institutions, populated by more than 400 local, regional and global financial institutions.
Throughout the two-day official visit, the Prime Minister said both nations also agreed to explore new areas of cooperation, including in the semiconductor sector, and emerging fintech such as cryptocurrency and sandbox platform.
He was also the only head of government to be given the honour to deliver a keynote address at the Intra-Islamic Dialogue Conference (IIDC) here, which he described as a recognition of Malaysia's significant role on the global Islamic stage.
Meanwhile, speaking to Bernama, Malaysia’s Ambassador to Bahrain Shazryll Zahiran described the Prime Minister’s visit as very historical with monumental success.
“It is truly significant as we celebrate our 50th anniversary of relations while giving greater depth to the ties.
“This is particularly when we have two of our kings, the Yang di-Pertuan Agong Sultan Ibrahim and the Bahrain King Raja Hamad Isa Al Khalifa together here of which both have a very strong and broad relations to propel our diplomatic relations as well as our economic development to a higher level in future,” he said.
Shazryll foresees that both nations would have great potential for economic expansion including in the frontier of tourism, besides fintech and education.
“Definitely Bahrain and Malaysia would be exploring ways and means to further enhance this particular sector and to find ways to provide a much more conducive environment and connectivity between both countries because this is not only for Malaysia to servicing Bahrain or Bahrain servicing Malaysia, but is also looking beyond the country.
“Malaysia is a very well connected country in the perspective of ASEAN, as well as Asia, similarly for Bahrain with its connectivity within the region and beyond to the African continent and the European market is equally big. Definitely both countries can explore the mechanism that is available at hand to provide a much more successful tourism model that would create much more benefits and returns,” he said.
Earlier, the Prime Minister also announced plans to reinstate direct Malaysia-Bahrain flights.
He said Bahrain with approximately 1.6 million population also offers a very friendly business ecosystem that would appeal to Malaysian companies, particularly the small and medium enterprises worth RM24 billion (US$1=RM4.42), to open their bases here and use them as a platform to expand their market abroad.
“They (Bahrain) have a very attractive tax holiday structure, they have no corporate tax, individual tax…the whole country uses English as the language of communication. I would also say they are the first to have very good banking system, and they are working progressively into increasing technologies in banking, so the facilities are very conducive for banking,” he said.
In 2024, Malaysia-Bahrain trade was valued at RM1.19 billion, with RM251.2 million in exports and RM943.3 million in imports.
Bahrain was Malaysia’s ninth-largest trading partner in West Asia last year, while Malaysia was ranked as Bahrain’s third-largest trading partner among ASEAN countries and 18th globally in 2023.
Meanwhile, Global Communication Office Director-General of Bahrain National Communication Centre Islam Abduljabbar said Anwar’ visit marked a significant milestone in Malaysia-Bahrain longstanding friendship and shared commitment to advancing bilateral cooperation.
She said the discussions held during the visit had reinforced both nations’ mutual aspirations to deepen partnerships across vital sectors, including trade, investment, and cultural exchange, in alignment with the visionary directives of the Bahrain King and the Crown Prince.
“As the gateway to the Gulf, Bahrain is uniquely positioned to enhance Malaysia’s access to the region’s dynamic markets and opportunities. We deeply value Malaysia’s role as a key partner in Southeast Asia and commend the Prime Minister’s leadership in fostering regional and global dialogue.
“This visit has not only strengthened the bonds between our nations but also laid a robust foundation for future collaboration, rooted in innovation and a shared vision for prosperity. We look forward to translating these fruitful discussions into tangible outcomes that benefit our peoples and contribute to global peace and progress.” she said.
Bahrain, which means ‘two seas’, was the first Gulf nation to discover oil in 1932 which transformed its socio-economic landscape. Besides oil, Bahrain is home to the world’s fourth-largest aluminium processing plant, a key export to Malaysia.
Home to 297 Malaysians, including three currently pursuing higher education, Bahrain which was the first Middle Eastern country to host a Formula 1 Grand Prix in 2004, also boasts one of the world’s highest-valued currencies.
-- BERNAMA
