Malaysia welcomes investments from China’s Greater Bay Area, says deputy minister
29 Apr 2021
KUALA LUMPUR, April 29 ― Malaysia is always ready to welcome investors from China’s Greater Bay Area in various sectors ― especially the forerunners in high technology segments such as biotechnology and smart-home automation ― to explore the opportunities available in Malaysia.
Malaysia’s pro-business policies complement the Chinese government’s push to increase China’s overseas investment and cooperation with other countries, said International Trade and Industry (Miti) Deputy Minister Senator Datuk Lim Ban Hong.
“I am sure that China’s investors will find Malaysia an exciting base to expand their overseas operation, and I am confident that existing stakeholders will also attest to our commitment towards economic progress and business friendliness.
“Hence, we look forward to welcoming more businesses, from both China and Malaysia to further collaborate together for mutually beneficial outcomes on its road to recovery post-Covid-19,” he said during a virtual roundtable session with a delegation from Shenzhen, China.
Organised by Mida in collaboration with UOB Malaysia, the roundtable aims to facilitate inbound investments from China’s major companies of high value-added sectors in the electrical and electronics (E&E), chemical, manufacturing and industrial sectors.
China’s delegation comprised representatives from UOB China, Malaysian Investment Development Authority’s (Mida) offices in China (Beijing, Shanghai and Guangzhou), China Council for the Promotion of International Trade and potential investors from 20 Chinese companies representing E&E, medical devices, automotive and chemical sectors.
Meanwhile, Lim noted that Malaysia’s value proposition in Southeast Asia as a profit centre for global companies, including those from China, cannot be overlooked.
“Supported by a reliable and diverse local supporting industry, investors seeking to expand their production capacity in Malaysia can do so efficiently and with ease, as our young and quality talent pool who are well-versed in many languages create an ideal business environment for our foreign investors.
“The government through Mida and in collaboration with our stakeholders will intensify efforts to attract projects that are high value-added, high-tech as well as knowledge and research and development-intensive in line with our National Investment Aspirations to generate multiplier effects to Malaysia’s domestic industrial ecosystem,” he said.
He said despite the challenging global economic environment amid the Covid-19 pandemic in 2020, Malaysia recorded RM164 billion in total approved investments, of which RM64.2 billion were from foreign direct investment (FDI) sources.
China accounts for 28.2 per cent of Malaysia’s FDI at RM18.1 billion.
Mida’s Investment Promotion executive director, Sivasuriyamoorthy Sundara Raja and UOB Malaysia’s Wholesale Banking managing director and country head Ng Wei Wei also took part in the roundtable session.
“Following a year of business and supply chain disruptions, we see opportunities for Malaysia to benefit from companies diversifying their supply chains into Southeast Asia.
“Apart from that, FDI into the country, including that from China, will be supported by Malaysia’s diversified economic potential, strong fundamentals and favourable demographics,” said Ng.
She highlighted that UOB is well-positioned to assist more companies from high-value sectors, especially from China’s Greater Bay Area to expand into Malaysia with its deep presence in Malaysia and Greater China.
“At the same time, these companies can also capitalise on the vast opportunities along the regional trade corridors between Greater China and Asean.
“With our in-market presence, insights and expertise, coupled with the ecosystem partnerships we forge, we are confident to attract and facilitate high value-added FDI from China to Malaysia and to stimulate the economy through quality job creation and trade activities,” she added.