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Saturday, October 17, 2026

Greater gains from China ties

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Greetings from Malaysia: Ahmad Zahid arriving for a five-day working visit to Beijing and Tianjin, China, to strengthen bilateral relations and expand cooperation across key sectors.

BEIJING: Malaysia must translate its strong ties with China into tangible benefits, including better jobs, advanced technology and stronger economic growth, say analysts.

Malaysia-China Friendship Association president Datuk Abdul Majid Ahmad Khan said Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi’s five-day working visit to China until Oct 16 offers an opportunity to build on high-level exchanges between the two countries.

He said Malaysia should identify strategic sectors and projects, particularly in technical and vocational education and training (TVET), green energy, digitalisation and artificial intelligence (AI), to drive growth.

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“Malaysia must ensure greater and more impactful outcomes from its strong political ties with China.

“It needs to strategise the sectors in which China can act as a catalyst for driving gross domestic product growth,” he said when contacted.

Abdul Majid said specific projects, targeted research initiatives and skills development programmes were needed to translate bilateral cooperation into tangible outcomes and meet future workforce needs.

Geopolitical expert Dr Azmi Hassan said Ahmad Zahid’s visit should go beyond TVET cooperation to cover trade, high-tech investments and technology transfer.

He said the visit could help sustain Chinese investor interest in Malaysia, particularly in emerging fields such as AI.

Five years. Three markets. One legacy

While TVET remained a key focus, Azmi said the visit’s broader success would depend on whether discussions led to sustained investments, access to advanced technology and stronger trade ties.

KRA Group political risk consultant Amir Fareed Rahim said the visit signalled continuity and momentum in high-level Malaysia-China engagement, against the backdrop of shifting US-China relations and China’s importance to Malaysia’s economy.

“However, deeper ties with China should not be seen as Malaysia aligning itself with any major power. Malaysia’s strategic autonomy means engaging China where interests converge while maintaining equally strong relationships with the United States, Asean, the European Union and other partners.

“The objective is to maximise Malaysia’s economic and strategic interests without becoming overly dependent on any single country,” he said.

Malaysian Ambassador to China Datuk Norman Muhamad said Ahmad Zahid, who arrived here yesterday, would meet Chinese leaders in Beijing before travelling to Tianjin for the World Vocational and Technical Education Development Conference 2026.

His engagements in Beijing include a bilateral meeting with Chinese Vice-Premier Ding Xuexiang, scheduled for Oct 15 at the Great Hall of the People, and a meeting with Public Security Minister Wang Xiaohong.

Norman said the meeting with Ding would focus on strengthening existing cooperation and exploring opportunities in investment, technology, human capital and TVET.

In Tianjin, Ahmad Zahid is scheduled to attend a dinner hosted by Chinese Education Minister Huai Jinpeng before delivering a keynote address at the conference’s opening session on Oct 16.

Ahmad Zahid, who chairs the National TVET Council, is expected to be the highest-ranking foreign government representative at the conference, which will bring together 21 ministers and deputy ministers from other countries, with participation from more than 100 countries.

The visit is his third to China since becoming Deputy Prime Minister in December 2022.

Malaysia and China established diplomatic relations on May 31, 1974, with China remaining Malaysia’s largest trading partner since 2009.

Bilateral trade reached RM541.54bil in 2025, accounting for 17.7% of Malaysia’s total trade of RM3.061 trillion.

Trade between the two countries rose 35.1% to RM456.68bil in the January-to-August period this year compared with the corresponding period last year

Malaysia's budget for 2027; Record Rm510bil budget tabled

 

One for the books: anwar arriv­ing for the tabling of the 2027 budget along­side (left) Fin­ance Min­is­ter II datuk Seri amir Hamzah azizan and (right) his wife datuk Seri dr Wan azizah Wan Ismail at Par­lia­ment. — FAIHAN Ghani/the Star

PETALING JAYA: The true measure of the national spending plan lies in how it benefits the people, not in the size of its allocation or the thickness of a document, says Prime Minister Datuk Seri Anwar Ibrahim.

“Its true measure is far more fundamental. It is whether more people can live with dignity, and whether the Malaysia we eventually pass on to the next generation will be fairer than the Malaysia we inherited.

“If the answer is yes, then that is genuine transformation and progress,” he added as he tabled the government’s largest budget on record.

A total of RM510bil has been allocated under the government’s national spending plan for 2027.

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“The fifth Madani budget continues an expansionary fiscal policy, mobilising the full strength of the nation, with total expenditure and investment amounting to RM510bil, compared with RM470bil previously,” he said in his budget speech in the Dewan Rakyat.

A total of RM376.8bil has been allocated for operating expenditure while RM83bil will go into development expenditure.

Aside from that, RM25bil will come in the form of investments by Government-Linked Invest­ment Companies (GLICs); RM11bil in public-private investment; and RM14.2bil in investments by ­federal statutory bodies and ­companies under the Minister of Finance Incorporated (MOF Inc.).

STEWARDS OF TOMORROW

Anwar said the government has projected higher revenue in its coffers for 2026.

This trend is expected to continue into next year.

“This year, federal revenue is projected to be higher, at RM363.6bil, compared with the original estimate of RM343.1bil. Next year, revenue is expected to continue rising to RM380.8bil.”

One for the books: Anwar arriving for the tabling of the 2027 Budget alongside (left) Finance Minister II Datuk Seri Amir Hamzah Azizan and (right) his wife Datuk Seri Dr Wan Azizah Wan Ismail at Parliament. — FAIHAN GHANI/The Star
One for the books: Anwar arriving for the tabling of the 2027 Budget alongside (left) Finance Minister II Datuk Seri Amir Hamzah Azizan and (right) his wife Datuk Seri Dr Wan Azizah Wan Ismail at Parliament. — FAIHAN GHANI/The Star

He said the Middle East crisis has also increased fuel subsidies cost to RM40bil.

“The fiscal deficit for 2026 is now projected at 3.6%, compared with the original target of 3.5%,” he said.

“Nevertheless, the deficit remains on a downward trajectory, falling from 5.5% in 2022 to 3.7% last year.”

However, Anwar hopes the deficit will narrow further to 3.3% in 2027 and subsequently to 3% by 2028.

He said the government has reduced the deficit by controlling new borrowings. Therefore the government’s debt-to-GDP ratio has declined steadily, from 65.2% in 2025 to 64% in 2026, and is expected to fall further to 63.7% in 2027.

Describing Budget 2027 as a national commitment to the future, Anwar said economic strength must translate into better lives for Malaysians.

He said economic growth must be inclusive, while reforms should help restore confidence.

“Today, these are the tests and challenges we face. The world is becoming increasingly turbulent.

“Wars, rivalry between major powers and climate change are affecting food prices and energy costs.

“Supply chains that we have long regarded as robust are beginning to fray and weaken, putting food security and the reliability of supplies to the test.

“Developments in artificial intelligence are rapidly transforming trade, energy, employment and our daily lives,” he said.

However, Anwar added that major changes also presented ­opp­ortunities for countries that were ­prepared to adapt, develop new capabilities and equip their ­people with the necessary skills.

He said Malaysia should not merely cope with these changes, but take advantage of emerging opportunities.

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The government is confident it can spend the RM510 billion allocated in Budget 2027 without introducing any new taxes, says Minister of Finance ...
Budget 2027, the Fifth MADANI Budget, totals RM510 billion, 4.3% in 2024. The 2026 Budget, tabled in late 2025, targeted a fiscal deficit of 3. .