Malaysia plans special channel to double Chinese investments, Guan Eng says


KUALA LUMPUR: The government will set up a special channel to attract more investments from China, said Finance Minister Lim Guan Eng.

He said that with China being Malaysia's largest trading partner, there are opportunities for Chinese investments in the country to be increased.

Out of RM20.2bil of approved manufacturing foreign direct investment (FDI) for the first quarter this year, RM4.4bil came from China while RM11.1bil are from the United States.

"China is our largest trader partner, even bigger than that of the US so there is no problem or reason for them to at least match the manufacturing FDI from the US.

"Even if its doubled up, it still won't reach RM11.1bil. So this is where we see that there are room for more investments," said, adding that Malaysia should work on multiplying investments especially in strategic sectors such as high tech sector.

Lim, who will be heading to Shenzhen for an investment mission soon, said the government will be fleshing out the details of the special channel to the Chinese investors.

He said Malaysia is able to offer a safe haven that China is looking for, particularly the high tech manufacturers in Shenzhen.

"Many of them are not very familiar with what Malaysia has to offer. We are able to offer a manufacturing mix that is compatible with many of these Chinese industries.

"We want to promote Malaysia and let them be aware that we are much better, not only in terms of manufacturing mix but also in terms of cost compared to other countries," he said.

On the issuance of Panda bonds, Lim said the pricing is still being negotiated as it is not attractive enough.

"We will look at the interest rates. I think the pricing must be attractive but at this present moment, it's still not attractive enough," he said.


Economy , investment , FDI , special channel , Guan Eng

   

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