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THE longstanding diplomatic relationship between Malaysia and Bahrain has entered a new phase, marked by a landmark visit from Prime Minister Datuk Seri Anwar Ibrahim to the Kingdom of Bahrain.
This visit, at the invitation of Bahrain’s Crown Prince and Prime Minister Salman Hamad Al Khalifa, signals an exciting era of expanded cooperation, with both countries eyeing new collaborations in diverse fields, including financial technology (fintech), education, tourism, and more.
Malaysia and Bahrain, both influential players in the Islamic fintech sector, have agreed to strengthen their partnership in advancing global Islamic fintech.
According to the Global Islamic Fintech Report 2023/24, Malaysia retains its top spot, while Bahrain ranks sixth in the Global Islamic Fintech (GIFT) Index, which tracks the most conducive environments for the growth of Islamic fintech across 64 countries.
Anwar expressed confidence that initiatives in fintech and education could be quickly implemented, with several new cooperation agreements expected to be formalized by May. “I believe these matters (Islamic fintech and education) can be implemented in a short time,” he stated.
Bahrain, once known for its pearling industry, has now evolved into a leading financial hub in the Gulf, home to the largest concentration of financial institutions in the GCC, with over 400 local, regional, and global financial bodies.
During his two-day visit, Prime Minister Anwar also discussed potential collaborations in emerging sectors such as cryptocurrency, semiconductor technology, and sandbox platforms.
A highlight of the visit was Anwar’s keynote address at the Intra-Islamic Dialogue Conference (IIDC), where he was the only head of state to speak. This recognition underscores Malaysia’s significant role on the global Islamic stage.
Malaysia’s Ambassador to Bahrain, Shazryll Zahiran, described the visit as historic and a monumental success, especially as both nations celebrate 50 years of diplomatic relations.
He told Bernama, “It is truly significant as we celebrate our 50th anniversary of relations while giving greater depth to the ties.”
Shazryll also emphasised the immense potential for further economic expansion between the two countries, particularly in the tourism sector, alongside fintech and education.
“Malaysia is well connected within ASEAN and Asia, while Bahrain connects to the African continent and European markets. Both countries can explore mechanisms that will create a successful tourism model, benefiting both nations,” he added.
Additionally, the Prime Minister announced plans to reinstate direct Malaysia-Bahrain flights, which would further strengthen business and tourism links.
Bahrain, with a population of approximately 1.6 million, offers a business-friendly ecosystem that is particularly appealing to Malaysian companies, especially small and medium-sized enterprises (SMEs) worth RM24 billion.
“Bahrain has a very attractive tax holiday structure, with no corporate or individual taxes, and English is widely used as the language of communication,” Anwar said.
He also praised Bahrain's progressive banking system, which he described as one of the best in the region.
In 2024, Malaysia-Bahrain trade reached RM1.19 billion, with exports totaling RM251.2 million and imports amounting to RM943.3 million. Bahrain is Malaysia’s ninth-largest trading partner in West Asia, while Malaysia ranks as Bahrain’s third-largest trading partner in ASEAN and 18th globally in 2023.
Islam Abduljabbar, Director-General of Bahrain’s National Communication Centre, remarked that the Prime Minister’s visit marked a significant milestone in the longstanding friendship between the two nations.
“This visit has not only strengthened the bonds between our nations but also laid a robust foundation for future collaboration, rooted in innovation and a shared vision for prosperity,” she said.
Abduljabbar also highlighted Bahrain’s unique position as the gateway to the Gulf, enhancing Malaysia’s access to dynamic markets and opportunities.
Bahrain, which means “two seas,” was the first Gulf country to discover oil in 1932, transforming its socio-economic landscape. The country is also home to the world’s fourth-largest aluminium processing plant, a major export to Malaysia.
With over 297 Malaysians residing in Bahrain, including students pursuing higher education, the two nations share a deep connection. Bahrain, known for hosting the first Formula 1 Grand Prix in the Middle East in 2004, is also renowned for having one of the highest-valued currencies globally.
The Prime Minister’s visit, therefore, not only commemorates five decades of diplomatic relations but also sets the stage for an even more prosperous and collaborative future between Malaysia and Bahrain. – February 22, 2025
