Malaysia International Relations

MALAYSIA INTERNATIONAL TRADE AND RELATIONS WITH CHINA

1.1 HISTORY OF MALAYSIA INTERNATIONAL TRADE WITH CHINA

The relationship amongst Malaysia and China has been progressing very well and is at its best at any point in history. There is a long history of trade relations between the two nations since the establishment of diplomatic tie in 1974. Malaysia officially established diplomatic ties with China as the result of the Prime Ministers Tun Abdul Razak visit in China.

In 1974, Malaysia became the first of the ASEAN member state to have a formal relation with china over the past 37 years. Besides, Malaysia is China’s top trading partner within ASEAN for five years in a row since 2008. The two ways trade between Malaysia and china has make

Among the goods exported to China, Malaysia which is electronic equipment totaly $ 9.4 billion, $ 1.2 billion of plastic and rubber as much as $ 1.3 billion. China import many items of electronic equipment, plastic and rubber from Malaysia which is to meet the demands of the market where a lot of marketing to electronic items such as home appliances, plastic where to meet industrial goods, plastic goods made in China and also of rubber because of China 's lack of the resources.

Hence, apart from exporting goods Malaysia to China, Malaysia also take advantage of trade relations is to import goods from China, such as the machinery of $ 5.5 billion, iron and steel as much as $ 1.6 billion and also aluminium totalled $ 1 billion. Good that was imported from China was helping the economic development of Malaysia. (Trade, Investment & Economic Cooperation Between China and Southeast Asia: The Case of MALAYSIA, 2004)

All in all, the trade relations between Malaysia and China took place very rapidly, which can be seen the two countries are mutually need each other to meet their needs. It turns out trade relations between Malaysia and China is mutually beneficial to each other. Export and import activities between the two countries is increasing every year. Through rapid trade relations will further strengthen ties

Apart from that, the economic and political stability also can help to increase the rate of national currency to be higher to gain more profit in trade. Besides, it is also able to guarantee the safety and protection to the investor because of the peace in governmental issue and monetary in china. With the population of 1.26 billion in 31 provinces, makes china as an incredible market to invest and do trade. Many countries in the world identified china as an important trading country due to the wide market with a total population in china. Therefore many countries are trying to expends their market in china especially Malaysia. However, not only the size and huge population only that make china as a strategic place to do trade but, its also about the capacity and market potential in china that grow rapidly and make china as a strategic place for Malaysia to do investment. (PERCIVAL,