MITI deputy minister calls on Malaysia, China companies to deepen supply chain connections
26 Apr 2022
Deputy Minister of International Trade and Industry (MITI) Senator Datuk Lim Ban Hong has called on companies from Malaysia and China, particularly from Guangxi, to work closely to deepen supply chain connections in strategic sectors and to expand their respective markets.
Malaysia’s central location in Southeast Asia makes it a perfect regional gateway for Chinese companies to venture into ASEAN, while Malaysian companies can leverage Guangxi to expand into China, he said at the inaugural Malaysia-China (Guangxi) Investment Forum, which focuses on investment expansion and business opportunities through the Malaysia-China Kuantan Industrial Park (MCKIP) and China-Malaysia Qinzhou Industrial Park (CMQIP).
Lim said the government sees further investments materialising through MCKIP and CMQIP, in addition to those arising from the Regional Comprehensive Economic Partnership (RCEP) which came into force on March 18, 2022.
Lim said the value of cumulative investments from MCKIP has amounted to RM30.1 billion and this is expected to expand under the RCEP framework.
“We foresee more collaboration between the business communities. The RCEP partnership facilitates and promotes trade,” he said.
Since 2009, China has been Malaysia’s largest trading partner and accounted for 18.9 per cent of Malaysia’s total trade in 2021.
“According to trade statistics from China, in 2021 their total trade with Malaysia achieved a record high of US$176.80 billion; on the investment front, 43 manufacturing projects were approved from China, with investments worth US$3.98 billion, generating nearly 14,000 employment opportunities in Malaysia,” Lim said.
The investment forum was held to commemorate MCKIP’s 10th anniversary and the bilateral economic milestone between the two countries.
He said over the years, under the “Two Countries, Twin Parks” initiative, both industrial parks have progressed substantially, with MCKIP among the largest foreign direct investment recipient in Malaysia, while CMQIP attracted investments from various parts of the world.
“These collaborations have created substantial spin-offs (including opportunities) in transport and logistics, retail, and port-related services,” Lim said.
Eleven memorandums of understanding were signed between seven Malaysian companies and their strategic Chinese partners, with a potential investment of RM1.45 billion in MCKIP.