Malaysia-China Relation

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MALAYSIA’S FOREIGN POLICY GFPA 2233 GROUP ASSIGNMENT

CONTENTS :

TITLE PAGES

1.0 INTRODUCTION 2

2.0 GOVERNMENT UNDER TUN ABDUL RAZAK 3

3.0 GOVERNMNENT UNDER DATUK SRI NAJIB RAZAK 4-5

4.0 TYPE OF RELATION BETWEEN MALAYSIA-CHINA 6-9

5.0 BENEFITS OF DIPLOMATIC RELATION 10-13

6.0 CONCLUSION 14

7.0 REFERENCE 15-16

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1.0 INTRODUCTION

The relationship between China and the Malay world that

has long been established during the Han Dynasty (140-117 BC).

During the reign of Sun Quan dynasty (222-252 CE), diplomatic

relations with the Malay Peninsula and Malay Archipelago was

held. However, during the reign of Srivijaya relationship China

and South-East Asia very good with the advent of traders and

practitioners of Buddhism. The archaeological findings of

ceramic tools Qin dynasty in the valley of river at Johor is an

evidence showing Malaya had RELATION with China around the 1st

century CE. Relationships of the Malay world with China have

long existed around 2000 years ago but the information about

the Chinese in the Malay Peninsula just emerging in Chinese

records at 14th century CE. In the 1403, after Parameswara

founded Malacca, the number of Chinese people living in the

Malay Peninsula is increasing. Yin Ching was sent to Malacca,

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as Chinese Envoy by Jianwen Ming to establish friendship,

trade, and diplomatic. After that, Parameswara send envoys and

had visited to China for strengthen politics and protection

from the threat of Siam especially and political policy had

continued by his descendants until the year 1435. China's

relations with the Malay Peninsula only focused on business. In

the 1974, diplomatic relations established with good after the

cold war ended and the political and cultural connections start

strengthened until there is a large amount of Chinese

population in Malaysia. Nowadays, we can see that Malaysia's

relations with China have a special personal significance.

Diplomatic relations between two countries were formally

established as a result of Tun Abdul Razak Hussein and Datuk

Seri Najib Tun Razak visions (Dr. Halim, 2009).

2.0 GOVERNMENT UNDER TUN ABDUL RAZAK

Tun Abdul Razak is a second Prime Minister of Malaysia

after Tunku Abdul Rahman. In 1971, Tun Abdul Razak, start doing

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the informal relation with the government of China through a

letter. The letter was send to Prime Minister Republic of

China, Zhou Enlai. This letter posted by Tan Sri Micheal Chen.

At this time Tan Sri Micheal Chen as a secretary general of

Parti Perikatan Rakyat, or now, it known as a Parti Barisan

Nasional. (Alan Thing, Mei 13, 2014)

On 28 May 1974, the delegation Prime Minister has arrived. On

31 Mei 1974, history bears witness that the diplomatic

relations officially conducted between the Chinese Government

and Malaysia Government when Tun Abdul Razak and Zhou Enlai

were signed an agreement. This directly able to strengthen

Malaysia- China after the event mail delivery by Tun Abdul

Razak to Zhou Enlai three years ago. After the signing of the

agreement cooperation between Malaysia-China will more dynamic.

According to the Secretary of Cooperation Friendship Malaysia-

China, Tan Kai Hee, he said action done by Tun Abdul Razak is

fearless. This is because he dared to take the risk to make

contact with the communist country. Furthermore at this time,

China has been by countries around the world. (BERNAMA, June 2

2014)

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Bold actions performed by Tun Abdul Razak have been easing the

cold wars that are being churned out in ASEA. The cold war is

also making to have flex connections between countries

throughout the ASEA. But the action has resulted in the country

ASEA do diplomatic relations with China. Among his gods is

Philippine and Thailand. (Alan Thing, Mei 31, 2014)

3.0 GOVERNMENT UNDER DATUK SRI NAJIB RAZAK

Datuk Sri Najib bin Tun Andul Razak, is the fifth Prime

Minister of Malaysia. He also the son of Tun Abdul Razak, the

second Prime Minister of Malaysia. During the reign of Najib,

relations directly at the going. Many cooperative run together

between Malaysia-China. Malaysia-China not only carry out

cooperation in field economy only, but also cooperation in

doing by Malaysia-China covers a wide range of aspects. Among

of them is education, tourism, culture and so on.

On 31 Mei 2014, is the 40th anniversary of diplomatic relation.

