BEIJING: The two-way investments between Malaysia and China are mounting, with the value of approved investments from China in the manufacturing sector witnessing encouraging growth this year.
Deputy Prime Minister Tan Sri Muhyiddin Yassin said the approved investments from January to July had surpassed the full-year investment figure of last year.
“For the first seven months of 2014, the approved investments from China have reached US$1.46bil (RM5.03bil). The value has surged significantly in the past five years, from US$10.3mil (RM35.45mil) in 2008 to US$1bil (RM3.45bil) in 2013,” he said.
Muhyiddin was speaking at the Malaysia-China captains of industry roundtable meeting here on Tuesday night. He invited Chinese investors to Malaysia which he said had conducive business environment and recognition by international institutions in various global rankings. He added that Malaysia’s Asean chairmanship next year would bring about benefits to the Chinese business community, especially those who already had a presence in Asean countries.
“The common market under the Asean Economic Community will move towards reducing barriers to trade and investment, making it easier for the flow of goods, services and capital, while increasing competitiveness,” he said.
The establishment of a yuan clearing bank had also been agreed upon by the heads of state of both countries, he added.
“It will facilitate and reduce the cost of doing business, which is a tremendous boost for the private sector,” he said.
During the meeting, Muhyiddin witnessed the exchange of two memoranda of understanding.
The first was between Sincere World Land and Development Sdn Bhd and China Construction International Co Ltd for the purchase of a 19-storey hotel as part of the integrated development of The Hub@Sincere World in the Iskandar Malaysia.
The estimated cost of the project is US$100mil (RM344mil).
The second was between the Malaysian Investment Development Authority (Mida) and Bank of China (M) Bhd.
It enabled the bank to refer potential foreign direct investments from China to Mida and provide financing packages for successful applicants to facilitate its investment in China.
Muhyiddin was in China for a six-day official visit. He was accompanied by Transport Minister Datuk Seri Liow Tiong Lai and Deputy International Trade and Industry Minister Datuk Lee Chee Leong.
Liow said the Chinese representatives who attended the meeting had responded positively. “It gave them an opportunity to raise concerns and understand the investment climate in Malaysia.
“They are eager and enthusiastic about coming to Malaysia, which is a gateway for them to enter the Asean and Asia-Pacific markets,” he said.