China’s new development paradigm, dubbed the “Dual Circulation Strategy”, will impact on the direction of Belt and Road Initiative (BRI) projects. Shifting away from infrastructure projects, the BRI will be reoriented towards three key areas of public health, digital transformation and green development. As a result, Malaysia stands to lose 6.5% of GDP in the medium term. Malaysia should seize this opportunity to adapt to these changes and attract Chinese investments that will upgrade its industries. This policy brief recommends that Malaysia and China establish a disease research centre, launch innovation programmes, and collaborate on climate financing and green technology sharing.
Institute of Strategic and International Studies (ISIS) Malaysia