Xin Yimin in Malaysia: Opportunities and Challenges

The new wave of Chinese migrants, known as xin yimin, is a key group of a resurgent China, making significant contributions to Malaysia’s economic development. While these migrants bring investments, skills, and expertise to Malaysia, their growing presence has also heightened concerns regarding socio-economic divides, particularly along ethnic lines.

In September 2024, Sultan Ibrahim Iskandar, the King of Malaysia, visited China to commemorate the 50^th anniversary of diplomatic relations between the two countries. A key outcome of this long-standing and deepening relationship is the increase in people-to-people exchanges, particularly the growing influx of Chinese nationals into Malaysia.

The 2023 visa-free agreement between Malaysia and China, for instance, has spurred a surge of Chinese tourists, providing a much-needed boost to Malaysia’s tourism industry. Following the Covid-19 pandemic, the number of Chinese students pursuing tertiary education in Malaysia has returned to pre-pandemic levels. The revamped Malaysia My Second Home (MM2H) programme has also seen a twofold increase in Chinese applicants. In addition to these groups, another key demographic of xin yimin includes expatriates involved in China’s Belt and Road Initiative.

Most of these recent Chinese arrivals are in Malaysia on short-term visas for tourism, studies, or the slightly longer-term MM2H programme. The Financial Times reported that the number of Chinese citizens in Malaysia could have surpassed 150,000 — up from 82,000 in 2022. However, due to Malaysia’s stringent immigration policies, few Chinese nationals, even those married to Malaysian citizens, are granted permanent residency.

This is where the term xin yinmin defies easy categorisation. While the new arrivals are commonly referred to as xin yimin, they do not fit the conventional definition of migrants. The term remains loosely defined in existing scholarship, which has yet to categorise xin yimin based on their duration of stay, demographic profiles, or socio-economic status. As it stands, xin yimin serves as an umbrella term encompassing workers, students, study mothers (peidu mama), participants in the MM2H programme, and Chinese nationals married to locals.

Despite the economic benefits brought by xin yimin,their growing presence has not come without challenges.

Unlike 19th-century migrants, current xin yimin are less likely to settle permanently in Malaysia. Whereas previous generations fled a conflict-ridden homeland, these new arrivals come from a China that has emerged as an economic powerhouse, actively contributing to Malaysia’s transformation. For example, some xin yimin work as engineers and technicians on major projects like the East Coast Rail Link project, while executives from Chinese corporate giants such as Huawei and Geely facilitate Malaysia’s transition to Industry 4.0 (the digitisation and automation of manufacturing). Moreover, the influx of Chinese tourists and students plays a key role in revitalising Malaysia’s tourism and higher education sectors.

Despite the economic benefits brought by xin yimin, their growing presence has not come without challenges. Notably, the MM2H programme has raised concerns that an influx of wealthy Chinese applicants could drive up property prices, making housing increasingly unaffordable for Malaysians. In December 2023, several Cabinet ministers refuted opposition claims suggesting that Chinese participants in the MM2H programme would be automatically granted permanent residency. In August 2023, the National Registration Department (NRD) dismissed allegations that some 54,000 Chinese nationals were in the process of being granted Malaysian citizenship to become Democratic Action Party (DAP) voters. These debates reveal concerns in some quarters that the arrival of xin yimin could alter Malaysia’s demographic and socio-political landscape.

Cultural integration also remains a significant issue, with fears that Chinese nationals may form isolated communities rather than assimilate into Malaysian society. This concern is evident in projects like Forest City, where affluent Chinese residents live in exclusive enclaves, segregated from the broader population. This reinforces perceptions of socio-economic divides along ethnic lines.

Another notable project with significant xin yimin participation is Xiamen University Malaysia (XMUM), which aims to establish a campus reflecting Malaysia’s multi-ethnic demography. Despite its efforts to diversify, the university remains predominantly Chinese. This perpetuates the view that China’s outreach primarily benefits certain segments of the Malaysian population.

Similar concerns have arisen regarding China’s broader economic impact in Malaysia. While Chinese investments contribute to overall national development, there is growing concern that the influx of large Chinese corporations may spur uneven growth, disadvantaging local Malaysian businesses — particularly small and medium-sized enterprises (SMEs), which struggle to compete in an increasingly competitive market. Additionally, due to shared cultural ties and dominance in key sectors like trade, manufacturing, and real estate, Chinese Malaysians often serve as intermediaries for Chinese investments, reinforcing the belief that they benefit disproportionately from these economic engagements. As a result, a persistent perception remains that China’s economic presence favours the Chinese Malaysian community.

While the xin yimin make significant contributions to Malaysia’s economic growth, their growing presence has raised concerns about the potential widening of socio-economic divides along ethnic lines. There are also fears that China’s expanding economic influence may disproportionately benefit certain groups, particularly those with strong cultural or business ties to China. To mitigate these concerns, Beijing must strive to ensure that its economic relationship with Malaysia is mutually beneficial and inclusive, generating economic growth that benefits all Malaysians and not a small minority.

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