Kuala lumpur: The African continent's rapid economic growth presents export opportunities for Malaysia to reduce reliance on traditional partners and possibly hedge itself against geopolitical uncertainties, University of Nottingham Malaysia assistant professor of business economics Dr. Tan Chee Meng said.
According to BERNAMA News Agency, Dr. Tan emphasized the potential advantages for Malaysia in diversifying its trade relationships by strengthening ties with African economies, which could serve as a buffer against global political and economic shifts.
Malaysia's exports to Sub-Saharan Africa in 2024 amounted to RM16.1 billion, representing a modest share of the country's global exports. However, Dr. Tan noted that targeting African markets enables Malaysia to expand its export destinations beyond traditional partners like China, the United States, Europe, and ASEAN. This strategic move could help Malaysia adapt to the changing global economic landscape.
Ethiopia marks Prime Minister Datuk Seri Anwar Ibrahim's first stop on his African tour. From Addis Ababa, he will proceed to Johannesburg, South Africa, to attend the Group of 20 (G20) Leaders' Summit, before heading to Nairobi, Kenya, for a bilateral visit. Anwar, who also serves as Malaysia's Finance Minister, is accompanied by Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz and other officials, as well as a business delegation.
Dr. Tan highlighted the potential advantages of expanding Malaysia's appeal as an education hub for African students, boosting exports of halal products and Islamic finance services, and enhancing food security through trade and technology partnerships. These efforts could bolster Malaysia's reputation as an influential middle power, particularly in global south cooperation and green technology.
He also pointed out the risks involved, such as political and security instability in some African countries and regulatory unpredictability. Dr. Tan suggested that Malaysia should initially focus on stable African states with supportive frameworks and exercise caution with riskier markets.
For Malaysian firms, the greatest prospects in Africa, especially in Ethiopia, South Africa, and Kenya, lie in digitalization, fintech, green tech, Islamic finance, and halal products. Islamic finance and halal industries are particularly promising, as these African nations aim to develop robust infrastructure to attract Middle Eastern investments and cater to rising Muslim consumer demand.
Dr. Tan stated that Malaysia's expertise could assist these nations in establishing centralized halal authorities and training necessary personnel, aligning local governance with global best practices. This alignment could facilitate trade, investment, and collaboration between Malaysia and African partners, while also strengthening food security in Malaysia.
Prime Minister Anwar's participation in the G20 Summit underscores Malaysia's growing influence as a diplomatic and economic partner in a multipolar world. As the guest of South Africa, the current G20 President, Anwar's involvement reinforces Malaysia's position as a reliable middle power ready for dialogue and mutually beneficial engagements.
Dr. Tan emphasized that greater cooperation with Global South partners not only opens new export markets but also strengthens Malaysia's domestic food security and job creation capacities. To maximize Afro-Malaysian trade and investment, both sides need to streamline investment incentives, harmonize standards in key sectors, and reduce red tape through digital platforms. Creating joint business councils and providing clear legal protections for investors will also make cross-border ventures safer and more attractive.