MITI welcomes US-China phase one trade deal, positive for open economies

​Ministry of International Trade and Industry (MITI) lauds the recent agreement between the United States of America and China following the phase one trade deal signed on January 15

Ministry of International Trade and Industry (MITI) lauds the recent agreement between the United States of America and China following the phase one trade deal signed on January 15.

Deputy Minister Dr. Ong Kian Ming said the trade agreement would be ‘good’ for all open trading economies such as Malaysia.

“It gives more certainty and stability to the international trading landscape. That is something we welcome.

“We hope this (outcome) will stabilise the global value chain, which many Malaysian companies or multinational companies are base in the country,” he said on the sideline of MITI Seminar on Industry4WRD Incentives here today.

Dr. Ong also acknowledged the ongoing tension between US and China have yet to resolved although the phase one trade deal was concluded.

He said the unsettled tension likely pose challenges with regards to capitalising technologies of certain Chinese companies.

“But as long as there is uncertainty in those areas, I do believe that Malaysia can continue to be a in solid position as attractive long-term investment destination for foreign companies from the likes of (China, US, Europe, Japan, Singapore, Taiwan) to come to Malaysia investing in us,” he said.

The Malaysian Investment Development Authority (MIDA) said the average realised investments in the country recorded between 75 per cent and 78 per cent (implementation rate) in the last three to five years.

Its chief executive officer Datuk Azman Mahmud said there was only five per cent (implementation rate) that has not been executed due to market condition and exchange rate as well as the planned projects were no longer viable due to uncertainties.

“Overall, the implementation rate is around 75-78 per cent for the manufacturing sector. As we go on, those approved projects will be implemented accordingly,” he said.

As at December 31, 2016, MIDA said the implemented projects valued at RM207.7 billion for the manufacturing sector, particularly for the approved investments between 2012 and 2016.

Dr. Ong said approved investments will take time to be realised or implemented but the government continuously track the investments and implementations activities through MIDA.

“We are confident the investments number that have been announced will be translated into actual investments in the near future,” he said.

Meanwhile, MITI said the government is ready to announce the revised National Automotive Policy (NAP) slated in the first-quarter (Q1) of this year.

“The policy (NAP) is ready to be announced but we are waiting for the confirmation from the Prime Minister’s Office, particularly the Prime Minister Tun Dr Mahathir Mohamad to launch it together with MITI Minister Datuk Darell Leiking.

“We hope to announce it in Q1 this year. It is a realistic date,” he said.

Source: NST 

Posted on : 20 January 2020
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Last Updated : Thursday 21st May 2020