Kuala Lumpur, Riyadh to Finalize 9 Development MoUs

Datuk Wan Zaidi Wan Abdullah, Ambassador of Malaysia to the Kingdom of Saudi Arabia (Photo: Yazeed al-Samrani)
Datuk Wan Zaidi Wan Abdullah, Ambassador of Malaysia to the Kingdom of Saudi Arabia (Photo: Yazeed al-Samrani)
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Kuala Lumpur, Riyadh to Finalize 9 Development MoUs

Datuk Wan Zaidi Wan Abdullah, Ambassador of Malaysia to the Kingdom of Saudi Arabia (Photo: Yazeed al-Samrani)
Datuk Wan Zaidi Wan Abdullah, Ambassador of Malaysia to the Kingdom of Saudi Arabia (Photo: Yazeed al-Samrani)

A Malaysian diplomat revealed that discussions with Saudi Arabia were underway to finalize nine memoranda of understanding to enhance bilateral cooperation.

He noted that Kuala Lumpur and Riyadh have signed agreements on 18 industrial projects since December 2021, with total investments of $1.65 billion, which are expected to generate around 2,560 job opportunities.

In an interview with Asharq Al-Awsat, Datuk Wan Zaidi Wan Abdullah, Ambassador of Malaysia Riyadh, said: “Malaysia and the Kingdom have signed a total of 26 MoUs and agreements, and there are around 9 MoUs currently being discussed by the two sides based on the mutual visits that took place this year.”

“The two countries look forward to increasing their cooperation, including in the field of diplomatic training, health, housing development, and many other areas in the coming year.”

Datuk pointed that the two countries signed three new agreements in March 2021 during the official visit of then-Prime Minister Tan Sri Muhyiddin Yassin to the Kingdom. Those included the establishment of the Saudi-Malaysian Coordination Council, an MoU on the Umrah pilgrims, an another on Islamic affairs.

According to Datuk, the projects were mainly focused on chemical industries, food processing, electronics, electrical products, textile, and plastics.

He noted that the Kingdom’s main investments in Malaysia include Petronas, a joint venture with Saudi Aramco in the Pengerang Integrated Complex (BIC), as well as a partnership in Al-Rajhi Bank.

On the two countries’ cooperation in the fields of electronic industries, technology, mining, green economy, hydrogen and renewable energy, the ambassador explained that Riyadh and Kuala Lumpur signed the minutes of the establishment of the Saudi-Malaysian Coordination Council in March 2021, during the official visit of the former Prime Minister to Saudi Arabia, hoping that the council would serve as a comprehensive bilateral forum for consultations, chaired by the foreign ministers of the two countries.

“Malaysia enjoys close relations with the Kingdom, based on common values and aspirations to strengthen the unity of the Islamic nation. The deep-rooted ties are built on extensive contacts between the peoples of the two countries,” Datuk told Asharq Al-Awsat.

“The massive economic transformation in the Kingdom over the past decades, which coincided with the economic development of Malaysia, has greatly contributed to this multifaceted bilateral cooperation.”

He added that in 2021, Saudi Arabia was Malaysia’s 17th trading partner, the 25th largest export destination, and the 15th largest source of imports, while Malaysia was Saudi Arabia’s 12th trading partner and the 21st export destination in 2020.

Datuk continued: “From January to September 2022, the total trade between the two countries increased by 135.1 percent, to $7.32 billion, compared to $3.11 billion in the same period in 2021… Exports increased by 51 percent to $1.3 billion, compared to $860 million for the same period last year.”

He explained that the main Malaysian exports to the Kingdom included palm oil agricultural products, petroleum products, processed foods, electronics, and palm oil-based products.

Imports from Saudi Arabia include, according to Datuk, chemical and petroleum products, metal industries, and rubber merchandises.



