OCBC to play a role in getting China investment
29 May 2023
OCBC Bank (M) Bhd, through it dedicated China business office (CBO) in Kuala Lumpur, plans to attract more foreign direct investment (FDI) from China into the country.
According to the Malaysian Investment Development Authority (Mida), FDI from China increased by 77% from RM31.3bil in 2021 to RM55.4bil in 2022 across various sectors of the economy.
China contributed 33% of the total FDI in 2022, higher than the 15% in 2021.
The bank’s managing director and head of corporate and commercial banking Jeffrey Teoh told StarBiz that Malaysia’s strategic location, stable policies and investment climate plays a vital part in attracting Chinese investment.
“The Belt and Road Initiative has additionally stimulated Chinese iInvestment into Malaysia. Overall, Malaysia is considered an attractive investment destination for China as it is benefiting from the strong economic ties between the two countries,” he added.
Besides that, he said Malaysia has a geographical advantage due to its strategic location which provides convenient access to the Asean market, making it an ideal hub for Chinese companies aiming to expand their operations in South-East Asia.
The country also offers an active and wide range of investment opportunities across various sectors, including infrastructure, manufacturing, technology, and renewal energy, he said.
He pointed out that it has a well-established legal framework and regulatory system that safeguards the rights of foreign investors.
Five years into the setting up of the CBO in Malaysia in 2019, OCBC Bank has been facilitating a more seamless experience for its customers for trade and industry related to Greater China.
Through this, its CBO has built for itself a significant portfolio of customers from the region, especially in the infrastructure, electrical and electronics, manufacturing, and telecommunications, media and telecommunications sectors.He said the bank expects the momentum gained over the last few years to continue, thanks to the OCBC Group’s position as one of the largest banking groups in the Asean-Greater China region.
“OCBC as a group is well-positioned to keep up the growth momentum, we are currently enjoying by capturing even more opportunities from the emerging trade and investment flows in the region.
“This is evidenced by our own strong growth, which has seen us grow three-fold in customer base, assets, and liabilities, since we started our CBO in Malaysia,” he noted.
“We act as a relationship partner for Chinese companies seeking to expand into Malaysia, providing in-depth knowledge in the local market,” he added.
Source: The Star