Malaysia’s balancing act is part of a larger Global South challenge: how to exercise agency and autonomy in an increasingly multipolar world dominated by competing giants. Xi’s second visit to Malaysia that took place on 16 April 2025 since 2013 was accepted by many applauses from PutraJaya. It shows the positive response from Anwar’s government despite the heavy tariffs imposed by Trump that approximately hit 25%. The current visit also marks a positive outcome as Xi and Anwar signed 31 Memorandum of Understanding (MoU) that is committed to fostering cooperation. It ranges from digital economy and AI to education and research sectors that are agreed to be the catalyst of both side enhancement. Regardless of the harsh comment striking from far-right US commenters towards Anwar’s attitude circulating online, Malay Netizens believe that Anwar’s administration had done something right for the nation. Matter of fact, China is still standing as the largest partner of Malaysia since 2009 that was valued at a staggering RM 484.12 billion by 2024. At the same time, instead of the fanfare surrounding newly signed MoUs, the real challenge lies not in their ceremonial signing but in their execution. Too often , such agreements are little more than diplomatic gestures with little tangible impact.

Between Agreement and Reality

Claps and handshakes might be appealing for a moment in Kuala Lumpur for three days as Xi and Anwar agreed on 31 MoUs. It might serve as the refreshment in the middle of intense tension as Trump rushed headlong into war trade against 178 countries. However, a memorandum, widely-known, is merely an agreement that does not come with a binding contract document. In other words, these agreements simply recognises these parties agreed upon certain matters. It happens due to various matters and Malaysia is not an exception.

The perfect example is The High-Speed Rail (HSR) project between Malaysia and Singapore, initiated in 2016 under Najib Razak and Lee Hsien Loong. It sought to improve connectivity between the countries. Nonetheless, after Malaysia experienced a leadership shift in 2018, the initiative was put on hold and eventually scrapped in 2021 owing to financial worries and disputes regarding modifications to the project. Although it is a key regional initiative, the HSR illustrates how political changes can disrupt even prominent, ambitious MoUs. It highlights the significance of bipartisan dedication and institutional stability to guarantee enduring execution, particularly in international infrastructure initiatives that need considerable funding and ongoing diplomatic collaboration. 

MoUs in Motion 

Reflecting upon the predefined areas of cooperation, Putrajaya should acknowledge the country's priority on a large scale. Projects under a “new golden era” between China and Malaysia, prioritise macro-level gains and high-profile initiatives such as infrastructure development and AI innovation centers. These efforts increases national prestige and also draws in foreign investment, but greatly disregards practical needs of local communities. Without very clear strategies on how to integrate grassroots interests, such top down approaches are likely to increase economic inequality. The benefits such as Jobs, technology transfer or even the improvement of public services may never come to those who need it the most.

This particular disconnect can lead further to the development of resentment or even resistance by the affected communities if they feel left out, or overburdened by projects that do not serve their interests. In other instances, land acquisition or environmental disruption alienate local populations even further away. For Malaysia-China cooperation to be sustainable, follow-through must therefore entail, among others, processes that guarantee local participation, equitable distribution of benefits, and inclusive development planning. Only then can such MoUs step out from the realm of political symbolism and produce tangible, effective as well as lasting meaningful impact on the ground.

China Strategic Interests

The imposition of the US affects the stances of other nations by how they react. It is clear that Malaysia is one of the nations that decided not to retaliate and seek a bargain with Washington. On the other hand, Xi’s second visit debates which side Malaysia will incline the most. Among the 31 MoUs, both sides agreed to develop a joint framework for foreign affairs and defense mechanisms. Revealing this evidence, it also raises questions about China's strategic intentions in Southeast Asia, particularly regarding Malaysia's role in the broader geopolitical landscape.

This joint security mechanism implies a strategic move towards closer military and strategic cooperation. Although such collaboration can be beneficial in improving bilateral relationship, they also raise some questions about the power redistribution and balance in the region as well as impact on the Malaysian foreign policy autonomy. Particularly, in the tension taking place in the South China Sea, Malaysia’s strategic location along vital maritime routes makes it a key player in this dynamic. Thus, it is crucial to monitor the implementation and assess whether such joint mechanisms align with Malaysia’s national interest and regional stability.

What Smart Looks Like?

While Trump raised the fire of tariffs and ceremonial MoUs may capture headlines, but the implementation defines legacies. Malaysia cannot let this chance to merely become paper promises. Establishing a committee task force to oversee the implementation is a must. This committee would track progress, ensure accountability. As well as to provide periodic updates to the public and prevent political disruption as Malaysia witnessed the HRS case. On the other hand, even though most of the agreements are a macro-level initiative, ensuring it will touch the grassroots is a must. These clauses would require large scale projects, particularly in infrastructure and technology that fully benefits People in general through providing skills training and improving public services. This inclusivity guarantees that economic benefits are not limited to urban areas but also extend to marginalized communities. Finally, Malaysia must audit the risk of deepening defense ties with China. Any joint security framework should be carefully assessed through ASEAN’s non-aligned principles. It is noted that strategic autonomy must remain central and serve the national interest. Therefore, to truly act smart, Putrajaya must move beyond applause and anchor its decisions in accountability, inclusion, and foresight. Malaysia's challenge is the Global South’s challenge: to engage powerfully, yet autonomously, in a rapidly shifting world order.

Note: A version of this article was previously published in Modern Diplomacy on April 25, 2025, under the title; "Trump Raised Fire,  Xi Plays Cool, Anwar Ought to Act Smart" and is accessible here