With the Regional Comprehensive Economic Partnership Agreement (RCEP) coming into force in Malaysia, Chinese enterprises have a new opportunity to invest in Malaysia.
Recently, China Industry Overseas Development Association (CIDA) and Malaysia Investment Development Authority (MIDA) office in Beijing successfully hosted a promotion conference on the theme of "Invest in Malaysia and Radiate to ASEAN Countries". Representatives from both China and Malaysia met on the "cloud" to provide guidance for Chinese enterprises to invest in Malaysia.
China and Malaysia are good partners in the "One Belt, One Road" initiative. In his speech, Mr. He Zhengwei, President of China Association for Overseas Industrial Development, said that RCEP came into effect in Malaysia on March 18 this year, which will further enhance the integration of East Asian economies and promote the integration of regional industrial supply chains and value chains.
"This promotion aims to help Chinese enterprises better understand Malaysia's investment advantages, policy directions and excellent business environment, and lay the foundation for further deepening cooperation between enterprises of the two countries in the economic and trade fields. Promote and facilitate more Chinese enterprises to invest and set up businesses in Malaysia. At the same time, it is also hoped that the Malaysian side will give more support and provide more convenience to Chinese enterprises in investment and economic and trade cooperation in Malaysia." He Zhengwei further said.
Malaysia has always welcomed Chinese investors. Malaysian Ambassador to China Raja Dato' Nusirwan said in his speech that Malaysia is the first ASEAN country to establish diplomatic relations with China. Trade between the two countries has grown steadily over the years, and China has been the top source of foreign investment in Malaysia's manufacturing sector for five consecutive years from 2016 to 2020. 2021, a total of 43 projects have been approved for Chinese participation in Malaysia, with a total investment of US$3.98 billion.
"With the unfolding of Industry 4.0, Digital Blueprint, the upcoming 12th Malaysia Plan and Emerging Industries Program, and National Investment Aspirations (NIAs), Malaysia welcomes high quality investment projects including high technology, high value-added, knowledge and capital intensive sectors of the economy." Raja Dato' Nusirwan revealed that the Malaysian government is reviving the manufacturing sector with the aim of producing high value-added, diversified and sophisticated goods. The government will also continue to prioritize the incubation of a number of sub-sectors, namely electrical and electronics, machinery and equipment, chemicals and chemical products, as well as aerospace and medical equipment with high growth potential.
Raja Dato' Nusirwan added, "We agree with China that the best way to face global competition is to strengthen bilateral cooperation to create mutually beneficial and sustainable growth through trade and investment. We will facilitate Chinese companies to do business and invest in Malaysia."
Representatives from relevant fields in Malaysia also made a presentation. Zhang Chuchen, Deputy Director of MIDA Beijing Office, introduced the investment environment in Malaysia, saying that MIDA, as a statutory government agency in Malaysia and the first point of contact for foreign enterprises to land in Malaysia for investment, is mainly responsible for promoting investment and development in the manufacturing and garment industries. The Malaysian side values China's successful experience in high-tech, automobile manufacturing, agricultural modernization and other fields, and hopes to attract more Chinese enterprises, especially high-tech enterprises, to increase their investment in Malaysia and promote the development of cooperation between the two countries.
Sabah has rich natural resources and natural geographical advantages, especially after the Regional Comprehensive Economic Partnership Agreement (RCEP) came into effect in Malaysia, as a geographical link between Malaysia and ASEAN and neighboring countries, it has become a center for enterprises to expand into RCEP agreement countries. The Chairman of POIC Sabah, Derek Yeo, mentioned that POIC Nadu Industrial Park, established in 2005 through Sabah, is the first palm oil industry cluster in the world with comprehensive infrastructure development, focusing on the development of downstream processing of palm oil, which not only enhances the value of its 1.55 million hectares of oil palm plantations, creates employment and business opportunities, but also promotes the Eastern ASEAN Growth Area (Brunei - Indonesia - Malaysia - Philippines). -Indonesia-Malaysia-Philippines ASEAN Growth Area). In particular, the Industrial Park has designed a series of preferential policies for Chinese investors to welcome Chinese companies to invest in Malaysia. The Chief Marketing Officer of Business Development Division of POIC Sabah, Weiwei Luo, also said that POIC Industrial Park has huge potential and unlimited business opportunities, and can be the starting place for Chinese investors to radiate the whole ASEAN countries market with Malaysia as the center.
It is reported that the government departments of Tianjin, Shaanxi, Guangxi and other places, as well as China Technology Import and Export Group Corporation, China Shipbuilding Group International Engineering Co., Ltd. and more than 300 enterprise representatives attended the promotion meeting online.
Translated with www.DeepL.com/Translator (free version)
