Johannesburg - South Africa and Malaysia faced similar challenges relating to inequality and poverty and needed to help each other, President Jacob Zuma said on Monday.
"Over the past 20 years the relationship between South Africa and Malaysia has grown rapidly in many fields and solidified into a multifaceted relationship reflected in strong people-to-people links, state-to-state and government-to-government relations," Zuma said in a statement.
Zuma was in Malaysia, South Africa's largest investor from southeast Asia, for bilateral talks.
"The timing of my visit to Malaysia is particularly appropriate, as South Africa and Malaysia this year, celebrate 20 years of formal diplomatic ties," said Zuma.
Malaysia was regarded as a "generous and trusted friend and ally".
In 1994, Malaysia became one of the first investors in South Africa and demonstrated confidence in democratic South Africa, said Zuma.
"While most of the world adopted a wait and see approach in investing in South Africa, Malaysia led the way."
Zuma welcomed the increase in bilateral trade, which reached R19.7bn in 2012, up from R13.8bn in 2008.
Malaysia and South Africa agreed to intensify co-operation.