The deal, which will deepen relations between the two countries as they mark 50 years of diplomatic ties, was inked during a trip by Chinese Premier Li Qiang last week.

The visit to Malaysia's administrative capital Putrajaya was the last leg of a regional trip intended to expand China’s influence in the Asia Pacific.

China has been Malaysia's largest trading partner since 2009, with total trade last year reaching 450.84 billion ringgit ($98.90bn).