News From : DagangHalal.com (01 Oct 2009)
MORE Chinese investors are investing in the Malaysian manufacturing sector, following both governnments’ efforts to foster closer business ties, International Trade and Industry Minister Datuk Mustapa Mohamed says.
Between January and June this year, approved investment projects with Chinese interest totalled RM150.3 million and manufacturing projects with participation from China were mainly in the basic metal, rubber products and transport equipment sectors.
Miti has been monitoring the Chinese business interest in Malaysia since Prime Minister Datuk Seri Najib Razak inked the bilateral Joint Action Plan on Strategic Cooperation in Beijing in June this year.
“Some have been implemented and there is also new interest (in both sides). Our next meeting is in October,” Mustapa said in an interview with Business Times.
He said Malaysia will also benefit from China’s strong growth and improved export performance, especially in the electrical and electronics product market.
“We’re also diversifying our exports from commodites to higher value and high technology products to China,” he added.
Malaysia, with its strength in the halal products market, is also exploring opportunities in China’s halal sector.
The continued economic growth of 7.1 per cent in the first half of 2009 is a positive signal that China’s economy is holding up well and growth is picking up momentum.
According to the China’s Customs, from January to August 2009, external trade reached US$1.34 trillion although it declined 22.4 per cent from the corresponding period of last year.
Malaysia’s total trade with China in 2008 increased by 10.3 per cent to RM130.1 billion, acounting for 11 per cent of Malaysia’s global trade.
According to the Malaysia External Trade Development Corp, Malaysia’s exports to China and Hong Kong during the first seven months grew by 16.3 per cent, of which 11.2 per cent was attributed to the mainland.
China’s participation in manufacturing projects in Malaysia increased from RM33.6 million to RM245.9 million in 2003 and peaked in 2007 with investments totalling RM1.88 billion.
Approved regional establishements from China as at June 2009 comprised 163 representative offices, one regional office and four operational heaquarters.
Malaysian investments in China have also increased strongly over the past six years.
Between 2003 and 2008, Malaysian investments in China amounted to US$2.03 billion. For the first half of 2009, Malaysia’s realised investments in China totalled US$229 million, an increase of 64.7 per cent from the same period of 2008.
Malaysia’s investments in China are mainly in the manufacturing, financial, infrastructure, real estate and business services sectors.
Source: Business Times