News From : DagangHalal.com (27 Nov 2013)
LABUAN, Nov 26 (Bernama) — Chinese investors are starting to look to Labuan for possible business ventures.
A high-powered business delegation led by China’s Ambassador to Malaysia, Datuk Chai Xi Xi was in Labuan last week to accelerate bilateral trade relations.
A host of issues were discussed by industry leaders from both sides, with the Labuan Member of Parliament Rosman Isli, also present.
Chai said in a bid to strengthen bilateral economic ties, Labuan and China plan to explore opportunities for cooperation in various potential sectors.
Among future growth areas being eyed for cooperation is oil and gas (O&G), tourism, education, construction and port development.
“Both sides have agreed to promote business-to-business contacts in these sectors,” he told Bernama.
He pointed to a potential role for Labuan’s international education institutions, with hundreds of Chinese students studying in University Malaysia Sabah.
Another area of cooperation is the promotion of the Small and Medium Enterprises (SMEs) sector.
Chai also said China was committed to consolidating its partnership with Asean members with US$500 billion expected to be invested in the region over the next five years.
Malaysia is China’s biggest trading partner, with total trade of US$433.6 billion in 2012.
According to 2012 statistics, Malaysia was China’s foremost trading partner in Asean for the fifth year running. China was also Malaysia’s top trading partner for the fourth consecutive year.
Chai said that Malaysia, including Labuan, stands to be among those Asian countries to benefit from China’s future investments.
He also suggested that Labuan be linked to mainland Sabah for speedier economic development.
“We can accord special status to Labuan within this region,” he said.
Rosman said Chinese companies are becoming increasingly interested in doing business and undertaking investments in Malaysia of late.
“It is our policy to further increase ties with foreign countries like China. Industry players from the country should have come to Labuan earlier, as we have many things to attract investments, particularly in O&G, coupled with the cluster economy, which is well developed,” he added.
He said Labuan through the Labuan Corporation is striving towards turning the island into a vibrant economic destination for foreign investors.
“We are developing the tourism industry and halal hub due to its potential, and undoubtedly, there are Chinese investors also keen to look into these sectors,” he added.
Rosman also hoped for a spillover into Labuan of China’s US$500 billion in investments into Asean.
“Of course, we have to work harder to attract Chinese investors to Labuan, in the next couple of years,” he said.