Malaysian Perceptions of China Following the Asian Financial Crisis

Abstract

This paper examines Malaysia's perception of China following the Asian Financial Crisis. The Asian Financial Crisis, which occurred in 1997, resulted in a contraction in Malaysia's GDP, which resulted in increased unemployment in Malaysia. China is a rising economy. Several bilateral visits and trade missions meet both states to achieve an advantageous economic position. Malaysia's decision to rely on China despite historical events that had sparked tensions between the two countries. Despite Malaysia's economic downturn, the country is taking swift action to address the issue. During the crisis, Malaysia viewed Western countries as irresponsible and allowed the situation to deteriorate, which later became the reason for Malaysia's relationship with China. The crisis, however, has influenced Malaysian Chinese businesses to improve their foreign policy and bilateral relations. This paper contends that Malaysia recognizes the importance of its bilateral relationship with China in stabilizing its economic development and social activity following the crisis.