Malaysia - The Times Of Central Asia

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Energy cooperation

Petronas Turkmenistan Deal Deepens Malaysia Energy Ties

Malaysian Prime Minister Anwar Ibrahim arrived in Turkmenistan on June 18 for an official visit focused on energy cooperation, with the two countries signing a new strategic partnership involving Petronas and Turkmenistan’s energy authorities the following day. Anwar and Turkmen President Serdar Berdimuhamedov witnessed the signing on June 19, Malaysian media reported. The agreement followed earlier comments by Malaysian Deputy Economy Minister Akmal Nasrullah Mohd Nasir, who said Malaysia was seeking to strengthen its energy supply chains through long-term hydrocarbons cooperation with Turkmenistan. Anwar's visit follows Turkmen President Serdar Berdimuhamedov’s official trip to Malaysia in 2024, which Turkmen officials have described as opening a new stage in bilateral relations. Energy is the central pillar of economic ties between the two countries. Malaysian state energy company Petronas has operated in Turkmenistan since 1996, when it became one of the first foreign companies to develop offshore oil and gas fields in the Turkmen sector of the Caspian Sea. Since then, the company has invested about $11 billion in Turkmenistan’s hydrocarbon sector. Petronas’ main asset is Block 1, linked to the Kiyanly Gas Treatment Plant and Onshore Gas Terminal on Turkmenistan’s Caspian coast. Block 1 currently produces about 400 million cubic feet of natural gas per day, equivalent to roughly 4.1 billion cubic meters per year, and holds more than 7 trillion cubic feet of gas resources. In 2025, Petronas signed a new production-sharing contract for the block with Abu Dhabi’s XRG, state enterprise Hazarnebit, and state concern Türkmennebit. Under that arrangement, Petronas retained 57% as operator, XRG took 38%, and Hazarnebit held 5%. Berdimuhamedov also approved a resolution authorizing Türkmennebit to conclude an agreement with Petronas and Hazarnebit on the development of licensed offshore blocks in Turkmenistan’s sector of the Caspian Sea. Malaysia’s role in Turkmenistan is smaller than China’s, but more technical and operational. Petronas has been an upstream investor and offshore operator, while China is Turkmenistan’s dominant gas customer. Turkmenistan exports around 30 billion cubic meters of gas a year to China. In April 2026, China and Turkmenistan signed an agreement on the fourth phase of the Galkynysh gas field, under which China National Petroleum Group (CNPC) is to build gas-processing facilities capable of handling an additional 10 billion cubic meters of gas per year. Reuters reported the project value at $5.1 billion. Turkmen state media said the two countries are also seeking to broaden cooperation across a range of sectors from transport to science and education. Talks in Ashgabat are expected to focus on energy cooperation, investment projects, and expanding trade links.

Electric Vehicles

Proton Plans to Launch Electric Vehicle Production in Kazakhstan

Malaysian automotive manufacturer Proton Holdings Berhad is exploring the possibility of launching electric vehicle (EV) production in Kazakhstan. The announcement followed a meeting between Proton representatives and Yersayin Nagaspayev, Kazakhstan’s Minister of Industry and Construction. Proton, Malaysia’s largest automotive group, began operations in 1985 by producing cars under license from Mitsubishi. Since the late 1990s, the company has developed its own models, including the e.MAS line of electric vehicles, which it now proposes to localize in Kazakhstan. “The company presented plans to produce electric cars under the e.MAS brand. Discussions focused on potential production sites, export opportunities, and ensuring compliance with the technical and environmental standards of the Eurasian Economic Union (EAEU),” the Ministry of Industry and Construction reported. Following the meeting, the parties agreed to establish a joint working group tasked with developing a roadmap for localizing production and launching joint investment projects. Kazakhstan’s Growing Automotive Sector Minister Nagaspayev highlighted that more than 134,000 passenger cars were produced in Kazakhstan in 2024. Major international brands, including KIA, Hyundai, Chevrolet, JAC, and Jetour, are already manufacturing in the country. In 2025, two new automotive plants are scheduled to open in Almaty and Kostanay, with a combined annual capacity of up to 190,000 vehicles. The EV segment is currently the fastest-growing portion of the Kazakh automotive market. According to the Association of the Automobile Industry of Kazakhstan (AKAB), the number of registered electric vehicles grew from about 1,500 in early 2023 to 3,200 by the end of that year. As of May 2025, that figure has surged to 9,400. This rapid growth is attributed in part to a government policy introduced in 2023 that exempts citizens from import duties and taxes on one electric vehicle per person, valid through the end of 2025. Analysts also cite rising oil prices and the expansion of EV charging infrastructure as key drivers of demand. As previously reported by The Times of Central Asia, Kazakhstan is on track to produce approximately 150,000 vehicles in 2025, a record for the country.