US Tariffs Could Slow China's Growth to 4.5% in 2025

People walk past a billboard which reads I love Beijing, Happy New Year at 798 art district, ahead of the upcoming Lunar New Year, marking the Year of the Snake, in Beijing on January 14, 2025. (Photo by JADE GAO / AFP)
People walk past a billboard which reads I love Beijing, Happy New Year at 798 art district, ahead of the upcoming Lunar New Year, marking the Year of the Snake, in Beijing on January 14, 2025. (Photo by JADE GAO / AFP)
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US Tariffs Could Slow China's Growth to 4.5% in 2025

People walk past a billboard which reads I love Beijing, Happy New Year at 798 art district, ahead of the upcoming Lunar New Year, marking the Year of the Snake, in Beijing on January 14, 2025. (Photo by JADE GAO / AFP)
People walk past a billboard which reads I love Beijing, Happy New Year at 798 art district, ahead of the upcoming Lunar New Year, marking the Year of the Snake, in Beijing on January 14, 2025. (Photo by JADE GAO / AFP)

China's economic growth is likely to slow to 4.5% in 2025 and cool further to 4.2% in 2026, a Reuters poll showed, with policymakers poised to roll out fresh stimulus measures to soften the blow from impending US tariff hikes.

Gross domestic product (GDP) likely grew 4.9% in 2024 - largely meeting the government's annual growth target of around 5%, helped by stimulus measures and strong exports, according to the median forecasts of 64 economists polled by Reuters.

But the world's second-largest economy faces heightened trade tensions with the United States as President-elect Donald Trump, who has proposed hefty tariffs on Chinese goods, is set to return to the White House next week.

“Potential US tariff hikes are the biggest headwind for China's growth this year, and could affect exports, corporate capex and household consumption,” analysts at UBS said in a note.

“We (also) foresee property activity continuing to fall in 2025, though with a smaller drag on growth.”

Growth likely improved to 5.0% in the fourth quarter from a year earlier, quickening from the third-quarter's 4.6% pace as a flurry of support measures began to kick in, the poll showed.

On a quarterly basis, the economy is forecast to grow 1.6% in the fourth quarter, compared with 0.9% in July-September, the poll showed.

The government is due to release fourth-quarter and full-year GDP data, along with December activity data, on Friday.

China's economy has struggled for traction since a post-pandemic rebound quickly fizzled out, with a protracted property crisis, weak demand and high local government debt levels weighing heavily on activity, souring both business and consumer confidence.

Policymakers have unveiled a blitz of stimulus measures since September, including cuts in interest rates and banks' reserve requirements ratios (RRR) and a 10 trillion yuan ($1.36 trillion) municipal debt package.

They have also expanded a trade-in scheme for consumer goods such as appliances and autos, helping to revive retail sales.

Analysts expect more stimulus to be rolled out this year, but say the scope and size of China's moves may depend on how quickly and aggressively Trump implements tariffs or other punitive measures.

More stimulus on the cards

At an agenda-setting meeting in December, Chinese leaders pledged to increase the budget deficit, issue more debt and loosen monetary policy to support economic growth in 2025.

Leaders have agreed to maintain an annual growth target of around 5% for this year, backed by a record high budget deficit ratio of 4% and 3 trillion yuan in special treasury bonds, Reuters has reported, citing sources.

The government is expected to unveil growth targets and stimulus plans during the annual parliament meeting in March.

Faced with mounting economic risks and deflationary pressures, top leaders in December ditched their 14-year-old “prudent” monetary policy stance for a “moderately loose” posture.

China's central bank is expected to deploy its most aggressive monetary tactics in a decade this year as it tries to revive the economy, but in doing so it risks quickly exhausting its firepower. It has already had to repeatedly shore up its defense of the yuan currency as downward pressure pushes it to 16-month lows.

Analysts polled by Reuters expected the central bank to cut the seven-day reverse repo rate, its key policy rate, by 10 basis points in the first quarter, leading to a same cut in the one-year loan prime rate (LPR) - the benchmark lending rate.

The PBOC may also cut the weighted average reserve requirement ratio (RRR) for banks by at least 25 basis points in the first quarter, the poll showed, after two cuts in 2024.

Consumer inflation will likely pick up to 0.8% in 2025 from 0.2% in 2024, and rise further to 1.4% in 2026, the poll showed.