Xi’s second visit to Malaysia, which took place on 16 April 2025, since 2013, was accepted with many applauses from Putra Jaya. It shows the positive response from Anwar’s government despite the heavy tariffs imposed by Trump that approximately hit 25%. The current visit also marks a positive outcome, as Xi and Anwar signed 31 Memorandums of Understanding (MoUs) that are committed to fostering cooperation. It ranges from the digital economy and AI to education and research sectors that are agreed to be the catalyst of both sides enhancement. Regardless of the harsh comments striking from far-right US commenters towards Anwar’s attitude circulating online, Malay netizens believe that Anwar’s administration has done something right for the nation. As a matter of fact, China has been the largest partner of Malaysia since 2009, with a value of a staggering RM 484.12 billion by 2024. At the same time, instead of the fanfare surrounding newly signed MOUs, the real challenge lies not in their ceremonial signing but in their execution. Too often , such agreements are little more than diplomatic gestures with little tangible impact.
Between Agreement and Reality:
Claps and handshakes might be appealing for a moment in Kuala Lumpur for three days as Xi and Anwar agreed on 31 MoUs. It might serve as the refreshment in the middle of intense tension as Trump rushed headlong into a trade war against 178 countries. However, a memorandum, widely known, is merely an agreement that does not come with a binding contract document. In other words, these agreements simply recognize these parties agreed upon certain matters. It happens due to various matters, and Malaysia is not an exception.
The perfect example is the High-Speed Rail (HSR) project between Malaysia and Singapore, initiated in 2016 under Najib Razak and Lee Hsien Loong. It sought to improve connectivity between the countries. Nonetheless, after Malaysia experienced a leadership shift in 2018, the initiative was put on hold and eventually scrapped in 2021 owing to financial worries and disputes regarding modifications to the project. Although it is a key regional initiative, the HSR illustrates how political changes can disrupt even prominent, ambitious MOUs. It highlights the significance of bipartisan dedication and institutional stability to guarantee enduring execution, particularly in international infrastructure initiatives that need considerable funding and ongoing diplomatic collaboration.
MoUs in Motion
Reflecting upon the predefined areas of cooperation, Putrajaya should acknowledge the country’s priority on a large scale. Projects under a “new golden era” between China and Malaysia prioritize macro-level gains and high-profile initiatives such as infrastructure development and AI innovation centers. While these efforts enhance national prestige and attract foreign investment, they frequently overlook the practical needs of local communities. Without clear strategies to integrate grassroots interests, such top-down approaches risk widening economic inequality. The benefits, such as jobs, technology transfer, or improved public services, may never reach the people most in need.
This disconnect can develop further resentment or even resistance, particularly if communities feel bypassed or burdened by projects that do not serve their interests. In some cases, land acquisition or environmental disruption further alienates local populations. For Malaysia-China cooperation to succeed sustainably, follow-through must include transparent mechanisms to ensure local engagement, equitable distribution of benefits, and inclusive development planning. Only then can such MOUs move beyond symbolic diplomacy and generate lasting, meaningful impact on the ground.
China’s Strategic Interests
The imposition of the US affects the stances of other nations by how they react. It is clear that Malaysia is one of the nations that decided not to retaliate and seek a bargain with Washington. On the other hand, Xi’s second visit debates which side Malaysia will incline to the most. Among the 31 MOUs, both sides agreed to develop a joint framework for foreign affairs and defense mechanisms. Revealing this evidence also raises questions about China’s strategic intentions in Southeast Asia, particularly regarding Malaysia’s role in the broader geopolitical landscape.
This joint security mechanism suggests a move towards closer military and strategic cooperation. While such collaboration can enhance bilateral relations, it also prompts considerations about the balance of power in the region and the implication of Malaysia’s foreign policy autonomy. Particularly, in the tension taking place in the South China Sea, Malaysia’s strategic location along vital maritime routes makes it a key player in this dynamic. Thus, it is crucial to monitor the implementation and assess whether such joint mechanisms align with Malaysia’s national interest and regional stability.
What Smart Looks Like?
While Trump raised the specter of tariffs and ceremonial MOUs may capture headlines, the implementation defines legacies. Malaysia cannot let this chance merely become paper promises. Establishing a committee task force to oversee the implementation is a must. This committee would track progress and ensure accountability. As well as to provide periodic updates to the public and prevent political disruption, as Malaysia witnessed in the HRS case. On the other hand, even though most of the agreements are a macro-level initiative, ensuring it will touch the grassroots is a must. These clauses would require large-scale projects, particularly in infrastructure and technology that fully benefit people in general through providing skills training and improving public services. This inclusivity guarantees that economic benefits are not limited to urban areas but also extend to marginalized communities. Finally, Malaysia must audit the risk of deepening defense ties with China. Any joint security framework should be carefully assessed through ASEAN’s non-aligned principles. It is noted that strategic autonomy must remain central and serve the national interest. Therefore, to truly act smart, Putrajaya must move beyond applause and anchor its decisions in accountability, inclusion, and foresight.
