Wooing China's ODI

AMONG the key things that came up during Prime Minister Datuk Seri Najib Tun Razak’s visit to China last week was the imbalance in capital flows between the two countries.

In his meetings with Chinese president Xi Jinping and Premier Li Keqiang, Najib pointed out that the ratio of Malaysia’s investments in China to China’s investments in Malaysia is six to one. As at 2012, Malaysian businessmen had invested well over US$6bil (RM20bil) in China, whereas only about US$1bil (RM3.3bil) of China’s outbound direct investment (ODI) had ended up in Malaysia.