Special envoy to China Tan Kok Wai today assured foreign investors that Malaysia will not be undermined by racial and religious extremism and end up a theocratic state.

"There are minority groups and opportunists who have attempted to stoke the sentiments of the people with religious and racial extremism," he said.

"We are not going to allow Malaysia to regress to the silly situation of being governed by a theocracy, and ruin our society which is governed by the rule of law and international competitiveness."

Tan was speaking at the Malaysia-China Belt and Road Economic Cooperation Forum held in Kuala Lumpur today.

With the world entering the era of industry 4.0, the envoy said, it is not wise for Malaysia to become stuck in religious politics and exhaust its natural resources.

He said the Pakatan Harapan government is focused on transformation and transparency, takes a diplomatic stand on free trade and is against unilateralism.

"(We) will ensure the sustainability of democracy, freedom, and openness in line with global trends.

"We will never let Malaysia regress and undermine the long struggle to build up what we are today as an international competitive nation," he said.

Malaysian entrepreneurs will be able to play an important role through mutual collaboration on Belt and Road development project between Malaysia and China, he said.

"The local Chinese business sectors will have an advantage with the ease of communication with Chinese entrepreneurs due to their shared values, cultural practices and mutual trust," he said.

"With the advantage of common linguistic skills and an international network, local Chinese business sectors will find it easy to work along with the Chinese entrepreneurs," said Tan.