Overcoming Trade Wars Together

Tian Yuan

Malaysian Foreign Minister Saifuddin Abdullah on the significance of ASEAN-China cooperation for regional development

Since returning to office， Malaysian Prime Minister Mahathir Mohamads performance has drawn worldwide attention， particularly when the 93-year-old leader paid his eighth visit to China as the prime minister of Malaysia. He started his visit in Hangzhou， the capital of east Chinas Zhejiang Province， where he visited e-commerce giant Alibaba Group and had tea with its chairman Jack Ma. He also visited car-maker Geely Holding Group and test drove its latest model. In Beijing， he visited the R&D Center of DJ-Innovations， where he saw a demonstration of its UAVs （unmanned aerial vehicles） to perform crop protection and security services. The integration of Chinese wisdom and Chinese manufacturing was among the highlights that impressed him during his successful visit to China.

On Malaysia-China relations， Mahathir has stressed on many occasions that he views China as an opportunity for development and is willing to work with China to promote regional cooperation in Asia. During this visit， he called the visit an important move of the new Malaysian government to reassure the Chinese government and people that they believe a healthy and stable Malaysia-China relationship will not only benefit Malaysia， but will also contribute to regional peace， stability and prosperity.

Recently， our special correspondent sat down with Saifuddin Abdullah， Malaysias new foreign minister， to discuss a variety of issues including the foreign policy of the new government and the current tense situation in international trade.

China Report ASEAN： While China is striving to attain the Two Centenary Goals， Malaysia has embarked on a journey to build a new Malaysia. What do you think of the “New Malaysia” program proposed by the new government？

Saifuddin： As close neighbors across the sea， Malaysia and China enjoy profound traditional friendship. Both are important developing countries in Asia and natural partners for cooperation. Malaysia was an important country along the ancient Maritime Silk Road and was among the first to participate in the Belt and Road Initiative. Since the general election earlier this year， Malaysia-China relations have reached a new historic period.

Today， we are looking forward to building and showcasing a “New Malaysia.” The term was first coined by Malaysian netizens on social media seeking more freedom， better jobs and higher incomes. Their wish list for the new government also included raising the minimum wage， strengthening protections for Malaysian citizens abroad and properly handling relations with other countries. As the wish list grew， we scanned the public opinion base and formulated the basic idea of a “New Malaysia.” The new government has defined the program as the process of national reconstruction based on shared values， including democracy， freedom， equality， mutual trust and human rights.

China Report ASEAN： What has changed in terms of Malaysias foreign policy with introduction of “New Malaysia”？

Saifuddin： We have been very prudent in promoting the idea of “changing foreign policy framework，” which is to say were not looking to overhaul Malaysias foreign policy.

Were going in two new directions in the top design of Malaysias new foreign policy framework. First， were putting ASEAN first， especially our relations with Indonesia， which is why Prime Minister Mahatir chose Indonesia， “the focus of geopolitics，” as the destination of his first foreign visit after resuming office. Second is the protection of human rights. Malaysia should play a more active role in bilateral relationships and on multilateral platforms to promote implementation of the UN Sustainable Development Goals.

Supporting this top design are two major factors： First is diplomatic capability building， which involves internal reform of Malaysias Ministry of Foreign Affairs. Second is multilateral coordination. For example， at this early stage of the new Indo-Pacific balance， we should make sure to communicate our views with other parties. And， in the trade war between China and the United States， we should cope with the challenges it causes shoulder-to-shoulder with Indonesia and other developing countries.

China Report ASEAN： How does the new government feel about Malaysia-China relations？

Saifuddin： Malaysia-China relations date back thousands of years. Comprehensive cooperation between our two countries has a long history. Presently， all contracts signed by the previous government with other countries are being reassessed. Some contracts with China must be reassessed and adjusted appropriately to prevent risk such as debt. We have to put some projects on hold. The Chinese side is not to blame because the contracts were signed based on sovereign credit ratings. We have put them on hold for renegotiation. To this end， Prime Minister Mahathir has sent a special envoy to China， and I have met with my Chinese counterpart Wang Yi. We earnestly expect China to agree to renegotiate.

It should be noted that for all ASEAN member states， our relations with China are extremely important considering the new Indo-Pacific balance. Therefore， the general direction of constantly strengthening our bilateral relations will not change. Theres a lot more for ASEAN， Malaysia and China to do together， for example overcoming this unsolved trade war in which there is no winner. We seek to make joint efforts with our Chinese partners to deal with the situation. The broad scope of cooperation between ASEAN， Malaysia and China should not be undermined by a few projects.

China Report ASEAN： How will ASEAN member states， including Malaysia， make joint efforts with China to respond to the tense situation in international trade？

Saifuddin： ASEAN member states are promoting construction of the AEC （ASEAN Economic Community）. Vigorous development of social enterprises is tremendously significant to Malaysia and ASEAN. Considering the great disparity within ASEAN between very rich and very poor member states， social enterprises will help narrow the gap within ASEAN and strengthen its capability to deal with external risks， especially trade wars.

For example， Malaysia and Indonesia produce more than 80 percent of the worlds palm oil products. The industry and trade involve a large number of farmers and small and medium-sized enterprises （SMEs） in both countries. However， as the main exporters of the products， Malaysia and Indonesia have not resolved the trade friction with the main importer： the European Union. We noticed that during his recent visit to Indonesia， Chinese Premier Li Keqiang promised to import more palm oil products from Indonesia. Since the palm oil trade plays an important role in the economic and trade relations between Malaysia and China， we have a strong interest in expanding the export of palm oil products to China.