Its acting executive director Alvin Tee said the council is seeing interest from Chinese companies to set up data centres in places like Cyberjaya and Johor.

He said Malaysia’s advanced IT infrastructure and skilled workforce makes it an attractive destination for digital investments.

“There is interest in the semiconductor sector due to the ongoing US-China trade tensions, but it’s important for us to ensure that any investment contributes positively to our gross domestic product (GDP) and does not just rely on cheap labour or materials.

“Instead of just focusing on trade surplus numbers, we should consider things like knowledge and technology transfer, as well as people-to-people connections, which have improved a lot over the past 50 years,” he told reporters on the sidelines of the Malaysia-China Commemorative Forum today.

He added while there’s interest from China, it is crucial for the government to monitor and manage these investments to ensure long-term benefits for the economy.

Meanwhile, energy transition and water transformation deputy minister Akmal Nasrullah Nasir said China has been Malaysia’s largest trading partner for the past 15 years, making China a “reliable friend and partner”, and he foresees high potential for deeper cooperation in various industries in the future.

In 2023, total trade between both nations reached US$98.8 billion (RM468.1 billion), with imports from China accounting for US$56.69 billion (RM268.6 billion).

“These imports primarily include electrical and electronics products, machinery and chemicals. This strong trade relationship demonstrates the depth of our economic ties,” he added.