Malaysia is eyeing an ambitious US$2 billion (about RM6.4 billion) worth of fixed investments every year from China, says International Trade and Industry Minister Datuk Seri Mustapa Mohamed.
He said China is expected to invest US$500 billion overseas over the next five years, with an average of US$100 billion a year, of which Malaysia intends to secure at least 2% annually.
“It is a tough job to do. But I believe in the potential lying ahead for both the countries. Thus, I am setting this goal for my team. I am sure it is achievable.
“Even if Malaysia can attract just 1% of this amount, it will increase China’s cur rent investments in Malaysia by fivefolds,” he said after a dialogue session with Chinese companies in Malaysia yesterday.
Mustapa said the investment areas will include the traditional manufacturing and services sector. However, both economies are looking to explore the vibrant IT segment, which brings in quality human capital. The minister also said more initiatives should be taken to expedite the Malaysia- China Kuantan Industrial Park, the first industrial park in Malaysia jointly developed by both countries.
“Land clearing is underway. But there are some problems at the ground. We will be working closely with the Pahang state government to solve the issues as quickly as possible,” he stressed.
Last year, China was Malaysia’s fifth-largest foreign investor in the manufacturing sector with total investments of RM3 billion through 22 projects.
For the first four months of 2014, the Malaysian Investment Development Author it y approved s eve n manufacturing projects from China with investments of RM121.2 million.
Prime Minister Datuk Seri Mohd Najib Razak recently led an entourage on a six-day visit to mainland China to commemorate the 40th anniversary of Malaysia-China bilateral ties.
Najib also held high-level fruitful discussions with the three top Chinese leaders — President Xi Jinping, Premier Li Keqiang and National People’s Congress chairman Zhang Dejiang.
The premier also announced the setting up of a special committee to monitor and follow up on actions required on the Malaysian side as a result of Malaysia-China agreements and decisions.
Najib will chair the committee, which will involve many ministries and agencies, as the aim is for the two countries to form a comprehensive strategic partnership.
The warm visit scored a direct hit on critics who claimed Malaysia and China’s relationship are under strain as a result of the disappearance of Beijingbound Malaysia Airlines flight MH370 and the authorities’ socalled dismal investigation method.