Malaysia is Hong Kong's top FDI contributor

KUALA LUMPUR: Malaysia was Hong Kong's top source of foreign direct investment (FDI) in 2013, compared to ninth spot the year before.

In 2013, Hong Kong-Malaysia total trade rose 1.7% to US$14.65bil, of which US$4.9bil accounted for FDI outflow from Malaysia into Hong Kong.

Hong Kong Trade Development Council deputy executive director Margaret Fong urged Malaysian small-medium enterprises to bring their businesses into Hong Kong.

She announced the details of the FDI at a press conference on Thursday.

Although she refrained from suggesting a target amount for Malaysia-HK FDI, she said that the perks of trading in and with Hong Kong included expertise in legal and branding services, as well as double tax deduction of 10% to 5%.

As a first step towards exploring the feasibility of entering into a bilateral free trade agreement, Hong Kong and Malaysia signed a Joint Declaration on Strengthening Economic Co-operation in December 2009. It exempts Hong Kong-incorporated Malaysian companies from being taxed in the home country.

"We have a governmental agency known as InvestHongKong to help with the setting up," she said.

Fong added Hong Kong was a platform for companies to network with neighbouring China, Japan and South Korea.

On intellectual property trade, she pointed out Hong Kong has one of the most robust regimes in the world, providing protection, commercial expertise and funding.