Malaysia and Central Asia – A Cursory Glance at Cooperation and Interaction

H.E. Ardasher Saeedjaafar Qodiri,

Ambassador Extraordinary & Plenipotentiary of the Republic of  Tajikistan to Malaysia, Republic of Indonesia, Kingdom of Thailand and the Permanent Representative of the Republic of Tajikistan to UNESCAP with residence in Kuala Lumpur

On June 30, 2022, the Central Asian countries and Malaysia celebrated their 30th anniversary of establishment of diplomatic relations. During this period, a lot of efforts have been made to strengthen cooperation and interaction, but these efforts have been and continue to be intermittent.

It seems necessary that the parties should work to ensure that the process of developing cooperation from a leap-like one is translated into a process of consistent development and maintained in this state.

Importance of Strengthening and Expanding Political Relations

Conceptually, political cooperation of subjects of international law implies the joint work of interested parties in order to achieve certain goals that require common efforts based on a jointly developed strategy.

Malaysia and the Central Asian countries need to build an extensive system of active political contacts and dialogue both at the highest (heads of states) and at all other levels (heads of authorities), which would create a solid base for political cooperation.

Over the past thirty years of cooperation, since the period when Malaysia established diplomatic relations with the Central Asian countries (1992), certain measures have been taken and efforts have been made to strengthen cooperation. However, these measures and efforts were uneven, abrupt in nature. Visits of a high political level brought a surge of activity for a certain period of time, followed by temporary busyness with subsequent fading. It is the activation of political contacts at the highest and high levels that will give the necessary impetus to cooperation, which will need to be maintained by the efforts of all parties in a dynamic, smooth development.

Also, taking into consideration the form of government in Malaysia, which is essentially parliamentary (constitutional parliamentary), and the five Central Asian countries that, being presidential (unitary presidential), have relatively active parliaments, it is necessary to activate parliamentary diplomacy (inter-parliamentary friendship committees), which in turn can give an additional impetus to cooperation.

Malaysia and the Central Asian countries have good prospects for cooperation within the framework of regional and international organizations. However, it seems that Malaysia and the Central Asian countries are mainly focused on their cooperation within their regional organizations, and their cooperation within other organizations is purely symbolic. A possible platform for close cooperation is the OIC, in which, taking advantage of the inactivity of other members, other countries, taking advantage of their positions, dominate, and this dominance has a certain one-sidedness. The cooperation of the Muslim countries of Southeast Asia – Malaysia in tandem with Indonesia with the countries of the Central Asian region, which has made a significant contribution to the formation of Islamic civilization, will create a certain ground for a broader and deeper vision of the problems of Muslim society and their solutions.

Malaysia and the Central Asian countries can also develop cooperation in the fight against the new challenges of our time, terrorism, extremism, cybercrime and other modern evils that currently pose a global threat to the international community.

It is worth noting that the peoples inhabiting Muslim countries are relatively protected by the armour of their spiritual foundations from the distorted dogmas of modernity, cultivated by other societies (Western) that have lost their spirituality under the slogans of equality and democracy. However, the departure of the Muslim society from the basic principles of its creed revived the disease of ignorance, which caused backwardness and obscurantism. This ignorance still continues to dominate our (Muslim) minds for centuries and the eradication of this ignorance in essence should be the cornerstone of our cooperation.

Economic Mutual Benefits

A quick look at the trade and economic cooperation between Malaysia and the Central Asian countries gives a very clear picture that the countries have something to work on. The total trade turnover in 2021 reached only USD 170 million, and almost 90% of this volume is Malaysia’s exports to Central Asian countries.

For a clearer vision, we compare only two items: cotton and ores, slag & ash, which could be imported from Central Asian countries and re-exported to the markets of neighbouring countries.

Thus, Malaysia and its closest neighbour Indonesia imported USD 2.236 billion worth of cotton in 2021, and USD 5 billion worth of slag was imported in the same period. The Central Asian countries exported USD 2.5 billion worth of cotton and USD 3.46 billion worth of slag in 2020 accordingly. It can be assumed that some of these goods were delivered to the markets of Southeast Asian countries, but through third parties, not directly.

Additionally, it is also possible to note other goods that can be mined and exported from Central Asian countries, such as: iron & steel, precious stones & metals, copper and aluminium; the total import of only named goods in 2021 in Malaysia exceeded the amount of USD 22 billion, and in Indonesia USD 18 billion.

