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China-Malaysia relations are of great significance to both sides, Xi said while meeting with Malaysian Supreme Head of State Abdul Halim Mu'adzam Shah.
With the deepening of globalisation, the destinies of the two countries have become more closely linked, he added.
Xi recalled that he and Malaysian Prime Minister Najib Razak agreed earlier in the day to upgrade bilateral relations to a comprehensive strategic partnership.
China, he said, stands ready to make joint efforts with Malaysia to push forward their relations towards greater achievements, realise common development, and bring more benefits to the two peoples.
Noting that the next year marks the 40th anniversary of the establishment of diplomatic ties between the two sides, Xi said bilateral ties have withstood the tests of the times and the ever-changing international situation, and maintained steady and healthy development.
Malaysia has already become China's largest trading partner within the 10-member Association of Southeast Asian Nations, said the Chinese president, adding that their common interests are expanding.
Xi flew from Indonesia Thursday for a state visit to Malaysia, the second leg of his maiden Southeast Asia trip since he assumed presidency in March.
Following his visit to Malaysia, the Chinese leader will travel to the Indonesian resort island of Bali for the 21st leaders' meeting of the Asia-Pacific Economic Cooperation.