PRIME MINISTER Datuk Seri Anwar Ibrahim has reaffirmed the country’s strong ties with Laos, praising its ongoing commitment to bilateral and regional cooperation, particularly in support of Malaysia’s ASEAN chairmanship this year.
Speaking alongside his Laotian counterpart Sonexay Siphandone, who is currently on a three-day official visit to Malaysia, Anwar said: “Since hosting the ASEAN Summit and related meetings last year, Laos has worked closely with our team to ensure a smooth transition as Malaysia assumes the chairmanship in 2025.”
Anwar also expressed growing economic confidence in Laos, citing the presence of four major Malaysian banks — Maybank, RHB, CIMB and Public Bank — operating in the country as evidence of investor trust.
“The presence of these four Malaysian banks shows confidence in the political stability, sound investment policies, and the capable management of financial institutions by Laos’ central bank,” he said.
This foundation, Anwar noted, sets the stage for expanded Malaysian investment in Laos and neighbouring countries under a broader ASEAN economic framework.
The visit comes just ahead of the 46th ASEAN Summit, underscoring the enduring Malaysia–Laos partnership and its role in shaping the region’s future direction.
Anwar announced that both countries have agreed to accelerate Phase Two of the ASEAN Power Grid initiative, which will include Laos, Cambodia and Thailand, alongside Malaysia and Singapore.
“Phase One involves a submarine cable from Vietnam to northern Peninsular Malaysia. However, I agreed with Prime Minister Siphandone that Phase Two must be expedited so Laos, Cambodia, and Thailand can benefit from direct connectivity to Peninsular Malaysia and Singapore,” he said.
The leaders also discussed enhancing trade routes via a new memorandum of cooperation between Thanaleng Port in Laos and Penang Port, aimed at streamlining trade flows between Laos and Malaysia’s northern states.
In capacity building, both countries pledged to enhance collaboration in port management training, with Malaysia’s ports — Penang, Klang and PTP — offering to share technical expertise with their Laotian counterparts.
Anwar said they also touched on regional labour mobility, digital transformation, artificial intelligence, semiconductors, alternative energy, and rare earth elements, building on the foundation of existing cooperation such as the KTMB–LNRSE memorandum on the ASEAN Express rail project.
The high-speed rail initiative, Anwar added, will significantly reduce travel time across ASEAN and China, enhancing regional integration and connectivity.
Both leaders also reviewed broader ASEAN matters, including the upcoming ASEAN–Gulf Cooperation Council (GCC) and ASEAN–GCC–China summits, with Anwar welcoming enhanced inter-regional cooperation.
“Laos and Malaysia see ASEAN–GCC collaboration as a mutually beneficial partnership between two rapidly developing economic regions,” he said.
Anwar reiterated Malaysia’s position on Myanmar, calling for a cessation of hostilities and urging all parties to support humanitarian assistance and meaningful dialogue through ASEAN’s Five-Point Consensus.
He further expressed hope that ASEAN leaders would reach a consensus on Timor-Leste’s accession to the bloc, potentially during the 46th ASEAN Summit later this year.
The visit by Prime Minister Siphandone — who received an official welcome at Perdana Putra in Putrajaya — highlights the deepening Malaysia–Laos relationship.
In 2024, bilateral trade between the two countries reached RM99.7 million (USD21.9 million), with Malaysian exports totalling RM67.8 million and imports amounting to RM31.9 million.
Malaysia is currently the fifth largest foreign investor in Laos, with total investments of USD942 million across 46 registered projects in key sectors such as renewable energy, transport, logistics, telecommunications, construction, banking, and hospitality. - May 25, 2025
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