Anwar: Malaysia secures a record RM170 bil worth of investment commitments from China

Malaysia has secured a record RM170 billion in investment commitments from China — its largest ever from the country — across 19 memoranda of understanding (MOUs) signed between Chinese and Malaysian businesses.

"We have achieved the commitment of RM170 billion in investments from China. I must thank the investors for giving their cooperation and for giving us confidence. This is historic. It is good for Malaysia and the future," — Prime Minister Anwar Ibrahim, at the Malaysia-China Business Forum 2023, attended by around 1,000 business leaders from both countries

Anwar made the announcement on the final day of a three-day visit to Beijing aimed at deepening bilateral political and trade ties. In his keynote address, he urged Chinese investors to build on the strong relationship and take up the opportunities on offer, pledging that doing business and investing in Malaysia would remain as easy as possible under his government.

Malaysia-China trade ties

China has been Malaysia's largest trading partner for 14 consecutive years, with total trade reaching US$110.6 billion (RM488 billion) in 2022. It was also Malaysia's biggest source of foreign direct investment last year, at US$12.5 billion (RM55.16 billion). Malaysia's Foreign Affairs Ministry recorded exports to China up 9.4% to RM210.62 billion (US$47.84 billion) in 2022, against imports of RM276.50 billion (US$62.78 billion) — a 20.7% increase year-on-year.

Chinese companies already invested

Anwar, who also holds the finance portfolio, said Malaysia's appeal as an investment destination is reinforced by the presence of major Chinese firms already operating there, including Risen Energy, Huawei, Longi Solar, Bytedance, Jinko Solar, EVE Energy, Alliance Steel, Alibaba Group, Geely Auto Group, and Xiamen University. He said he hopes these companies will keep expanding and partnering with local firms and government to build new industries and create well-paid jobs for Malaysians.

Regional and bilateral cooperation

Anwar said Malaysia will keep deepening cooperation with China under the Belt and Road Initiative and expand into new areas like green development and the digital economy. Regionally, he said Malaysia will work with fellow ASEAN states to ensure the ASEAN-China Free Trade Area (ACFTA) benefits everyone involved — its planned upgrade would extend trade and investment cooperation into the digital economy, green economy, competition and consumer protection, and MSMEs. He also stressed keeping the Straits of Malacca free and safe for trade and international stability, calling it "our moral and historical duty."

Notable MOUs signed

Among the 19 MOUs Anwar witnessed: a heads-of-agreement between DRB-Hicom Bhd and Zhejiang Geely Holding Group for a proposed joint venture developing an automotive high-technology valley for new-energy vehicles in Tanjung Malim, Perak; an agreement between the Associated Chinese Chambers of Commerce and Industry of Malaysia and the China Chamber of Commerce covering machinery and electronics trade; a deal between Digital Way Group Sdn Bhd, China Silk Road Group and China Kairous Capital to jointly establish a Malaysia-China digital development fund; and a proposed waste-to-energy plant development.

International Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said the MOUs reflect the importance of China-Malaysia collaboration and should generate significant spillover benefits for the wider ecosystem, calling the visit "very productive" and pledging that his ministry will monitor the MOUs to ensure the commitments are met. The prime minister's delegation also included Foreign Minister Datuk Seri Dr Zambry Abdul Kadir, Transport Minister Anthony Loke, Local Government Development Minister Nga Kor Ming, Science, Technology and Innovation Minister Chang Lih Kang, and Tourism, Arts and Culture Minister Datuk Seri Tiong King Sing.

Source: The Edge Markets