The parties should pay maximum attention to the expansion of trade cooperation.

We have already noted some primary goods for import to Malaysia from Central Asian countries; conversely it is possible to increase the volume of palm oil exports back, as well as consider the possibilities of exporting furniture and electronics at the first stage, and further expand the range of interchange in the course of studying the state of supply and demand in the markets.

The creation of logistics centres in Central Asian countries can serve as a strong enough help, taking into account that this region is land-locked.

By creating trade and logistics centres on the terms of free trade zones, it can be confidently noted that the disadvantage of the region’s lack of access to the seas will be transformed into an advantage.

Such a move will significantly increase trade.

Naturally, under the present conditions, the countries of Central Asia and Malaysia are only able to partially meet each other’s needs for these and other goods, and in order to increase the volume and expand the names of goods, the parties need to work more closely to create a legal framework and sign relevant agreements on the promotion and mutual protection of investments (the Tajik proposal is addressed to the Malaysian side in December 2020), and avoidance of double taxation.

Separately, it is worth noting the Convention on the Recognition and Enforcement of Foreign Arbitral Awards, better known as the New York Convention of 1958, which has been ratified by almost all Central Asian countries and is a strong enough argument for attracting direct investment to the region.

It should be noted that both the Central Asian and Southeast Asian regions’ trade could be mutually beneficial not only with these exemplary products, which, could be assumed, to reach this market through third countries, but also with many other goods in which both sides have the necessary potential.

The GDP PPP of Malaysia reaches almost USD 1 trillion, while the GDP PPP of all Central Asian countries slightly exceeds the bar by the same amount. Considering that the average population of Central Asian countries (76.6 million) is almost two and a half times more than the population of Malaysia (32.6 million), the GDP per capita in Malaysia (almost USD 30 thousand) is much higher than this indicator in Central Asia (just over USD 13 thousand).

A superficial analysis of trade and economic cooperation between Malaysia and the Central Asian countries in comparison with economic indicators shows that the opportunities for expanding cooperation are really good and the initiative, in this case, should come from Malaysia, as a country with a stronger economy and which needs new markets.

In principle, the Central Asian region should be of interest to Malaysia for several reasons, namely: 1) geographical location that connects different parts of the largest continent; 2) huge reserves of oil, gas and various minerals; 3) rich reserves of water resources; 4) sufficient potential to ensure their food security and et cetera.

Many other arguments can be given, but it is worth adding that Malaysia, by exploring the possibilities of cooperation with Central Asian countries, will find new markets that are essentially undiscovered for the countries of Southeast Asia, and being a pioneer in cooperation with this region, Malaysia will have that advantage.

As it was noted earlier, a serious disadvantage of the Central Asian region is the lack of direct access to the world ocean, through which, in principle, the main part of world logistics is carried out. However, with the right approach, this disadvantage can be transformed into an advantage by creating logistic hubs in the region and taking into account the population of the region and sales markets, as well as natural resources that the region is rich in. And the one who is among the first to take part in the transformation of this disadvantage into an advantage will have a certain benefit in the future.

Tajikistan can play the role of a trade gateway for Malaysia to Central Asia, Afghanistan and other neighbouring countries. At the same time, Malaysia can be a connecting link for Tajikistan and other Central Asia countries with ASEAN.

Cultural Similarity and Necessity for Interchange

An equally important area in the development of cooperation between countries is cultural relations, and it would be preferable to give priority to the importance of cultural cooperation, since it is culture that forms the being of both the individual and society, and it also embodies the whole essence of spiritual values that determines its level of development (or degradation).

The rich culture of the peoples of Central Asia and Malaysia has absorbed the heritage of previous eras, and at this stage of their historical development they share common cultural values that are based on Islamic creeds.

Through the intensification of cultural relations, a solid foundation will be laid for cooperation in other areas, including political and economic.

By strengthening cultural cooperation (organizing cultural weeks, cinema weeks, museum screenings & etc.), the countries of Central Asia and Malaysia will be able to achieve the greatest results in other equally important areas, but it is cultural cooperation that will create the necessary connection between the peoples of these countries.

Ardasher Qodiri

October 2022, Kuala-Lumpur