KUALA LUMPUR: Malaysia will not lose out on trade opportunities following the signing of the US-China “phase one” agreement last week, said International Trade and Industry Minister Datuk Darell Leiking.
“Malaysia and China have always been together and continuously they (China) brought in many investments into Malaysia because they trust our fundamentals and system. With the Finance Ministry, International Trade and Industry Ministry working together with the ambassador of China to Malaysia, they’re more confident that Malaysia will be a better landing point for them,” he told a press conference after witnessing the signing of memorandums of agreement between InvestKL and Chinese business chambers today.
The “phase one” deal marks a truce in the two countries’ trade war after nearly two years of tensions. However, US tariffs are still in place on two-thirds of over US$500 billion (RM2.03 billion) worth of imports from China. China is now the largest trading partner of more than 130 countries, including Malaysia.
China’s ambassador to Malaysia Bai Tian said Malaysia is one of the best destinations of Chinese outbound investments in the world because of its long-standing friendship and friendly atmosphere rendered to Chinese investors.
“When investors go abroad to invest, the first thing they look at is the long-term expectations, meaning that the bilateral relationship should be good, otherwise they will have political risks. If this country has good relations with China, it’s an important priority for the Chinese investors to consider.”
Bai said Malaysia-China hit a record high of US$124 billion in 2019, a 14.2% increase year-on-year, citing Chinese Customs statistics.
“I’m confident that 2020 will be a big year for Chinese investments. I believe there will be more investors coming into Malaysia in 2020.
“In 2019, we received 30 visits by ministers from Malaysia to China; and I have received 50 visits by Chinese officials. That shows the strong reciprocity and trust that we have and strong desire to work with each other,” said Bai.
He added that after Pakatan Harapan took over the government in 2018, he has seen a strong momentum in both political and business areas that have been beefing up Chinese investments over the last two years.
“We just celebrated the 45th anniversary of bilateral diplomatic ties, which also boosted the awareness on both sides of the countries. Indeed, China and Malaysia are the best friends and best partners to work with, a very trustworthy destination of investment.”
Leiking and Finance Minister Lim Guan Eng are chairing the National Committee on Investment where it meets monthly to speed up investment approvals.
“We think Chinese investments can do more. We can narrow the gap between American and Chinese investments into Malaysia. These investments coming in are primed for the export market, not to be sold in the country,” said Lim.
