KUALA LUMPUR: Malaysia and China signed a slew of economic agreements Thursday, reinforcing an uptick in relations and a bid to identify new areas of regional economic cooperation.
The deals, witnessed by Malaysian premier Najib Razak and his Chinese counterpart Wen Jiabao during a two-day visit to the Malaysian capital, will see the setting up of power plants, an aluminium smelter and other infrastructure projects in the country.
"Today's signing to expand and deepen economic and trade cooperation signifies a deep commitment between the two governments to identify new areas of economic collaboration that should stimulate more trade and investment between both countries," Najib said following meetings with Wen.
"We are very confident that given (Wen's) strong leadership that China will continue to grow and provide strong impetus for global economic growth," he added.
The Chinese premier said that "the development of an equal and beneficial relationship would bring greater benefit to both countries."
"China appreciates Malaysia's role in enhancing the ties of China with other ASEAN (Association of Southeast Asian Nations) countries," he added.
The Asian giant is the second largest buyer of Malaysian palm oil after India, purchasing over 3.4 million tonnes last year, a 12.5 percent drop from 2009, say officials.
Last January, China's leading power grid operator SGCC and Malaysian development fund 1MDB announced plans to establish hydropower plants and a massive aluminium smelter worth $11 billion in Sarawak state on resource-rich Borneo, an island split between Malaysia and Indonesia.
An official told AFP Thursday's deals were in addition to those announced in January, but did not give further details.
Last year, China was Malaysia's largest trading partner with bilateral trade worth $45.66 billion, its second largest export destination and largest source of imports. Malaysia has also been China's largest trading partner in the 10-member Association of Southeast Asian Nations grouping (ASEAN) since 2008.
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