By it, Bank Negara of Malaysia is assign commemorative coins to

commemorate the anniversary of Malaysia-China diplomatic

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relation 40th. The commutative coins were presented by Datuk

Sri Najib to He Li Kequing, China’s Prime Minister as sign of

diplomatic relation between the two countries. (Bank Negara,

May, 31 2014)

On Mac 2012, one collaboration run by Malaysia-China. Malaysia

has been give confidence by China to conduct industrial park in

China. This industrial park name is, Industrial Park of Qinzhou

(QIP) China- Malaysia at Guangxie Nanning. In addition, in

April 2012, Malaysia-China also has been conducting cooperation

to build industrial parks in Gebeng Kuantan. (Wan Mohd Hafiz W.

Hamzah, June 18, 2012)

Malaysia-China not only does cooperation in the field of

economy, but they also do cooperate in the exchange of ideals.

For example, in Mei in 2012, the management in Shaoxing, China

signed a memorandum of understanding, (MoU) with Malacca State

Government. It is intended to strengthen in economics an

exchange of ideas. This is will results in stronger relations

China and express their views and ideas can be shared. ( Wan

Mohd Hafiz W. Hamzah, Jun 18, 2012)

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To further the relationship between Malaysia-China, on Jun

2012, Malaysia has signed maintenance 2 pandas. The pandas will

be lent by China to the Malaysia Kingdom for ten years. In

2014, the panda has survived down to Malaysia and in showcase

to lay audiences. The panda is a symbol of the diplomatic

relationship between Malaysia-China has been interwoven all

long.

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4.0 TYPE OF RELATION BETWEEN MALAYSIA-CHINA

4.1 DIPLOMATIC TIES

Malaysia's relations with China have a special personal

significance. When China and Malaysia work in partnership, the

result shows that both countries can maintain harmony and

stability in the region and further the dynamic economic

development which benefits their communities and the world

(News. June 03, 2009). The year 2014 has been designated by

both the governments of Malaysia and China as “Friendship Year”

to commemorate the 40th. Anniversary of Diplomatic Relations.

Bilateral relations between Malaysia and China have a long

history. Diplomatic relations between China and Malaysia have

reached 40 years old and did not include diplomatic relations

from the time of Sultanate of Malacca (Fairus Mamat, 2014).

Diplomatic relations began on 31 May 1974 that has opened a new

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sheet in bilateral relations between the two countries after

Tun Abdul Razak made the historic visit to China. Since then,

the leaders of Malaysia and China make mutual visits. Among the

leaders of China who used to visit Malaysia is Deng Xiou Ping,

Jiang Zemin, Li Peng, Zu Rongji and Hua Jintao (Alan Ting, May

31, 2014. While Malaysia, Prime Minister Tun Hussein Onn, as Dr

Mahathir Mohamad and Tun Abdullah Badawi visited China. In

fact, Tun Dr Mahathir himself has visited China seven times.

Malaysia is the first Asean member established diplomatic

relations with China in 1974 until there has peace and security

in the region (BERNAMA, Mac 27, 2013). Tun Abdul Razak was

visited to China for make relation show the initiative most

daring from him because when China was excluded by the world

when China was hit by the cold war because of that relation

between communist China with country not communist that

participating in Asean is very bad and the Communist Party of

china supports the struggle for Malayan Communist Party but he

was ignore about conventional views and was signing of joint

statement for the network of diplomatic relations with China.

Malaysia and China hoped that the bilateral relations between

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the two countries will be further enhanced, especially under

the new leadership of China (Sinar Harian, 13 June 2013).

4.2 ECONOMIC TRADE

Economic trade also one important initiative to make relations

between China and Malaysia. China become Malaysia's largest

trading partner in 2010 and Malaysia has been China's largest

ASEAN trading partner since 2008 (Sinar Harian, June 13, 2013).

Trade between Malaysia and China hit about $75 billion last

year and grew at an average of 20% annually in the past few

years ( CIMB Group, 2011). In 2008, economic relations Malaysia

and China strengthened especially in Guangdong, China with a

mechanism as a platform to expand relations with Guangdong and

Malaysia because Guangdong has achieved economic transformation

and has large economic size. Because of that, Datuk Seri Najib

Tun Razak urge that joint venture initiative of China and

Malaysia in the high technology industries established

especially in the field of electronics, information technology

and bio medical. After that, he suggest traders in the country

and Guangdong was involved in five development corridors in

Malaysia (Utusan Online, 12 Sept. 2008). Since 2009, China is

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the largest trading partner of Malaysia. By 2010, the volume of

