SERDANG: Malaysian businesses must be given a bigger role in Chinese investments, particularly in their supply chains, instead of allowing foreign companies to dominate them, says Datuk Teng Chang Khim.
The SME Corp Malaysia chairman said Chinese investors should be encouraged to bring in technology and machinery while working with Malaysian companies in manufacturing and operations.
This would allow local small and medium enterprises (SMEs) to strengthen their capabilities, participate in industrial supply chains and benefit from the investments, he added.
“We do not want Chinese investments to operate as isolated enclaves, with the entire supply chain dominated by Chinese companies, leaving local businesses with nothing more than security guard or cleaning jobs,” he said at a forum titled A Thousand Years of Trust, Shaping the Future Together – Deepening Malaysia-China Relations for a New Chapter of Growth. The event is held in conjunction with the 16th Malaysia-China Entrepreneurs Conference 2026.
He said Malaysia needed to move away from its traditional approach of measuring foreign investments primarily by their value and the number of jobs created towards attracting more high-value investments.
While Malaysia’s friendly relations with China were an advantage in attracting investors, Teng said the country also needed sound institutions, transparent policies and consistent regulations to ensure investments could be implemented successfully.
He stressed that investment promotion should not be measured by the number of memorandums of understanding signed, but by whether the projects materialised and progressed to actual production.
Meanwhile, Malaysia-China Friendship Association president Datuk Abdul Majit Ahmad Khan said the strong relationship between Malaysia and China had been built on years of trust, diplomatic engagement and cooperation.
He said the relationship had remained consistent despite changes in Malaysia’s political leadership, with successive prime ministers building on the achievements of their predecessors.
Citing the East Coast Rail Link, he said continued communication and mutual trust had enabled both countries to maintain dialogue and move forward with the strategic project despite earlier political uncertainties.
However, he said trust alone was insufficient without proper mechanisms, including regulations, incentives and legal protections for investors.
MCCC president Loo Kok Seong said the chamber had served as a bridge between Malaysian and Chinese companies for 36 years, helping them establish connections and explore business cooperation.
“The conference, which has been held for 16 years alternately in Malaysia and China, provides businesses from both countries with opportunities to exchange ideas and identify potential partners.
“This year’s theme, ‘A Millennium of Trade, Built on Virtue’, reflects the values of honesty, inclusiveness, responsibility and mutual benefit, and is also aligned with the aspirations of Malaysia Madani,” he added.
Entrepreneur and Cooperatives Development Minister Steven Sim represented Prime Minister Datuk Seri Anwar Ibrahim at the conference as the guest of honour.
The annual conference, organised by the Malaysia-China Chamber of Commerce, is expected to draw between 600 and 700 entrepreneurs and industry players from both countries.
Its forums will cover Malaysia-China trade and investment policies, global economic developments, cooperation in the semiconductor and artificial intelligence data centre sectors, and opportunities for Chinese and Malaysian brands to expand into each other’s markets.
