Malaysia Is Back on Investors' Radar and Wants to Work With U.S. and China, Says Trade Minister

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Tengku Aziz made his comments as tensions have escalated between the U.S.A. and China in recent years. These concerns range from trade sanctions, to tech rivalry, and alleged spying balloons.

Malaysia has returned to the radar of global investors. "We have had productive discussions both with investors and companies in China and the U.S.," Zafrul said.

Tengku Zafrul Aziz, Malaysia's Trade Minister, told CNBC on Thursday that Malaysia was determined to work both with the U.S.A. and China. This is despite ongoing tensions between these two economic giants.

His remarks come at a time when tensions have been increasing between the U.S.A. and China in recent years over issues ranging from

Trade sanctions

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tech rivalry

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Spy balloons - a rumor

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Zafrul, in an exclusive interview with CNBC's SquawkBox Asia, said that the U.S. and China are Malaysia's two largest trading partners and investors.

Malaysia has returned to the radar of global investors. "We have had productive discussions both with investors and companies in China and the U.S.," Zafrul said.

He said that "China is Malaysia's biggest trading partner and has been for the past 14 years."

Zafrul stated that Malaysia has not yet seen the impact as the semiconductor industry in Malaysia is "predominantly owned by Europe and America."

The U.S.

Signed an agreement to improve the resilience of the chip supply chain

In May,

Building on China-Malaysia ties

In 2022

Trade between Malaysia and China

The total value of Malaysian trade was 2.8 trillion Malaysian Ringgit ($636.4 billion), or 17.1%.

Zafrul, speaking to CNBC, said: "We will ensure that the relationship that Malaysia has with China is elevated as a result of our recent visit by Prime Minister ....."

Anwar Ibrahim, Malaysia's Prime Minister, was in China on an official visit last week.

During the visit, China made a record investment of 170.07 billion Malaysian Ringgit ($38.6billion) in Malaysia.

The Prime Minister's Office said.

Anwar told the parliament on Tuesday that China’s Rongsheng Petrochemical would invest 80 billion ringgit (about $80 billion) in a petrochemical plant, while Chinese automaker Geely would inject 2 billion dollars ringgit ($2 billion) into the automotive sector, before increasing investments at a future stage.

Local media reports

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Anwar stated that the China-backed East Coast Rail Link was to be completed by December of last year.

Continued

After the project was originally scrapped in 2019. The ECRL will be expected to carry

Both passengers and freight can be transported from the East Coast up to the West Coast.

BFM News - (URL).

December 21, 2022

Zafrul said that the cooperation projects had "strengthened" the relationship between China & Malaysia.

He said, "We have a more stable and focused government now to make sure that the policies, initiatives, and priorities that we are focusing on... will be better centered."

Anwar has been a prime minister since Nov. 24.

The pledged to combat corruption and focus on the building of the economy

.

The Asian Monetary Fund

Anwar said in the parliament on Tuesday that China was open to discussions about establishing a "Asian Monetary Fund", with Malaysia.

In order to reduce Asia’s dependence on the U.S. Dollar

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Zafrul noted that "talking about cutting Asia's dependence on the U.S. Dollar has been going on since the 1990s."

Zafrul said to CNBC: "I spoke at a conference a few years ago about the strength and impact of the U.S. Dollar, its monetary policies, on countries like Malaysia. We have to deal directly with the decisions made in the United States."

According to the Minister, "[the] yuan continues to dominate in terms of currency traded today... It used to be number 10, eight - now it's five. About 7% of the market share."

He said that the U.S. Dollar is "obviously still" the most traded currency, followed by the Euro, the pound sterling and the Japanese yen.

Zafrul: "I believe that what [Anwar] talks about is having a different option for companies, particularly those who are trading with China."