trade between the two countries reached us $ 50 billion

(Education News, 31 Mei 2014), while investments together into

an integral part of bilateral relations in the fields of

economy and trade. China is one of the best markets for

Malaysian products because of have a population of about 1.3

billion people and a strong economic growth. This indicates

that China and Malaysia complement each other in providing

natural resources and industrial structure. In April 2013,

Malaysia and China yesterday signed agreement Program Five-Year

on Economic Cooperation and Trade for the period from 2013 to

2017 and the program will strengthen the relationship the two

countries thus becoming marker next step in strengthening the

cooperation in the future and also beneficial to operators of

small and medium enterprises locally (Utusan Online, October

04, 2013). In April 2012, collaboration in economics between

Malaysia-China has agreed to develop the industrial park about

606 hectares in Gebeng, Kuantan in collaboration with

Governments and companies in Malaysia. China's economic growth

can make the investment and trade in Malaysia can be better.

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China and Malaysia have close economic relations through a

strategic alliance. (Sinar Harian, June 13, 2013)

4.3 TOURISM

Developing economies in the country can be make developing in

tourism industry. Relations between Malaysia and China also

very important in tourism industry because when Malaysia make

relation with china so we can get many benefit such as increase

of the national economy, develop backward areas and provide job

opportunities to the people. In tourism Malaysia, China is the

third most big country visit Malaysia where tourism is the

sixth highest contributor to the GDP of this country about 1.79

million of China visited the country last year, an increase of

15% over the previous year. Tourism Minister Datuk Seri Dr Ng

Yen Yen said that Malaysia consider cooperating with China to

develop tourism sightseeing boat as new tourism products. China

showed keen interest to work with Malaysia to share opinions

and discuss some of the formula to attract more investors from

China to invest in the tourism industry, particularly the hotel

and resort industry. The Chairman Of China National Tourism

Administration Shao Qiwei said that China is ready to work

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together with Malaysia and countries in the Middle East to

develop tourism cruise boats and he also said that the number

of tourists from China to Malaysia grew by 28 percent for the

first six months of 2010 (BERNAMA, August 03, 2010). As a

result of the loss of the aircraft Flight MH370 on 8 March,

Travel agencies in China reported a sharp decline in visitor

China to Malaysia such as fall 50% but the Chinese Ambassador

said that the relationship between the two countries remain

strong and try to improve the relationship seriously damaged

because have a long relation before. In addition, according to

Minister of Tourism and Culture, Datuk Seri Mohamed Nazri Aziz,

he believes the confidence of Chinese tourists to visit

Malaysia grew stronger after the visit by the Prime Minister,

Datuk Seri Mohd Najib Tun Razak to China in conjunction with

the 40 anniversary of diplomatic relations on 30 May. (Berita

TV3, Nov. 17, 2014)

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5.0 BENEFITS THAT CAN BE ACHIEVED THROUGH DIPLOMATIC RELATION

Next, discuss the benefits that can be derived from the

prosperity and welfare as a result of diplomatic relations

established by a Malaysia - China. Among them are:

5.1 ASPECTS OF SAFETY AND SECURITY

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Results of the diplomatic ties were established between

the two countries, safety can be achieved by having a

relationship strategy befriend between the two countries. The

year 2014 has been designated by both the governments of

Malaysia and China as “Friendship Year” to commemorate the

40th. Anniversary of Diplomatic Relations. The decision,

indeed, reflect the mutual satisfaction that bilateral

relations have evolved into a healthy growth with substantive

cooperation in almost all sectors to merit a celebration to

mark the milestone. For those of us who have closely followed

the evolution of Malaysia-China Relations over these decades,

cannot but agree that relations have indeed blossomed beyond

expectation. A solid diplomatic foundation has been established

between the two countries, opening wider and deeper

opportunities to further build upon the achievements of the

last 40 years. (Dato’ Abdul Majid Ahmad Khan, 2014)

Looking back now, Tun Razak’s vision has become a reality as

the bond of friendship and partnership between Malaysia and

China is at its best today. This success has not come by

accident. It has been a direct result of the long standing

commitment of successive leadership both in Malaysia and China

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fostering and nourishing the relations into a much stronger and

more broadly based over the years. The building of mutual trust

and confidence, coupled with deepening economic collaboration

further boosted the two nations’ ties. As economic relations

deepened and further reforms unlocked, creating further

cooperative opportunities, diplomatic ties strengthened and

bilateral trades soared. (Dato’ Abdul Majid Ahmad Khan, 2014)

5.2 ECONOMIC ASPECTS

Cooperation between ASEAN and China was elevated to a higher

level with the signing of the Framework Agreement on

Comprehensive Economic Cooperation by the ASEAN and China Heads

of State / Government on 4 November 2002 in Phnom Penh,

Cambodia. The Framework Agreement which came into force on 1

July 2003 is an umbrella Agreement which provides general

provision on the establishment of an ASEAN-China Free Trade

Area (ACFTA) within 10 years by pursuing:

progressive elimination of tariffs and non-tariff

barriers;

progressive liberalisation of trade in services and

investment;

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strengthen trade facilitation measures; and

economic co-operation in areas of common interest.

