Former top ally of past Malaysia govts, MCA turns to business matchmaking with China to stay afloat

KUALA LUMPUR – After nearly two decades of dwindling political influence, the once-mighty Malaysian Chinese Association (MCA) seems to have returned to its roots as a business chamber by hosting a Malaysia-China forum on Dec 2.

The party has been expanding resources into creating links between Chinese Malaysian entrepreneurs and their counterparts from economic powerhouse China, in what is seen by observers as a bid to remain relevant to Malaysia’s Chinese community that now largely backs rival Democratic Action Party (DAP).

The party’s loss of its political influence is a far cry from the past, when the MCA – founded in 1949, way before the country’s independence in 1957 – was a key member of Malaysia’s ruling alliance Barisan Nasional (BN) for decades. MCA leaders used to head important Cabinet posts such as in the transport, health and local government ministries.

MCA has been on a losing streak since the 2008 general election, but had maintained posts as Cabinet ministers in BN before the alliance lost in the 2018 national polls, and again in 2022. It currently has only two seats in Parliament.

Today, although BN and the MCA are members of Malaysia’s governing coalition, the government is fronted by Prime Minister Anwar Ibrahim from Pakatan Harapan (PH), and not BN.

The ethnic Chinese political party, which claims a membership of one million, does not have any Cabinet ministers today, and has been struggling to position itself as a strong representative of the local Chinese community.

In Malaysia, Malays form the majority with 60 per cent of the 34 million-strong population. Ethnic Chinese and Indians make up 22.6 per cent and 6.6 per cent of the population, respectively.

“We don’t want to spend too much time in politicking on what role we play in the unity government,” MCA’s Deputy Youth chief Mike Chong told The Straits Times, adding that to stay relevant, “we exert our relationship with China to stimulate our economy and help the people”.

MCA’s political heyday was in 2004, when it won 31 seats in Parliament and had four federal ministers, eight deputy ministers and four parliamentary secretaries.

The MCA has since suffered from waning support among Chinese voters, who have increasingly turned to its long-time rival DAP, which is a member of PH.

The Chinese-led DAP, which has 40 MPs, has proven more effective in securing Chinese votes in the 2023 elections involving six states, and a series of by-elections.

To revive its standing, MCA president Wee Ka Siong has turned to fostering business relationships in the world’s second-largest economy, by hosting the 5th World Association Presidents’ Conference (WAPC) that originated in Hangzhou, China.

“As Malaysia deepens its ties with China, it is natural for some to view China’s involvement as a potential challenge. But China is not a threat; it is an opportunity,” Datuk Seri Wee told 700 participants from 14 countries in the welcoming speech on Dec 2.

Four forums, featuring Malaysian federal and state ministers, were held to promote investment opportunities in Sarawak, Penang, Pahang and Johor states’ digital economy and renewable energy sectors, as part of the 50th anniversary of Malaysia-China bilateral relationships for industry leaders. 

Business matchmatching sessions in nine fields including e-commerce, tourism and the halal industry were prepared for attendees.

The presence of two deputy prime ministers, Datuk Seri Zahid Hamidi and Datuk Seri Fadillah Yusof, as well as two top officials from the Chinese embassy to Malaysia – Ambassador Ouyang Yujing and his deputy Zheng Xuefang – at the WAPC event in Kuala Lumpur lent credibility to MCA’s ability to foster bilateral trade relationship.

“I personally would like to thank Mr Wee for putting his personal efforts to attract US$3 billion (S$4 billion) in investments by 30 Chinese companies into the dedicated halal industrial zones in Pahang and Perak (states) in September 2024,” Mr Zahid said at the WAPC dinner.

In appreciation, Mr Zahid had appointed Mr Wee as an adviser for Chinese investments in Malaysia since Oct 2024.

Representing Beijing, Mr Ouyang said China is willing to work with Malaysia to speed up the launch of China-Asean Free Trade Area Version 3.0 and jointly implement the Regional Comprehensive Economic Partnership, to improve bilateral ties.

The MCA has reached out in other ways to the mainland Chinese to burnish its standing in the local Chinese community.

The party in 2014 established an interparty relationship with the Communist Party of China, becoming the first foreign political party to support CCP general secretary Xi Jinping’s ambitious Belt and Road Initiative (BRI) global trade strategy.

The MCA in 2016 and 2017 – when its leader was a member of the Malaysian Cabinet – also set up BRI centres in Kuala Lumpur and Penang for information exchange and business matching.

Although no longer part of Malaysia’s top executive circle, MCA’s experience in administration remains valuable in helping mainland Chinese businesses connect with the Malaysian market, said Mr Chong.

“Our strength lies in our political connections. We have two deputy prime ministers, two federal ministers, and a Sarawak deputy premier attending the WAPC to share Malaysia’s success story with overseas guests,” he added.

But not everyone is convinced that the efforts to serve as a bridge between Malaysian and Chinese businesses will work, simply because MCA’s political influence has continued to wane, said Dr Phoon Wing Keong, head of the Huayan Policy Institute, a Chinese Malaysian community think-tank.

“The influential mainland Chinese enterprises and Chinese Malaysian businessmen will not use MCA’s agency services. Instead, they will deal directly with Pakatan Harapan, Malaysia’s government-linked companies, and royalty,” he told ST.

In contrast to 700 attendees at WAPC, there was a larger crowd of 4,000 delegates at the 17th World Chinese Entrepreneurs Conventions hosted by the national level Associated Chinese Chambers of Commerce and Industry of Malaysia held in Kuala Lumpur between Sept 9 to Sept 11.

Mr Phoon said through the WAPC, Mr Wee may hope to gain the post of Malaysia’s Special Envoy to China, an important ministerial position to represent the prime minister in trade and investment affairs.

The post has remained vacant under PM Anwar, as a way to balance the relationship between the MCA and the DAP in serving domestic Chinese voters.