Malaysia, China To Unlock Services Sector’s Potential In Digital, Green Tech

KUALA LUMPUR, Aug 22 — Malaysia aims to fully unlock the potential of its services sectors through enhanced collaborations with China, particularly in the areas of digital economy, green technology, and connectivity.

Ministry of Investment, Trade and Industry’s (Miti) Services Sector Development Division senior director, See Chee Kong said both countries should work towards further deepening existing collaboration in the digital sphere, particularly in areas such as cross-border e-commerce, artificial intelligence (AI), and smart city development.

“Cross-border e-commerce platforms enable our small and medium-sized enterprises (SMEs) to access vast markets, while cooperation in digital infrastructure and data management can enhance our business ecosystems,” he said.

Speaking to Bernama at the China Jiangsu Service Trade Expo 2025 here, he said Miti is also looking at ways to enhance collaboration with not just the Jiangsu province, but with other promising provinces in China. 

See noted that both Malaysia and China share a common commitment to sustainability and could strengthen their services trade by collaborating in renewable energy services, developing green data centres and promoting a vibrant ecosystem for electric vehicles and their associated infrastructure.

He added that beyond physical infrastructure projects such as the East Coast Rail Link (ECRL), both countries could explore strengthening connectivity in the services sector.

“This includes improving logistics such as air connectivity between China and the Southern region of West Malaysia, Sabah and Sarawak.

“They could also explore enhancing financial services to facilitate smoother trade, as well as fostering people-to-people exchange through education and tourism services. This will help build the required talent and cultural understanding needed for long-term growth,” he said.

On April 16, during President Xi Jinping’s visit to Malaysia, both countries signed a memorandum of understanding that aims to enhance trade in services and industrial cooperation.

The overall bilateral services trade between the two countries reached RM44.42 billion in 2024, a 57.2% increase year-on-year.

China has been Malaysia’s largest trading partner for 16 consecutive years, with total bilateral trade reaching RM484.12 billion in 2024.

“The strategic partnership between the two nations has further solidified through key collaborations, including the Belt and Road Initiatives and the Five-Year Programme for Economic and Trade Cooperation.

“As China is one of Malaysia’s top three destinations for both export and import of the services trade in 2024, the Malaysian government, through Miti, is committed to facilitating this growth, recognising its potential to diversify our economy and enhance our competitiveness,” he said.