China Special Channel initiative is continued — MITI
13 Aug 2020
The China Special Channel (CSC) initiative is continued and will be led by the Malaysian Investment Development Authority (MIDA) as Malaysia’s leading one-stop centre and investment promotion agency, the Dewan Rakyat was told.
The Ministry of International Trade and Industry (MITI) said this was in line with MIDA’s mandate and main role as an agency to promote investment and coordinate promotional strategies with agencies involved in InvestKL terms.
It said this is very important to give a clear message without causing confusion among foreign investors, including from China.
Besides, this decision coincides with the role of MIDA as the Secretariat to the National Committee on Investment (NCI), which is responsible for expediting the approval process of high-quality investment projects, the Ministry said in a written reply to a question from Dr Ong Kian Ming (DAP-Bangi).
Hence, MITI said the CSC implementation is expected to be more effective as MIDA provides a comprehensive industrial ecosystem in the country and continuous facilitation to investors.
It said despite the COVID-19 pandemic and global economic uncertainty, Malaysia is still seen by foreign investors, including from China, as a major competitive investment destination in the region.
China has been Malaysia’s largest source of foreign direct investment in the manufacturing sector since 2016.
For the 2016-2019 period, approved investment projects in the manufacturing sector from China amounted to RM40.26 billion, providing 40,527 jobs.
As at May 31, 2020, MIDA has provided facilitation services to 86 companies from China, as well as other countries, interested in locating operations in Malaysia.
Of them, MIDA has managed to attract 32 projects with investments amounting to RM17.5 billion, of which 28 projects amounting to RM8.36 billion were approved while another four with an investment value of RM9.14 billion were being evaluated.
MITI said among the strategies implemented by MIDA in attracting quality investment from China include the setting up the MIDA China Team which consists of three overseas offices, namely in Beijing, Shanghai and Guangzhou, and the China Desk at MIDA headquarters.
MIDA also leverages investment opportunities from China’s Belt & Road Initiative (BRI) policy through the construction of industrial parks, logistics hubs and Transit Oriented Developments (TOD), as well as targeting Chinese companies involved in the technology sector and listed in the Fortune China 500 and Global Unicorns.
Other initiatives such as targeting 10 priority sectors under the Made in China 2025 policy include automatic and robotic machines, aerospace and aeronautics, biopharma and medical equipment with advanced information technology, new materials for vehicles, and new energy equipment.
MIDA also ensured the smooth implementation and operation of investment projects from China through the Project Acceleration and Coordination Unit (PACU) and offered assistance through direct consultation and cooperation with the relevant authorities at the federal and state levels.
It also provides an extension of the project implementation period for the manufacturing sector for an additional 12 months automatically, after the company has obtained interim approval or Manufacturer Licence and implemented an e-Manufacturing Licence (e-ML) that allows companies to submit their applications for new projects online.