InvestKL unit targets RM5bil from China

Sharing opportunities: (from left) Associated Chinese Chambers of Commerce and Industry of Malaysia president Tan Sri Ter Leong Yap, Yam, International Trade and Industry Minister Datuk Darell Leiking, Finance Minister Lim Guan Eng and Bai tossing yee sang after the signing ceremony.

KUALA LUMPUR: InvestKL’s China Special Channel (CSC) aims to achieve RM5bil investments from China to Malaysia, following the signing of a memorandum of agreement (MoA) with the Chinese Business Chambers.

Invest KL CSC’s role is to be a single window for all investment opportunities from China into Malaysia.

The organisation shall attract Chinese companies and global multinational corporations that are looking to set up new businesses and regional hubs outside China or relocate their smart manufacturing and high-value services.

The CSC is an initiative under the Budget 2020 tabled last October, as announced by Finance Minister Lim Guan Eng.

At the signing ceremony, InvestKL chairman Datuk Seri Michael Yam said the CSC is not only an effective bridge to draw in new investments but also streamline the engagement process to effectively match Chinese investors with production sites, tax incentives and supporting talent pipeline.

“With the ongoing US-China trade tensions, large Chinese companies are seeking new locations in South-East Asia to expand their global businesses. Malaysia not only offers an ideal location for these companies plus a vibrant ecosystem with robust infrastructure, we also have the right multicultural highly-skilled talent that these Chinese companies are attracted to,” he said.

Ongoing trade frictions between the US and China have created a unique opportunity for Malaysia to be the preferred destination for high value-added foreign direct investments.

China is the largest trading partner for more than 130 countries and is Malaysia’s largest trading partner, followed by Singapore and the US.

According to China’s Ambassador to Malaysia H.E. Bai Tian, bilateral trade between Malaysia and China in 2019 has increased by 14.2% to US$124bil (RM503bil), from US$108.66bil (RM443bil) in 2018.

Bai expressed his confidence that the bilateral trade performance between Malaysia and China will continue to grow. “Despite a downturn in world trade momentum, bilateral trade between Malaysia and China continues to grow at a fast pace at 14.2%.

“This is partly attributed to China’s investments to Malaysia, and with InvestKL’s CSC and the hard work from Malaysian ministers and myself, we will be able to see more trade and investments in 2020,” he said.

As the lead agency of the CSC initiative, InvestKL will evaluate and channel investment opportunities via active complimentary collaboration with other relevant agencies including the Malaysia Investment Development Authority, Malaysia Digital Economy Corp as well as regional and state investment promotion agencies. This is to ensure effective last-mile investment facilitation, based on investment criteria such as land, infrastructure and other ecosystem needs.

InvestKL’s CSC intends to attract investors operating in key sectors including consumer technology, smart technology, renewable energy, medical technology, medical devices, electrical and electronics, mechanical engineering, chemical and aerospace.

The focused regions include Beijing (Jing-Jin-Ji area), Shanghai (Yangtze River Delta) and Shenzhen (Greater Bay Area), which are home to 70% of China Fortune 500 companies.

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