Air Transport

Uzbekistan Approves Regular Flights from Malaysia, South Korea, and Egypt

Uzbekistan has approved regular flights for airlines from Malaysia, South Korea, and Egypt, the Civil Aviation Agency under the Ministry of Transport of Uzbekistan announced. Under an intergovernmental air services agreement between Uzbekistan and Malaysia, AirAsia X Berhad received approval on February 3, 2025, to operate regular flights between Kuala Lumpur and Tashkent. On the same day, South Korea’s T’way Air was also granted permission to launch regular flights on the Seoul-Tashkent-Seoul route under the Uzbekistan-South Korea air services agreement. Both AirAsia X Berhad and T’way Air will operate these flights using Airbus A330 aircraft. On February 4, Egypt’s Red Sea Airlines received approval to operate regular flights between Sharm el-Sheikh and Tashkent. This decision follows the Uzbekistan-Egypt air services agreement, and the airline will use Boeing 737 aircraft for these flights. Previously, The Times of Central Asia reported that Uzbekistan Airways altered its flight routes to Europe starting in January, bypassing Russian and Belarusian airspace. The airline’s press service stated that the decision was based on recommendations from the European Union Aviation Safety Agency (EASA), and was not related to the recent Azerbaijan Airlines crash.

Agriculture

Malaysian Meraque Group to Invest in Uzbekistan’s Agriculture Sector

The Ministry of Agriculture of Uzbekistan has reported that a memorandum of understanding on agricultural technologies was signed between the leading Malaysian DroneTech company Meraque Group and the Ministry of Agriculture of Uzbekistan. This cooperation aims to improve the Uzbek agriculture sector, which includes 4.3 million hectares of cultivated land. Meraque intends to invest 20 million Malaysian ringgits ($4.78 million) in the next three years to establish a production enterprise that will create 1,000 jobs and serve 100,000 hectares of agriculture in Uzbekistan. The company is also looking to raise an additional 30 million ringgit ($7.17 million) for technological improvements in the region. The report reads: “A key part of the partnership will be policy development to create an ecosystem of drones for agriculture that will improve productivity and sustainability for the country’s 100,000 farmers. Meraque also focuses on training and knowledge sharing through training programs to support drone operations.” Razali Ismail, CEO of Meraque, said that this cooperation will sustain the development of the two countries' agriculture. The Times of Central Asia previously reported that in April of this year, the European Union presented €6 million ($6.4 million) to the Uzbek government to support the country’s National Food Security and Healthy Nutrition Strategy. In addition to the grant, the EU has also provided funds to help the Ministry of Agriculture carry out reforms. Further funding of €20 million ($21.4 million) will be issued later this year and next to support Uzbekistan’s National Agriculture Development Strategy for 2020-2030. Also, 3 million hectares of pastoral and agricultural lands have been degraded in Uzbekistan, and almost 2 million hectares have become saline. According to experts, by 2030, water resources in the region are in danger of decreasing by nearly 6% due to climate change. In response, Uzbekistan has developed a national program for adapting agriculture to climate change and mitigating its effects, which allocates more than $294 million in grants.