The launching ceremony of the electronics engineering system construction of Malaysia's East Coast Rail Link (ECRL), a mega railway project under the Belt and Road Initiative, is held in Terengganu, Malaysia on May 9, 2024. ECRL was built by China Communications Construction Company (CCCC) with a total length of 665 kilometers. ECRL is expected to be completed by the end of 2026. Photo: cnsphoto

With the concerted efforts of business communities and individuals across various sectors in both China and Malaysia, the next 50 years of China-Malaysia relations promise to be another golden era, Chinese Premier Li Qiang said on Thursday during an official visit to Malaysia. 

"Since the establishment of diplomatic ties between China and Malaysia 50 years ago, economic and trade cooperation has always played a crucial role in bilateral relations," Premier Li told business leaders at a luncheon for the China-Malaysia business community, also attended by Malaysian Prime Minister Anwar Ibrahim.

The luncheon was attended by around 200 representatives from the business community of both countries. Chinese experts said that, underpinned by robust economic and people-to-people connections, bilateral cooperation is entering a track of high dynamism with new cooperation areas and connectivity as highlights.

China and Malaysia released a joint statement on deepening the Comprehensive Strategic Partnership toward China-Malaysia Community with a Shared Future on Thursday. It reaffirmed mutual respect, mutual benefit, stable development and commitment to deepen development synergy. Both leaders agreed to strengthen cooperation in trade, investment and infrastructure connectivity.

Li made a three-day official visit to Malaysia starting on Tuesday, his first trip to the country since assuming his post in March 2023.

As one of the highlights of the Premier's trip, China on Thursday agreed to extend its visa exemption policy for Malaysian citizens until the end of 2025, while the Malaysian side said that it would extend the visa exemption policy for Chinese citizens until the end of 2026.

Both leaders welcomed the keen interest in continuing consultations and discussions on mutual visa exemption to facilitate people-to-people exchanges.

Malaysian and Chinese firms also signed agreements on Thursday for potential investments worth 13.2 billion ringgit ($2.8 billion) to collaborate in sectors ranging from oil and gas to education, according to a Reuters report.

Consistent and stable policies in China and Malaysia have fostered a strong foundation for economic and trade cooperation, bolstering confidence in collaboration between the two nations. The visit by the Chinese Premier further solidifies the partnership, paving the way for deeper cooperation and mutual trust, Zhou Shixin, director of the Institute for Foreign Policy Studies at the Shanghai Institute for International Studies, told the Global Times on Thursday.

Highlighting economic collaboration between China and Malaysia and the broader scope of bilateral cooperation, Premier Li also called on businesses to expand cooperation in emerging fields such as green development, the digital economy and artificial intelligence.

For his part, Anwar highlighted that Malaysia-China ties are built on mutual respect and understanding. "This is a true sign of respect and friendship, and we will continue to cherish this between Malaysia and China," Anwar said.

The prime minister also rebuked Western media outlets' hype of the so-called "China threats" on the economic, military and technological fronts, saying that China is a true friend and not to be feared, according to a report by the Associated Press.

Experts said this indicates that Malaysia remains focused on enhancing its partnership with China and pays no heed to the US-led decoupling attempts.

Earlier on Wednesday, Premier Li said that China-Malaysia ties are at the forefront among relations between regional countries, and have set a benchmark and an example, according to the Xinhua News Agency.

On Wednesday, while attending the groundbreaking ceremony for the East Coast Rail Link (ECRL) Gombak Integrated Terminal Station, Premier Li said China is ready to work hand-in-hand with Malaysia to make the ECRL a path to prosperity and happiness that truly delivers for the people, according to Xinhua.

China will make active efforts with Malaysia to explore ways to connect the ECRL with the China-Laos and China-Thailand railways to better advance the construction of the New International Land-Sea Trade Corridor, thereby enhancing regional connectivity and deepening the development of the ASEAN community, Li said.

The railway, a flagship project of China-Malaysia high-quality Belt and Road Initiative cooperation, is the largest standalone transportation infrastructure project undertaken by a Chinese enterprise overseas, and it will serve as a transportation artery in Malaysia, a spokesperson for the China Communications Construction Co (CCCC) ECRL, the project contractor, told the Global Times on Thursday.

The project has been a catalyst for local economic growth, generating about 20,000 jobs in Malaysia and the surrounding areas. More than 2,000 local companies have been involved in the construction process, contributing to the development of industries, logistics and tourism in the region, the CCCC said.

China had remained Malaysia's largest trading partner for 15 consecutive years as of 2023. In the first five months of 2024, bilateral trade rose by 15.3 percent to 584.5 billion yuan ($80.55 billion), with China's imports surging 15.2 percent to 281.15 billion yuan and exports reaching 303.35 billion yuan, up 15.3 percent compared with last year, data from the General Administration of Customs showed.