(Ministry of International Trade and Industry, 2012)

The establishment of an FTA between ASEAN and China will create

an economic region with 1.7 billion consumers, regional GDP of

about US$2 trillion and total trade estimated at US$1.23

trillion. It will be the biggest and largest FTA among

developing countries. With a population of 1.2 billion, market

access opportunities through preferential trade for Malaysian

products will increase. The removal of trade barriers between

ASEAN and China will lower costs, increase intra-regional trade

and strengthen the attractiveness of Malaysia and the region as

a preferred investment destination. Agreement on Trade in Goods

of the Framework Agreement on Comprehensive Economic

Cooperation between ASEAN and China:

List of products offered for tariff reduction beginning 20

July 2005.

List of products listed under the Sensitive Track

Product Specific Rules under the ASEAN-China Free Trade

Area.

ASEAN Consultation to Solve Trade Investment Issues (ACT).

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Framework Agreement on Comprehensive Economic Cooperation

between ASEAN and People's Republic of China.

Protocol to Amend the Framework Agreement.

Agreement on Dispute Settlement Mechanism of the FrameworkAgreement on Comprehensive Economic Cooperation between ASEAN and China. (Ministry of International Trade and Industry, 2012)

Prime Minister Datuk Seri Najib Tun Razak had asked President

Xi Jinping to help woo more Chinese investors to Malaysia. He

said China had only invested about US$1bil (RM3.3bil) in

Malaysia while Malaysia's investments there totalled US$6bil

(RM19.8bil). China had been Malaysia's largest trading partner

since 2009, adding that he was optimistic that bilateral trade

could be increased from US$106bil (RM349.8bil) to US$160bil

(RM528bil) by 2017. (The Star Online, November 22, 2014)

In a landmark move, Malaysia and China have agreed to set up a

Yuan clearing bank here to facilitate and reduce the cost of

doing business in the country. With this agreement, Malaysia

will be the second country after Singapore in the ASEAN region

to establish a Yuan - clearing bank with China. Yesterday, Bank

Negara inked a memorandum of understanding (MOU) with the

People’s Bank of China (PBOC) in Beijing to establish Yuan

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clearing arrangements in Malaysia. (The Star Online, November

11, 2014)

5.3 THE ISSUE OF COMBATING TERRORISM

China President Xi Jinping signed agreements today to

boost economic cooperation and defence ties with Malaysia.

President Xi Jinping signed a new five-year pact aimed at

increasing bilateral trade to $160 billion by 2017 and arranged

to exchange army and navy personnel after meeting Malaysian

Prime Minister Najib Razak. China will also help Malaysia set

up a space and science laboratory as part of series of new

initiatives, the president said. China understands, Malaysia’s

important role in ASEAN and their would like to participate and

cooperate in prosperity and stability of this region President

Xi Jinping told. China would like to have closer cooperation in

defence, law enforcement, security, naval and military

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exchange, combating terrorism and transnational crime.

(Manirajan Ramasamy & Chong Pooi Koon, Oct 4, 2013)

Chinese President Xi Jinping and Malaysian Prime Minister Najib

Razak agreed to upgrade bilateral ties to a comprehensive

strategic partnership. During their talks, the two leaders

spoke highly of the achievements made in cooperation between

the two countries and exchanged views on advancing bilateral

ties under the new circumstances. They both agreed to lift

bilateral ties to a comprehensive strategic partnership. To

that end, Xi put forward a five-point proposal. Fourth from

five-point proposal, China and Malaysia must make full use of

the defence and security consultation mechanism, increase

exchanges between the two militaries, deepen law-enforcement

cooperation, and join hands in combating terrorism and trans-

border crimes. (News Xinhuat Online)

6.0 CONCLUSION

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The conclusion is that international relations is important

for a country, whether in terms of security, defense, social,

political, and economic. Thus, a country must keep its

interest. We all want to perform daily routine tasks without

being harassed or threatened by certain parties. Similarly, a

country needs to maintain its sovereignty and ensure safety

from enemy attack. It is preferable for a small country like

Malaysia. Sometimes small countries are forced to seek shelter

from the great powers, or to cooperate with other countries to

defend common interests. Among the basic requirements of the

following countries is to find a source of income. Based on

this, countries must ensure the economic importance of trade to

its sources of income. Countries that rely on trade would

maintain good relations with other countries to market its

products or to obtain the raw materials needed. Thus, if a

country wants to understand the foreign policy of a country, we

must know the basic needs of the country in terms of economic

and political security. In addition, the historical background

and culture will also affect those countries to establish

international relations with other countries. Many have

predicted that China will be the next important economy in the

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world, after the US, in a decade or so. For South-East Asian

countries such as Malaysia and Thailand which rely heavily on

exports, China’s growth represents an opportunity to broaden

their distributions and reduce reliance on the traditional

export markets of the Americas and the EU.

