Malaysia and the New Geography of South-South Cooperation

Every September 12, the United Nations marks the International Day for South-South Cooperation, a day framed around solidarity, mutual development, and knowledge sharing among developing economies. For many nations, this remains an aspirational ideal. For others, it has evolved into something far more tangible: not just exchanging products, but bringing capital, technology, expertise, and long-term partnership into new markets. Malaysia is already deeply embedded in this shifting landscape, and the question now is whether we can build on our Asian successes to establish equally durable positions across the next generation of growth economies, beginning with Africa.

A Strong Foundation at Home and in Asia

Malaysia’s international trade crossed a historic threshold in 2025, exceeding RM3 trillion for the first time and reaching RM3.061 trillion. ASEAN alone accounted for RM777.61 trillion, 25.4% of total trade, while China, our largest trading partner for the 17th consecutive year, contributed RM542.2 billion. Together, they represent roughly 43% of all Malaysian commerce. With 17 implemented free-trade agreements spanning Asia, the Middle East, and the Pacific, trade with FTA partners surpassed RM2 trillion 65.5% of the national total. South-South commerce is not new to Malaysia; it is already central to our prosperity.

The real opportunity, however, lies beyond familiar markets. Africa offers a compelling case study. Exports to key nations are rising steadily: Kenya up 9.9% to RM6.06 billion, Nigeria +13.6% to RM2.85 billion, Tanzania +38.8% to RM2.02 billion, Togo +27.6% to RM1.82 billion, and Angola +18.9% to RM1.06 billion. Individually these figures remain modest, but the upward trajectory is unmistakable. Even more notable is investment: in 2025, Africa emerged as the largest regional destination for Malaysian direct investment abroad, at RM7 billion concentrated primarily in oil and gas, particularly in Mauritius and Angola. While this remains a fraction of our RM589.3 billion total overseas investment position RM339 billion of which is in Asia the direction of capital signals a growing commitment.

Models from Other Nations

Malaysia is not alone in recognising Africa’s potential. The United Arab Emirates has directed approximately US$60 billion across the continent, making it Africa’s fourth-largest foreign investor overall, with US$4.5 billion specifically in renewable energy. Turkish contractors have completed more than 2,000 infrastructure projects valued at over US$100 billion, with bilateral trade approaching US$35 billion and diplomatic missions expanding from 12 to 44 embassies. Indian exports reached US$36.7 billion in 2025, with companies establishing enduring presences in pharmaceuticals, automotive manufacturing, telecommunications, IT, and banking.

What unites these approaches is more than trade it is accompaniment: goods travel alongside investment, infrastructure, technology transfer, and sustained on-the-ground presence. Malaysia need not replicate any single model; our scale, capital base, and competitive strengths are distinct. But we can learn from the principle that commerce endures when it builds capacity, not just when it moves goods.

Malaysian Strengths Already Abroad

Malaysian companies have already demonstrated what is possible. PETRONAS has operated across continents for decades in Brazil building an integrated energy footprint spanning upstream production, marine services, lubricants, and fuel retail; in Africa maintaining operations across Egypt, Sudan, South Sudan, Chad, Mozambique, and beyond. SD Guthrie runs a fully owned downstream manufacturing operation in South Africa, producing industrial ingredients distributed across the region. Top Glove supplies 195 countries, with Africa accounting for roughly 3% of global sales. These successes prove Malaysian firms can operate, manufacture, and build networks far beyond Southeast Asia, yet they remain largely individual achievements rather than part of a coordinated national strategy.

Exporting to Building Together

The greater opportunity may not be simply to sell more abroad, but to internationalise Malaysian capability. Instead of asking “What can we export?” we should increasingly ask “What can we build together?” The distinction matters. The first approach can replicate old patterns one nation supplying commodities, another finished goods, merely changing which countries occupy which roles. The second creates shared value: deeper local relationships, transferred expertise, stronger supply chains, and enterprises that grow with their markets.

Malaysia offers enduring advantages: decades of experience in manufacturing, infrastructure development, utilities management, agriculture, halal food processing, Islamic finance, digitalisation, and the : decades of experience in manufacturing, infrastructure development, utilities management, agriculture, halal food processing, Islamic finance, digitalisation, and sustainable energy transition. These are not just sectors; they are capabilities honed through our own development journey and directly relevant to nations at similar stages.

The Gap: Trade Agreements and Barriers

One significant gap remains: Malaysia currently has no implemented free-trade agreement with any African country or regional bloc. FTAs are not a prerequisite for doing business, but they shape the competitive playing field. India has already begun negotiating a preferential trade agreement with the Southern African Customs Union covering South Africa, Botswana, Namibia, Lesotho, and Eswatini, seeking improved access for automobiles, pharmaceuticals, machinery, chemicals, and textiles: sectors where Malaysian exporters also compete. Without comparable frameworks, our companies may face tariffs, regulatory hurdles, and delayed market entry that rivals do not.

Beyond trade pacts lie practical barriers: financing and payment mechanisms, foreign-exchange volatility, logistics and infrastructure gaps, certification standards, and simply limited market intelligence. Addressing these requires a coordinated effort government agencies, industry bodies, and experienced firms working together to identify where Malaysian strengths align with partner needs and where shared ventures can bridge gaps.

South-South cooperation matters not because the United Nations has designated a day for it, but because a US$7.2 trillion shift in global commerce is already underway. Malaysia is not starting from zero. We trade extensively with developing economies; our capital flows toward new frontiers; our companies have proven they can succeed globally. The challenge now is to turn scattered successes into deliberate strategy, matching capability with partnership, presence with purpose, and trade with enduring shared growth.

That is the most meaningful form of cooperation: not merely exchanging goods, but building businesses, institutions, and markets side by side. And in doing so, Malaysia can shape not just what we sell to the world but what we build with it.