Malaysia and Uzbekistan – Building Stronger Bilateral Ties

Want to know the secret to unlocking growth in Central Asia? Look East. Malaysia and Uzbekistan are quietly building a powerful partnership, and it’s one you need to know about. This isn’t just diplomacy; it’s a dynamic relationship fueled by booming trade, exploding tourism, and deep cooperation across key sectors like tech and Halal industries. It’s a modern collaboration grounded in shared values and a focus on shared prosperity. As Uzbekistan looks towards Asia, Malaysia has emerged as a crucial partner, bringing expertise, investment, and collaborative growth. Ready to see how this partnership is creating exciting new possibilities?

This year marks the 33rd anniversary of the establishment of diplomatic relations between Malaysia and Uzbekistan, a significant milestone that underscores the enduring strength and resilience of their bond. The bedrock of this relationship lies in the strong ties of friendship between the Uzbek and Malaysian people, deeply rooted in a shared Islamic heritage, similar customs, and converging cultural values. These shared cultural touchstones provide a solid foundation for building trust and understanding. High-level visits, including the significant visit of Malaysian Prime Minister Datuk Seri Anwar Ibrahim to Uzbekistan in May 2024, and established mechanisms for ongoing interstate dialogue have played a crucial role in fostering and deepening bilateral interaction.

Related: Uzbekistan Adopts Global Islamic Finance Standards to Drive Economic Growth

Trade and Industrial Collaboration

The economic dimension of the Malaysia and Uzbekistan partnership is particularly vibrant and dynamic, with significant strides made in expanding trade relations, attracting foreign investment, and fostering industrial cooperation. Bilateral trade has witnessed remarkable and consistent growth, increasing 2.5 times since 2020, clearly demonstrating the increasing interconnectedness of the two economies and the mutual benefits of closer economic ties. The growing number of joint ventures with Malaysian capital operating in Uzbekistan, now reaching 37, is a clear indication of the growing confidence of Malaysian businesses in the Uzbek market and the favorable investment climate being cultivated.

Furthermore, the landmark agreement to establish a special Uzbek-Malaysian industrial zone signals a shared commitment to promoting high-tech projects, fostering innovation, and driving sustainable industrial development in Uzbekistan. The significant Uzbek-Malaysian Business Forum held in Samarkand during Prime Minister Anwar’s visit resulted in the signing of an impressive package of 19 investment agreements worth over US$3 billion, underscoring the strong and growing interest from both sides in expanding economic ties and exploring new avenues for collaboration.

Malaysia’s remarkable achievements and global leadership in the semiconductor industry, which contributes a substantial 25% to its GDP and positions it as a global powerhouse in chip exports and assembly, offer a compelling and mutually beneficial opportunity for collaboration. Uzbekistan can strategically leverage Malaysia’s extensive expertise and technological advancements in this high-tech sector to develop its domestic high-tech capabilities, diversify its economy, and create new job opportunities. Malaysia’s ambitious and well-defined National Semiconductor Development Strategy, with its substantial investment plans, further strengthens the potential for a robust and long-term partnership in this crucial and strategically important area.

Similarly, Malaysia’s established leadership and strong performance in the pharmaceutical industry, with its multi-billion dollar profits, presents another promising avenue for mutually beneficial collaboration. Sharing knowledge, best practices, and expertise in pharmaceutical production, research and development, and regulatory frameworks can contribute significantly to the further development and modernization of Uzbekistan’s healthcare sector, improving access to quality medicines and enhancing healthcare outcomes for the population.

Expanding Global Opportunities

The rapidly expanding global Halal market, estimated at a staggering US$2.6 trillion and projected to reach an impressive US$5 trillion by 2030, represents a significant area of convergence and shared interest for both Malaysia and Uzbekistan. Malaysia’s recognized global leadership in Halal certification, particularly through JAKIM, the Department of Islamic Development of Malaysia, provides a valuable and internationally recognized framework for Uzbekistan to develop and strengthen its domestic Halal industry. JAKIM’s stringent certification process, recognized and trusted in 49 countries worldwide, underscores its international credibility and provides a strong and reliable foundation for Uzbek Halal products to access lucrative global markets.

The ongoing and productive cooperation between JAKIM and the Agency “Uzstandart” on implementing a robust Halal certification system in Uzbekistan is a crucial and strategically important step in this direction. As Madina Aripova aptly notes, intensifying cooperation in this strategically important area will not only significantly enhance the competitiveness of Uzbek goods in the markets of Muslim-majority countries but will also facilitate Uzbekistan’s seamless integration into the increasingly complex and interconnected global Halal supply chains. This collaborative effort is not solely about economic benefits; it’s also fundamentally about ensuring that Muslim consumers around the world have access to trusted, high-quality, and ethically sourced Halal products that meet the highest international standards.