7.0 REFERENCE

1. Utusan Online, (2013). Malaysia, China meterai Program Lima Tahun Kerjasama Ekonomi. Retrieved on 22 November 2014 from:

http://ww1.utusan.com.my

2. BERNAMA, (2010). Malaysia Pertimbang Kerjasama Dengan China Untuk Majukan Pelancongan Bot Persiaran. Retrieved on 23 November 2014 from: http://article.wn.com

3. Berita TV3. (2014). Pelancong China ke Malaysia Meningkat.Retrieved on 23 November 2014 from:

https://my.news.yahoo.com

https://my.news.yahoo.com/

http://article.wn.com/

http://ww1.utusan.com.my/

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4. Alan Ting, (2014). Hubungan Diplomatik Malaysia-China Bermula Dengan Sepucuk Surat. Retrieved on 23 November 2014 from:

http://web3.bernama.com

5. BERNAMA, (2013). Hubungan China-Malaysia Akan TerusBerkembang Di Bawah Kepimpinan Baharu China. Retrieved On22 November 2014 from:https://my.news.yahoo.com

6. Sinar Harian, (2013). HUBUNGAN 2 HALA MALAYSIA CHINADIHARAP AKRAB. Retrieved on 20 November 2014 from:http://www.sinarharian.com.my

7. CIMB Group. (2011). Malaysia is China’s biggest tradingpartner in Southeast Asia. Retrieved on 22 Nov 2014 from:

http://www.business-in-asia.com

8. Fairus Mamat. (2014). 40 TAHUN HUBUNGAN DIPLOMATIKMALAYSIA - CHINA (1974 - 2014). Retrieved on 28 October2014 from:

http://www.blogged.my/pingbar

9. News. (2009). Malaysia-China relations have significance for Najib. Retrieved on 18 November 2014 from:http://www.mysinchew.com

10. Dr. Abdul Halim Ramli. (2009). Sejarah Hubungan Diplomatik Dengan Negara. Retrieved on 13 November 2014 from: http://abdulhalimramli.blogspot.com

http://abdulhalimramli.blogspot.com/

http://www.mysinchew.com/

http://www.blogged.my/pingbar

http://www.business-in-asia.com/

http://www.sinarharian.com.my/

https://my.news.yahoo.com/

http://web3.bernama.com/

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11. The Malaysian Insider. (2014). Lawatan Najib ke Chinalakar 40 tahun jalin hubungan. Retrieved on 2 December 2014 from:

http://www.themalaysianinsider.com

12. Bank Negara Malaysia. (2014). Pengeluaran duit syiling bersempena dengan ulang tahun hubungan diplomatic Malaysia-China ke 40. Retrieved on 2 Dicember from:

http://www.bnm.gov.my

13. Dato’ Abdul Majid Ahmad Khan, (2014). Malaysia-ChinaFriendship Association, Malaysia-China Relations,“Reflection on four decades of Malaysia-China EnhancedFriendship and Partnership”. Retrieved November 12, 2014from :

www.ppmc.com.my

14. Ministry of International Trade and Industry, (2012).Promoting Trade, ASEAN-China. Retrieved November 13, 2014from:

www.miti.gov.my

15. The Star, (November 22, 2014). Malaysia to Woo MoreChinese Investors. Retrieved December 02, 2014 from :

www.thestar.com.my

16. The Star, (November 11, 2014). Malaysia Gets to SetYuan Clearing House. Retrieved December 02, 2014 from :

www.thestar.com.my

17. Manirajan Ramasamy & Chong Pooi Koon, (Oct 4, 2013).China Boosts Malaysia Economic-Defense Ties as ObamaScraps Trip. Retrieved November 12, 2014 from :

www.bloomberg.com

http://www.bnm.gov.my/

http://www.themalaysianinsider.com/

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18. News Xinhuan Online, (2013). China, Malaysia Agree toLift Ties to Comphesensive Strategic Partnership.Retrieved November 20, 2014 from :

www.news.xinhuanet.com

Malaysia-China Relation

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