The Malaysian Chamber of Commerce in Hong Kong said the SAR should use Malaysia as a springboard into Asean and Muslim markets.

The chamber's deputy chairman, Lawrence Liu, said Hong Kong is the fourth largest source of foreign investment in Malaysia, and noted that more service-based businesses from the SAR, including insurance and trading, have been entering the Malaysian market in recent years.

Liu said Hong Kong can go a step further by making use of Malaysia as a base to reach out to other parts of Asean.

“Malaysia has very good connectivity to the rest of the Asean countries. Most Malaysians speak many languages or dialects. With that population base and the market size, I think that is something that should be seriously considered,” he told RTHK.

Hong Kong has already established a framework for Islamic bonds after issuing three rounds, and Liu said Malaysia can help the SAR further develop Islamic finance.

“Most of the population in Malaysia are Muslims, so we are very strong in Islamic banking. Hong Kong is an international financial centre. Hong Kong has a lot of liquidity, and the infrastructure is here, the money is here, the talent is here. But for the expertise in [Islamic banking], I think Malaysia probably would have an advantage,” he said.

Last year, Hong Kong formally requested to join the world's largest free-trade agreement, the Regional Comprehensive Economic Partnership (RCEP).

Liu said the Malaysian authorities and businesses welcome the SAR to join RCEP, pointing out that Hong Kong will have a unique role in the partnership.

“(Hong Kong) has all the infrastructures that are needed to become a trading hub. We’ve got a good logistic network, good banking and a very low tax rate. The trading hub for RCEP is what Hong Kong should be positioning,” he said.

Chief Executive John Lee is leading a delegation to Singapore, Indonesia and Malaysia this week to boost ties with Asean countries.