Building Expertise and Fostering Financial Inclusion

Islamic finance, with its global assets exceeding US$4.5 trillion and growing rapidly, presents another highly promising and mutually beneficial area for collaboration between Malaysia and Uzbekistan. Malaysia’s established and globally recognized position as an international center of Islamic finance, with its comprehensive and well-developed legal and regulatory framework, robust Islamic interbank money market, and thriving Syariah-compliant securities market, offers valuable lessons, best practices, and a proven model for Uzbekistan to emulate. Uzbekistan’s expressed interest in developing its Islamic banking sector, expanding access to Islamic financial products and services, and training a new generation of specialists in this rapidly growing field aligns perfectly with Malaysia’s deep expertise and extensive experience.

The presence of world-class institutions like INCEIF, and the International Center for Education in Islamic Finance, further strengthens Malaysia’s capacity to support Uzbekistan’s ambitious goals and aspirations in Islamic finance. By forging a strong partnership in this area, Uzbekistan can effectively tap into Malaysia’s rich wealth of experience, established best practices, and deep institutional knowledge to build a robust, inclusive, and accessible Islamic financial system that meets the needs of its population and contributes to economic growth.

Strong People-to-People Connections

Beyond the strong and growing economic ties, Malaysia and Uzbekistan place significant and well-deserved emphasis on expanding cultural and humanitarian exchanges, recognizing their crucial and often underappreciated role in fostering mutual understanding, building bridges between cultures, and enriching the cultural landscape of both nations. Cooperation in diverse areas like tourism, healthcare, and sports is steadily growing and gaining momentum, while educational and academic exchanges are flourishing, creating valuable opportunities for students and researchers from both countries.

The presence of approximately 500 Uzbek students pursuing their studies at prestigious Malaysian universities and the establishment of a branch of Malaysia’s Binary International University in Urgench highlight the growing and increasingly important educational links between the two countries. Uzbekistan’s proactive interest in expanding cooperation with leading Malaysian universities in strategically important fields such as green and renewable energy, artificial intelligence, the rapidly growing creative economy, Islamic banking and finance, and the dynamic Halal industry demonstrates a forward-looking and strategic approach to education, skills development, and human capital formation.

The tourism sector, with its significant economic and cultural benefits, holds immense and largely untapped potential for further growth and development, facilitated by the mutually beneficial 30-day visa-free regime for citizens of both countries. The number of Malaysian tourists visiting Uzbekistan has witnessed a significant and encouraging increase in recent years, drawn to the country’s rich and fascinating cultural heritage, its stunning architectural marvels, and its numerous Islamic historical and religious sites. Uzbekistan’s well-deserved recognition as a leading destination for pilgrimage tourism, ranking 13th in the prestigious Global Muslim Travel Index (GMTI-2023), and its recent award for “Islamic Destination of the Year” for the historic city of Khiva, further underscores its growing appeal to Muslim travelers from around the world.

Uzbekistan’s recent award as “Best Asian Travel Destination with Rich Architectural Heritage” from Malaysia highlights the shared appreciation for cultural preservation and the importance of safeguarding historical landmarks. Expanding cooperation in creating joint and well-marketed tours focused on ziyorat tourism in historically and culturally significant cities like Bukhara, Samarkand, Tashkent, and Khiva, where historical Islamic monuments, mosques, madrassas, and mausoleums abound, can further boost tourism, generate revenue, create jobs, and strengthen valuable cultural ties between the two nations.

A Partnership Poised for Continued Growth

Malaysia and Uzbekistan have successfully established a strong, enduring, and mutually beneficial partnership, built on a solid foundation of shared values, mutual respect, and a common vision for sustained economic prosperity and regional stability. The ongoing and expanding collaboration across a diverse range of sectors, from trade, investment, and industry to education, tourism, and cultural exchange, clearly demonstrates the depth, breadth, and dynamism of this increasingly important relationship.

The Malaysia-Uzbekistan partnership is a dynamic engine for growth, with Malaysia as a key Asian partner. This collaboration brings expertise in tech, Halal industries, and Islamic finance, alongside significant investment. Grounded in shared values, it promises substantial benefits through booming trade, tourism, and cultural exchange. By deepening cooperation, both nations aim for shared prosperity, regional stability, and enhanced global standing. This partnership is a model for 21st-century collaboration.